meta_pixel
Tapesearch Logo
Log in
The Clark Howard Podcast

2.26.20 Discount brokerage consolidation; Check scam hitting millennials; Beware bad car-buying advice

The Clark Howard Podcast

Clark Howard

Business, Investing, Entrepreneurship

4.65.2K Ratings

🗓️ 26 February 2020

⏱️ 36 minutes

🧾️ Download transcript

Summary

The investment industry is going through consolidation that will lead to fewer players. Weakened mutual fund companies, stock brokerages and investment houses are merging. A small number of huge players will emerge. All this has come about because of the enormous strength of the big 3 discounters. Vanguard, Fidelity and Schwab have essentially demolished the competition. Traditionally, investors paid massive fees to bank investment arms or full commission stock brokers. Some still do but the movement is to lower costs. Full commission outfit Morgan Stanley is buying discounter E*Trade, ostensibly to sell E*Trade customers on their products. It’s important to know what you’re buying with any organization you invest with. Understand what you’re getting and what you’re paying. The FTC warns the phony check scam is roaring back, now successfully targeting young adults – those in their 20s and 30s who have never been check writers. They’re less likely to suspect a check is bogus, especially if it clears. In addition to elder loved ones, make sure the young adults in your life know that if they get a UFO check with instructions to deposit, keep part of the money and do something else with the rest, they’re about to get scammed big time. The check that cleared will usually bounce in 4 to 6 weeks, and they’re liable for all that money.    Right now there are various disasters associated with trading in a car. Simple rule: DON’T trade in a car that is not paid off. Around 30 – 40% of people are dumping cars they’re upside down in. Danger zone. There are dishonest car dealers that know they can’t get a loan to cover an upside down trade, so they’ll encourage the customer to buy a new car with a fresh loan, and just default on the vehicle they wanted to trade in, and turn it in to the lender. In the auto industry, this is called ‘kicking the trade’. These dealers are NOT telling people that allowing a repossession will ruin their credit for 7 years. The lender sells the vehicle at auction, and in most states you’re liable for the difference between what it sold for and your balance plus expenses. You no longer have the vehicle, your credit is ruined and you’re responsible for all the money the lender lost. This eats up your future. If you hate your car and owe on it, tough it out, keep driving it and pay off that loan. Get out of the cycle of owing more on vehicles than what they’re worth. Long loans leave you upside down, and paying way too much interest. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

Ready to take your crypto trading to the next level?

0:03.4

Look no further than Crack and Pro, the ultimate platform for traders.

0:07.0

Crack and Pro gives you access to advanced charting tools,

0:10.1

real-time market data, and lightning fast trade execution.

0:13.7

Plus with an intuitive interface and customizable layout,

0:16.8

you can tailor your trading experience to suit your needs.

0:19.6

Join millions of traders who trust Crack and Pro for their crypto trading needs.

0:23.8

Visit pro.crack and dot com to get started today.

0:26.6

Not investment advice, crypto trading involves risk of loss.

0:30.2

It's my pleasure to welcome you here at the Clark Howard Show,

0:38.9

where it's all about you and your wallet.

0:42.0

I want you to learn ideas so you can save more and spend less.

0:46.2

And don't let anyone ever rip you off our websites,

0:49.5

carc.com and carcdeals.com.

0:52.5

Coming up in just a few minutes,

0:54.9

there's an old scam that has roared back

0:58.4

and seems to be working really well for the crooks,

1:02.1

targeting a new audience, and coming up later,

1:06.2

there's something that car dealers are up to

1:09.4

that I need to give you a special warning about,

1:13.3

so you don't get burned when you are considering buying a new vehicle.

1:19.7

So the investment industry is going through a massive change.

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from Clark Howard, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Clark Howard and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2026.