7.29.19 More people are ditching home internet; Watch out for these fake charges; You might actually need flood insurance

7.29.19 More people are ditching home internet; Watch out for these fake charges; You might actually need flood insurance

The simple scam hitting millions of us is an easy rip-off to watch out for.  Consumer warning: What you don't notice on your monthly bills can cost you. While a big bank looked the other way, criminals stole untold hundreds of millions from consumers. The bank had sold all the credit card numbers in their portfolio to crooks who put fake charges through monthly for 3 years. The bank played dumb and 93% of consumers never noticed fake charges hitting them every single month. The worst part is that the criminals are heavily targeting debit card users. If you don't notice immediately a fraudulent debit, you don't have the rights that come with credit cards. The money is gone forever even if your bank acknowledges the fraud. You're out the money. It's up to you every month to look through credit and debit charges. If something doesn't look right - dispute it.

Much of the country has seen devastating flooding. Even outside federally designated flood zones there is risk. Facing that risk is vital.  By FEMA's own admission, current flood maps are out of date and incomplete around the country. 3 additional factors: rising sea levels, development replacing ground cover with asphalt and increasingly severe weather patterns - are putting more properties at risk of flooding. The Midwest is suffering mightily from extreme flooding, devastating the lives and finances of many. The terms "1000, 500 and 100 year floods' refer to specific math formulas and are not to be taken literally. Be realistic. If you can see development above you, you could be a sitting duck for flooding, which regular insurance does not cover. Check prices at




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The cost of home broadband has gotten so expensive and more consumers are disconnecting home internet in favor of cell phone Wi-Fi. USA Today reports 40% are using cell phone internet exclusively now for service. They're finding that it works out fine. On cell phones, people don't have to worry about data overages. Some carriers may impose network management for those who've used a lot of data that month and find themselves in congested areas, by crawling service till the next billing cycle. But there's no overage. This is a great alternative to paying huge money to a cable monopoly for home internet service.The simple scam hitting millions of us is an easy rip-off to watch out for. Consumer warning: What you don't notice on your monthly bills can cost you. While a big bank looked the other way, criminals stole untold hundreds of millions from consumers. The bank had sold all the credit card numbers in their portfolio to crooks who put fake charges through monthly for 3 years. The bank played dumb and 93% of consumers never noticed fake charges hitting them every single month. The worst part is that the criminals are heavily targeting debit card users. If you don't notice immediately a fraudulent debit, you don't have the rights that come with credit cards. The money is gone forever even if your bank acknowledges the fraud. You're out the money. It's up to you every month to look through credit and debit charges. If something doesn't look right - dispute it.Much of the country has seen devastating flooding. Even outside federally designated flood zones there is risk. Facing that risk is vital. By FEMA's own admission, current flood maps are out of date and incomplete around the country. 3 additional factors: rising sea levels, development replacing ground cover with asphalt and increasingly severe weather patterns - are putting more properties at risk of flooding. The Midwest is suffering mightily from extreme flooding, devastating the lives and finances of many. The terms "1000, 500 and 100 year floods' refer to specific math formulas and are not to be taken literally. Be realistic. If you can see development above you, you could be a sitting duck for flooding, which regular insurance does not cover. Check prices at Floodsmart.gov . If you're in a low risk area, the premiums vs the coverage are reasonable - a few hundred a year in a low risk area for around $250,000 in coverage.Learn more about your ad choices. Visit megaphone.fm/adchoices Read more

7.24.19 T-Mobile merger details; Don't trust anonymous surveys; When should you call customer service?

7.24.19 T-Mobile merger details; Don’t trust anonymous surveys; When should you call customer service?

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The T-Mobile merger is likely to be approved very soon. And it's not all that bad as it turns out; Don't take "anonymous" surveys that your work sends you. You aren't really anonymous; Clark tells you when to call customer service to avoid waiting forever for help.Learn more about your ad choices. Visit megaphone.fm/adchoices Read more

Are home warranties worth it?

Maybe you’ve seen or heard one of the many advertisements out there for home warranty companies — they’re pretty hard to miss. Or, perhaps some of your friends have bought home warranties themselves. That may leave you wondering: “Are home warranties worth the money?”

In this article, we’ll discuss:

• What money expert Clark Howard thinks about home warranties
• What home warranties do and don’t cover
• Home warranty horror stories
• The one case where a home warranty might make sense

Why Clark Howard says home warranties are mostly a waste of money

According one survey, home warranties were a $2.3 billion business as of a few years ago.

Clark thinks that’s 2.3 billion dollars too many.

“It sounds so wonderful,” Clark says. “You pay five or six hundred bucks and supposedly you are buying peace of mind for repairs and replacement of appliances and major mechanical in their house. But when something goes wrong, the warranty company is, like, ‘Who are you? You want us to do what?’”

“Trust me on this: Don’t waste your money on a home warranty. Instead, save your money for when something does break in your home.”

Clark says that in reality, if something goes wrong in your home the warranty companies are brutally difficult to deal with. They require you to use their contractor only. That contractor may or may not come on schedule while you’re suffering in the summer heat with a broken AC unit. And don’t forget that you’ll have a deductible to pay on top of that.

Clark’s word not enough for you?

Consider this: According to the Washington Post, American Home Shield (the country’s largest home warranty company) has been the subject of nearly 11,000 complaints to the Better Business Bureau in the last three years alone.

What home warranties do and don’t cover

In addition to being notoriously hard to work to work with, home warranty companies don’t always make it clear in their advertising what isn’t covered by your warranty.

While most home warranties will generally cover the appliances in your home, the systems in your home (your HVAC unit, for example) or both, there can be some notable exceptions.

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These can include things like:

• Fireplace systems (even if they are your main source of heating)
• Alarm system wiring
• Telephone wiring
• Plumbing lines that are damaged by roots or foreign objects
• Broken or collapsed sewer lines outside your home’s foundation

Here are 11 more things that may not be covered by your home warranty.

Home warranty horror stories

Still not convinced that home warranties are a bad idea?

Team Clark and our Consumer Action Center hear all the time from people who feel like they’ve been taken for a ride by their home warranty company.

For example, Bill C.B. wrote on our Facebook page:

“My toilet has a leak at the base of toilet (I think the wax ring needs to be replaced). And it rocks back and forth when sitting on it. Called for service, technician came out and [they] denied the repair because you can not see the leak on top of the vinyl floor (it is slowly seeping in between the concrete slab and the vinyl flooring). But [they] took my $100 fee.”

And Deborah F.H. said:

“I got one of these with the purchase of a new condo. The bathroom faucet that started leaking 30 days after we moved in? Not covered. The hot water heater that failed? Replaced with a far inferior one! And still cost $600 for ‘whatnots.’ [The company] called me about renewing & I just started laughing.”

The one case where buying a home warranty might make sense

Despite everything you’ve just read, Clark does have one exception to his rule against buying home warranties.

“When you’re selling a home, offer the buyers a used home warranty, even though I think they’re worthless,” he says.

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He points to this Los Angeles Times article, which references a study that says that homes that come with a warranty sell 11 days quicker and for $2,300 more, on average, than those without them.

“If that makes me a hypocrite, so be it,” Clark says. “These warranties are a joke — they seldom pay off — but they’ll pay off for you as a seller.”

Final thought

Although a home warranty may be tempting you with the notion that you’ll have peace of mind in case anything big or expensive in your house breaks, hopefully at this point you know that they’re a bad idea.

Instead, put away some money in a home fix-it fund of your own. You’ll be prepared to take care of any emergency yourself — and not at the mercy of a company who just wants to keep more of your dollars in their pocket.

More stories you might enjoy from Clark.com:

How to refuse an inherited timeshare

If you’ve been “gifted” a timeshare property through an inheritance, you might be looking to disinherit or reject it.

We can’t blame you. Money expert Clark Howard calls timeshares “a defective product” and says that “when you buy a timeshare, the next day it’s worth less than zero — because, basically, there are no buyers.”

The same goes for inheriting a timeshare. Unless the property is one that has been in your family for a while and you’re sure that you’ll take full advantage of it, there’s a good chance that you don’t want to take on the many expenses associated with owning one.

In this article, we’ll go over how to disclaim a timeshare if you’ve inherited one against your will. Keep in mind that the process for doing this can vary from state to state. You’ll want to check the laws where you live, but in general the process should be pretty much the same.

Inherit a timeshare you don’t want? Here’s what to do

If you are either left a timeshare in a will or are the legal heir of someone who owned a timeshare and died without a will, you may choose to refuse to accept your inheritance. In legal terms, this is generally called “renunciation of property.”

Here are the keys to doing that in Team Clark’s home state of Georgia. As we mentioned, the laws in your state might vary slightly, but if you Google “renunciation of property + (your state name)” you should be able to get the details:

1. Act quickly

First of all, it’s important not to drag your feet if you inherit a timeshare or other property you don’t want.

In the state of Georgia, you only have nine months from the time you inherit a property to refuse it. If you are under 21 years old when you inherit the property, you have nine months from the time you turn 21 to do it.

It’s very important that you not use the timeshare or receive any sort of compensation from it during these nine months. If you do, you’ll give up your right to refuse the property.

2. Draw up a document renouncing the timeshare

Once you’ve determined that you want to refuse your inheritance, you need to draw up a document. This document should include:

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1. A description of the property. If you don’t have this already, you should be able to get it from the executor of the estate.
2. A statement declaring your renunciation and the extent of it. In this case you will want to renounce the timeshare forever.
3. Your name and signature.

3. Send copies of your renunciation via certified mail to interested parties

Next, you should make several copies of the document. Keep one for yourself and send a copy via certified mail to the executor of the estate and one to the timeshare company itself.

4. File a copy of the renunciation in probate court

Finally, you’ll want to file a copy of your renunciation in the county probate court where the estate that’s willed you the timeshare is being handled. This will serve as an official record of your renunciation in case it is ever questioned.

Final thought

As you can see, refusing the inheritance of a timeshare shouldn’t require too much effort on your part. Just remember to act within the allotted period of time in your state to make sure you’re not stuck with something you don’t want and is nearly impossible to get rid of.

Of course, another option that could help you avoid all of this in the first place is to be proactive. If you have parents or other relatives who own timeshares and have expressed an interest in willing them to you, you could politely let them know now that you’d rather not be an heir to one and avoid headaches later.

More stories you might enjoy from Clark.com:

What is long-term care insurance and do you need it?

Long-term care insurance is an important part of financial planning that’s too often overlooked as you’re getting ready for the future.

Part of that is because there’s confusion about what long-term care insurance does. And then there’s also the question of cost, which has been unmanageable for some.

In this article, we’ll take a look at what long-term care insurance is and suggest some ways to make it more affordable.

Understanding long-term care insurance

When you’re planning for retirement, it’s important to save money to replace your income when you no longer work. But what about health care? If you have health care retiree benefits through work, that’s one option.

For those who don’t, there’s Medicare. And for those below a certain income level, there’s Medicaid.

But as you age, what happens when you need help with the everyday activities that you used to be able to accomplish on your own?

“People think the government is going to pay. But the government requires that you completely impoverish yourself before they’ll pay through the Medicaid program,” money expert Clark Howard notes. “You can have no assets and they ultimately take your family home. Ultimately, they take everything if you depend on the government.”

So it’s your choice: Take your chance that you’ll be in the small minority of seniors who never needs long-term medical care in old age. Or buy a long-term care insurance (LTC) policy.

What is long-term care insurance? — Table of contents

What is LTC insurance?

Long-term care insurance is an insurance policy set up to pay for long-term medical care services. These services can include personal and custodial care in a number of living arrangements and settings.

An LTC policy will pay a daily amount for services to assist policyholders with the costs of finding the help they need to accomplish routine activities they can no longer do on their own.

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What does it cover?

LTC policies typically pay for skilled nursing care to assist policyholders with daily activities including:

• Bathing
• Dressing
• Eating

The care can be delivered in a variety of settings:

• Nursing homes
• Assisted living facilities
• Skilled care in your home

When is the best time to buy LTC insurance?

Because LTC insurance can be costly, you typically want to buy it in your late 50s to early 60s. By then, your children should be grown, which frees up some of your cash flow in your life. Yet you’re also young enough that you can pass medical underwriting for a policy.

So late 50s to early 60s is really the sweet spot for buying LTC insurance.

If you’re tempted to lock in a lower rate by buying a policy earlier, Clark says don’t be. Since too many companies made promises of coverage that were too generous in the past, the market for LTC insurance is going through some pain at this time.

“Right now, there’s no advantage to buying LTC insurance early because the market’s pretty messed up right now,” the money expert notes. “Give it time to get more stable.”

How do you buy LTC coverage?

Shopping for LTC insurance may be simplified by contacting an independent agent who can shop quotes from a variety of companies for you. The following companies are all good starting points:

Understanding hybrid policies

As mentioned before, one of the big problems with LTC insurance is the cost. Premiums can often be several thousand dollars a year and they often go up by leaps and bounds. But a new version of LTC coverage called a hybrid policy may offer a solution.

“The problem with long-term care policies is that the policy premiums are not guaranteed. With a hybrid policy, you buy a whole life insurance with a rider that lets you convert the death benefit into payment while you’re living to afford long-term care,” Clark says. “The advantage is that you never have to worry about premium escalation. You have preordained the total benefit of your policy.”

According to The Wall Street Journal, the target market for these hybrid policies tends to be wealthier families who don’t want the financial legacy they plan to leave their heirs eaten up by rising medical costs.

Clark’s LTC insurance shopping tips

1. Don’t buy LTC insurance if you are very wealthy or very poor. Very wealthy means having investable assets of $3 million to $4 million — not including your home. And very poor would mean qualifying for Medicaid.

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2. Make sure the benefit adjusts over time based on inflation. Medical inflation is higher than the normal inflation rate. You should look for an inflation level somewhere as much as 3% a year — because what seems like a good benefit today will look puny in 15 or 20 years.

3. Look for a 5-year benefit with a 6-month waiting period upfront.

4. Adult kids of aging parents may want to consider paying the premiums on their parents’ policy themselves. Why? To protect their financial interest in any possible inheritance and to protect their parents against medical expenses they may face some day.

5. Finally, only consider insurance companies that have been rated A++ or A+ (by A.M. Best), which means they are of the highest financial strength. It also means that they likely won’t jack up the rates after a few years, which has been an industry-wide problem.

Here are a few options to get you started:

LTC insurance provider Financial strength and stability rating Northwestern Mutual Life A++ New York Life A++ Mass Mutual A++ Mutual of Omaha Insurance A+

Source: A.M. Best

Final thought

A lot of people shy away from buying long-term care insurance simply because they don’t understand it. But buying this policy is a key part of financial planning for your later years.

Remember, you don’t want to have to depend on the government to pay for your long-term care — unless you’re fine with impoverishing yourself and leaving nothing behind for your heirs!

More insurance stories on Clark.com

How to make money with Airbnb

If you’ve ever considered ways to generate some supplemental income, you may have pondered the possibility of listing your home on Airbnb.

The company started in 2007 when its two co-founders advertised a night on an air mattress and breakfast in the morning (“Air Bed & Breakfast”) to attendees of a design conference in San Francisco. Now, the company is worth more than $30 billion.

How to make money on Airbnb: Things to consider before listing

If you’re paying a mortgage for our outright own a single-family home, you should be fine renting it out. If you’re paying for a condo, apartment or town home, there may be some occupancy rules that prohibit such transactions. It’s up to you to do your homework so that you don’t run afoul of the law.

In many cases, local authorities have turned against Airbnb. Some municipalities have banned people from renting out their homes.

Money expert Clark Howard says, “The tremendous success of these platforms is what’s led to these strong reactions and the attempts to shut down your ability to earn some cash or have it be the principal reason why you have a place, and you just gotta know that that could happen to you.”

Also, it’s a good idea to find out what other homes in your area are renting for. This requires not only browsing similar listings on Airbnb but a general knowledge of local real estate prices. You’ll also want to check what effect Airbnbing your home will have on your insurance premium

How much can you make on Airbnb?

There are some property owners that make six figures annually on Airbnb — but they’re typically investors with second and third homes. People who list their primary residences can add thousands of dollars a year to their wallets, but it takes time, preparation and realistic expectations.

Before you sign up, it’s a good idea to know what fees are associated with your payout. Airbnb calculates your payout as your nightly rate minus the host service fee, which is generally 3%.

Along with their homes, hosts can charge for “experiences,” which are Airbnb describes as “excursions or other activities designed and led by local hosts.”

Airbnb also usually charges hosts who offer an experience a 20% fee, largely based on the experience. They’re only available in certain cities as of now, but the list is expanding.

Consider how renting will affect your taxes

When it comes to renting your space, many first-timers don’t know about the 14-day rule allowed by the IRS . This provision, sometimes called the “Master’s exception,” named after the Master’s golf tournament in Augusta, Georgia, means you don’t have to pay tax on the income you earn from renting out your home. The key is that the renters can’t stay longer than 14 days a year and you must live there at least 14 days of the year.

Keep tabs on your spending

No matter how much money you spend on sprucing up, cleaning and overall improving your dwelling, keep good records. Come tax time, you’ll want to be able to document every expense that’s deductible.

Once you feel comfortable about having someone stay in your home, it’s time to find some guests! The first thing you want to do is take photos of your home so that they will show well on the Airbnb site and app.

Take gorgeous photos of your home

The importance of taking great pictures of your home’s exterior and interior is such that a whole photography cottage industry has popped up and Airbnb supports it. People have made careers out of just taking photos of rental properties.

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If you plan on doing the photography yourself, some photo tips you’ll want to consider include always brightening the photo and shooting corners to show more space.

List your home on Airbnb

Ready to make money on Airbnb? Go to Airbnb.com, log in and list your home. When you do, you may get a few questions from interested parties. Make sure you answer in a timely fashion. They’re probably gauging several places at once, and being the first one to get back to them may make the difference between $$$ in your pocket or not.

If your abode stays on the site awhile without any takers, that’s OK. Many hosts don’t get any guests until it’s vacation season or a really large event takes place in their town. But once you get some inquiries, that’s your cue to inquire a little yourself.

Try to find out as much about the guest as possible

If someone inquires about your home, you can approve or deny the request. But before you make your decision, it’s good to know why they are interested in your home. Read any reviews on the prospective guest’s previous Airbnb stays so that you can make an informed decision.

In many cases, individuals, friends or families may be on vacation and looking to explore a new city. In other cases, you may be able to surmise that they’re planning on throwing a huge party — one that could get them and you in huge trouble!

Once you decide to accept the guest, the next order of business is making sure your home is safe and clean.

Expertly clean your home

While it’s true that you may be able to take a mop or vacuum cleaner and make your floors look brand-new, when it comes to cleaning, there are nooks and crannies that you’ll likely need professional help with.

Cleanliness, along with safety, is probably the highest value that an Airbnb home can possess— and it’s easy to brush it off (excuse the pun). If you don’t have a few days to devote to it, consider hiring a professional cleaner or maid service to give your pad the stellar shine it deserves.

If you choose to forgo the DIY route, sites like Tidy.com and TurnoverBnb are primed to clean short-term rentals.

Make sure your home is well stocked

No, you don’t have to provide food, but regular toiletries and basic cleaning supplies should be stored in a common area for easy access. If your guests need some paper towels because of a spill, they shouldn’t have to be tempted to use a bed sheet.

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RELATED: How not to get kicked out of your Airbnb

Create some house rules

The best Airbnb transactions take place when there are clear expectations on both sides. Guests expect clean and safe homes that they can be comfortable in. Before your guests arrive, send them house rules that they must abide by (we’ve also seen them posted on the fridge). These should not only be things that are important for you (no house guests allowed), but also respectful nods to your neighbors (no skinny dipping in the hot tub) and city ordinances (no loud music after 9 p.m.).

Be of service to your guest

While many hosts may never see or meet their guests, you can really score some points for hospitality if you make time to greet your visitors and perhaps answer their questions.

Financial blogger Paula Pant, who wrote for Clark.com about her experience renting her place on Airbnb, said she viewed the transaction as providing a service.

“As an Airbnb host , I see my role as that of a hotel concierge,” Pant wrote . “I offer complimentary bottles of water, give directions and offer restaurant suggestions. I supply my guests with an abundance of fresh, fluffy bath towels, matching plates and mugs, wine glasses and a few coffee table books.” Again, keep good records of these expenses for when tax time rolls around.

What to do if there are disputes

As with anything, disagreements sometimes happen. Airbnb usually errs on the side of the homeowner when it comes to disputes, so make sure you keep as many records as you can. That includes photos of your place from before guests arrive and after they leave.

If your guests want to start correspondence outside of the Airbnb app, politely tell them that you’d rather communicate inside the platform. That way, Airbnb has documentation in case there is a disagreement over the rental terms.

Keep a record of expenses — you can deduct them

The Internal Revenue Service allows you to deduct normal supplies you buy to keep your Airbnb business going. That means you can get your money back for things like light bulbs, paper towels and cloth towels. If you provide food in the pantry for your guests or an expensive bottle of wine, it’s all deductible as part of your rental.

Deduct the service fee from your earnings

As for Airbnb’s service fee , you can deduct that amount from your earnings on your 1099. If you rented out your home for at least 14 days in the year, you should receive a 1099.

Make sure you file a W-9

Airbnb and other homesharing companies must withhold 28% (your specific tax rate may be lower) of your income if you don’t provide them with a W-9 form.

Keep up to date with the latest money-making tips and more at Clark.com . Subscribe to our newsletter and follow us on Twitter and Facebook!

Amazon Prime Day 2019: Top 5 ways to get the best deals!

Amazon Prime Day 2019 is quickly approaching! The online shopping event starts Monday, July 15 at 3 a.m. ET (12 a.m. PT) and runs through July 16 — that makes for 48 hours of great deals this year.

Are you ready to shop? Before you add anything to your Amazon cart, there are a few things you should know…

Amazon Prime Day 2019: How to get the best deals during the 48-hour sale! 

1. Timing is everything

This year Prime Day is actually two full days, so when can you find the lowest prices? The answer really depends on what you’re shopping for.

Amazon devices like the Echo, Fire TV and Kindle will likely be discounted throughout the entire shopping event.

ClarkDeals.com managing editor Charis Brown says that the best deals don’t pop up overnight, but all other hours of the mega-sale are fair game.

In fact, some of the best TV deals in recent years went live in the final hours of Prime Day.

2. Update your address and payment information 

Don’t miss out on limited-time deals because you have an expired credit card linked to your account! Update address and payment information before you start shopping.

Have an Amazon Prime credit card? You’ll get an extra 5% off all of your Prime Day purchases.

3. Download the Amazon app 

If you don’t have the Amazon app on your phone, now is the time to get it. It’s the easiest way to preview and track Lightning Deals, but you may want to make your purchase on a desktop. More on that later on…

To get notified when a deal starts, tap “Today’s Deals,” then the “Upcoming” tab and “Watch This Deal” on a specific item.

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4. Buy on your desktop for easy comparison shopping

Money expert Clark Howard recommends that you comparison shop every day of the year, even on Prime Day!

CamelCamelCamel is a popular site to help you check the price history of Amazon items. Just enter the Amazon URL and click search to see if you’re getting a good deal. You can even set up price alerts.

Comparison shopping takes a bit of work and requires you to have multiple tabs open, so it’s probably best to buy on your desktop.

5. Don’t forget about Whole Foods

Amazon is offering Prime Day deals at Whole Foods Market once again this year. When you spend $10 in the store or online between July 3 and July 16, you’ll get a $10 Amazon credit to spend on Prime Day.

To take advantage of this offer, just scan your Prime Code from the Whole Foods app or use your phone number at checkout.

Final thought 

If you don’t have an Amazon Prime membership, you can sign up for a 30-day free trial to shop on Prime Day. Amazon Prime Student has a six-month free trial offer.

For returning members, you don’t have to pay $119 for a yearly subscription — pay $12.99 for one month of access instead.

Think about it this way: If you take advantage of the Whole Foods deal alone (spend $10, get $10), you’ll offset most of the one-month cost of Prime. Just remember to cancel it within 30 days if you don’t want to be billed again.

To stay on top of the best Prime Day deals, visit ClarkDeals.com and sign up for our newsletters!

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