• clarkhoward.com - Clark's 529 plan guide

Consumer Reports recently published its well-known annual auto issue. The issue is considered one of the most reliable and thorough sources when reporting on which cars to buy and not to buy. Surprisingly, the least reliable of all cars this year is Mercedes. It has been moving slowly down the list, and this year the German automaker – with its 36 brands – is dead last. In fact, the report stated that a 10-year old Lexus is more reliable than a new Mercedes. Next to last was Land Rover, preceded by Hummer, Jaguar and Cadillac was fifth from the bottom. So, what are the most reliable brands? The top five are either Toyotas or Hondas. The No. 1 most reliable brand is Toyota, No. 2 is Honda, No. 3 is Scion, No. 4 is Acura and No. 5 is the Lexus. The cars that retain the most value over time are Toyotas and Hondas, so the cost is actually less than what it appears to be. You still want to have any used car checked out by a certified mechanic. That’s because once you buy it, it’s yours. So, you want to know about any problems ahead of time. How about new cars? In the “Budget” category, the Honda Fit won. In the “Small Sedan”, it was the Honda Civic. In the “Family Sedan,” it was the Honda Accord. The Infiniti G35 won in the “Upscale Sedan.” The Infiniti M35 won the “Luxury” category. The car deemed the most fun to drive while being reliable is the Mazda Miata. The best “Green” car was the Toyota Prius.

You might not think you’d hear about Anna Nicole Smith on Clark’s show. But as he heard more about this story on every television channel, it got him thinking that her story helps illuminate the need for a will. Smith had no will. As a result, people are fighting over her daughter and, therefore, her money. It’s going to cost the taxpayers thousands of dollars as this dispute plays out in court. If you are married, or are married with kids, you need to have a discussion with your loved ones and prepare a will. It takes about 15 minutes with the software program, WillMaker, and will save your family huge heartache. Also remember that the beneficiaries you have listed at brokerage houses will trump those you have listed in your will. So, check that stuff every other year. If you have your first wife listed as your beneficiary on your 401k plan, for example, she will get your money, even if you have a new wife who is listed on your will.

Clark wants you to know about Robert Delani. He started out doing honest enough work, working as a teacher. He had a doctorate from the University of Toronto and had a bright, constructive future ahead. But he got bored with that and decided to get into investments. And these weren’t legal investments; they were phony. He’s been in prison several times and is now a fugitive. He’s found that people will give him money over and over for the most bogus reasons. The first time he sold phony gas and oil opportunities. The second time it was penny stocks, which are loosely regulated stocks that turn out to have no value. He used his stepson’s name to do this. Then, after another stint in prison, he bilks $3 million out of more people for shell companies. Well, now he’s 72 and he’s still at it. When you hear Clark talk about investment opportunity scams, pay attention to the targets. These things are not happening to uneducated people. The main targets are doctors, lawyers and entrepreneurs. And entrepreneurs are extra susceptible. Stick to your guns on your beliefs about your business and don’t listen to people who say they know better.

You’ve probably heard of college savings plans. What you may not know is that every plan must be sponsored by a state, and states can sponsor more than one plan. Clark has a guide on the site telling you exactly which plans will give you the best bang for your buck. Utah has the lowest cost of any plan in the country, and is Clark’s top choice. You can find more great plans on Clark’s list. In addition, residents of one state can buy a plan in any other state. But you want to buy one of the good plans. On the other hand, Morningstar conducts an annual survey of plans to give you the worst 529 plans out there. One of the worst plans in the country comes from Alaska, for example. But the state also has a great plan. The way you tell the difference is if you see that the plan is sold by a commissioned-salesperson. You don’t want this. You want plans that are either “direct sold” or they say “direct plan” on them. Cost is the central issue with these plans, so pay attention.