NEWS FLASH
(Note: Some of the "News Flash" links in this section may require a subscription. We intentionally provide a short, easy-to-read summary in the chance you can't access the full story.)
⛪️ Divine Loophole, Earthly Consequences: Church retirement plans operate beyond federal oversight, leaving workers vulnerable to being spiritually and financially betrayed. Religious organizations can legally sidestep ERISA regulations that protect pensions and 401(k)s, avoiding funding requirements and PBGC insurance that safeguards benefits when plans fail. The results of this recent story are devastating: St. Clare's Hospital nurses lost lifetime pensions, AME Church employees saw retirement accounts plummet in a $90 million fraud, and countless others face similar fates. While Congress carved out this religious exemption in 1974, assuming churches would honor commitments, the reality has proven far less righteous—leaving retirees like nurse Anne Hotaling holding nothing but broken promises and empty bank accounts.
👷 Builder Blues: Builder sentiment plunged to 42 in February, dropping five points to hit a 5-month low amid growing economic anxieties. The NAHB reports builders are increasingly concerned about potential tariffs on imported construction materials, persistently high mortgage rates, and escalating housing costs. This uncertainty is especially evident in sales expectations, which tumbled 13 points to their lowest level since December 2023. While price-cutting strategies have decreased—only 26% of builders reduced prices in February compared to 30% in January—the tariff situation has builders on edge, with responses collected before the announced pause on Canadian and Mexican tariffs showing significantly lower confidence than those after.
🌎 Tariff Timetable Tangle: Trump declares Mexico and Canada will face 25% import tariffs starting March 4, with China getting slapped with an additional 10% duty on the same date. The announcement directly contradicted his own economic advisor Kevin Hassett, who had just told CNBC that tariff decisions would wait until April. Trump justified the Mexico-Canada tariffs by claiming "illicit drugs are still pouring" across borders. Markets initially dipped on the news before recovering, while economists note these formal executive orders represent a more concrete threat than Trump's previous tariff tweets.
RETIREMENT ARTICLES
What We're Reading
- How should your allocation change with age? (Of Dollars and Data)
- IRS tips on how to make easier tax returns (IRS)
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Identity Theft Awareness Week (Federal Trade Commission)
- Early retirement may not be optional (CBS News)
- Wildfires ignite insurance crisis for Californians (Nerd Wallet)
- Financial influencers are NOT looking out for your best interests (Fast Company)
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Accessing retirement savings early and penalty-free for disaster relief (Investopedia)​
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15 Part-time jobs for retirees (no degree required!) (AARP)​
CHART OF WEEK
Retirement Withdrawals & Investment Allocation: While no strategy is guaranteed to produce a real (after-inflation) 4% withdrawal rate in retirement, according to this study, the LEAST risk of failure comes from the MOST volatile asset allocation—a 100% global stock portfolio.