ARBOR WEALTH: U.S. pension crisis not limited to Motor City

Published: Saturday, August 24, 2013 at 06:05 PM.

Illinois Governor Pat Quinn threatened to withhold the paychecks of state legislators until the crisis was effectively addressed. And Chicago Mayor Rahm Emanuel is on record asking for reductions in pension promises, but unions like the Fraternal Order of Police are fighting any such cutbacks.

Investors have approached Illinois paper (bonds) with great caution for several years now, and probably with good reason.  Caution might also be a watchword when considering munis issued by any of the other aforementioned cities.  Bond values will eventually rebound, but meanwhile investors should carefully screen muni offerings for their portfolios.

Margaret R. McDowell, ChFC, AIF, a syndicated economic columnist, chartered financial consultant and accredited investment fiduciary, is the founder of Arbor Wealth Management, LLC, (, a fee-only registered investment advisory firm located near Sandestin. Arbor Wealth specializes in portfolio management for clients with $250,000 or more of investable assets.





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