Navigating Public Sector Challenges

June 14, 2011 - Al
Pressure on local governments isn’t fading and most likely is heating up.

According to a recent Wall Street Journal article: “For many local governments – the 89,000 cities, counties and school districts that provide the most visible government services – more pain is coming.”

You’ve probably heard the culprits cited: sluggish property-tax collections due to a depressed housing market, declining aid from state governments, expiring federal stimulus funds, and rising employee pension and health care benefits.

Given the various legislative actions regarding mandatory employee contributions, reductions in COLAs, increased retirement ages, and higher health costs, what should public sector workers consider? 

Cash Flow
  • How can I cut costs in my household budget?
  • Should I pay down debt? For example, pay extra on a mortgage? Take on new debt?
  • How should I plan for the possibility of paying more in medical expenses?
  • Should I set aside additional emergency fund cash?
Retirement
  • Should I plan to work longer?
  • How can I earn income from additional sources if needed?
 Investments
  • If I might need to withdraw from my savings sooner than previously thought, should I dial down the level of investment risk I’m currently taking?

Start shaping your financial future by finding the answers to these questions and developing a solid financial plan. AC: 0611-4881

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