Temecula Financial Advisor Discusses Lessons on Wisconsin Labor Union Problem

Wisconsin's bid to break down labor unions leaves many pensioned workers in a state of limbo- and the effects could be widespread. Plans by Wisconsin Gov. Scott Walker (R) and the legislature to eliminate collective bargaining (the method used by public unions to secure pay and benefits) for most public employees could roll into other Midwest states as a wave of small-government conservatives elected in 2010 take on their Democratic rivals. The streets of Madison, WI have begun to mirror Cairo as more than 25,000 union Wisconsin protesters amassed last Friday morning in and around the Capitol to voice disapproval of the governor's plans. Prior in the week, there had been as many as 40,000 protestors. Schools were canceled, and one rally lasted a remarkable seventeen hours.

At the core of the controversy is the employment of thousands of workers and their ability to represent themselves as a union, one they have had now for over 50 years. Losing this right could affect not only their wages, but flow additionally into benefits such as healthcare and pension plans. Once thought to be the epitome of security in America's Heartland, current union workers may find themselves in a position where they are forced to pay more for these desirable benefits.

This political tornado firmly establishes the fact that in today's economy, no one is immune to problems and the "American Dream" can be threatened even for those in what were once considered to be the securest of professions. What has become understandable is that regardless of your personal beliefs or political association, the concept of "security" has forever changed. Obviously, our borders are nowhere near as secure as we'd like to think, 9/11/2001 brought to light with crushing force the realization that we can not take for granted our personal security, the banking collapse made us crucially aware that we are not financially secure, and now the peril to collective bargaining is yet another setback to this false sense of security.

So where do we go from here?

As a Temecula financial advisor for over 2 decades, I would suggest that on some, if not multiple levels, personal responsibility must replace our dependence upon employers for refuge. This starts with financial responsibility and active asset management. While we may not be able to ward off the external forces of international violence or domestic threats, we can take measures to stabilize our personal financial "borders". This means ample retirement planning, intelligent budgeting, and wise financial decisions. The adage has always been that "an ounce of prevention is worth a pound of cure" and the time is now to assume responsibility and prepare for the future.


Learn more about active portfolio management and its benefits by contacting John Dubots, Temecula financial advisor, with Dubots Capital Management. Dubots has over two decades in the industry and will provide a free consultation to answer all of your portfolio management questions.