SOURCE: Goldman Small Cap Research, Inc.

August 08, 2013 08:30 ET

Would Detroit Have Failed If It Used INSCOR's Financial Solutions?

BALTIMORE, MD--(Marketwired - Aug 8, 2013) - Goldman Small Cap Research, a stock market research firm focused on the small cap and micro-cap sectors, notes that if many municipalities such as Detroit had engaged the solution offered by INSCOR, Inc. (OTC PINK: IOGA), structural issues as a whole could have been addressed before problems escalated into a point of apparent no return.

The attempted bankruptcy filing by the City of Detroit, Michigan has many municipal leaders, lenders, and bond rating agencies across the country in a state of panic, wondering, who is next? Unfortunately, the list, as compiled by The Washington Examiner, highlights 19 cities that could be the next Detroit unless they get their acts together. While it may be too late for most of these other cities to utilize the INSCOR initiatives, hundreds of others may finally become proactive and seek out the Company and its offerings to stave off a fiscal crisis.

According to The Examiner, "Detroit declared bankruptcy due in no small part to $3 billion in unfunded public employee pensions owed a sprawling city workforce that kept growing even as the city's population shriveled." To make matters worse, it appears that the 19 other major cities such as San Francisco, Washington D.C., Baltimore and others, have a higher ratio of workers to residents, suggesting that this situation is far from a one-off scenario.

The real culprit behind the crisis is unfunded retiree health care and Other Post-Employment Benefits (OPEB). Nationwide, these figures total an estimated $1.5 trillion in unfunded liabilities.

Cities that still have an opportunity to stem the OPEB bleeding in its tracks can engage in the solution used by Fortune 500 companies and offered by INSCOR that is tailored toward the 67,000 governmental and agency markets in the U.S. The INSCOR "FIT" (Financed Insurance Trust) combines the procurement of specifically-designed life insurance on active employees using funds borrowed from the financial sector, or bond issuance, and secured by the insurance policies themselves. This method generates substantial cash flow to fund these OPEB liabilities at reduced costs to the municipalities.

As a result, a FIT OPEB plan can provide a cash stream to support each year's OPEB obligations, and fund future OPEB liabilities with fewer spending increases, tax increases, or reduction in benefits. Plus, with interest rates at historical lows, some municipalities can benefit from very low initial costs.

With few options, let alone low-cost alternatives to the problem available, INSCOR has an opportunity to leverage the current panic and effect real change in government financial management, thus generating significant revenue for itself in the coming years.

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About Goldman Small Cap Research: Led by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and micro cap stock research reports, daily stock market blogs, and popular investment newsletters. For more information, visit

A Goldman Small Cap Research report is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. Please read the report's full disclosures and analyst background on our website before investing. Neither Goldman Small Cap Research nor its parent is a registered investment adviser or broker-dealer with FINRA or any other agency. To download our research, view our disclosures, or for more information, visit

About INSCOR, Inc. (OTC PINK: IOGA): INSCOR, Inc. specializes in educating and marketing the FIT OPEB plan to municipalities and corporations as a low-cost solution to funding retiree and other employee benefits. A FIT plan variation also works for affluent individuals, entertainers and professional athletes -- whether for estate planning or funding cash flow needs. INSCOR's "FIT" (Financed Insurance Trust) strategy uses a combination of favorable financing terms, innovative uses of specific life insurance products and trusts -- all of which result in minimum levels of out-of-pocket costs for producing significant future funding and revenue stream opportunities. For more information visit:

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