Asset Building – Options and Opportunities for Individuals with Disabilities

1. Asset Building – Options and Opportunities for Individuals with Disabilities Presented by: Thomas Foley, World Institute on Disability

2. Phase 1 Phase 2 Training Overview Getting to Know Each Other Continuum of Asset Building Tools Employment and Work Incentives Questions & Answers Phase 3

3. World Institute on Disability WID's mission in communities and nations worldwide is to eliminate barriers to full social integration and increase employment, economic security, and health care for persons with disabilities.

4. World Institute on Disability Changing the economic expectations of people with disabilities

5. What is Assest Building? Asset building is a strategy where one invests in things which appreciate over time.

6. What is Asset Building?

7. What is Asset Building?

8. What is Asset Building?

9. What is Asset Building?

10. What is Asset Building?

11. Continuum of Asset Building Tools • Education • Student Earned Income Exclusion (SEIE) • 1619 (a)(b) • Medicaid Buy-In • Employment • Banking and Credit-Cards • Loans for Assistive Technology • Individual Development Accounts • Home Ownership • FREE Money (EITC) • Plan for Achieving Self-Support • Scheming & Dreaming

12. The Value of Education In general, more education means more money, greater employment options and better job security. On average, a college degree is worth an extra $23,000 a year. Consider the following statistics from the U. S. Department of Labor and Census Bureau (2004): • College graduates made an average of $51,554 • Those with advanced degrees made $78,093 • Adults with a high school diploma made $28,645 • High school dropouts averaged $19,169

13. Project Vision delivers opportunities for youth with disabilities Scholarships, internships, grants, study abroad, summer programs, and more! http://www.projectvision.net

14. Scholarships

15. Higher education results in better jobs! • People who graduate from college make about twice as much money as people who only have a high school degree. • Young people ages 25-34 with a degree are employed at much higher rates than people with only a hi-school degree 70% vs. 55% • Only about 28% of the population as a whole has graduated from college. However, that number's a lot lower for people with disabilities: just 13%. For Latinos, it's just 12.6%. • The jobless rate for college graduates under age 25 has averaged 9.6 percent over the past year; for young high school graduates, the average is 21.6 percent. • Median wealth of whites is now 20 times that of black households and 18 times that of Hispanic households, double the already marked disparities that had prevailed in the decades before the recent recession. • Only about 1/3 of people with disabilities have jobs.

16. Student Earned Income Exclusion (SEIE) The Student Earned Income Exclusion (SEIE) is designed specifically to help students under the age of 22 to keep more of their SSI check while they gain critical work experience. • To qualify as a student for purposes of the exclusion, individuals must take one or more courses of study and attend classes in a college or university for at least eight hours a week. • A person who is homebound because of a disability may still qualify as a student when he or she studies a course or courses given by a school (grades 7-12), college, university, or government agency, and has a home visitor or tutor from school who directs the study or training. • In terms of work, an SSI recipient who meets these requirements can earn up to $1,640 per month in wages (2010) before there is any reduction to their SSI check. There is a maximum exclusion of $6,600 per year (2010).

17. Student Earned Income Exclusion (SEIE) - Example Vicky is a 21-year-old college student who receives SSI. She receives $550 per month at her job in the Universities computer lab. $550 (Wages) -550 (Student Earned Income Exclusion) = $0 (Countable Income for SSI) $674 (SSI Federal Benefit Rate (FBR) 2010) - $0 (Countable Income) = $674 (SSI Payment using the SEIE) Without using the SEIE, Vicky's SSI payment would be reduced to $441.50, because of her earnings. She will be able to exclude $550 per month through the SEIE for 12 full months when she reaches the maximum annual exclusion ($6,640 in 2010). Total Monthly Income: $550 $674 -------- $1,224

19. One Important Tool for SSI Recipients Section 1619(b), you may continue to be eligible for Medicaid coverage. If a beneficiary is eligible under section 1619, they can receive a SSI cash benefit for up to 2 months while in a Medicaid facility or a public medical or psychiatric facility.

20. Work and Still receive Medicaid Eligibility! 1619(b): When you exceed the SGA level you can still remain eligible for Medicaid benefits! • Georgia Threshold: $27,509 • California Threshold: $35,023 For all state thresholds: http://www.ssa.gov/disabilityresearch/wi/1619b.htm If you Surpass the Threshold you can Deduct: • Impairment-related work expenses; or • Blind work expenses; or • A plan to achieve self-support; or • Personal attendant whose fees are publicly funded; or • Medical expenses above the average State amount.

21. Medicaid Buy-In Program • Provides full scope Medicaid to disabled individuals who work and have income that is too high to qualify for other Medicaid categories. Earned income requirements: • California: $55,000, less than 250% of the Federal Poverty Level • Alaska: less than 250% of the Federal Poverty Level • Georgia: less than 300% of the Federal Poverty Level • Participants pay sliding scale of income as premium • You don't have to be using SSI, SSDI or any other benefit program to qualify • As little as 20 dollars per week

23. Employment “The best form of advocacy is one’s career!” - Hamza Jaka

24. Work Experiences That Count! Work experience leads to transitioning off benefits and building a financial future.

25. Reliable, Dependable Information The right information in the right hands at the right time… www.db101.org

26. Benefits Calculators

27. Earned Income Tax Credit

28. Get a Bank Account • Banks and credit unions offer free and low-cost checking accounts • Save a little with each paycheck and set aside in a linked savings account • The savings can help avoid predatory lenders when an emergency arises • Free bill pay

29. The Credit Card Trap That’s $3,863 in interest !

30. Individual Development Accounts - Federal • What are IDAs? • Matched savings accounts • Save for education, homeownership, or starting a business • Accountholders typically receive financial education and counseling • Who Qualifies for an Individual Development Account? • Earned income • 200% of poverty level • Other requirements

31. IDAs and Public Benefits CFII and GCDD are working on options to protect benefits for those who will be able to take advantage of the state- IDA

32. Plan for Achieving Self-Support (PASS) Purpose: Assist SSI recipients in obtaining items, services, or skills for employment needs Requirements: Written plan Vocational goal Reasonable time frame for meeting a vocational goal Explanation of the necessary expenses Advantages: Work and receive SSI Save and Build assets for employment goals

33. Homeownership Incentives • Section 8 Voucher • FHA Mortgage, 3.5% down payment • First Time Buyer Programs (FHA) • VA Mortgage, 0% down payment • Gifts

34. Planning, Plotting, and Scheming Frank’s monthly income • SSI: $694 • Earned Income (EI): $585

35. Maximizing Income and Savings

36. One year later…

37. Why a dollar matters… Over 40 years $1 = $446 At 10% interest

38. $325,000 What Your Savings Can Do for You Long term leveraged investment return.

39. 3% over 30 years What Your IDA Can Do for You Long term leveraged investment return $200,000

40. $817,000 Putting It All Together $325,000 +$492,000

42. Tom Foley World Institute on Disability www.wid.org tom@wid.org equity@wid.org For More Information