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Asset Development: Getting and Keeping Money

Griffin-Hammis Associates, LLC. Asset Development: Getting and Keeping Money. SSA, Assets, Self-Employment & Resource Ownership Alliance for Full Participation November 18, 2011 Washington, D.C. Business By Disability Type Based on Sample of 76. Griffin-Hammis Associates, LLC.

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Asset Development: Getting and Keeping Money

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  1. Griffin-Hammis Associates, LLC Asset Development: Getting and Keeping Money • SSA, Assets, Self-Employment & Resource Ownership Alliance for Full Participation • November 18, 2011 • Washington, D.C.

  2. Business By Disability TypeBased on Sample of 76 Griffin-Hammis Associates, LLC

  3. Gross Income76 Business Sample $28,241 $39,712 $4,800 $130,000 Average Gross Revenue: $28,241 Omitting 1 $900,000 Business Griffin-Hammis Associates, LLC

  4. Individual Funding Sources $99,395 $737,600 $474,925 $59,000 $394,600 $347,000 $33,200 Sample 76 Businesses: Total Start-up Investment $2,145,000 Griffin-Hammis Associates, LLC

  5. Griffin-Hammis Associates, LLC Myths or Facts? SSA & Work? • If receiving SSI or SSDI: Never work for pay! • Just pocket any untraceable cash, if & when you get some, spend it, & don’t tell SSA • Work Incentives are terrible misguided federal laws that lure people to work & then punish them later • If you work for pay you will lose financial & medical security & will be forced to pay SSA back for years

  6. SSI & Gross Wages 2500 2000 1500 Gross Wages 1000 SSI 500 0 2010 SSI FBR Single Person: $674 per month 2010 SSI FBR (Married Couple): $1,011 per month 2010 MT 1619(b) SSI/Medicaid Threshold: $28,819/year

  7. Griffin-Hammis Associates, LLC Work Incentives & Working • That last chart looked pretty good …. yet • That chart only shows SSI & Gross Wage interactions • It did not take into account payroll taxes, food stamps & energy assistance reductions & section 8 rent increased • Next Chart: 40 hours/week at $9.33/hour equals $1,493/month = $145 more/month than not working

  8. Griffin-Hammis Associates, LLC Work Incentives & Working • That chart looked survivable …. yet • SSI does not calculate check reductions correctly/timely • SSI’s ongoing errors result in overpayments further reducing the SSI check by 10% (-$67) resulting in only $78 more/month from 160 hours/month of work … (*versus not working) • SSA’s PASS creates significantly more revenue (next slide) -

  9. 2010 Non-Blind SGA: $1,000 per month gross wages 2010 Blind SGA:$1,640 per month gross wages

  10. Griffin-Hammis Associates, LLC Work Incentives & Self-Employment • PESS – Property Essential to Self-Support: VR: $3,950Council: $9,000PASS: $12,286 Total: $25,236

  11. Griffin-Hammis Associates, LLC Exceeding $2,000 in Liquid Assets • SSI only Stated goal was financial flexibility and owning his own home within 3 years of becoming wage or self-employed - without losing Medicaid

  12. Griffin-Hammis Associates, LLC Exceeding $2,000 in Liquid Assets • PESS – Property Essential to Self-Support: VR: $21,400PASS: $9,000 Total: $30,400

  13. Griffin-Hammis Associates, LLC Work Incentives & Self-Employment • PESS – Property Essential to Self-Support: • SI 01130.501 Essential Property Excluded Regardless of Value or Rate of Return • A. POLICY PRINCIPLES2. Trade Or Business Property • “Property essential to self-support used in a trade or business is excluded from resources regardless of value or rate of return effective May 1, 1990”

  14. Griffin-Hammis Associates, LLC Work Incentives & Self-Employment • Self-Employment Generalizations • SSI Only = Very good policies to operate a business within • SSI & SSDI = Due to SSI receipt along with SSDI = very good policies and a bonus of mathematically excellent PASS’s (retroactive and forward PASS potentials = potential large up-front PASS funds to start a business with) • SSDI Only – Complicated if goal is to retain SSDI check – which results if possible in a PASS and intentionally losing SSDI during the PASS to retain SSI that PASS caused

  15. Griffin-Hammis Associates, LLC Work Incentives & Self-Employment • PESS – Property Essential to Self-Support: • SI 01130.501 Essential Property Excluded Regardless of Value or Rate of Return • C. DEVELOPMENT AND DOCUMENTATION — PROPERTY USED IN A TRADE OR BUSINESS5. Liquid Resources Used In A Trade Or Business • “Effective May 1, 1990, all liquid resources used in the operation of a trade or business are excluded as property essential to self-support. Obtain an individual's signed allegation that liquid resources are used in the trade or business.”

  16. Griffin-Hammis Associates, LLC Work Incentives & Self-Employment • PESS – Property Essential to Self-Support: • PESS is limited (only applies to) Unincorporated Businessesthat generate Self-employment Income (SEI) for the owner or owners • Forms of businesses that PESS applies to: • Sole Proprietorship • Partnership

  17. Griffin-Hammis Associates, LLC Work Incentives & Self-Employment • Q & A • Griffin-Hammis Associates, LLC http://www.griffinhammis.com

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