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

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

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.

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

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

What is Asset Building?

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

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

Project Vision delivers opportunities for youth with disabilities Scholarships, internships, grants, study abroad, summer programs, and more!

Scholarships ScholarshipDisabilities That QualifyAmount Salvatore E. Quinci Foundation Scholarship Hemophilia or another bleeding disorder $2,000 Disabled War Veterans Scholarships Disabled War Veterans$2,500 Elizabeth Nash Foundation (ENF) awards scholarships Cystic Fibrosis $500 - $2,000 Millie Brother Scholarship Children of deaf adults$3,000 Association of Blind Citizens Scholarships Blind Students $1,000 - $2,000

People who graduate from college make about twice as much money as people who only have a high school degree. Young people ages 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. Higher education results in better jobs!

Student Earned Income Exclusion (SEIE) T he 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. T o 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. I n 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).

Student Earned Income Exclusion (SEIE) - Example V icky 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) W ithout 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 $ $1,224

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.

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: 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.

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: o California: $55,000, less than 250% of the Federal Poverty Level o Alaska: less than 250% of the Federal Poverty Level o 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

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

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

Reliable, Dependable Information The right information in the right hands at the right time…

Benefits Calculators

Earned Income Tax Credit No ChildrenOne Child Two Children Three + Children Single Earn less than $13,440 Maximum Credit $457 Earn less than $35,463 Maximum Credit $3,043 Earn less than $40,295 Maximum Credit $5,028 Earn less than $43,279 Maximum Credit $5,657 Married Earn less than $18,440 Maximum Credit $457 Earn less than $40,463 Maximum Credit $3,043 Earned less than $45,295 Maximum Credit $5,028 Earned less than $48,279 Maximum Credit $5,657

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

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

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

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

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

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

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

Maximizing Income and Savings

One year later…

Why a dollar matters… $ SavedInterest10 years20 years30 years40 years $1 a day10%$5,903$21, 129$60,619$163,048 $50 a week10%$42,050$150,505$431, Million Over 40 years $1 = $446 At 10% interest

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

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

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

For More Information Tom Foley World Institute on Disability