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Build Your Assets

Approximately 20% of people in the United States live with a disability. People with disabilities are almost three times more likely to live in poverty than any other group. Building assets and financial literacy are critical to moving toward greater economic independence and stability to escape the cycle of poverty.

What is an asset? An asset is something of value that you own. The value of an asset increases over time. Typical assets include a home, business, savings accounts and even education after high school. When you have assets the purchase of a home, postsecondary education and owning a business can become a reality.

Goals of building assets include:

• Financial Security - The ability to pay bills each month, a stable place to live, planning for future purchases or retirement.
• Business Development - The opportunity to start and grow your own business.
• Homeownership - The opportunity to purchase and maintain your own home.
• Health Care - The ability to have health care and possibly keep your benefits, or have healthcare you can afford to buy.
• Education - The ability to pursue further education and training which will result in increased income and career advancement.
• Tax Policy And Accountability - The opportunity to pay less taxes and have more savings.

There are several ways to begin to build assets. Each requires planning and commitment. Utilizing one or many of these strategies will make the goal of financial independence a reality.

Individual Development Accounts

You may be eligible for a matched savings account, Individual Development Accounts (IDA). When you save $1, the program matches with $3. IDAs are designed for people who have low income to be able to save up to $6,000 for a home, a small business or education and training. You save $1,500 and it is matched with $4,500. You are being paid to save! You can save for a home, small business or education.

Home Purchase and Financing

Buying a home may be an option for you. The federal government and several Utah programs offer home buyer education and counseling, low interest loans, assistance for down payment and closing costs and more. See Owning Your Own Home for the many programs available for people with disabilities or those who have income.

Getting the Most from Your Taxes

The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low to moderate income working individuals and families. The EITC will reduce your taxes, encourage you to work and to put more money in your pocket. That money can be saved, or become an asset. To qualify, taxpayers must meet certain requirements and file a tax return, even if you did not earn enough money that you must file a tax return.

Financial Literacy - Understanding Your Money. It is important to have income and money, but it's also very important to use that money wisely. Classes are available in the Community Education programs of your local school district.

The AAA Fair Credit Foundation provides financial counseling and education, as well as information on debt management and asset-building programs for individuals and families who have low income in Utah.

Health Care

The cost of health care can sometimes prevent people from saving and building assets. Public health care programs, like Medicaid have income limits. People often manage their income to stay below these limits. Utah's Medicaid Work Incentive does the opposite. If you work and your income passes the limit, you can begin to pay a small premium to keep your Medicaid. You can also have more savings than traditional Medicaid – up to $15,000. Learn more about the Medicaid Work Incentive. Keep your Medicaid and increase your income at the same time.

Special Needs Trusts

A trust is a legal way one person's property is managed by another. Special Needs Trusts that can be set up on behalf of a person with a disability. The funds in the Trust can be used on behalf of the person for the purchase of a home or other needs that provide supplemental services for the care, support, comfort, education and training of the person. These are beyond what is provided to them by public benefits, such as Medicaid. An attorney or legal service should be contacted for establishing a trust.

ARC of Utah manages a Special Needs Pooled Trust for people with disabilities in Utah. Putting funds into The Arc of Utah's Pooled Trust make them exempt from being considered an asset. Therefore the funds in the trust do not affect the person's eligibility for those benefits. For investment purposes, the funds are pooled together but each person in the trust has a sub-account that earns interest.

Further information on how Medicaid evaluates a trust can be found at Excluded Trusts for Disabled Individuals

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Social Security evaluates Trusts and determines if they are considered assets or not. To determine if a trust will affect your SSI (Supplemental Security Income), see the Social Security website for more information.