Asset Building Program: All Related Content

Talking about Racial Wealth Disparities

  • By
  • Hannah Emple
March 8, 2013

This week, I was pleased to have two opportunities to talk about some new data that came out recently on the racial wealth gap from the Institute for Assets and Social Policy.

On Wednesday, I spoke with Tanya Free, the host of the show Tanya Free and Friends, which airs live weekly on Richmond, Virginia's AM WCLM station. The guiding question for this week’s show was “How much does race still matter?” The two-hour segment covered a lot of important issues, including the rise of extremist groups, developing more black-owned businesses to support community wealth-building, and the role of consumer protection in the housing crisis and recovery. Listen to the racial wealth gap part of the conversation by pressing play and dragging the slider to the 23 minute mark. During the conversation, the show hosts and I agreed that racial wealth disparities in this country are complex in origin, but that we do have some promising strategies to address this inequality. For example, Tanya Free and her co-hosts pointed out a few ways individuals can begin to build up savings, including placing more emphasis at the family level on the importance of saving, starting the saving process as early as possible and not waiting until you think you’re wealthy to begin that process. They also recommended seeking help from a trusted and knowledgeable advisor when possible.

Today, New America released a Sidebar podcast in which I discussed the IASP study and origins of the racial wealth gap with Elizabeth Weingarten, New America's assistant editor, and Reniqua Allen, a New America Fellow who studies the black middle class. We spoke about how racially discriminatory policies gave rise to many of the disparities we see in homeownership rates, employment segregation, and residential segregation. Reniqua Allen emphasized the importance of unions and public sector jobs in ensuring economic stability and mobility for all Americans but particularly Americans of color. We also fleshed out the important distinction between wealth and income.

Guest Post: Illinois Automatic IRA Bill (98th General Assembly)

March 7, 2013

Editor's note: This blog post was authored by Karen Harris, Director of Asset Opportunities at the Shriver Center.

For many retired Americans, the potential for financial insecurity is great. Although our government provides a modest monthly Social Security check ($1,152 on average) to retirees, Social Security was never meant to be the sole source of an individual’s retirement income. While $1,152 might be just barely enough money for a young healthy individual, being elderly is much more expensive. Among people who reach the age of 65, 70% will eventually require long-term health care and 30% will eventually receive nursing home care. The average cost of a semi-private nursing home room is $215 per day or $78,000 per year. Yet, according to the Social Security Administration, Social Security benefits constitute 50-90% of income for more than 33% of Social Security Recipients, and 90 to 100% for more than 31% of recipients. This means that about two out of three Social Security recipients over-rely on Social Security.

In order for retirees to avoid over-relying on Social Security, they must prepare during their working years. However, 49% of Americans say they are not saving any money for retirement. A 2012 Woodstock Institute Report shows that the lack of savings is primarily a problem of access to savings mechanisms. The report finds that across all Illinois state legislative districts at least 50% of full-time workers are not offered an employer sponsored retirement savings plan. As the Assets Report infographic shows, lower-income workers are much less likely to have access to these plans.

In order to address this widespread retirement problem, the Illinois Asset Building Group (IABG), along with the Shriver Center, AARP, SEIU and many other organizations are working to pass S.B. 2400/H.B. 2461 The Automatic IRA Program Act. This bill, sponsored by Senator Daniel Biss and Rep. Deborah Mell, would provide all full time workers in Illinois access to retirement savings accounts.

Wealth Inequality Goes Viral

  • By
  • Justin King
March 7, 2013

I first saw this video on the Facebook page of a friend I consider to be wildly apolitical. Now it's been seen 3.5 million times, and been written up by Ezra Klein, Andrew Sullivan, The Atlantic...that's right, a video about wealth inequality has gone viral.

We've been talking about wealth inequality for years, so it's really exciting to see someone else reframe information that's been out there and use new methods to drive the attention of the public to a critical issue.

Guest Post: Using Tax Refunds to Build Savings

March 6, 2013
Publication Image

Editor’s note:This blog post was authored by Jerry Kelly, National Director of the U.S. Department of the Treasury’s Ready.Save.Grow. campaign. 

Encouraged by recent economic gains and lower levels of household debt, Americans are seeking greater financial stability by making saving a priority.

According to the U.S. Bureau of Economic Analysis, we saved 6.5 percent of our disposable personal income in December 2012, up from 3.4 percent in December 2011. That translates to $805.2 billion in annual savings.

At the same time, however, the Corporation for Enterprise Development (CFED) reports that almost half of our households don’t have enough savings to fall back on in the event of an emergency.

Invitation to Present at Fall 2013 National Community Tax Coalition Conference

  • By
  • Hannah Emple
March 4, 2013

Updated 3/4/13: The deadline for proposals to present at NCTC's annual conference in September is coming up this Friday March 8th. See the details below and contact NCTC with any questions.

The National Community Tax Coalition (NCTC) is holding its 9th national conference in New Orleans September 10-13, 2013. This year’s conference centers on advancing, sustaining and growing the community tax preparation and asset building field. In particular, the conference will focus on the role the Volunteer Income Tax Assistance (VITA) field and asset building community more broadly can play in shaping best practices, research priorities, and policy implementation.

Asset Building News Week, February 25-March 1

  • By
  • Hannah Emple
March 1, 2013
Publication Image

The Asset Building News Week is a weekly Friday feature on The Ladder, the Asset Building Program blog, designed to help readers keep up with news and developments in the asset building field. This week's topics include the household balance sheet, cash and payments, higher education, housing, and public benefits.

Can the Mortgage Settlement Create a Path to Greater Equality in Homeownership?

  • By
  • Elliot Schreur
March 1, 2013
Publication Image

Editor’s note: The National Council of La Raza, the National Urban League, and National CAPACD hosted an event,“The Attorneys General Settlement and Communities of Color: Exploring the Challenge and Promise of Principle Reduction,” Wednesday at New York University’s Constance Milstein Center in Washington, D.C. The following is a reflection on the event, the National Mortgage Settlement, and its impact on communities of color.

Judging by the audience’s response to the keynote speaker at Wednesday’s event, the implementation of the National Mortgage Settlement leaves a lot to be desired. The audience, in large part consisting of housing advocates from such diverse and reputable institutions as the Center for Responsible Lending and the National Urban League, enthusiastically engaged the speaker, whom many see as the public face of the settlement’s slow and unsatisfactory implementation process. The keynote speaker, Joseph Smith, the court-appointed monitor at the Office of Mortgage Settlement Oversight and the individual charged with fulfilling the expansive promises of the settlement, was met with tough questions from advocates whose daily work is the securing of fair mortgages for financially troubled families in their communities. Despite his defensive position, he took the criticisms generously, because, he explained, the very purpose of these events is not only to allow community stakeholders and housing advocates to hear about the progress of the settlement, but also to allow the monitor to hear from concerned community members about problems of implementation in the field. To this extent, the event was a success.

Mythbusters: Payday Lending Version, Part II

  • By
  • David Rothstein
February 28, 2013
Publication Image

Last year I analyzed four myths about payday lending that the Pew Charitable Trust’s “Payday Lending in America” project proved to be highly suspect in the first iteration of their study on borrowers. Their newest report (How Borrowers Choose and Repay Payday Loans) goes into more depth, revealing a love-hate relationship between borrowers and high-cost, short term loans. The report tells a conflicting story of dependence, need, stress, relief, and any other emotion associated with finances that you could think of. Borrowing from the Mythbusters again, here’s the skinny on Pew’s new report.

Whose Job is it to Fight Hunger in the U.S.?

  • By
  • Eliza French
February 28, 2013

Editor's note: This blog post, authored by Eliza French, originally appeared on New America's In the Tank blog.

America is a nation of paradox. In a country where more than one in three people are obese, one in six are food insecure. A single state, Mississippi, leads the nation in both obesity and hunger. A Place at The Table, a documentary about hunger in America that premieres March 1, traces the stories of those who struggle with hunger across America. On February 25, New America NYC hosted a pre-release screening of the film and a conversation afterwards with co-directors Lori Silverbush and Kristi Jacobson, executive producer Tom Colicchio, and  Linda P. Fried, dean of Columbia University’s Mailman School of Public Health.

"The Difference Between Living in Your House and Sleeping in Your Car"

  • By
  • Justin King
February 27, 2013

At this week's "Can America Save Itself?" event, attendees were able to hear four distinct policy proposals that would work to increase the amount and rate of savings for American families. Not necessarily barn-burning stuff for the average viewer.

Syndicate content