Savings & Ownership Caucus: Publications, Events and More

New America Foundation Commends California State Controller John Chiang's Financial Literacy Initiative

Communications — Wed, 02 Apr 2008 11:47:00 -0400

(Sacramento, California, 04/02/08)-- Today, at his First Annual Financial Literacy Fair, California State Controller John Chiang joined by Assembly Members Ted Lieu (D-Carson), Ted Gaines (R-Roseville), Martin Garrick (R-Carlsbad), Roger Niello (R-Sacramento), reinforced his commitment to advance a statewide financial literacy initiative that promotes access to economic opportunity amongst all Californian consumers.

"We commend the Controller's attention to what is a very important and often unaddressed need, consumer financial education," said Olivia Calderon, California Legislative Director of New America's Asset Building Program. "The Controller's engagement on this issue could go a long way to raise awareness and bring together… more

Beyond Stimulus

Communications — Tue, 26 Feb 2008 09:00:00 -0500

A New America Event
02/26/2008 - 9:00am

While the President signs into law a $152 billion stimulus package to jumpstart the economy, millions of Americans continue to rack up consumer debt, watch their home values slide, and worry about their futures with little to no savings. In fact, even with stimulus checks on the way to promote consumption, Americans are focusing on the need to rein in their debt and save more. A recent Harris Interactive poll found that when it comes to using the tax rebate, 47 percent say they intend to pay down debt, while another 32 percent report they will save it.

Although very few doubt the need for an economic kick start, more attention is needed to address the lack of savings and debt crisis of today, facilitate savings for the future, and promote economic health and financial stability over the course of a lifetime.

New research, policies, and business strategies are emerging that enable Americans to meet a range of savings needs, from short-term, precautionary savings as an alternative to consumer debt; to adequate savings for mid-life asset purchases; to longer-term default strategies to enable Americans to reach their retirement goals.

Our expert panel will share new insights and research that make the case for new savings strategies and policies for all Americans. Please join us for this very timely discussion.

Ray Boshara, Phil Longman in Houston Chronicle | "Thrift is it in 2008"

Communications — Sat, 12 Jan 2008 10:18:00 -0500

New America in the News:
Time to Make Outsaving the Joneses a Reality (Houston Chronicle)

"One in seven families is dealing with a debt collector," Ray Boshara and Phillip Longman of the New America Foundation think tank wrote in a Washington Post commentary. "Children today are more likely to live through their parents' bankruptcy than their parents' divorce," they wrote. And that likelihood will increase this year. ...

Beyond the Mortgage Meltdown

Communications — Thu, 20 Sep 2007 05:00:00 -0400

A New America Event
09/20/2007 - 12:00pm

The current -- and predicted future -- turmoil in the mortgage market highlights an important challenge to the American dream of homeownership: how to make certain that those who enter into homeownership are able to sustain that status, protecting family stability and building equity in a critical asset. Thirty years ago, those who owned homes had fixed rate mortgages and substantial equity, and foreclosure was a rare event. However, many Americans were denied the opportunity to become homeowners because of inefficient mortgage markets, underwriting based more on “rules of thumb” than analysis of the likelihood of loan repayment, and, frequently, discrimination.

By the end of the 1990s, positive changes in all three dimensions helped raise America’s homeownership rate, especially for lower-income and minority families. But in part because of excesses that have encouraged and enabled many to support homeownership based solely on debt, without building assets or equity, we are now at serious risk of losing many of those gains.

Both Congress and bank regulators are considering how to help those currently in trouble and to bring the mortgage industry back into better alignment with sound practices. Can potential homeowners and those who work with them use more direct saving, education and other strategies to return to sustainable homeownership while retaining, and in fact enhancing, broadened ownership opportunities? At this event, the panel of experts listed below offered both novel solutions and improvements to proven programs to boost savings and encourage asset-building through sustainable homeownership.

Video of this event is available at right, while an MP3 audio recording can be downloaded below.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN), Rep. Phil English (R-PA), Rep. Tom Petri (R-WI) and Rep. Earl Pomeroy (D-ND).

To Save, or Not to Save?

Communications — Thu, 26 Jul 2007 05:00:00 -0400

A New America Event
07/26/2007 - 12:00pm

This event is co-hosted by AARP, Center on Budget and Policy Priorities, CFED, National Disability Institute, The Retirement Security Project, Sargent Shriver National Center on Poverty Law, and World Institute on Disabilities.

As more and more Americans are expected to save for their own futures, millions of low-income individuals get conflicting messages from their government: Save, and don't save. Over the last decade a consensus has been emerging among researchers, policymakers, and practitioners about the importance of helping low-income persons save and build wealth. Fortunately, many state and federal programs have emerged to do just that. Yet, with limited exceptions, rules for the nation's public assistance programs aimed at this same group of people - Food Stamps, Medicaid, and TANF, for example - send the exact opposite message: Don't save.

In recent years a number of states - including California, Colorado, Illinois, Ohio and Virginia - have exercised their limited authority to reform asset rules for means-tested programs. At the same time, there has been little action at the federal level - until now. Representative Conyers (D-MI) has proposed legislation that would reform asset limits across several major income-support programs including TANF, SSI and food stamps. Senators Chambliss (R-GA) and Harkin (D-IA) have introduced legislation to liberalize the limit as part of the Farm Bill reauthorization. In his budget proposal earlier this year, President Bush signaled support for asset limit reform in the food stamp program by proposing to exclude retirement savings accounts.

With increasing awareness of the need for asset limit reform - and a real vehicle for improvement in the Farm Bill- the time is right to address the mixed message our government is sending to low-income Americans. Removing the penalty to save will enable more individuals to put themselves on a path to financial independence.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN), Rep. Phil English (R-PA), Rep. Tom Petri (R-WI) and Rep. Earl Pomeroy (D-ND).

Low-Cost Ideas to Promote New Savings and Asset Ownership

Communications — Tue, 01 May 2007 17:00:00 -0400

A New America Event
05/01/2007 - 9:00am

Whether the objective is to promote retirement security, improve educational attainment, provide a financial cushion for life transitions, or increase national savings, the need to increase household savings is vitally clear. As is well known, the personal savings rate in the United States has been falling for nearly two decades and became negative two years ago, a level not seen since the Great Depression.

In an environment of large budget deficits and bulging entitlement obligations, little revenue can be sacrificed to stimulate savings-more creative ways must be found.

Fortunately, a number of inexpensive policy ideas exist that can make a significant difference in how much new savings millions of families can generate. Our expert panel will share innovative, low-cost ideas to generate new savings and build assets for all Americans. Please join us in this very timely discussion.

To read the report, Reforming 529 College Savings Plans to Better Reach Low-Income Families, please click here.

To read The Assets Report 2007, please click here.

To read The Assets Agenda 2007, please click here.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN), Rep. Phil English (R-PA), Rep. Tom Petri (R-WI) and Rep. Earl Pomeroy (D-ND).

Detroit Free Press Quotes Reid Cramer on AutoSave

Communications — Sun, 10 Dec 2006 19:43:00 -0500

New America in the News:

My Dad has never been much of one for giving advice, but one piece he offered many years ago stuck: Pay yourself first...

Pay yourself first is a short way of saying set some money aside every paycheck, before you start paying everyone else...

It is along those lines that Reid Cramer, a policy analyst and research director of the Asset Building Program at the nonpartisan New America Foundation, has been trying to get official Washington to listen to a new idea about the old virtue of thrift: "wise spending that creates greater wealth at a future time."

Cramer calls his concept AutoSave, and he says it is based on "behavioral economics" showing that simple, default savings plans work best. Direct deposits that put your cookie jar on autopilot.

In the AutoSave idea, 2% of pay would be moved by employers into a limited set of low-cost investment options specified by the employee. So after a year, an employee who makes $50,000 would have $1,000 set aside, plus the return on it. You could do that yourself, of course, but behavioral economists say you wouldn't and statistics show you don't.

The employee could get access to the money for any reason, but Cramer thinks it shouldn't be ATM-easy, maybe requiring at least a phone call during business hours or some other obstacle that allows for a second thought. Easy in, not quite so easy out is, he says, the model that works best.

The accounts would be portable, too, so as long as you're working, you can be saving. And Cramer might install some kind of tax credit for employers as an incentive to set up AutoSave.

"The evidence is in that when the savings process is easy and accessible, even people with low incomes can and will save," Cramer said. "Too many of our savings policies leave out large chunks of the population, such as those without employers offering 401(k) plans or those without high enough incomes to take advantage of tax preferences. ... While some would quickly withdraw their funds or use AutoSave in emergency situations, others might decide to build up a nest egg. So while the funds could be tapped at any time, AutoSave would be designed to take advantage of one of the most tried and true savings techniques: inertia..."

For the complete article, please visit The Detroit Free Press website.

Children's Savings Accounts

Communications — Wed, 27 Sep 2006 20:50:00 -0400

A New America Event
09/27/2006 - 9:15am

America’s personal savings rate is abysmally low. Last year the personal savings rate was negative, the lowest annual rate since the Great Depression. Whether the objective is to promote retirement security, improve educational attainment or increase financial literacy, the need to increase household savings is vitally clear.

Children’s Savings Accounts (CSAs), which can be established automatically at birth, are gaining momentum as they form the base of many new and exciting proposals to increase savings. Many believe that CSAs hold great potential to expand economic opportunity, make financial education real, boost personal and national savings, and ensure that more young adults can go to college, buy a home, start a business, and build up a nest egg for retirement.

The United Kingdom recently enacted its own version of CSAs -- the Child Trust Fund -- establishing a savings account at birth for each of the 700,000 kids born in the UK every year. Already, over 2 million accounts have been opened. And in the U.S., bi-partisan legislative proposals -- such as the ASPIRE Act, PLUS Accounts, 401Kids, Young Saver’s Accounts, and Baby Bonds -- are paving the way for long-lasting solutions to financial education, increased savings, and retirement security.

Video of this event is available at right, while an MP3 audio recording can be downloaded here.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Rick Santorum (R-PA), Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN), Rep. Phil English (R-PA), Rep. Harold Ford, Jr. (D-TN) and Rep. Tom Petri (R-WI).

Making Financial Education Real for Kids

Communications — Wed, 21 Jun 2006 14:00:00 -0400

A New America Event
06/21/2006 - 12:00pm

Regardless of income or race, kids are growing up without knowing the basics that will keep them out of financial trouble. In a time when the personal savings rate is negative, credit card debt is growing and kids are more likely to see their parents go through a bankruptcy than divorce, financial education is more important that ever.

Many groups from the private, public, and nonprofit sectors have responded to this need by mandating financial education in schools, developing strategies for increasing financial knowledge among the general public, and creating innovative and new financial education curricula. The challenge is to interest kids in financial education, and ensure that it is effective. We need to get kids on the path to responsible spending and saving behavior before they have to navigate credit card offers, loans for cars and college, and other financial transactions.

Our panel of youth financial education experts examined how to make effective, interesting youth financial education available to all kids. Members of Congress and others will also spoke about policy responses to build financial knowledge and skills.

Turning Tax Refunds into Savings, Assets, and Retirement Security

Communications — Tue, 04 Apr 2006 15:15:00 -0400

A New America Event
04/04/2006 - 9:00am

America's personal savings rate is abysmally low. Last year the personal savings rate was negative, the lowest annual rate since the Great Depression. Whether the objective is to promote retirement security, improve educational attainment, provide a financial cushion for life transitions, or increase national savings, the need to increase household savings is vitally clear. Public policy should take a cue from some innovative financial institutions that encourage connecting savings with the one activity that almost every household undertakes -- tax filing. Given that this year over $200 billion will be returned to tax filers by the federal government, the tax filing process is a logical place to start encouraging savings behavior.

Please join us to discuss innovative ideas from the public and private sector for leveraging the tax filing process to increase savings and build assets for more Americans.

Addressing the Decline of Traditional Pensions

Communications — Wed, 15 Mar 2006 22:00:00 -0500

A New America Event
03/15/2006 - 11:00am

As the House-Senate conference takes up the pension funding and reform bill this month, the conversation about how best to update the nation's retirement saving system is far from over.

The pending pension bill may achieve some important improvements, but it does little to address the fact that American workers are clearly not saving enough: A majority of the workforce does not participate in an employer-sponsored plan, an increasing number of large companies are freezing their traditional pension plans, and last year -- for the first time since the Great Depression -- the nation's individual savings rate was negative.

It is unclear whether any reform can staunch the exodus of firms out of defined benefit plans, or what changes can induce individuals to save enough on their own through 401(k)-style plans. Given the precarious state of the Pension Benefit Guaranty Corporation-- and the bitter battle over the appropriate discount rate currently taking place --it is likely that new legislative initiatives will be surfacing soon.

Our panel will discuss the root causes of the steady disappearance of traditional defined-benefit pensions and examine what legislative reforms have the potential to either preserve these plans, or successfully extend new savings incentives and mechanisms in their place. Please join us for this very timely discussion.

Life After Katrina

Communications — Thu, 03 Nov 2005 14:00:00 -0500

A New America Event
11/03/2005 - 12:00pm

As Congress is now preparing a second round of Katrina-related proposals, it's important to bring ideas to the table that will help families achieve economic stability. Hurricane Katrina highlighted the fact that many Americans live in abject poverty, without any assets to draw upon in bad times.

The asset-based ideas proposed by the President, including an urban homesteading act to encourage the ownership of land and homes and worker recovery savings accounts for job training and education offer a promising policy path, while limited in scope. What other ownership and asset-building ideas can help these families rebuild financially sound lives?

Given the sobering survey data indicating that more than half of the evacuees do not plan to return to the Gulf region, how can asset-building policies work for limited-income families around the nation? This diverse expert panel, including experts from the Katrina-affected region, will share their views on potential solutions.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Rick Santorum (R-PA), Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN ), Rep. Phil English (R-PA), Rep. Harold Ford, Jr. (D-TN), and Rep. Tom Petri (R-WI).

Solutions for Increasing Savings, Ownership and Retirement Security

Communications — Tue, 14 Jun 2005 11:00:00 -0400

A New America Event
06/14/2005 - 12:00pm

Over 100 people, including key congressional staffers, leaders from the financial community, and policy advocates attended Solutions for Increasing Savings, Ownership and Retirement Security, co-sponsored by the New America Foundation and the Retirement Security Project, in conjunction with the Congressional Savings and Ownership Caucuses. Senator Jon Corzine (D-NJ), Congressman Philip English (R-PA), Congressman Harold Ford (D-TN) and Congressman Jim Cooper (D-TN) were active participants throughout the half-day conference, bolstering an event that included many of the pre-eminent scholars on retirement, savings and asset building.

Jeanne Hogarth of the Federal Reserve opened with an in-depth view of the current trends regarding individual savings. Following this introduction, the two panels focused on the dual challenges of improving existing savings vehicles and seeking out new ways to improve savings.

Presenters on the first panel included Ray Boshara, Director, Asset Building Program, New America Foundation, Jagadeesh Gokhale, Senior Fellow, CATO Institute; Gene Steuerle, Senior Fellow, Urban Institute; Paul Weinstein, Chief Operating Officer and Senior Fellow, Progressive Policy Institute; and, Rene Kim, Vice President of Retirement Products, Schwab.

The second panel featured Maya MacGuineas, Director, Fiscal Policy Program, New America Foundation; David John, Research Fellow, The Heritage Foundation; Mark Iwry, Senior Adviser, The Retirement Security Project and Senior Fellow, Brookings Institution; Bernie Wilson, Vice President, Business Development and Community Outreach, H&R Block; Carol Wayman, Senior Legislative Director, CFED; Dallas Salisbury, President and CEO, EBRI; and, Bob Greenstein Executive Director, Center on Budget and Policy Priorities.

Panelists discussed a range of proposals including the ASPIRE Act, the Savings for Working Families Act, revising the Saver's Credit, permitting split tax refunds, promoting 'opt-out' 401(k) programs among employers, instead of opt-in, and providing the same exclusion for 401(k)s and IRAs that pension funds receive in the asset limit tests from government benefit programs like food stamps, SSI, and TANF.

Peter Fisher, former Federal Reserve Board official and current Managing Director of BlackRock Inc, closed the conference with a provocative overview of the underlying monetary, tax, and fiscal policies that promote consumption over savings, while advocating a progressive consumption tax to replace payroll taxes and a bold proposal for the U.S. government to offer annuities.

Expanding Savings and Ownership: Low-Cost Solutions to the National Savings Problem

Communications — Thu, 31 Mar 2005 15:00:00 -0500

A New America Event
03/31/2005 - 12:03pm

This event is co-sponsored by the New America Foundation and the Savings and Ownership Caucus

Personal savings rates have plummeted in the past decade to an all-time historic low. Many Americans aren't saving enough money for retirement, households are increasingly living day to day on high-interest credit cards, and millions are one medical emergency or layoff away from financial crisis. Moreover, poor savings rates mean that there is less money for domestic investment and to finance our government's debt. As a result, we are increasingly relying on loans from the rest of the world to meet our obligations. These five experts will share their low-cost solutions to the national savings problem.

Launch of the Savings and Ownership Caucus

Communications — Thu, 17 Feb 2005 11:00:00 -0500

A New America Event
02/17/2005 - 12:00pm

A bi-partisan group of Senators and Representatives launched the Savings and Ownership Caucuses at a press conference on Thursday, February 17th at 1:30 p.m. in HC-9 of the U.S. Capitol. The respective Senate and House caucuses, facilitated by the New America Foundation's Asset Building Program, explore, debate and advance policies to build savings and assets for all Americans, and low-income Americans in particular.