All Posts in "Everything Else"

Higher Social Security payments start in January

Social Security benefits will be 3.2 percent higher in 2024, the latest of annual increases that weren’t always a sure thing.

The cost-of-living adjustment (COLA), which was officially announced in October by the Social Security Administration, begins in January for the monthly benefits currently paid to more than 66 million beneficiaries. The same increase applies to approximately 7 million recipients of Supplemental Security Income.

The amount of the boost is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is determined by the federal Bureau of Labor Statistics. By law, it’s the official measure used by the Social Security Administration to calculate COLAs.

The COLA for 2024 is less than half of the 8.7 percent increase in 2023. The year before that, the increase was 5.9 percent. From 2017 to 2021, the amounts ranged from less than 1 percent to 2.8 percent.

COLA’s aren’t automatic. The purpose of them is to help the purchasing power of Social Security benefits from being eroded by inflation, but they didn’t exist until Congress authorized them in 1972, and they weren’t automatic until 1975. Before that, benefits increased only when Congress passed special legislation.

National organizations such as the Senior Citizens League and AARP have pointed out that most older Americans relying on Social Security report that persistently high prices affect their household budgets.

Jo Ann Jenkins, chief executive officer of AARP, said “retirees can rest a little easier at night knowing they will receive an increase in their Social Security checks to help them keep up with rising prices” of gas and groceries. She said AARP wants Congress “to work in a bipartisan way to keep Social Security strong and provide workers and retirees with a long-term solution that current and future retirees can count on.”

The Senior Scene by — December 14, 2023 in Everything Else
Pet owners can get community-level vet services

According to the American Veterinary Medical Association, veterinary care is out of reach for the pets of one of every four dog or cat owners.

 A dog named Cowboy was among pets that received an exam during a pet Wellness Clinic at Southeast Seattle Senior Center. The Seattle Humane team that conducted the clinic included  Dr. Jessica Reed (right), vice president of veterinary services.

To counter that shortcoming, Seattle Humane’s Community Medicine program provides affordable and accessible wellness care, vaccinations, and microchips. Wellness Clinic appointments are offered at the agency’s Bellevue campus and pop-up sites. Examples of the latter include Southeast Seattle Senior Center, where pets and their owners received some attention from the Community Medicine team Exams for pets can be scheduled at 425-649-7560 or vets@seattlehumane.org.

The Senior Scene by — November 9, 2023 in Everything Else
Spring ahead this Sunday

Daylight Saving Time starts at 2 a.m. on March 12. You know the drill: Set clocks ahead one hour when going to bed the night before (unless you’re a night owl and will be up when the change comes).

DST will be in effect officially until Nov. 5, when we switch back to Standard Time effective 2 a.m.

As has often been the case in recent years, there is debate again about whether to continue with the twice-yearly switches between Daylight Saving Time and Standard Time. In the U.S. Senate and House of Representatives, legislation was introduced again March 2 by Sen. Marco Rubio and Rep. Vern Buchanan, both of Florida, that would make DST permanent year-round. No more “fall back” or “spring ahead.”

The legislation also was before Congress in 2022 and was passed by the Senate. It didn’t reach a vote in the House, however, expiring there.

Proponents of DST-only say the longer daylight promotes safety and active lifestyles. Opponents of it claim there are financial costs and less productivity.

Currently, Arizona and Hawaii are the only states that don’t utilize DST. They go with Standard Time, as do more than half of the countries worldwide.

srmedia by — March 8, 2023 in Everything Else

By Barbara Morrison

According to the Centers for Disease Control and Prevention (CDC), there are around 28,900 residential care and assisted living facilities in the U.S.. The majority of the facilities contribute greatly to the country’s social and economic fabric. However, despite the importance of these facilities in our society, they often struggle to find affordable financing to expand or improve their services.

Fortunately, the Small Business Administration (SBA) 504 loan program provides an affordable way to obtain funding for building or improving an assisted living facility. The SBA 504 program significantly reduces the amount assisted living facilities have to pay for a down payment and provides a long-term, below-market, fixed interest rate.

The loans enable a business owner to purchase, renovate, construct or refinance commercial real estate with only a 10 percent down payment. With the low down payment, businesses can retain precious working capital so that the company can continue to grow. Renovations, equipment, closing costs and soft costs can be financed as part of the total project cost, and the down payment is only 10 percent of that total.

SBA 504 loans are designed to solve important challenges. Recent Census data indicates there are around 76.4 million baby boomers in the United States. The first boomers were born in 1946, which means those 76 million-plua people are at or quickly approaching the age of 76 years old. As they  get older, they often need assisted-living arrangements to ensure a high quality of life. The SBA 504 loans provide business owners with access to the funding they require to own and manage facilities that help care for the nation’s aging population.

The  loan process streamlines funding and reduces the risk for lenders, as well as assisted-living facility owners.

The structure of an SBA 504 loan is designed to mitigate the risk associated with lending without limiting the amount of capital borrowers gain access to. Here’s how that’s done:

  • The loan can consist of two mortgages. The first mortgage is provided by a conventional lender, representing approximately 50 percent of the total project cost. The SBA 504 second mortgage, representing generally 40 percent of the total project cost, has a long term, up to 25 years, and fixed interest rate, fully amortized for the full term of the loan.
  • The rest of the funds come for the borrower as a down payment, meaning it is possible to borrow as much as 90 percent of the money needed, paying the remaining 10 percent out of pocket.
  • Monthly payments are fixed for the life of the loan, providing small business owners with affordable payments that enable them to control overhead costs for the long term. The interest rate is below-market and to the current market rate for five-year and 10-year U.S. Treasury notes, always being a certain amount above it.

To be eligible, an assisted living facility needs to:

 

Barbara Morrison is the founder and president of TMC Financing, which provides SBA commercial real estate financing. She’s a former mayor and City Council member for the city of Belvedere, Calif.

srmedia by — September 14, 2022 in Everything Else