Raise Your Children in a Home, not an Apartment

While the value of home ownership as a way of building wealth over time for either single parents or two parent families is well accepted, hardly mentioned is the value of home ownership on the cognitive and behavioral outcomes of the household's young children. Homeownership and Child Outcomes In a recent study on the impact of home ownership on child outcomes, while controlling for the child's gender and health, number of siblings, and characteristics of the household's locality, has indicated that the impact on a child's cognitive outcomes is up to 9% higher in math achievement and 7% higher in reading achievement for children living in owned homes.  Moreover, it is found that the measure of child behavior problems is up to 3% lower if the child resides in a owned home. The result concludes that these youth's greater cognitive abilities and fewer behavior problems will result in higher educational attainment, greater future earnings, and a reduced tendency to engage in deviant behaviors. Steps to Becoming a Homeowner If you are a single parent with the responsibility of raising your children without the help of a spouse, the home environment is even more significant. Although, renting an apartment might be your only current alternative, it would be wise for you to begin taking the necessary steps towards becoming a homeowner. In recent years, the criteria for acquiring a mortgage has become less restrictive. Even though the 30-year interest rate continues to be at an all-time low, unless you apply for a FHA mortgage in which the down payment is 3.5%, you will have to have a down payment of about 5%. And, in addition to the down payment, your middle score on your credit report has to be at least 620. Planning for A Mortgage Consequently, even though the 30-year interest rate is still at an all-time low (currently approximately 4.5% nationwide), home ownership is down because of the down payment and credit score requirements. Planning ahead has to include both saving consistently to build up the down payment as well as a careful review of your credit report with the goal of getting your middle score up to at least 620 or above.  Nevertheless, with a FHA loan and a down payment of 3.5%, your monthly mortgage payment on a $125,000 home would be $611.19. Compare that with your rent payment as well as another mortgage payment scenario. Recently many conventional mortgages have began offering programs with only 3% down.  Many landlords now looking to rent their apartments have discovered the need to be receptive to an applicant with a lower credit score due to the shaky job market and the realization that many applicants are losing their homes to foreclosure.  If you are currently renting, use the time remaining on your lease to take the steps mentioned earlier. In my opinion, renting should be only temporary and out of necessity. For a single parent, the overwhelming value to yourself and your children is to be a homeowner. Call (773) 614-3201 or e-mail me at bwillbar@gmail.com for a free consultation. Any Comments? Leave them below.

Medicare Enrollment Periods You Must Know About

The issue of the Enrollment Periods needs to be expanded upon. Remember, the Center for Medicare and Medicare Services (CMS) has established four basic enrollment periods in which Medicare recipients with both Part A and Part B can enroll in a Medicare Advantage Plan (MAP), Part C or a stant alone Prescription Drug Plan (PDP).

Enrolling in Medicare Advantage Plans
Enrolling in Medicare Part C or Medicare Advantage Plan (MAP) is optional. If you want to enroll in a MAP, you must be entitled to both Part A and Part B.

Your Enrollment Periods

• Initial Enrollment Period (IEP) allows you to join a MAP three months before your birthday month, your birthday month, and three months after. 
• the Annual Enrollment Period (AEP) from October 15th to December 7th, 
• the General Enrollment Period (GEP) from January 1st to March 31st 
• and, the Special Election Period (SEP)

During the AEP beneficiaries may change their PDP, change their MAP, return to Original Medicare, or enroll in a MAP for the first time.

Re-enrollment and Dual Eligibility
During the GEP, if you didn't enroll in Part A or B during the IEP, or terminated your Part A or Part B benefits and want to re-enroll in either or both Parts, you may do so during this period. If you enroll during the GEP, your benefits will begin the following July 1st.

Finally, during the SEP if you  have special needs, specifically diabetes or have Dual Eligibility (qualify for both Medicare and Medicaid) ,you can change your plan anytime during the year with no limit to the number of changes. This includes your prescription drug plan. This choice under the SEP is also available to those who move into, reside in, or move out of a nursing home.


If you have any questions regarding what plan would be best for you, call (773) 614-3201.

Any comments? Leave them below.

What Is the Best Way to Hold Title to Your Home?

There are three common ways in which people hold title to their property: 

1. joint tenancy with the right of survivorship, 
2. tenancy in common, 
3. and tenancy by the entirety. 

Under joint tenancy with the right of survivorship all parties have equal interest. Each has a right to possession of the whole. 

At death, the interest of the decedent passes to the surviving tenant automatically. This is the right of survivorship. This ownership must be created on purpose. There is one deed, equal interest, survivorship must be defined, and there must be four unities: time, title, possession, and interest.

Each tenant has an undivided share in the whole property; is equally responsible for expenses and is equally entitled to rent and profit. The unities are terminated by one co-tenant or more than one tenant. The new owner then becomes a tenant in common.

Under tenancy in common the owners does not necessarily have equal interests. Each unit is inheritable with no right of survivorship. Tenancy in common may accidentally happen by inheritance by more than one heir; through purchase in which shares may and may not be equal; or through failure to specify joint tenancy with right of survivorship. Each tenant has undivided share in the whole property; is equally responsible for expenses and equally entitled to rent and profits. Sale by one co-tenant does not terminate the tenancy in common. The buyer succeeds to interest. Substitution occurs.

And, under tenancy by the entirety, which is created by a deed to the husband and the wife, both have an equal interest in the property and each spouse is entitled to possession of the whole. Upon divorce, the property ownership converts to a tenancy in common. Upon death, interest of the decedent passes automatically to the surviving tenant.

This form of ownership requires the four unities plus the unity of marriage. Each is equally responsible for expenses. Also, only the principal residence can be held in the entirety. One member cannot sell his or her interest. The right of survivorship is not defeated by an attempted sale and divorce converts ownership to tenancy in common.

What is common in each one of these types of ownership is that once the deed is recorded, the names of the parties in each of these forms of ownership are available to the public. If you're concerned about your privacy, you should not consider either of these forms of ownership. Rather you should consider a land trust. Under a land trust, a trustee holds title to the property for the benefit of the beneficiary. The trustee would hold legal title to the property under a deed in trust.

Nevertheless, the beneficiaries have the right of possession of the property, the income generated from the property, the income from the sale of the property, the ease of transferability, and the protection of having the property considered as personal property rather than real property. 

The name(s) of the beneficiaries can be concealed. In my judgment this is the best way to hold title to your property. Not all states have land trusts. But, if you live in Illinois, Florida, Virginia, North Dakota, Indiana, and Hawaii, you should seriously think about it.