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Jack Dorsey Donates $3 Million To US Mayors For Universal Basic Income Pilot Programs In 15 Cities

Slashdot.org - Fri, 07/10/2020 - 02:00
Jack Dorsey, the billionaire CEO of Twitter and Square, is donating $3 million to help fund Mayors for a Guaranteed Income (MGI), a new coalition of 15 mayors across the country who want to explore the idea of universal basic income -- a recurring payment to residents -- in their cities. Forbes reports: The coalition was created on June 29 by Michael Tubbs, the 29 year-old mayor of Stockton, California, who has been running a guaranteed income pilot program in his city since the winter of 2018. The majority of the gift will help the mayors create pilot programs for universal basic income (UBI) in their cities, which include Newark, Atlanta, Seattle, Los Angeles, Compton, Long Beach, Pittsburgh, Oakland and more. The rest of the money will go to a new pilot program in Stockton, which Tubbs will announce in the fall. For now, the roster of mayors in MGI are moderate to liberal-leaning, but that will soon change. Dorsey is making the donation from #startsmall, his philanthropic limited liability company, which he launched on April 7 by transferring $1 billion worth of Square shares -- then 28% of his net worth -- to the LLC. Dorsey said he would primarily focus his charitable efforts on Covid-19 relief, and also fund efforts to improve girl's health and education, as well as UBI experimentation. Tubbs hopes that with more successful experiments of guaranteed income around the country, the federal government will follow with a national guaranteed income program that will extend beyond the pandemic.

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Free Social Security Tool for Optimal Benefit Claiming Strategy

MyMoneyBlog.com - Fri, 07/10/2020 - 01:49

Update: The free Open Social Security tool has been updated to include a new “heat map” visualization that illustrates the relative values of claiming Social Security at different ages. Details here. Here is a sample graph for a couple with similar income histories and the same age:

For this situation, we see that the worst expected outcomes would occur if both individuals claimed really early. The best expected outcomes occur when one claims relatively early and the other claims relatively late.

Original post:

When to start claiming Social Security to maximize your potential benefit can be a complicated question, especially for couples. There are multiple paid services that will run the numbers for you, including Social Security Solutions (aka SS Analyzer) and Maximize My Social Security, which cost between $20 and $250 depending on included features.

Mike Piper of Oblivious Investor has created a free, open-source calculator called Open Social Security. To use the calculator, you will need to your Primary Insurance Amount (PIA). This amount depends on your future income, so I would first consult this other free Social Security benefit estimator tool to more easily estimate your PIA. I believe the value you see at SSA.gov assumes that you will keep working at your historical average income until your claiming age (which won’t be the case for us).

Here are our results as a couple, assuming we were the same age (we are close) and with my expected benefit being slightly higher than hers:

The strategy that maximizes the total dollars you can be expected to spend over your lifetimes is as follows:

You file for your retirement benefit to begin 12/2047, at age 70 and 0 months.
Your spouse files for his/her retirement benefit to begin 4/2040, at age 62 and 4 months.

The present value of this proposed solution would be $657,749.

Basically, the tool says that my wife should apply as soon as possible, while I should claim as late as possible. I believe this is because this scenario allows us claim at least some income starting from 62, and if I die first after that, my wife would still be able to “upgrade” to my higher benefit.

The tool might take some time to run the calculations, depending on your browser. You can learn more and provide feedback at Bogleheads and Github.

I am not a Social Security expert, and am not qualified to speak to the accuracy of the results. However, Mr. Piper is the author of the highly-rated book Social Security Made Simple, has a history of doing thorough work, and the tool has been around a while now. If I were close to 62, I would probably also use the paid services for a second and third opinion. Why? Spending $100 now could save you many thousands in the future.

The best thing about this free tool is that it can introduce a lot of people to ideas that they would have not otherwise considered. Even if it lacks every bell or whistle, being free means it can help more people. Many spouses wouldn’t think of having one claim as early as possible (age 62), and then have the other claim as late as possible (age 70). It’s not common sense unless you understand the inner workings of Social Security.


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Free Social Security Tool for Optimal Benefit Claiming Strategy from My Money Blog.

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