Tag Archives: Retirement Benefits

December 2020 Financial Planning and Capital Market Review – Goodbye Year – Hello 2021 By John Kvale

Posted on January 4, 2021 by | Leave a comment

Hello and Welcome to our December 2020 (yes the final review of 2020!) Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

December 2020 Video – Final of Year

YouTube

Financial Planning Tips

Retirement Levels and Contribution Amounts

In our post here, we review the coming 2021 Retirement levels of contributions and max amounts….

With the most popular highlighted and also matching the catch-up amounts, there are a few changes, but for the most part much of the same from last year 2020 !

Money Begins Moving at a Snails Pace

Oddly, something we had not experienced before…. early in the Month of December, as mentioned here in our Warning Post — money slowed to a trickle pace…

While not sure if this was a result of remote workers, last minute movements, procrastination or a combination of all, money slowed alarmingly…. So much so that we have marked our calendars for an earlier start to year end “Stuff” for 2021 !

Thankfully we are happy to announce, we made it through with not too terrible of delays… but got me once, shame on you …. you know the rest !

Capital Market Comments

Why Price is So Important

In a carefully chosen extreme example, meant to remind but not alarm, in this rewind/remember 1999 post of what can happen if price is not remembered, we show the length a badly timed “all in” purchase – again carefully chosen can take almost two decades to get back to even…

“Price is what you pay, value is what you get!”

Final Thoughts As Year Ends

As the year wound down, we shared a collection of points that we hope made you chuckle but also had some serious items as well…. here in this post. If you missed it … worth your time!

There you have it, so long 2020 – That is your December, final for the year review.

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

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Posted in General Financial Planning, Investing/Financial Planning, Market Comments, Podcast, Retirement Planning, Tax Related

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Part 14 : Tom Clark, Medicare Expert, with Audio – Medicare Part B Creation, Monthly Cost, IRMA Exclusions, IRMA Examples

Posted on October 2, 2019 by | Leave a comment

The most complex part of Medicare decisions comes from folks that work past age 65. The most important point of this entire second half of Mr. Clark’s presentation is that to get the most exact details for your situation you should check with your health insurance carrier. Frequently employers’ HR departments are outsourced and a recurring theme is the HR department is not in sync with the health insurance carrier.

Bottom line your health insurance carrier is your go to point of contact if you continue to work past age 65 as you will most certainly need to find out how they want you to handle your Medicare decisions.

 Direct Audio Here on our site for your viewing/listening pleasures as well as links to every full  post:

Much like our Social Security Benefits discussions, there are certain parts of Medicare Benefits that have more decisions and techniques to choose – Medicare Part B is by far the most detailed, confusing and has the most options to choose – The audio is terrific and gives more details than the bullets below – take a listen!

Medicare Part B Creation, Cost, IRMA, Benefits Options

Medicare Part B:

  • Doctor Bills coverage and outpatient coverage
  • Part B has a cost of $135/Month –
  • You can turn Part B down, but not a good decision unless you have current health insurance coverage “Not taking could be the worst financial decision you make” According to Clark
  • The $135/Month is about 1/4th of the actual premium – Government Supplements the 3/4 – see next
  • Income over $85k Individual or $175k Couple, you will pay more as the Government supplement goes away – IRMA – Income Related Monthly Adjusted Amount – click link for recent detailed analysis and solutions
  • IRMA – Everything but Roth counts towards income, including tax free, interest and anything
  • Started in 2005 to pay Medicare Part D, Drugs and prescription-
  • Can refute IRMA as administration has three year old data
  • Example for IRMA premiums – Severance
  • Social Security Favors Individual

Here is the audio…

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “Intro to Medicare Part B” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Medicare, Retirement Planning, Tom Clark

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Part 13 : Tom Clark, Medicare Expert, with Audio – Medicare Part A Explained

Posted on September 25, 2019 by | Leave a comment

The most complex part of Medicare decisions comes from folks that work past age 65. The most important point of this entire second half of Mr. Clark’s presentation is that to get the most exact details for your situation you should check with your health insurance carrier. Frequently employers’ HR departments are outsourced and a recurring theme is the HR department is not in sync with the health insurance carrier.

Bottom line your health insurance carrier is your go to point of contact if you continue to work past age 65 as you will most certainly need to find out how they want you to handle your Medicare decisions.

 Direct Audio Here on our site for your viewing/listening pleasures as well as links to every full  post:

 

Medicare Part A Explained

During the meeting, there was a lot of jumping between Medicare Part A and B, with a ton of information on Part B coming in the next Part. Early in the audio, the most important item to note is re-iteration as above, for those many of us working beyond age 65, check with your Health Insurance Provider for the best source of accurate actions needed on your part – ok, here are the bullets from the Audio for Part A Medicare:

  • Medicare Part A only for Hospital care
  • Medicare Part A is funded via the 1.45% FICA Tax from your payroll during your working lifetime, as such no cost upon retirement/enrollment
  • Medicare Part A (B) starts at age 65 (Not age adjusted as Social Security)
  • Consult your Health Provider, not HR for best post 65 age Medicare Part A decisions and elections
  • Once on Medicare, cannot fund your HSA – a reason you may want to defer Part A if you have full other coverage options
  • If still employed and you do not take Medicare, you can still fund your HSA –
  • By deferring Medicare A you will have a small penalty on Medicare Part D – Drugs
  • Social Security . Gov website to start Medicare and can choose Part A and/or Part B
  • Careful when you file for Medicare Part A, normal look back of six months which may void your HSA – must sync this
  • If you are over 65 and drawing full retirement age, you automatically have Medicare Part A

This audio is a bit longer, but full of great examples for the bullets above …coming up the more complicated decisions of Medicare Part B –

Here is your audio…

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security and Medicare Page

Have a Great “Medicare Part A Explained” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Medicare, Retirement Planning, Tom Clark

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Part 12 : Tom Clark, Medicare Expert, with Audio – An introduction to Medicare, Background, Stats, Part A and B Explained

Posted on September 18, 2019 by | Leave a comment

What follows will be a multiple part series as we will attempt to explain the various parts of Medicare. In this first post, a high-level explanation of just Part A and B.

The most complex part of Medicare decisions comes from folks that work past age 65. The most important point of this entire second half of Mr. Clark’s presentation is that to get the most exact details for your situation you should check with your health insurance carrier. Frequently employers’ HR departments are outsourced and a recurring theme is the HR department is not in sync with the health insurance carrier.

Bottom line your health insurance carrier is your go to point of contact if you continue to work past age 65 as you will most certainly need to find out how they want you to handle your Medicare decisions.

 Direct Audio Here on our site for your viewing/listening pleasures as well as links to every full  post:

 

Medicare Statistics, Background and Part A and B Explained

OK here we go an introduction to stats and statistics and a high-level view of Medicare Part A and B:

  • Medicare is far more important than Social Security benefits as the government offset of Medical Costs are likely much greater than Social Security Benefits
  • Bet you didn’t know Medicare was started in 1965!
  • Medicare’s purpose is to provide substantial benefits at very reasonable costs for retired folks at age 65
  • Unlike Social Security Age 65 remains the age Medicare Benefits begin for retired people
  • Social Security Disability receivers are automatically enrolled into Medicare after two years of disability benefits
  • Part A is Hospital Insurance Benefits – Prepaid
  • 1.45% of FICA taxes used during work to prepay Part A
  • Part B Covers Doctor bills and out patient treatment
  • Part B has a cost- monthly starting premium of $135 month – there are means test that increase this cost
  • This cost is usually withheld from Social Security Benefit
  • If not taking Social Security, you will be billed directly

Here is the audio…

 

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “Intro to Medicare” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Medicare, Retirement Planning, Tom Clark

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Part 11 : Tom Clark, Social Security Expert, with Audio – GRANDFATHERED BENEFITS – Decisions for Restricted Application Spousal Benefits Explained

Posted on September 11, 2019 by | Leave a comment

This is the final review of Social Security Benefits and actually a very unique one as this portion speaks to a VERY small group of people who are luckily grandfathered in under old laws and due to that fact have one additional option/decision/possible technique.

In Part 11, from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, concludes the specifics of Social Security, Retirement Benefits for one age based spousal Decision …. that Social Security Provides. As a refresher,  Part 1 Here , Part 2 Here , Part 3 Here, Part 4 Here,  Part 5 Here, Part 6 here, Part 7 here, Part 8 here , Part 9 here, Part 10 here, and Direct Audio Here on our site for your viewing/listening pleasures:

Restricted Application Technique Benefit Option for Married Couples Meeting Grandfathered Age Criteria

While for a small and quickly shrinking group of folks due to the law change, the Grandfathering of a loophole technique/option makes this worth review :

  • Most applicable when two wage earners
  • Age 62 or older by end of 2015
  • Must not have filed Social Security yet
  • Restricted application for spouses only
  • This age group has the option to file on their spouse – as a reminder all others must always file on their own benefit first
  • Must be full retirement age before able to use technique
  • One member of couple is drawing social security already
  • Can file on spouses benefit and delay his/her own benefit to let benefit grow
  • Nice money based example near end of audio

 

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “Restricted Application Spousal Benefit Explained” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Retirement Planning, Social Security, Tom Clark

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Part 10 : Tom Clark, Social Security Expert, with Audio – DIVORCED – Options, Obligations for Maximization, and Decisions for Ex Spousal Benefits Explained

Posted on August 28, 2019 by | Leave a comment

As we near the end of the Social Security Retirement Benefits portion (Medicare up next), the final Three Parts will be directly related to spousal benefits. Spousal benefits are EXACTLY the same no matter gender, so insert your preference for the easiest understanding.

Parts (8-10) will deal with the status of the spouse and how it effects retirement benefits for the other spouse:

  1. Living
  2. Deceased
  3. Divorced

As just a heads up, each section will become more detailed and complicated – so let’s get started on the various spouse benefits depending on the other’s status!

In Part 10, from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the specifics of Social Security, Retirement Benefits for DIVORCED spouses …. that Social Security Provides. As a refresher,  Part 1 Here , Part 2 Here , Part 3 Here, Part 4 Here,  Part 5 Here, Part 6 here, Part 7 here, Part 8 here , Part 9 here,  and Direct Audio Here on our site for your viewing/listening pleasures:

Retirement Benefits for DIVORCED Spouses

In this clip, it becomes very apparent that Divorce and Deceased Ex Spouses carry burdens by us the consumer to check with Social Security for possible increased benefits – also of note there IS a disadvantage to remarrying a lower income spouse :

  • Divorced Spouse must have been married 10 years, unmarried and meets all the benefits of current/regular Spouse to draw benefits – and is still unmarried.
  • Ex Spouses DO NOT effect in any way other benefits for others – Ex Spouse or new spouse’s benefits – Technically someone could be married and divorced as many times as longevity would allow, and as long as each time they were married 10 years all would receive benefits and NOT effect any others benefits!
  • If get remarried, cannot draw benefits on a living Ex husbands benefits.
  • Example:  Married to high income earner and get divorced,  remarry to a low income earner, likely will reduce benefits spousal benefits if yours are not greater on your own.
  • Near end of audio – important statement – If you are divorced, especially if your former spouse has remarried and the current spouse is drawing a spousal benefit, Social Security likely has no record of your marriage to that spouse – see next point
  • Should your EX spouse pass away, you may be entitled to and increase in benefits if you meet the requirements of current wife of widow.
  • Because of the first two points, you may consider calling Social Security to confirm your Ex is still living, if this is not the case, you may be entitled to an increase in benefits- again, something Social Security would have no idea due to remarriage of your Ex

Dealing with Divorced  Spousal benefits carriers obligations in order to maximize Social Security Benefits …

Be sure to listen to the audio below from the event, it is very informative!

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “DIVORCED Spousal Benefits and Obligations Explained” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Retirement Planning, Social Security, Tom Clark

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Part 9 : Tom Clark, Social Security Expert, with Audio – DECEASED – Options and Decisions, Married Spousal Benefits Explained

Posted on August 21, 2019 by | Leave a comment

As we near the end of the Social Security Retirement Benefits portion (Medicare up next), the final Three Parts will be directly related to spousal benefits. Spousal benefits are EXACTLY the same no matter gender, so insert your preference for the easiest understanding.

Parts (8-10) will deal with the status of the spouse and how it effects retirement benefits for the other spouse:

  1. Living
  2. Deceased
  3. Divorced

As just a heads up, each section will become more detailed and complicated – so let’s get started on the various spouse benefits depending on the other’s status!

In Part 9, from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the specifics of Social Security, Retirement Benefits for DECEASED spouses …. that Social Security Provides. As a refresher,  Part 1 Here , Part 2 Here , Part 3 Here, Part 4 Here,  Part 5 Here, Part 6 here, Part 7 here, Part 8 here  and Direct Audio Here on our site for your viewing/listening pleasures:

Retirement Benefits for DECEASED Spouses

The following bullets  will explain in type form the audio, please take a minute to listen as there is a ton of information in just 4 minutes:

  • Husband and Wife benefits same for deceased
  • Unlike living, a Widow Benefit based of FULL UN-REDUCED amount of Social Security Benefit
  • Example: Widow drawing own benefit spouse dies, the spouses benefit increased to the full amount
  • Widow can draw at age 60 unlike any other benefit
  • Widow DOES NOT have to take own benefit – can delay own OR draw deceased spouse – this gives various options and strategies
  • Cannot marry again before age 60 to have the prior example
  • So complicated, Mr. Clark suggests we go to Social Security options to make an informed decision
  • Bring Marriage Certificate – any proof of your benefit beneficiary
  •  Strategy available for Widows due to the options available- i.e. Draw your own, delay widow or visa versa – its complicated but there likely is a right and wrong answer
  • “If you were married to a high wage earner, might consider waiting until age 60 before getting remarried!” Says Clark – near end of the audio

Dealing with Deceased spousal benefits allows the most options of almost any Social Security Benefits, these options lead to complications, but also maximization strategies …

Be sure to listen to the audio below from the event, it is very informative

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “Deceased Spousal Benefits Explained” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Retirement Planning, Social Security, Tom Clark

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Part 8 : Tom Clark, Social Security Expert, with Audio – Living, Married Spousal Benefits Explained

Posted on August 14, 2019 by | Leave a comment

As we near the end of the Social Security Retirement Benefits portion (Medicare up next), the final/next Three Parts will be directly related to spousal benefits. Spousal benefits are EXACTLY the same no matter gender, so insert your preference for the easiest understanding.

The Next Three Parts (8-10) will deal with the status of the spouse and how it effects retirement benefits for the other spouse:

  1. Living
  2. Deceased
  3. Divorced

As just a heads up, each section will become more detailed and complicated – so let’s get started on the various spouse benefits depending on the other’s status!

In Part 8, from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the specifics of Social Security, Retirement Benefits for living spouses …. that Social Security Provides. Part 1 Here , Part 2 Here , Part 3 Here, Part 4 Here,  Part 5 Here, Part 6 here, Part 7 here, and Direct Audio Here on our site for your viewing/listening pleasures:

Retirement Benefits for Living Spouses

The following bullets and audio will expel many false items you may have heard …

  • Spouse (wife in Clark’s examples) CAN receive benefits based on her spouses benefits, ONLY if she will not receive more benefits by drawing her own benefits
  • If she were to receive a benefit check greater than one half of her spouses benefit, she MUST draw the higher amount due from her benefit
  • One time based exception to the above statements – this exception is quickly fading due to timing of the laws passed –
  • Spouse must be age 62
  • Other spouse MUST be drawing own benefits in order to have spousal benefit
  • All spousal benefits are based on one half the other spouse full retirement age benefit
  • Benefit is reduced for spouse based on early age i.e. Spouse is 62 benefit will be reduced – Read next -Important
  • If spouse is older than wage earning spouse, the benefit will NOT be discounted and will be half of the wage earnings spouses full benefit – in effect greater than one half the early retiring spouses benefit – Great Example at 2 minute mark of audio

Wow, there is so much clarity in the following 2+ minutes of audio, we hope you enjoy – feel free to listen more than once – it took at least a dozen times to get this edited …

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Retirement Planning, Social Security, Tom Clark

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Part 7 : Tom Clark, Social Security Expert, with Audio – Clarity on Final Years Earnings and any Effects on Retirement Benefits

Posted on August 7, 2019 by | Leave a comment

In Part 7, from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the meat of Social Security, Retirement Benefits …. that Social Security Provides. Part 1 Here , Part 2 Here , Part 3 Here, Part 4 Here,  Part 5 Here, Part 6 here, and Direct Audio Here on our site for your viewing/listening pleasures:

Effects of Lower Social Security Earnings Near Full Retirement Age

Very frequently our Financial Planning discussions include early retirement or halting of the big weekly grind/travels to do something always desired but may result in a reduction in income… all very near Full Retirement Age/Last Years of Social Security Credits.

Will a few missed or greatly lowered earnings years near Social Security Full Retirement Age knock your benefit down? Likely Not

  • Since Social Benefit first part of earnings may count more than last
  • A few missed years likely will not hurt your retirement benefit
  • Recall from earlier discussion that Retirement Benefits are based on your highest Wage (not Inflation) adjusted 35 years
  • Per question/statement from audience in audio – very possible first 10 years count much more than final 3- 5 years
  • Likely not working last few years or taking a greatly reduced but desired occupation could result in NO DIFFERENCE in Social Security Retirement Benefit

There are always exceptions to the norm, but with repeat occurrences of desired life style change near Full Retirement Age, we feel more comfortable knowing it just likely will not make a big difference… one can infer this will hold true for early retirement as well…. Thanks Tom!

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “Late Career Dream Job or Early Retirement No Benefit Change” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

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Posted in Audio, General Financial Planning, Investing/Financial Planning, Social Security, Tom Clark

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Part 6 : Tom Clark, Social Security Expert, with Audio – Delayed Retirement Benefit, Important Spousal/Widow Non Increasing Benefit

Posted on July 24, 2019 by | Leave a comment

In Part 6, from our  Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the meat of Social Security, Retirement Benefits …. that Social Security Provides. Part 1 Here , Part 2 Here , Part 3 Here, Part 4 Here,  Part 5 Here, and Direct Audio Here on our site for your viewing/listening pleasures:

Delaying Full Retirement Benefit and Important Spousal/Widow Understanding

While about 50% of retirees take Social Security at 62 with another huge portion taking the benefit at FRA or Full Retirement Age – there are some folks that delay benefits – here is why

  • Why would folks delay Social Security Retirement Benefits?
  • Delayed Retirement Benefits – an ANNUAL 8% increase in benefits
  • Annual increase until age 70
  • Cannot wait past 70
  • Possible 32% increase in benefits
  • Spouses/Widow DO NOT GET an increase- Don’t wait past FRA for spousal benefits
  • Spouse would receive higher monthly benefit upon death if delayed benefit

The most important item in this section is the Spousal/Widow benefit – it does not make sense for the spouse to wait for delayed benefit if claiming benefits from a spouse – there have been some rule changes making this more difficult.

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Click Here for Direct Link to All Parts Audio Posted on our Special Social Security Page

Have a Great “Delayed Benefit and Spousal No Accrual” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

Leave a comment

Posted in Audio, General Financial Planning, Investing/Financial Planning, Social Security, Tom Clark

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