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Tudor Financial November 2018 Update
"A Full Life, Secure Future"
Here we are the week after Thanksgiving...

Treading in a Range: Early November elections came and went and life goes on. Does not matter who populates political offices: consumer and business expenditures remain steady. You gotta eat - this never changes.

In recent months, markets peaked in mid-September and declined through election day. Markets then rallied after election day as they often do, but once again entered into several weeks of malaise and officially experienced the second 10% correction of the year November 23. This week, markets had a massive Jerome Powell (head of the Federal Reserve) rally (Dow up over 600 points) - this put the major market averages in positive territory for the month. Not shabby given all the pressures of tariff and presumed recession talk.

Little Surprise: Markets are currently trading in their March through July range.

Big surprise: The S&P 500 is up a total return of 4.5% year-to-date. So much for TV chatter suggesting losses for the year. We currently have allocations in that index. (Source: BTN Research)

How to Wreak Havoc With your Long-Term Investment Outcome? Part 2

We noted last month that it can be financially destructive to sell investments after a pre-determined level of decline - f or example, sell investments after a 10% decline. Some investment firms promote it, some individual investors have tried it. Sounds reasonable on the surface, but can cause severe outcomes. As 2018 teaches us.

So far in 2018, this approach could have evaporated up to 20% of investment principal . Two declines - one in February and another in September - would have triggered sales. Net result: transaction costs, large investment losses, potential tax consequences.

Bitcoin Update: Very popular media topic last year, we noted at the time that Bitcoin did not meet the definition of a currency. We were not sold on its merits as an investment. However you want to describe this electronic phenomenon, investors playing the Bitcoin game have lost 74% year-to-date . (1)
2018: Tax Shocks Likely
We are predicting that tax law changes enacted for 2018 will catch many off guard. The changes have created a whole new ballgame for many taxpayers including:

> Limits on city and state tax deductions
> Misc. itemized deduction elimination
> Alimony no longer deductible
> Exemptions gone
> Standard deduction nearly doubling

It's very important to chat with your tax professional prior to year-end to plan your potential 2018 tax outcome.

Source: WSJ Guide to 2018 Tax Changes

How Long Does $1 Million Last?
Forget about clipping coupons and skimping on caramel-drenched coffee. Big retirement overhead is a much larger factor of retirement financial outcomes - housing is usually the biggest. Housing costs are driven by geography: housing is usually cheap in the mid-belly of the U.S., expensive on the coasts. Islands can be expensive - think Hawaii.

So you retire with a million. Good job. How long will that last? Depends on where you live. Based on government living cost data, Hawaiians dive through their million the quickest - savings of $1 million lasts only about 12 years in that state. In Mississippi, the longest of any state, a million lasts 25.5 years. In Ohio - about 24 years. New York - 16.5 years. Florida - 22 years. California - 15 years.

Check your state here: State by State Living Costs

Another huge factor of retirement cost? Entertainment. According to the Employment Benefit Research Institute, retirees spend $5,832 per person, over $11,000/year for a couple, on entertainment. More time to spend on entertainment in retirement.

Focus on housing and entertainment costs to avoid running through savings too quickly in retirement. (Source:,
An Unhealthy Obsession: Sugar is Sugar

Does it matter where you get your sugar? No. Yet investors think that buying investments from one investment firm or mutual fund company is better than some other place.

This thought process happens every day in the investment arena. One fund group is known for cheapness, the other fund group has a strong well-known brand and advertises heavily. Does it matter to investment returns?

Your radio personality suggests emerging market index funds on January 1 2018 and you buy some - doesn't matter if you bought from Vanguard down 16.27% , or popular investment firm BlackRock - down 15.85% - you've had large, very similar declines this year through mid-November. Vanguard's low costs didn't help out. Emerging markets are emerging markets. The notoriety of an investment firm or lower costs won't save you. Better question: Does it makes sense to add an investment ingredient to your well-defined investment strategy? If the answer is yes, then the investment source doesn't matter. (1)

The percentage of retiree households unable to generate 75% of their pre-retirement income from social security, pensions, investments and savings.

(Source: Adam Bee and Joshua Mitchell Study 2017)
Dow Industrial Index
March 2009 - 6,600
November 2018 - 25,451 (1)
Your Financial Quote: " A nickel ain't worth a dime anymore ." Yogi Berra
"Strategy Determines Outcome - Securities are Merely Tools"
Enjoy the week...
Grant S. Donaldson, MS, CPA 
(1), S&P500 historical data, Barron,, Vanguard benchmark returns
(2) Information available upon request
Past performance is not indicative of future results.  Nothing in this communication should be construed to contain a solicitation to buy or an offer to sell any security.  Some information contained in this communication has been provided by sources other than Tudor Financial, Inc., the accuracy of which is the responsibility of the provider.  Advisors affiliated with Tudor Financial are Registered Reps. of Westminster Financial Securities, Inc.,40 North Main Street, Suite 2400, Dayton, Ohio 45423, member FINRA/SIPC. If you would like a copy of our Schedule ADV Brochure, a written disclosure statement outlining our background and business practices, please contact our office.