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Financial Guidance
Since 1992 - Celebrating 26 Years
Tudor Financial June 2018 Update
"A Full Life, Secure Future"
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Markets Need to Rest Sometimes:   After a huge year in 2017, markets needed a breather. Markets became a little frothy last year as aggressive investors began bidding up certain assets with a level of recklessness. (Bitcoin?)

So a correction was overdue after a two-year smooth ride (think four months back to February). Thus far in 2018: a correction, some recovery and now the Dow hovering below break-even at the year's mid-point.

Rising interest rates this year have pressured all income-paying securities, but think hard before abandoning them as an asset class. They may be the cushion you need in the next market downturn.

Best stock category? Small domestic stocks: up high single-digits for the year. (1)

How to Save Social Security: How much are you willing to sacrifice for your social security future? Depends if you are a worker or retiree.

The Social Security funding shortfall? $13.2 trillion over the next 75 years.

How to eliminate the shortfall?: Increase employee FICA tax by 2.78% of wages or... immediately reduce retiree benefits by 17%. (Source: Social Security Trustees)

Politicians traditionally cater to voters and the current crop of social security recipients vote in large numbers - so little risk that they will have to sacrifice. The next generation of recipients will likely be impacted in several ways - lower benefits, higher age threshold, higher payroll taxes.
Huge Need for 401(k) Help
How many 401(k) holders liquidated their investments into February 10% declines? How many 401(k) participants have a pre-determined investment selection approach that allocates their account based on evolving financial markets? How many make sure investment selections stay within their risk profile? These questions have become a serious matter for millions of employees in company retirement accounts.

Research firm Dalbar has done many studies confirming that 401(k) investors have had poor investment outcomes over many decades as employers forced employees to wear the investment management hat. The latest study shows that in the 30 years through December 31, 2016, the S&P 500 compounded at 10.16% while the average individual invested in stock funds earned a meager 3.98% (darting in and out of markets). In addition, recent studies show that 80-90% of 401(k) participants that auto-enroll into their plans when they begin employment fail to make any investment choices, defaulting to cash instead. (All the ways you can mess up your 401(k),

As a result, our firm several years ago began offering a systematic investment management process to help existing clients manage their 401(k)'s. We call it RetirementTrack. The service is based on our successful Spectrum Strategy which uses consistently updated investment information to make allocation selections. Clients have peace of mind that the investment management process of their 401(k)'s is done professionally. Feel free to call Kameron Powell in our firm for more information.

A $1,000/Month Compounding at 10% Grows to:

40 yrs. - $6,325,000 20 yrs. - $759,000 10 yrs. - $205,000 5 yrs. - $77,000
Time is an investor's best friend
How Do You Know Advice is Unbiased & Trustworthy? A big concern for investors is whether the advice they receive is in their best interest and unbiased. This is a natural concern. Regulations are in place to lower the risks of unscrupulous behavior in the financial field, but these are not foolproof.

These points can help screen potential red flags:

  1. If an "advisor" suggests putting all or most of your eggs in one or just a few securities, an investment product or magical investment scheme - run. True professionals recommend adequate diversification.
  2. Does the firm peddle investment products rather than investment strategy? Do the investment products sold often include the firm's own name?
  3. Are your financial accounts held by an outside firm known as a custodian or similar notable financial institution? If your statements come from the same address as the salesperson or some unusual location, you've got issues.
  4. No one investment security does well in all economic environments. So, does advice include a clear explanation of how your investments will be allocated as conditions change?
  5. What incentivizes good outcomes? If a salesperson is paid up-front, ask yourself what incentive they have to provide good long-term outcomes for you.
  6. How often are changes made in your accounts? If they seldom occur or not all, you're a victim of neglect. If they occur in rapid-fire succession, you may be experiencing churning.
  7. Each recommendation should consider your long-term goals, your risk assessment and your entire financial picture. Is there nearly always an estate planning or tax thought process associated with each recommendation?

Consider these and other signs to pin down whether advice you receive is trustworthy. Your financial outcomes will likely improve.
It's a Marathon, Not a Sprint

25% of Americans that reach age 65 will live at least another 25 years to age 90  

(Source: Social Security Administration)
Your Financial Quote: " A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” –  Suze Orman

What Have We Done for Our Clients?

"Strategy Determines Outcome - Securities are Merely Tools"
Asset allocation (designed for conservative, pension and 401(k) investors): Our Spectrum Asset Allocation Strategy (designed to migrate to and invest in the top -ranked choices of a broad basket of fourteen asset classes) is a well-diversified and excellent risk-adjusted approach for long-term investors. Its success hinges on its well-researched reallocation methodology. This strategy continues to largely hold stock allocations, but rankings are now shuffling and we will adjust allocations as needed. (2)

ETF Strategies (designed for conservative to aggressive investors): Our ETF Strategies can satisfy the goals of a wide range of clients. ETF securities are selected from a filtered universe of 130 choices which are evaluated based on well-researched ranking formulas. Our ETF Strategies continue to hold a healthy dose of diversified stock securities - rankings are adjusting to recent volatility, so reallocations may be forthcoming. (2)
Legacy Growth Strategy
Legacy Growth & Income Strategy
Legacy Dividend Growth Strategy
High Quality Individual Stock Strategies
Designed for Qualified* Equity-Oriented Growth and Income Investors
Our   Legacy Growth Strategies   focus on the financially strongest companies in the stock universe. Less than five percent of the companies listed on the New York Stock Exchange qualify as candidates. These strategies are a testament to the philosophy that investors can achieve excellent returns from the highest quality companies in the stock universe without taking excessive risks. (2)

Recent Activity
These strategies recently sold out of an industrial company position that experienced a very large price run-up that catapulted the position into overvaluation. This particular position was added to portfolios while out of favor (with an overhang of dark clouds) at the point of purchase. Each position included in the Legacy Strategies is evaluated likewise over the long cycle of undervaluation/overvaluation. Legacy Strategies are now fully allocated after being gifted with buying opportunities early this year.
Legacy Growth & Income Strategy 
A great strategy designed for growth coupled with a continuous stream of reliable income throughout the year.
Legacy Growth Strategy
Designed for growth investors that enjoy owning quality faster-growing companies purchased at bargain prices.
Legacy Dividend Growth
Created for growing income throughout retirement. This is our most conservative individual stock strategy and is designed for those that prefer a growing dividend income stream over time with less emphasis on capital appreciation.
What are we doing now?: Keep your chin up. The year is nearly half over, but we suspect that the economy holds up well - economic statistics are coming in strong. While no major asset category has shown stellar gains in 2018 (question marketing that suggests otherwise), as we note above, sometimes markets need a breather. Also, keep in mind that rising interest rates and tariffs are largely baked into financial markets, so you can eliminate them as big market movers at the halfway point of the year.

Big, unexpected things move markets, not the stuff everyone knows and hears about daily in the news. Those factors are already priced in.

We continue to believe that growth strategies have promise of good returns in 2018.

Enjoy the week... 

Grant S. Donaldson, MS, CPA 
* Minimum portfolio size $500,000
(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.