Patriot Wealth - March 2019

MARCH 2019


PHONE | 919.322.4113



I recently had the pleasure of talking with a pre-retiree, who had never utilized a financial planner, about his experience with investing. His stories were filled with what seemed to be an endless roller coaster of emotion — heart-racing highs when the market was great, followed by gut-wrenching losses. As the conversation evolved, I realized a theme kept coming up, and this prompted me to dive a little deeper. St. Patrick’s Day is this month, and it’s no coincidence that luck isn’t just about leprechauns and pots of gold. It is also a very important element of investing in the stock market. It is important that we recognize the role luck can have, while not relying on it for the total success of our investment plan. We must strive to root our investment process in a formulaic approach, one that uses smart formulas to eliminate bad emotional decisions while simultaneously automating good ones. At Patriot Wealth we accomplish this, along with our partners at FormulaFolio Investments, by basing each portfolio decision on proven, academic research implemented through targeted algorithms. Over the course of 2017, Bitcoin jumped from $1,000 to $20,000. Some of those who had been holding the cryptocurrency since early 2013, when the value of one Bitcoin was less than $100, made out like bandits from the unprecedented jump in value. Many others wanted to repeat this accidental fortune for themselves and bought into the craze, but the price plummeted almost as quickly as it had risen. It is a perfect example of what can happen when you don’t remove impulsive emotions from the decisions you make about your investments.

sudden success of your neighbors or friends and feel the need to make changes to your own portfolio. You might think that what worked for them can work for you, too, because at least it’s worth a shot, right? Wrong. You must be sure to stay focused on YOUR goals and objectives. This can solidify commitment to a long-term plan while simultaneously avoiding the emotional, knee-jerk decision to sell or change investment choices during heightened levels of volatility. A “Plan A” of 7–10 smart formulas, working on your behalf, can make the investment process a lot smoother through a full market cycle. Ultimately, we want you to have a portfolio that is based on statistical and quantitative analyses rather than emotional impulse and luck. The days of the “hot stock pick” are long gone. The market will always remain unpredictable, and we as humans will always be emotional. We need to leverage the technologies that are available now to help us automate good investment decisions. In turn, this helps us to limit bad ones. Here at Patriot Wealth, we aim to develop a strategy you trust in, helping you keep your emotions in check so that you can enjoy the retirement you’ve always wanted. Simply put, we help you to plan smart so you can live well.

You should acknowledge the role of luck — good and bad —as part of the investment process. It’s easy to observe the

–Austin Kobilka

Investment Advisory Services offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Patriot Wealth and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

PATRIOT WEALTH | 919.322.4113 | P1

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