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


The rise in popularity of game-streaming platforms like Twitch — a service seemingly only used by snarky teens playing under quirky aliases — has paved the way for a whole new generation of video game enthusiasts. They just might not be the type you had in mind. Clips and articles are popping up online showcasing how older generations of tech aficionados have taken to gaming en masse. Long gone are the days of grandparents calling grandsons in frustration to ask how to send an email. The current generation of seniors bucks the stereotypical ignorance of technology, embracing hand-held controllers and battle cries as they take on their decades-younger counterparts in the digital arena. One team in particular has stolen the spotlight of late: The Silver Snipers, bringers of destruction in “Counter-Strike” leagues around the world. The team from Stockholm, Sweden, took their talents to the stage of Dreamhack 2017, an esports tournament, where they battled it out against some of the world’s most skilled esports players. Their mission was simple: to show the world that gaming is for

people of all ages. Each member picked up the game for different reasons; some played as a way to connect to their grandkids, while others did it to pass the time. One thing’s for certain: This alliance has turned into a hellscape for their opponents. With every team member being over the age of 60, the combination of BirDie, Windy, Knitting Knight, Teen Slayer, and Berra Bang — all gaming aliases — has proved to be a first-of-its-kind powerhouse in the growing circle of older gamers. As one member explained, the game is not just for having fun. Gaming has given the team a chance to connect and be a part of a massive worldwide community. The gameplay also allows for mental exercise. It offers teamwork challenges and improves cognitive function, multitasking skills, and reflexes. If The Silver Snipers are passing along one message, it’s that you’re never too young for an old-fashioned digital beat down.


Striving for financial security is a bit like skydiving. Careening through life can be nerve-wracking, but having a parachute in the form of a job, a salary, or a retirement fund that you can deploy against expenses can bring about greater peace of mind. So what happens when you deploy that parachute and it tears? You lose your job, a sudden medical emergency leaves you with more bills than you can pay — the things that can tear your parachute are everywhere. That’s why you should have your backup parachute: the emergency fund. How much money you should have saved up in your emergency fund can depend on a number of factors. Are you single and renting with no mortgage to

pay? Are you married with two incomes and kids? If you suddenly become unemployed, how quickly could you find another job? Considering these different factors will help you

be beneficial in some cases, but most of the time, 3–6 months should be a sufficient backup parachute. If too much of your income goes toward your emergency

decide the amount you need for your emergency fund as well as how much of each paycheck should contribute to that goal.

fund, you could risk taking money away from other expenses.

Wanting to be sufficiently

prepared for financial disruption is a healthy

Most experts will say that your emergency fund should equal 3–6-months’ worth of expenses. Having this money will allow you to pay your bills while you look for a new job or take time to heal from a long-term injury. Having enough to cover expenses for nine months could

impulse, and if you want more information on budgeting and types of accounts to use for an emergency fund, please feel free to contact us through our website or over the phone.


Tax season is well underway, and whether you filed everything months ago or you’re still biding your time until the April deadline, it might literally pay to consider what you could do with your return. There is no shortage of ways to use that money, but listed below are some recommendations for using it wisely. 5 WAYS TO USE YOUR TAX REFUND THIS YEAR TO SAVE, PAY OFF, OR SPEND?


Hope for the best, but prepare for the worst. A properly stocked emergency fund can shield you from all manner of expensive disasters. If you have been building this fund bit by bit with each paycheck, your tax refund can give you a nice boost toward financial security.


Whether it’s credit card debt, a car payment, or student loans, your tax refund might best be used to reduce any outstanding debt you’re carrying. Shrinking your monthly payments can go a long way toward freeing up money for other expenses down the road.



Do you want some new stone countertops and a stylish tile backsplash in the kitchen? Or maybe you want to knock down a wall in your old home to create a more modern, open space. Your tax refund could go toward making one of your most valuable assets — your home — more valuable.


Inspired by Food & Wine magazine


• 3/4 cup popcorn kernels • 2 tablespoons flaky sea salt

If you really want to make sure you don’t spend your tax refund frivolously, storing it away in a retirement fund can be a smart move. There might be more immediate needs or desires that you want to take care of with your newly acquired money, but your future retired self will thank you for holding off and thinking ahead. This option comes with the caveat that you should be certain about what you need long before that extra money gets to you. Making home repairs, buying a new pair of winter boots, or replacing your old, broken computer might not be a bad use of your tax refund, but, to prevent overspending, you should make sure of what you want long before you get it. These are just a few options to ponder during tax season, but they are certainly not the only ones. If you want to know the best route forward, visit our website or give us a call. BUY SOMETHING YOU NEED

• 1 teaspoon black sesame seeds • 2 teaspoons white sesame seeds • 2 teaspoons granulated garlic • 2 teaspoons granulated onion • 1/3 cup canola oil • 4 tablespoons unsalted butter, melted


1. In a small skillet over medium heat, toast sesame seeds. Shake skillet often and cook until white seeds are golden and fragrant, about 2 minutes. Transfer to a small bowl and add garlic, onion, and salt. 2. In a large saucepan, combine popcorn kernels and oil. Cook over medium-high heat, covered, until popcorn kernels start to pop. Once popping, continue cooking and shaking the pan intermittently until popping ceases, about 3–5 minutes. 3. Transfer popcorn to a large mixing bowl. Pour in butter and toss to coat. Finally, add seasoning, toss again, and serve.

PATRIOT WEALTH | 919.322.4113 | P3

PATRIOT WEALTH 4350 Lassiter at North Hills Ave #330 Raleigh, NC 27609




The Importance of Formulas in a Luck-Filled Market PAGE 1

Age Is Only a Level Number PAGE 2

What to Consider When Building Your Emergency Fund PAGE 2

Everything Popcorn PAGE 3

Putting Your Extra Money to Good Use PAGE 3

How to Make Your Sailing Dreams Come True PAGE 4



If you’re lucky enough to have been aboard a ship under full sail, chances are you know the thrill and serenity sailing can give you. If you’ve never been but have always wanted to know what it’s like to get out on the wind and waves, there are many great options available for beginners. Here are some ideas to inspire your next waterside vacation.

want to make it a family experience, shops usually have 16-foot catamarans for rent as well. Catamarans have two hulls rather than one, making for a smoother, more spacious ride. If you’ve never sailed before, inquire about lessons. Most rental operations have instructors on hand who can show you the ropes. The great thing about sailing is that whether you’re in a 12-foot dinghy

If you’ve captained a boat and are familiar with the waters, you can apply for a bareboat charter. However, if you are inexperienced or simply don’t want a local guide at the helm, signing up for a day trip with a skipper and crew is a great option. Short of owning your own vessel, chartering a boat for multiple nights is the closest you can get to living out your nautical dreams. Some of the most beautiful destinations on earth — from the Caribbean Sea to the Mediterranean — are best experienced from the deck of a sailboat. Letting the sea guide you to amazing snorkeling destinations, remote cays, and bustling harbors is the stuff of real adventure. DO A FULL CHARTER


or a 60-foot sloop, the same basic principles, rules, and skills apply.

For those who dream of becoming a skipper one day, a great way to start is by sailing dinghies. These one-sail, beach-launch boats fit 1–2 people and can be rented at most water sports shops. If you


Many day-sail charters exist for

those who want to go out a little farther than

a dinghy would permit.


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