Patriot Wealth - July 2022

Patriot Wealth - July 2022

JULY 2022

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PATRIOT WEALTH

A STAR-SPANGLED CELEBRATION AND THE DEEPER MEANING BEHIND JULY 4

The world is in a difficult place, and many commentators will tell you we’ve never been more divided as a nation. I’m not sure if that’s necessarily true, but there’s no denying that it feels that way at times. We’ve all had to contend with a global pandemic, supply chain issues, inflation hitting 40- year highs, and even a baby formula shortage! But I still feel deeply fortunate to be an American. How can I not? We have achieved so much together, despite our differences. As we watch the atrocities in Russia’s war on Ukraine, there is no better time than the present to take a few moments to be thankful for this great country we all call home. July 4 is a time to celebrate family, friends, food, and most importantly of all, freedom. This all-American holiday feels unlike any other and is the perfect time for communities to come together and honor what makes them unique. Most families have July 4 traditions, and mine was no exception.

I grew up in Coatesville, PA. Back in the 1950s and ’60s, it was home to one of the largest steel mills in the world. As manufacturing moved overseas, the downtown area started to clear out. But it came alive once a year for the week of July 4. The town would block off the streets, set up vendors along Lincoln Highway, and produce a fireworks show every night for seven days. The event would draw around 20,000 people on any given evening — I’ll never forget those crowds! These days, I normally celebrate the holiday in Wilmington, NC with my girlfriend’s family. Her parents have a pool and live 10 minutes from the beach, so hanging out, cooling down, and grilling up some food is the perfect way for us to spend the holiday together. Her family puts on a fireworks show every year right in their backyard. They’ve been doing it for a long time, but they’re originally from New Jersey, and last year was the first time putting it together in Wilmington. I accompanied my girlfriend’s father down to the SC border so we could get our hand’s on the real deal! It was a great show and for me the real joy was seeing the little kids, neighbors, and family come together for it all! The fireworks are a showstopper, and they’re a whole lot of fun. But to me, the meaning of the holiday is a lot bigger than a backyard barbecue. The Fourth of July serves as a reminder that no matter how else we may feel divided, we’re all Americans first and foremost. We should cherish and celebrate that as often as we can. I urge you to let this holiday remind you of the wonderful freedom we have in this country. Take some time to hug your loved ones, spray the grandkids with the hose, and eat that extra burger! From my family to yours - Happy 4th!

–Austin Kobilka

These articles are designed to provide general information on the subjects covered. They are not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Patriot Wealth and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. Investment Advisory Services is 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.

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Tax Deduction or Tax Credit: Which Is Better?

Have you caught your breath yet since filing your taxes? Well, it’s now time to start planning your taxes for next year! As you create a tax “game plan,” having two ways to deduct your tax bill can be very confusing. Let’s walk through it. We promise it’s a lot simpler than it sounds. TAX DEDUCTION — GETTING A LOWER TAXABLE INCOME Let’s say you’re a small-business owner. Sometimes, you might accidentally or intentionally pay off business expenses on your own dime. Luckily, the IRS doesn’t want to punish small-business owners for this. They consider many business expenses as tax deductible. So, when you file a tax deduction, it lowers your taxable income and thus reduces your tax liability. The lower your taxable income, the lower your tax bill. TAX CREDIT — GETTING A TAX BILL ‘GIFT CARD’ Your taxable income can go up or down throughout the year, depending on what you make and types of expenses. However, once calculated at the end of the year, your tax bill is often a fixed number. That’s when tax credits come in handy. A tax credit is a dollar-for-dollar reduction in your actual tax bill. In fact, a few credits are refundable: If you owe $300 in taxes, but qualify for a refundable $1,000 tax credit, you’d get

a check for the difference of $700. Because this credit applies directly to your bill, it can often take a bigger bite out of your tax bill than a tax deduction. It’s worth mentioning that, in most cases, tax credits aren’t refundable. However, unlike gift cards, their value doesn’t last into the following year. If you owe $300 in taxes, and have a nonrefundable $1,000 tax credit, you’ll owe zero dollars without getting a check for the difference. In 2021, you may know the government provided pandemic- inspired tax credits for Americans with dependents. However, many credits exist, and some, like savers’ credits, might surprise you. If you’re married and filing jointly, and have a combined income between $43,001–$66,000, you’ll receive a tax credit of 10% of your 401(k) or Roth IRA contributions. A single filer with a $19,750 income or less qualifies for a credit of 50% of retirement contributions. Check out lists online of available federal tax credits for 2022, and make sure to research carefully how they work. If you want a better tax strategy for your next tax bill, this is a great way to start.

It’s All at the State Farmers Market APPLES TO ORANGES

But the Market is not just humble produce stands. It boasts a wholesale terminal for grocers and restaurants, plus a Truckers Building where shoppers can drive through for cases of produce at rock bottom prices. Local plants and flowers are usually available in the Farmers Building, and that’s before even touching on the Market Shoppes building. The Market Shoppes are located in a 15,600-square-foot building that is climate controlled and filled with vendors of all types. Yes, there’s more fresh produce, but you can also find local meat, cheese, wine, baked goods, and crafts. Specialty shops sell items like lotion, soap, candy, fish, and picture frames. You’ll find snacks like kettle corn and shaved ice. If you want something a little more substantial, there are three restaurants on site.

Finish your day by checking out Market Imports, a 2-acre home and garden supplier. (Note: They are closed on Mondays and Tuesdays.) You’ll find fountains, furniture, pottery, lawn ornaments, and indoor accessories. Whether you’re looking for a vintage cabinet or a new outdoor firepit, they’re sure to have it here. We’re fortunate enough to have one of the best farmers markets in the country right here in our backyard, so don’t let it go to waste! If it has been a while since your last trip, now is the perfect time to see what you’ve been missing and support our local growers and business owners. Whatever you’re missing for your Fourth of July celebration, you’ll find it at the State Farmers Market.

Summer boasts some of the best produce. So, it’s no surprise that July marks National Watermelon, Corn, and Blueberry months. No backyard barbecue is complete without at least one of these treats! And you can find all of them and much more at the State Farmers Market in Raleigh. The State Farmers Market opened in 1955 when local agricultural producers realized they’d all benefit from having a central location to sell their produce. It started as a 17-acre site but later moved to its current 75-acre location. Due to its size and popularity, the State Farmers Market is open year-round and every day of the week, so there’s never a bad time to stock up on fruits and vegetables.

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At Patriot Wealth, our core value is transparency. People deserve to know the truth about their finances, whether the reality is good, bad, or ugly. No one likes to hear bad news (and we don’t enjoy giving it), but you can’t protect yourself without accurate information. And if your plan isn’t in ideal shape, the best time to know is now, not later. July 7 is Tell the Truth Day, which resonates with all of us here and what we do. We can’t help anyone meet their goals if we don’t clearly understand them. We need our clients to be honest with us so we can do the best job to help them create the future they want. In turn, we need to be honest with you about timelines, market conditions, and the overall state of your assets. Sometimes, we might tell you something you don’t want to hear. If you plan to jet-set around the world with first-class accommodations in retirement and the numbers don’t add up, it’s our job to state the reality. We can’t make decisions for you, but we will always use the information we have to point you in the right direction. We don’t share hard truths to upset anyone — we do it because strong relationships are built on honesty. That goes for your personal relationships as well. If you plan to share your life and finances with a spouse, getting on the same page is crucial. And that starts with being open about what you value and what you’re willing to risk. Many couples come into our office thinking they agree on their plans but still have several blind spots. All kinds of surprises come out during our meetings. Maybe the partners have the same goals but not identical risk tolerances. Or perhaps they thought they shared risk tolerances, but differing opinions emerge when we get into the finer details. So, we encourage you to start these conversations at home before meeting with us. At the same time, we don’t expect you to have it all figured out. Some people don’t even know the right questions to ask to determine where they disagree. But the sooner you and your partner start talking about money, the easier these conversations will be. It may be difficult at first, but ultimately, the truth will set you free. To Tell the Truth THE FINANCIAL GIFT THAT KEEPS ON GIVING

TAKE A BREAK

MOUTHWATERING SOUTHERN BBQ Inspired by JustAPinch.com

INGREDIENTS

• 3 lbs boneless pork loin roast, trimmed • 1 cup water • 1/2 tsp salt • 1 tbsp pepper • 1/4 cup brown sugar

• 18 oz barbecue sauce • 2 tbsp Worcestershire sauce • 1 tbsp hot pepper sauce • 10 hamburger buns, split • Deli coleslaw (optional)

DIRECTIONS

1. In a 4-quart slow cooker, add the roast and 1 cup of water. 2. Cover and cook the roast on high for 7 hours or until tender. 3. Once tender, shred the meat. 4. Return the shredded meat to the slow cooker. Stir in salt, pepper, brown sugar, barbecue sauce, Worcestershire, and hot pepper sauce. 5. Cover and cook on the lowest setting for an hour. 6. When finished, serve barbecue on buns with coleslaw (optional).

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PATRIOT WEALTH 4350 Lassiter at North Hills Ave. #330 Raleigh, NC 27609 INSIDE THIS ISSUE At Patriot Wealth, We’re Proud to Be Americans! PAGE 1 Lower Your Next Tax Bill! PAGE 2 Experience the Magic of the State Farmers Market PAGE 2 Take a Break PAGE 3 Mouthwatering Southern BBQ PAGE 3 Why Honesty Is the Best Financial Policy PAGE 3 Oceanside Activities to Try This Summer PAGE 4

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OCEANSIDE ACTIVITIES THE ENTIRE FAMILY CAN ENJOY

The summer season is officially underway and many Americans are planning to take a trip to the beach to celebrate the occasion. If you’re going on a family vacation to the ocean for an extended period of time, you may be worried about keeping everyone entertained. That’s why we put together a list of some of our favorite oceanside activities to try this summer. Your summer vacation will be filled with fun and excitement after trying some of these great activities! GET ACTIVE. There’s nothing more relaxing than sitting on the beach and listening to the calm repetition of the waves, but maybe

you want a little more excitement by the ocean. If that’s the case, there are plenty of sports to try. You can bring a football and throw it around in the water or on the beach. You can buy a net and set up a game of beach volleyball to get everyone involved, or you can try one of the many new beachside sports hitting the market like TidalBall, pickleball, and Spikeball. TidalBall is the beach version of cornhole so if you haven’t played it yet, you definitely want to check it out. EXPERIENCE NATURE. The wildlife and environment of the beach are most likely drastically different from what you can experience back home, so make an effort to see all you can. At many

beaches, you’ll be able to see dolphins, whales, and sea rays from the shore. You can also look in the sand for crabs and small crustaceans. By simply standing still and taking in all of the sights and sounds of the ocean, you’ll gain a greater appreciation for the surroundings. RIDE THE WAVES. You don’t need to be an experienced surfer to venture into the water on a board. Of course, you can take surfing lessons at many beaches, but you can also get in the water on a bodyboard for a thrilling experience. Additionally, you can rent kayaks or paddleboards if you want to be on the water, but not necessarily in it.

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