TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth CALLING TIME With the arrival of summer heat, school holidays, cricket season, and soon the arrival of Santa Claus, it feels like the Australian summer is well and truly underway. For me that also means the arrival of the tennis season, culminating in the Australian Open tournament in mid-January. However, the upcoming season will have a much different feel following the retirement of crowd favourite Rafael Nadal earlier this year. After 23 years and 22 Grand Slam wins, Rafa's injury list was threatening to outpace his win stats, and so he decided to retire on his terms. While this came as a disappointment to many beloved fans of 'the raging bull', you will probably agree that it was better to see Rafa conclude his career at a time of his choosing, rather than it being ended for him by one almighty and horrific injury. Knowing when to end an activity is a tricky thing; ideally you want to finish just as your performance peaks, but also not too early that you deny yourself the ability to outperform your current peak level. In summary, you need to know when your peaking moment is, which is almost impossible without a crystal ball. Commonly we talk about calling time on a sporting career, but the same train of thought can be extended to an employment arrangement, a relationship, or even a book that doesn't pique your interest after the first few chapters. It can also be applied to your investments. Most will understand the concept that knowing what to buy and when is a decision of critical importance, but a decision often overlooked, yet of equal importance, is knowing when to sell an investment. Sometimes the decision to sell an investment is forced upon you, but other times you are completely in the driver's seat. Here, we are focusing on these times. Again, without a crystal ball timing your exit can prove difficult, but there are two key hints that may assist in your decision making. Firstly, when a stock hits a price level which you reasonably expect not to maintained or be exceeded, calling time can be justified. This might be exiting a mining company at the boom of the mining cycle rather than at the bust. Secondly, a change that negatively impacts the company's customer base can also warrant an exit. A current day example is the growing popularity of obesity drugs and speculation around whether this will impact the demand for fast food. Whether you are an elite athlete or investor, getting the timing of your exit exactly right is impossible, but being on the lookout for signs may avoid the decision being taken out of your hands in almighty horrific terms, and instead at a time of your choosing. BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. Follow us on Twitter @BaiocchiGriffin facebook.com/Baiocchi GriffinPrivate Wealth Find us on Facebook www.bgprivatewealth.com.au AW7420123 TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth CALLING TIME With the arrival of summer heat , school holidays , cricket season , and soon the arrival of Santa Claus , it feels like the Australian summer is well and truly underway . For me that also means the arrival of the tennis season , culminating in the Australian Open tournament in mid - January . However , the upcoming season will have a much different feel following the retirement of crowd favourite Rafael Nadal earlier this year . After 23 years and 22 Grand Slam wins , Rafa's injury list was threatening to outpace his win stats , and so he decided to retire on his terms . While this came as a disappointment to many beloved fans of ' the raging bull ' , you will probably agree that it was better to see Rafa conclude his career at a time of his choosing , rather than it being ended for him by one almighty and horrific injury . Knowing when to end an activity is a tricky thing ; ideally you want to finish just as your performance peaks , but also not too early that you deny yourself the ability to outperform your current peak level . In summary , you need to know when your peaking moment is , which is almost impossible without a crystal ball . Commonly we talk about calling time on a sporting career , but the same train of thought can be extended to an employment arrangement , a relationship , or even a book that doesn't pique your interest after the first few chapters . It can also be applied to your investments . Most will understand the concept that knowing what to buy and when is a decision of critical importance , but a decision often overlooked , yet of equal importance , is knowing when to sell an investment . Sometimes the decision to sell an investment is forced upon you , but other times you are completely in the driver's seat . Here , we are focusing on these times . Again , without a crystal ball timing your exit can prove difficult , but there are two key hints that may assist in your decision making . Firstly , when a stock hits a price level which you reasonably expect not to maintained or be exceeded , calling time can be justified . This might be exiting a mining company at the boom of the mining cycle rather than at the bust . Secondly , a change that negatively impacts the company's customer base can also warrant an exit . A current day example is the growing popularity of obesity drugs and speculation around whether this will impact the demand for fast food . Whether you are an elite athlete or investor , getting the timing of your exit exactly right is impossible , but being on the lookout for signs may avoid the decision being taken out of your hands in almighty horrific terms , and instead at a time of your choosing . BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . Follow us on Twitter @BaiocchiGriffin facebook.com/Baiocchi GriffinPrivate Wealth Find us on Facebook www.bgprivatewealth.com.au AW7420123