Let’s Talk… Taking Profits!

As the song goes, “you got to know when to hold’em, know when to fold’em”. The same goes for your “play” investment account. Buying low is easy but knowing when to sell is tricky. Here are three things I consider when analyzing whether to sell a highly appreciated investment. 

First, what are the tax implications now versus 12 months from now. If the investment is in a non-qualified account, capital gains rates are low, especially if you’ve held for longer than a year. 

Second, sell all but leave your original investment. If you invested $10k and it’s worth $100k, sell $90k and leave the rest. 

Third, remember with speculation, you have to have parameters on what type of returns would cause you to sell. Stick to them!

Be disciplined and, most importantly, don’t look back. Please note, there are blue chip tech stocks that haven’t hit their 2001 highs, so it doesn’t hurt to take profits, especially now.

In the end, markets are fast, furious, and unrelenting. Don’t let greed cloud your judgement and realize you won’t get hurt taking a profit.

The content in this material was created for educational and informational purposes only and is not intended as an investment advice.

The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.