The 2008 tax year offers couples who earn less than $65,100 ($32,550 for singles) a zero percent (o%) capital gains tax rate. That’s right - NO TAX. Therefore, the senior who sells an asset that would normally create a taxable event can get by with no tax at all.

While I’m not a great fan of structuring your personal economy around the tax laws, it only makes sense to take advantage of a tax laws that keeps your money in your pocket instead of siphoning it off to the IRS. Let’s use an example. Assume you have some stock that you’ve been holding for a few years (or decades). You could sell the stock and make $30,000 as a capital gain. At the 5% capital gains rate you’d save $1,500 in taxes. Now, you can take that entire $30,000 and buy another investment and postpone the gain, or perhaps buy an annuity and convert the enitire amount into a guaranteed income and receive that income entirely tax free. (Of course, you’d need the advice of an independent investment professional and perhaps your accountant to make sure all the rules are followed.)

This is one more example of how an advisor who is familiar with Money for Life strategies and tactics can save you money and then convert the money saved into a benefit for you.

Forbes on-line recently published a clear article on this topic. It mihgt be worth your time to review it

http://www.forbes.com/2008/02/13/capital-gains-taxbreak-pf-education-in_dp_0212investopedia_inl_print.html

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www.TheMoneyForLifeBook.com makes a great gift for someone who is struggling with their personal economy and finances.

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