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Interview with Paul Miller, Host of the morning show on WPHM 1380AM and Dan Casey. 12/10/02 Paul Miller: Welcome to the show Dan, thanks for joining us. Dan Casey: Your Welcome Paul, I’m glad to be here. Paul Miller: Now Dan, we were talking a little bit off the air and you were saying if someone has stocks or funds that have gone down in value and they want to be able to write off some of those losses, they have until the end of the year to sell? Dan Casey: That’s right Paul, Investors can offset 100% of capital gains with losses plus deduct an additional $3,000, plus carry forward any additional losses. So it only makes sense to recognize all possible losses to offset current or future gains. Paul Miller: Why do investors not take this tax break? Dan Casey: Because they are so psychologically opposed to selling at a loss, even though they can repurchase the same security in 31 days and still get the tax break. They irrationally miss this annual gift. They don’t realize that they have already lost the money whether they sell or not. They mistakenly believe they have not lost money because it’s “only on paper.” Paul Miller: Wow, so if everyone understands that out there. If you’re sitting on large losses, it appears that now is the time to sell some before the end of the year to get that tax break. Now, Dan, I also wanted to get your advice on a situation that I know a lot of our listeners are probably involved in. Lets say your 40 and your 401k has been cut in half. What are they supposed to do at this point? Dan Casey: That’s a good question Paul because a lot of investors are in that boat. Of course, everyone has their individual situation but in general now might be a good time to make sure your investments are diversified and match your risk tolerance. If your getting close to retiring and you still have the majority of your investments in stocks, maybe now is a good time to start dollar-cost averaging out of the market and into bonds or cash. And by dollar-cost averaging, I mean start transferring equal amounts in equal intervals. Paul Miller: That sounds like great advice Dan. Now, your president of SeniorPlus. What exactly do you folks do. Dan Casey: We’re investment advisors that specialize on the needs of those ages 60 and over and their specific financial problems and opportunities. I also wanted to let your listeners know that if they would like a summary of tax saving moves, including how to save capital gains tax, written specifically for retirees, they can call me at (800) 716-2508 Paul Miller: Great, thanks Dan.