Wednesday, December 20, 2006

How do you Treat the New Kid on the Block?

First, if anyone has sent a qualification questionnaire in the last 3 weeks and did not get a response- it was eaten up by the email goblins who sent it to a black hole somewhere. After receiving a call from someone who thought I just wasn't getting back to them as promised, I discovered the email program had decided to just completely break down. It is fixed as of today, and all is back on track. I really hate it when that happens, and it does seem to happen at least twice a year without warning for some reason no one can figure out.

The last few months have certainly brought major changes in the Capital Gains Tax Savings arena. It has become an ongoing evolution and is definitely to the benefit of the seller, as the problem has not diminished as far as the taxes owed if an appreciated asset is sold outright. Not everyone welcomes change, however, and as is all too common - change breeds controversy.

I have come up with an analogy that I believe will describe how different people tend to approach new concepts. It's just a fact of human nature I guess.

Here goes...

Let's say there is a neighborhood full of kids from different families. Some kids have lived there all their lives, some for quite a few years and some are fairly new. They may have some basic disagreements amongst themselves, but they pretty much are able to co-exist with the occasional argument or conflict.

Then a new kid moves into the neighborhood. He's a good looking fellow on the outside, but no one knows much about what he has to offer on the inside because he just showed up in town.

Some of the kids will be eager to shake is hand and look forward to getting to know him better. They'll invite him over, ask him questions and see if he fits into their crowd. They welcome new blood and hope the new guy can bring something positive into their lives. They make the effort right from the start.

Another bunch of kids will keep their distance for a while. They won't introduce themselves right away - they'll watch and see how he seems to fit in with the first group. If all goes well, they'll invite the new guy over when they feel more comfortable opening up. If they see that the first group really doesn't care all that much for the new kid after getting to know him better, they probably won't bother to make an effort later on themselves. They're the wait and see types.

Then there's a third group that is suspicious of anyone new right from the start. They don't want to get to know the new guy- they'd rather just assume he won't fit in and maybe will even make fun of him or try and trip him as he walks by. They're happy with their life as it stands and the group they already know. Plus, someone that good looking probably doesn't have much else going for them anyway, right? Who needs a new friend when they're just fine as they are. They are the nay sayers. It's easy to criticize right from the start.

Back to capital gains tax saving land. The new kid on the block is the Installment Sale Through a Foundation.

There are those who can't wait to find out all about it and how it can benefit them or their clients.

There are those who don't have much of an opinion yet either way. They'll wait and see how it's accepted over time.

And there are those who have taken a stand that they don't think it could possibly have any merit whatsoever- so rather than getting to know how it really works- they prefer to start calling it names and warning others to steer clear. There's got to be something wrong with it right? Even if they don't know exactly what that might be yet. Surely there's got to be something!

I happen to be a member of the first group. Whatever new strategy becomes available I want to be the first to find out all about it. I'll ask questions until I run out. If there is something that could be better, I'd rather ask what can be done to make it right? It's only then that I'll really know if the new kid is worth hanging out with and introducing to my other friends.

As a matter of a fact, so far I like him a lot. He's a work in progress but he has a whole lot more to offer than the kids throwing the stones, and, he's a lot more pleasant to be around.

I'll be launching my new educational product "The Definitive Beginner's Guide to Potentially Saving Hundreds of Thousands of Dollars in Capital Gains Tax" just in time for the holidays. Stay tuned.

Paula Straub

Qualification Questionnaire (now working again)