B2 — THE OBSERVER & BAKER CITY HERALD
THURSDAY, JULY 7, 2022
Are investors who try to ‘time a volatile market’ doomed to failure?
LIZ
WESTON
ASK LIZ
Dear Liz: Today’s stock
market is one of the most
volatile of all time. So many
issues aff ect it, and there
seems to be no end in sight
to war in Ukraine, infl ation,
high fuel prices, the pan-
demic, China confl ict con-
cerns and more. Any one of
these would cause the market
pain, but together it’s scary.
I have a broker who’s
used to riding ups and
downs, and says to me to
be patient. In the meantime
I’ve lost 25% of a portfolio
that was extremely fruitful
until January of this year.
Please give me guidance
on working with a broker,
fi nding one who knows
how to navigate this market
and isn’t mired in some tra-
dition of riding waves. I
need one who sees oppor-
tunity and knows how to
take advantage and get out
appropriately.
Answer: The reason
your broker is “mired in
some tradition of riding
waves” is because that’s the
one approach that consis-
tently works. It’s the advi-
sors who promise you that
they can “see opportunity”
and “get out appropriately”
that can cost you big time.
Advisors who try to time
the market — which is what
you’re asking them to do —
inevitably fail. They might
get out in time to avoid the
crash but rebounds happen
so swiftly that they’ll miss a
good chunk of the recovery
before they get back in.
There is no reward
without risk, and riding out
inevitable downturns is how
investors get ahead over
time. Trying to outsmart the
market just leads to extra
costs that lower your ulti-
mate returns.
Dear Liz: I am selling
my house and will not be
buying another one. I believe
that I know the rules of cap-
ital gains taxes in general.
However, must I include the
capital gains of previous
homes, even those experi-
enced many years ago?
Answer: Possibly.
Before 1997, home-
owners could avoid capital
gains taxes by rolling their
profi ts into another home, as
long as the purchase price
of the new house was equal
to or greater than the home
they sold. Homeowners 55
and older could get a one-
time exclusion of up to
$125,000.
The rules changed in
1997. Now homeowners can
exclude up to $250,000 of
home sale gains as long as
they have owned and lived
in the home at least two of
the prior fi ve years. A mar-
ried couple can exclude up
to $500,000.
Let’s say you bought your
current home for $300,000
prior to 1997. Normally, that
amount (plus certain other
expenses, including quali-
fying home improvements)
would be your tax basis. If
the net proceeds from your
sale were $500,000, for
example, you would subtract
the $300,000 basis from that
amount for a capital gain of
$200,000.
But now let’s say you
rolled $200,000 of cap-
ital gains from previous
home sales into your current
home. That amount would
be subtracted from your tax
basis, so your capital gain
would be $400,000 — the
$500,000 net sale proceeds
minus your $100,000 tax
basis.
Before selling any home,
you should consult with
a tax pro to make sure
you understand how cap-
ital gains taxes may aff ect
the sale. You don’t want to
fi nd out you owe a big tax
bill after you’ve spent or
invested the proceeds.
█
Liz Weston, Certified Financial
Planner, is a personal finance
columnist for NerdWallet. Questions
may be sent to her at 3940 Laurel
Canyon, No. 238, Studio City, CA
91604, or by using the “Contact”
form at asklizweston.com.
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103 Announcements
by Stella Wilder
THURSDAY, JULY 7, 2022
YOUR BIRTHDAY by Stella Wilder
Born today, you are one of the most dra-
matic and charismatic individuals born under
your sign, the kind of person who attracts the
attention of an entire room simply by walking
into it and who can change the dynamics
among the people there with little more than a
look, word or gesture. Are you really that
powerful? Perhaps not, but it doesn’t really
matter at all, for people are more than willing
to grant you that kind of power simply
because you are who you are.
FRIDAY, JULY 8
CANCER (June 21-July 22) -- If you feel
that it’s time to prove something, look inward
and you’ll likely find that you are the only one
doubting yourself at this time.
LEO (July 23-Aug. 22) -- Unforeseen cir-
cumstances may throw a wrench into the
works today, and you’ll be called upon to
reorder things in a manner that keeps chaos at
TUESDAY, JULY 7, 2022
bay.
VIRGO (Aug. 23-Sept. 22) -- It’s not help
that you need so much today as moral support
-- and you know just where to get it. First, you
must reach out and reestablish contact.
LIBRA (Sept. 23-Oct. 22) -- Others are
going about their business today with little or
no thought of what you are doing -- so why
are you so concerned about them?
SCORPIO (Oct. 23-Nov. 21) -- You may
realize you’ve been fighting an uphill battle for
quite some time -- but has it been necessary?
A change of strategy is in order.
SAGITTARIUS (Nov. 22-Dec. 21) -- It’s a
good day for treating yourself to what you
might consider a guilty pleasure -- which you
can enjoy even more with a friend.
CAPRICORN (Dec. 22-Jan. 19) -- Special
arrangements may be easier to make today
than those that are considered routine, and
you must make a decision that defies logic.
AQUARIUS (Jan. 20-Feb. 18) -- You may
receive advice from someone who has been
looking out for you without your knowledge.
Such help is more valuable than you think!
PISCES (Feb. 19-March 20) -- Things take
on a note of urgency today just when you
thought you could sit back and relax. The
opportunity to do just that will come soon.
ARIES (March 21-April 19) -- Loyalty is
the big issue you face today, and someone may
ask you some tough questions in order to
assess the state of your alliance.
TAURUS (April 20-May 20) -- You’re wait-
ing for someone to make the first move, but
you’re likely to realize that success depends
upon you taking the initiative today.
GEMINI (May 21-June 20) -- Scheduling
and logistics may take up more of your time
than expected today. A little adjustment here
will require a larger one there, and so on.
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104 Community
Calendar
VFW POST 460
Every 1st and 3rd Thursday
of the month at 7pm.
Corner of Main at Birch in Union
PULL TABS
ACCEPTED
AT THE FOLLOWING
BAKER CITY LOCATIONS
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Baker City Herald
Dollar Tree
Black’s Distributing
Ryder Bros
VFW
Baker Elk’s Lodge
Main Event
Lefty’s Tap House
Baker City Fire Dept.
Haines Sell-Rite
Idle Hour
Salvation Army
LA GRANDE LIONS CLUB
Meets 2nd & 4th Monday
of each month @ 12 PM
Union County Senior Center
1504 N. Albany St., La Grande
PINOCHLE
Fridays at 6:30 p.m.
Senior Center
2810 Cedar St., Baker City
Public is welcome
Baker County United
“freedom rallies”
3rd Thursday each month
6 p.m. at the Sunridge
1 Sunridge Lane.
The public is invited
Kiwanis Club of Baker City
Tuesday at 12:00 PM
Sunrige Inn Restaurant
1 Sunridge Lane
For more information call:
(541) 523-6027
ROTARY CLUB
of Baker City
Meets every Monday
Noon - 1 PM
Baker Towers
Meeting Room
POWDER RIVER
SPORTSMAN’S CLUB
Meets 1st Tuesday
of every month
8th & Broadway, Baker City
6 PM - Pistolettes
7 PM - Regular Membership
105 Lost & Found
La Grande
FOUND: 2 cardboard boxs on Is-
land City strip on 6/24/22. Boxes
contain plastic tubing. Call 541-
786-8034
114 Group Meetings
NARCOTICS ANONYMOUS
541-805-2229
neo-na.org
AA MEETINGS - La Grande
Wednesday Nights, 7-8:15pm.
Fort Union Grange Hall, corner of
McAlister & Gekeler Lanes. For
more info, call 541-786-1222
AL-ANON
Keep Coming Back Family
Group
Mondays, 7 pm
at NKWest, 1208 Adams,
La Grande, OR
CELEBRATE RECOVERY
Calvary Baptist Church
Third & Broadway
Baker City, OR
EVERY THURSDAY
6:15 - 8:00 PM
Call
541-963-3161
or
541-523-3673
to place your ad.
Check out our classified ads.
DEADLINES:
LINE ADS:
Tuesday: 10:30am Monday
Thursday: 10:30 am Wednesday
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DISPLAY ADS:
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114 Group Meetings
DO YOU HAVE....HURTS,
HABITS and/or HANG UPS?
12 Step Biblical Support
Harvest Church
3720 Birch St. Baker City
Thurs., 6:30 - 8:30 PM
LA GRANDE
GAMBLERS ANONYMOUS
Every Friday Night @ 5pm, 2107
Gekeler Ln, LG, Church of Christ
basement. For more info please
call 971-219-8411
NARCOTICS ANONYMOUS
Goin’ Straight Group
Meetings:
Mon., Tues. Thurs. & Fri.
Start at 8 PM
Episcopal Church Basement
2177 1st Street, Baker City
OVEREATERS ANONYMOUS
Would you like to
stop compulsive eating?
For Information Call
541-523-5128
Leave a Message
Email: ecapoa@live.com
PEOPLE with PARKINSON’S
Caregivers, Family, Friends
SUPPORT GROUP
Contact: 541-963-1486
Now meeting at GR Hospital
first Thursdays at 4:30 p.m.
education@grh.org
AL-ANON
Attitude of Gratitude
Wednesdays; 12:15-1:30pm
Faith Lutheran Church.
12th & Gekeler, La Grande
Please wear a mask & practice
social distancing
541-786-2051
AL-ANON FAMILY GROUP
Support for family & friends
of Alcoholics
Tuesday evenings; 6-7pm
Joseph Methodist Church
(basement on northside)
Joseph, OR
Contact 541-398-1398
BAKER COUNTY
AA MEETINGS
BAKER CITY
MONDAYS
Survivor’s Group
12 -1:00 pm
Baker Presbyterian Church
1995 4th St.
(4th & Court, Side Door)
WEDNESDAYS
Survivor’s Group
12:05 pm
Baker Presbyterian Church
1995 4th St.
(4th & Court, Side Door)
THURSDAYS
Survivor’s Group
12:00 pm
Baker Presbyterian Church
1995 4th St.
(4th & Court, Side Door)
SATURDAYS
As Bill Sees It Group
10:00 am 2970 Walnut
(Corner of “D” & Grove St.)
Grove Apts. Community Rm
SUNDAYS
Been There Done That
5:30 pm
Grove APartments
Community Room
2970 Walnut Street
Questions call AA Hotline:
541-624-5117
www.oregonaadistrict29.org