Centara News & Features
Published quarterly exclusively for clients and friends of Centara Capital Management Group, Inc. and Centara Legal Group, APC, this e-newsletter updates readers on the latest news in portfolio management, estate planning, and tax planning strategies.

Centara Proudly Accepts The 2006 Finalist, San Diego Better Business Bureau Torch Award
On December 5th, Centara Capital was honored as a Finalist for the Torch Award for Marketplace Ethics by the San Diego Better Business Bureau in the 25-99 employee category. This marks the second year in a row the firm has been honored with this prestigious award.

Market Update: Bull Market Continues For The Fourth Straight Year
Equity markets enjoyed a strong 2006 as investors received much positive news during the year giving reason to cheer. The Federal Reserve Board’s decision to hold interest rates steady at 5.25%, strong corporate profits, big merger and acquisition activity and falling oil prices all helped outweigh the negatives.

New Tax Law Allows For Charitable Contributions From Your IRA
There is a new, but temporary, tax law regarding direct charitable contributions from your Individual Retirement Account (IRA).  The Pension Protection Act of 2006, signed by President Bush on August 17, 2006, allows individuals over the age of 70½ to contribute up to $100,000 directly from their IRA to a charity in 2007 only. 

Stretch IRA Pitfalls: The IRS Gives No Second Chance
A Stretch IRA is an inherited IRA that allows your beneficiary or beneficiaries to Stretch the distribution of your IRA over their lifetime versus all at once. This is a one-time opportunity that gives your beneficiary the benefit of extended long-term, compounding growth which can result in astonishing wealth and family fortune.

Planned Charitable Giving Can Drastically Reduce Taxes
Planned charitable giving can play an important role in estate, gift and income tax planning.  The following are some of the more common methods of charitable gifting.

New Pitfall In Gifting Artwork To A Museum
Some people donate a “fraction” of a work of art to a museum during their lifetime, and give the rest of it years later by gift or bequest. Generally, the museum gets the artwork for part of the year and the donor gets it the rest of the time.  This allows a donor to claim an immediate charitable deduction for part of the work’s value, without having to actually give up the art altogether. 

When Leaving Your Retirement Plan To Your Beneficiaries, Talk To Them!
Leaving an IRA or other qualified retirement plan to your beneficiaries can be a great idea.  Done properly, your beneficiaries can “stretch out” the tax-saving benefits of the plan over their lifetimes.  However, if you are planning to leave someone a retirement plan, you should discuss it with them first to make sure they understand how to properly plan.  

Seniors ‘Hiring’ Their Children As Caregivers
As people age, they often hire people to perform services for them, such as housekeeping, driving and the provision of personal care.  Many seniors are now hiring their own children to perform these services. They are executing contracts with their children specifying what services will be performed and how much the children will be paid. While these children love their parents and would care for them anyway, these contracts can have significant estate planning benefits.

Third Annual Open House Draws Nearly 250 Guests
Centara Capital hosted the Third Annual Client Open House on December 8th in Centara's newly renovated office space.  Nearly 250 clients, guests and staff mingled throughout the afternoon at the festive event. 

Employee Spotlight: Alan Clopine, CPA
Alan Clopine, CPA is Centara Capital’s Director of Tax Consulting.  His responsibilities include high level tax consulting on advanced estate planning and income tax matters.  As an avid real estate investor, he also helps many of his clients in planning their property investments.

© Centara Capital Management Group, Inc., 2007. All rights reserved.