A member has decided to withdraw based on the fact that the
market is up and wants to take his spoils before the next
correction! We do not want to sell stocks and pay the cap
gains for his benefit. (Also a deadbeat member) So we have
decided to transfer stock to him. I will contact Scottrade
to find out how they handle that. Are there any tax
consequences to us? Any adivce on how to decide what to
sell? Thanks for your help...

Correction to post: Any advise on what to to transfer...

Congratulations. Transferring appreciated securities is, in my mind, the
best way to fund withdrawals. As you have indicated, you will avoid paying
incurring immediate capital gains, and the outgoing should suffer no adverse
consequences.

My advice would be to first look at the most highly appreciated securities
in your portfolio. If you decide you still want to own these stocks, you can
start buying shares as funds allow. Of course, you should also be guided by
portfolio balancing considerations. If, by selecting the most appreciated
securities, your portfolio becomes unbalanced, you will have to temper your
decision, somewhat.

Rip West
St. Paul, MN