Personal finance really should be taught at high school

[question everything]

The recent AARP bulletin had this financial question:

I transferred $200,000 from stocks, which had cost me $144,000, to bonds. My accountant says I have to pay taxes on the difference, even though the transfer was within the same institution and I didn't put a penny in my pocket. That doesn't seem right

And the answer, of course, was that the reader did not really "transfer" the money. "You sold your stocks at $56,000 profit and used the proceeds to buy bonds." Unless these investments were held in a tax deferred account such as IRA or 401K, no taxes would be due. "Outside a retirement account, however, you have to pay taxes when the profit is booked." "The lesson here is to be aware of the tax implications."