A POOL FOR BIG FISH

If you bought Microsoft a decadeago, you face a whopping tax bill ifyou ever have to sell. But if you're aqualified buyer (ie, you have at least$5 million in your portfolio and atleast $1 million in a single company),you can opt to put your moneyinto an exchange fund (ie, an investmentpool that can cut your tax billor wipe it out altogether).When youput your securities into an exchangefund, you get shares in the partnershipthat owns the pool. When youwant out, you don't get your cash oryour original securities back, butshares in the various stocks held bythe pool. Presto! When you sell, youget taxed only on any gains thoseshares produce after you receivethem, not on any profit you madeon the stocks that you put in originally.