Q. We have a large amount of money invested in his employer's common stock. My husband is retiring soon and we would like to withdraw funds to pay off our home and buy new cars. Is there any tax loophole for us?

A.Probably not. When your husband cashes in his shares, he'll have to pay capital gains taxes. (Capital gains is the difference between what you pay for an asset and what you sell it for.)

Under current tax laws capital gains come in two varieties: long-term and short-term. Short-term gains (those that your earn on sales of one year or less) are taxed as regular income. Long-term capital gains on stocks, mutual funds, bonds and so forth held longer than one year, are taxed at 15% in almost all cases.

Just be sure there are accurate records of the prices at which the shares were bought and sold so you can accurately report your gains.

We are very concerned that a major chunk of your retirement money is probably tied to stock in the company he works for. That goes against the advice of virtually every financial planner we know and breaks one of our cardinal rules for retirement savings.

You depend on his employer for a salary, for insurance and perhaps other benefits. Don't hitch your retirement to the same wagon. Diversification is a key element in any retirement plan.

Just ask the folks who had their retirement money in Enron stock and lost everything. We're not insinuating that his company bears any similarity to Enron, but bad things can happen to good companies and stock prices can fall for lots of reasons.

Most experts say that to maintain your standard of living, your retirement income should be roughly equivalent to 80% of your preretirement pay. Our "5 steps to saving for retirement" can help you decide if you're financially ready.

But we suggest that you hire an independent financial planner -- someone who only makes money from your fees, not from selling you annuities or mutual funds. Let him or her go over your investments and devise a plan to diversify your holdings and ensure you'll have the secure, comfortable retirement you've been working toward.