First Command Encourages Planning Now to Lower Tax Bill Next Year.

FORT WORTH, Texas -- First Command Financial Planning Inc. is encouraging mutual fund investors with taxable accounts to start looking now for ways to reduce the amount of federal income tax they may owe in April 2007 on year-end capital gains distributions.

"Distributions represent your share of the gains the fund earned when it sold investments," said Bob Evart, tax manager for First Command Tax Services. "While gains are welcome, the taxes on them are not. We encourage our clients to not let the year come to a close without doing a little planning to lower their tax bills."

The good news is there are ways to reduce the taxes on capital gains distributions. Several of these techniques are presented in the current issue of First Command magazine, a 298,000-circulation publication for clients of First Command Financial Planning. Investors can reduce taxes on capital gains distributions by:

* Offsetting gains with capital losses. Losses from one investment may be used to offset capital gains from another, dollar for dollar.

* Consider tax-efficient funds. A fund that holds its investments is less likely to generate taxable gains than a fund that buys and sells assets frequently. Before you buy, consider the types of investments a fund holds and the fund's investment philosophy.

* Don't buy a fund immediately before it makes a capital gains payout. You'll essentially get back a part of your investment in the fund and be taxed on it. Wait until the distribution has been made.

Formerly known as TaxCommand, First Command Tax Services is the exclusive tax preparation service of First Command Financial Planning. To learn more about taxes and recent changes in tax law, First Command Tax Services encourages consumers to explore its online list of frequently asked questions and other resources at www.firstcommand.com.

First Command Financial Planning develops and delivers comprehensive financial plans to assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams. Through a combination of independent advice and personalized plans that emphasize consistent investment, carefully selected insurance and adequate savings, First Command financial advisors have established lasting relationships with hundreds of thousands of client families since 1958.

For more information about First Command, visit www.firstcommand.com.

First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC) and First Command Bank. Insurance products and services are offered by First Command Financial Services, Inc. Financial planning services and securities products are offered by First Command Financial Planning, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as "First Command Insurance Services."