Tax Considerations for Retirement Income Strategies

As a private wealth manager, you are working with your client, Alice, who is 60 years old and plans to retire in the next few years. She has a sizable portfolio including stocks, bonds, and real estate, and is concerned about the tax implications of her investments upon retirement. Alice wants to understand how her investment strategy can be optimized for tax efficiency during retirement, considering her potential sources of retirement income, such as Social Security and distributions from her retirement accounts.

In your response, discuss the various tax considerations Alice should be aware of. Include the impact of different account types (taxable vs. tax-deferred), strategies for minimizing capital gains taxes, and the importance of asset location in her portfolio. Explain how these factors can coexist in a comprehensive retirement plan that supports her goals.