Tax-Efficient Investment Strategy for High-Net-Worth Individuals

Mark and Sarah are high-net-worth individuals who have recently started the wealth planning process for their retirement. They are considering how to allocate their investment portfolio while also being mindful of the tax implications associated with their decisions. Mark expects to be in a higher tax bracket upon retirement, while Sarah anticipates a more stable income level with potentially lower tax rates.

One of the strategies they are exploring involves tax-efficient investing, particularly regarding the types of accounts they should utilize for their investments. They are evaluating the merits of tax-deferred accounts versus taxable accounts for their equity and fixed-income investments. Given their individual circumstances, they seek to optimize their overall after-tax return.

In this context, which of the following strategies would most likely enable them to achieve a more favorable tax outcome considering their situations?