Tax Considerations in Private Wealth Management

Client A, a 45-year-old high-income earner, has recently received a large bonus and is seeking advice on optimizing their investment strategy while considering tax implications. While Client A intends to retire within the next 15 years, they need to balance growth with tax efficiency to maximize their overall retirement portfolio. Client A's current portfolio consists mainly of taxable accounts with a significant amount invested in high-yield municipal bonds, which provide tax-free income but yield lower returns compared to corporate bonds.

In your response, discuss the tax considerations that should influence Client A's investment strategy, including, but not limited to, asset location, capital gains tax implications, tax-loss harvesting, and the effects of regular income versus capital gains distributions. Provide recommendations that are consistent with Client A's age, income context, and retirement goals.