Tax Considerations for High-Net-Worth Investment Strategies

Maria is a seasoned financial advisor specializing in private wealth management. She has a high-net-worth client, Robert, who is 48 years old and has recently received a substantial inheritance. Robert is interested in understanding the tax implications of various investment strategies, particularly regarding tax-efficient investing and estate planning. He resides in a state with high income tax rates and is considering options such as municipal bonds, tax-loss harvesting strategies, and different types of investment accounts.

Discuss the key tax considerations Maria should evaluate in developing investment strategies for Robert. Include specific recommendations on how to structure Robert’s portfolio in a tax-efficient manner, considering his current financial position, tax bracket, and inheritance. Additionally, elucidate the potential implications of these strategies on Robert’s long-term wealth planning.