Tax Considerations for Private Wealth Management Strategies

John and Sarah, a married couple in their mid-forties, are considering various strategies to optimize their after-tax wealth as they plan for their children's education and their retirement. Currently, they have a diversified portfolio valued at $2 million, which includes both taxable and tax-advantaged accounts. Their taxable accounts primarily consist of publicly traded stocks, while their tax-advantaged accounts include a 401(k) and a Roth IRA. They are also planning to sell a vacation property that has significantly appreciated in value and is currently worth $500,000, which they purchased for $300,000.

Discuss the key tax considerations John and Sarah should evaluate in relation to their overall wealth management strategy. Your response should include specific elements such as capital gains tax implications, tax-efficient investment strategies, the impacts of their tax brackets, and any potential strategies for minimizing their tax liabilities while achieving their financial goals. Additionally, consider the timing of asset sales and withdrawals from their tax-advantaged accounts in your analysis.