Tax Considerations for a High-Net-Worth Couple Approaching Retirement

Lisa and Mark are a married couple in their late 50s with a combined income of $250,000. They plan to retire in 7 years and have accumulated significant assets, totaling over $3 million. Their portfolio consists of a mix of taxable investment accounts, tax-advantaged retirement accounts, and a substantial portion in real estate investments, which have appreciated significantly over the years.

As part of their financial planning process, Lisa and Mark are concerned about the tax implications of their holdings, especially in light of potential changes to tax legislation. They aim to understand the most tax-efficient strategies to utilize their investments as they transition into retirement.

Discuss the various tax considerations relevant to Lisa and Mark's situation, focusing on the impact of capital gains tax, income tax, and estate tax planning. Propose strategic approaches to optimize their investment portfolio for tax efficiency in both their pre-retirement and post-retirement years.