Tax Strategies for Retirement Withdrawals

Sophia is a private wealth manager working with a client, David, who is planning to retire in the next few years. David holds a significant investment portfolio, including stocks, bonds, and real estate. He is concerned about the tax implications of his investment decisions as he transitions into retirement. Sophia wants to provide David with a solid understanding of how taxes might affect his portfolio withdrawal strategy.

David is particularly interested in how capital gains tax might apply to his investments as he plans to sell some assets to fund his retirement expenses. He also wants to know if there are specific strategies he can employ to minimize his tax liability when accessing his portfolio.