High-Net-Worth Families

---

Build customized portfolios designed to pursue attractive risk-adjusted, after-tax returns while managing investment risk, taxes, and costs.

• Individual stocks form the majority of equity allocations
• Low-cost ETFs generally represent approximately 25%–30% of portfolios
• Individual investment-grade bonds
• Treasury and municipal bonds when appropriate
• REITs and other diversified investments where suitable
• Customized allocations based on each client's circumstances

• Ongoing tax-loss harvesting
• Strategic tax-gain harvesting
• Capital gain management
• Tax-efficient asset location
• Roth conversion coordination
• Charitable gifting of appreciated securities
• Management of embedded unrealized gains
• Retirement distribution tax planning

Owning individual securities provides greater flexibility to:

• Harvest losses at the security level
• Selectively realize gains
• Manage concentrated positions
• Transition appreciated portfolios gradually
• Respond to changing valuations and fundamentals
• Remain nimble as market opportunities develop

Customized bond ladders may include:

• U.S. Treasuries
• Investment-grade corporate bonds
• Municipal bonds

Bond selection considers credit quality, tax-equivalent yield, interest rates, duration, income needs, and the client's tax situation.

Security selection incorporates:

• Financial statement analysis
• Earnings reports and conference calls
• Analyst research
• Valuation and fundamental analysis
• Cash flow and balance-sheet strength
• Industry and competitive positioning
• Economic and market data

We continuously monitor:

• Investment performance
• Portfolio risk and beta
• Asset allocation
• Tax opportunities
• Individual security fundamentals
• Interest rates
• Client cash-flow needs
• Changes in financial circumstances

Results are evaluated against relevant market benchmarks with the objective of creating positive alpha relative to portfolio beta, recognizing that outperformance cannot be guaranteed.

Investment Management + Tax Strategy + Financial Planning
Rather than treating taxes as a separate year-end consideration, tax planning is integrated into portfolio decisions throughout the year.

The goal: help clients build and preserve wealth while keeping more of what their investments earn.

Annette Di Bello, CPA/PFS, CFP® is the Founder and President of Di Bello Financial, a fee-only Registered Investment Advisor headquartered in Mission Viejo, California.

With nearly four decades of experience in accounting, taxation, financial planning, and investment management, Annette specializes in helping high-net-worth individuals and families, business owners, executives, physicians, and retirees coordinate investment decisions with tax strategy and long-term financial planning.

As both a Certified Public Accountant (CPA) with the Personal Financial Specialist (PFS) credential and a CERTIFIED FINANCIAL PLANNER® professional, Annette brings an integrated perspective to portfolio management, retirement planning, tax strategy, estate planning coordination, and wealth preservation.

Di Bello Financial serves clients throughout Orange County, Los Angeles County, San Diego County, and other states where permitted by law.

This article is provided for informational and educational purposes only and should not be construed as individualized investment, tax, accounting, or legal advice. Examples and strategies discussed are illustrative and may not be appropriate for every investor. Tax laws and regulations are subject to change. Readers should consult their own qualified professional advisors regarding their individual circumstances.

Investment advisory services are offered through Di Bello Financial, a California Registered Investment Advisor. Registration does not imply a certain level of skill or training. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. References to alpha, benchmarks, or investment objectives do not represent a guarantee of future performance.

How We Build Tax-Efficient Investment Portfolios 

Why We Use Individual Stocks Instead of Relying Primarily on Mutual Funds 

How We Allocate and Design Client Portfolios

Asset Location: Why Where You Hold Investments Can Matter as Much as What You Own 

Managing Concentrated Stock Positions 

Tax Strategy 

Investment Management 

Retirement Planning 

Retirement Planning Scenarios

© 2026 Di Bello Financial. All Rights Reserved.

Di Bello Financial builds diversified, risk-based portfolios using primarily individual stocks and bonds, with low-cost ETFs used selectively.

This approach can provide:

• Greater control over taxes and capital gains
• No internal expense ratios on individual stocks and bonds
• Minimal overall ETF expenses
• More precise tax-loss harvesting
• Direct ownership and full portfolio transparency
• Flexibility to buy quality companies during temporary price declines
• Selective exposure to evolving economic and geopolitical themes

The goal is to improve after-tax, after-expense outcomes while maintaining disciplined diversification and risk management. Read More

Important Disclosure: This article is provided for educational purposes only and should not be considered individualized investment, tax, or legal advice. Mutual funds, ETFs, stocks, and bonds involve investment risk, including the possible loss of principal. Individual securities may involve greater volatility and company-specific risk than broadly diversified investments. Diversification and asset allocation do not guarantee a profit or protect against loss. Mutual funds and ETFs incur internal expenses and transaction costs, while individual-security transactions may be subject to commissions, markups, markdowns, bid-ask spreads, and other trading costs. Thematic investing may involve increased exposure to particular industries or economic sectors. There is no assurance that an investment purchased following a price decline will recover or produce a profit. Tax-planning strategies depend on each individual’s circumstances and may change as tax laws and regulations evolve. Consult with qualified financial, tax, and legal professionals regarding your specific situation.

About the Author

Annette Di Bello, CPA, PFS, CFP® is the Founder and CEO of Di Bello Financial, a fee-only fiduciary wealth management firm headquartered in Mission Viejo, California. With more than 35 years of progressive accounting, tax, investment, and financial planning experience, she specializes in helping high-net-worth individuals, business owners, executives, and retirees integrate investment management with proactive tax planning. Annette provides personalized portfolio management, comprehensive financial planning, and year-round tax strategy designed to help clients build, preserve, and transfer wealth more efficiently.

© 2026 Di Bello Financial. All rights reserved.

For high-net-worth investors, investment success is measured not only by returns, but by how much of those returns are retained after taxes. A thoughtfully constructed portfolio can help reduce tax drag, improve after-tax performance, and support long-term wealth preservation.

Tax-efficient portfolio construction integrates investment management and tax planning to help investors keep more of what they earn.

Different investments generate different types of taxable income. Placing assets in the appropriate account type can improve overall tax efficiency.

For example:

• Tax-efficient equity investments may be well suited for taxable accounts.
• Bonds and income-producing assets may be better held in tax-deferred retirement accounts.
• Growth-oriented investments can often benefit from Roth accounts, where future gains may be tax-free.

The goal is to place investments where they can generate the greatest after-tax benefit.

High-net-worth investors often accumulate significant unrealized gains over time. Selling appreciated assets without a plan can create substantial tax liabilities.

Strategies may include:

• Tax-loss harvesting
• Gradual realization of gains
• Charitable gifting of appreciated securities
• Coordinating sales with lower-income years

Proper planning can help reduce the tax impact of portfolio changes.

Certain investments are inherently more tax-efficient than others.

Examples include:

• Individual Stocks
• Exchange-traded funds (ETFs)
• Municipal bonds for taxable accounts

These investments may help reduce annual taxable distributions and improve after-tax returns.

Many high-net-worth investors hold significant positions in a single stock due to business ownership, stock compensation, or inheritance.

While concentrated positions can create wealth, they also increase risk and may complicate tax planning.

A structured diversification strategy can help manage both investment risk and tax consequences.

Investment decisions should not be made in isolation. Changes in income, retirement plans, charitable goals, business transactions, and estate planning strategies can all affect portfolio construction decisions.

By coordinating investment management with tax planning, investors can often identify opportunities that may otherwise be overlooked.

Tax-efficient investing is not simply about minimizing taxes this year. The objective is to maximize after-tax wealth over a lifetime.

This may involve balancing current tax savings with future opportunities, preserving flexibility, and aligning investment decisions with long-term financial goals.

We help high-net-worth investors integrate tax planning and investment management to create strategies designed to preserve wealth and improve after-tax outcomes. 

Important Disclosure: This article is provided for educational and informational purposes only and should not be construed as investment, tax, legal, or accounting advice, or as a recommendation to buy or sell any security. Every individual’s financial situation is unique. You should consult with qualified professionals before making financial, investment, or tax decisions. Past performance does not guarantee future results.

About the Author

Annette Di Bello, CPA, PFS, CFP® is the Founder and President of Di Bello Financial, a fee-only fiduciary wealth management firm headquartered in Mission Viejo, California. With more than 35 years of progressive accounting, tax, investment, and financial planning experience, she specializes in helping high-net-worth individuals, business owners, executives, and retirees integrate investment management with proactive tax planning. Annette provides personalized portfolio management, comprehensive financial planning, and year-round tax strategy designed to help clients build, preserve, and transfer wealth more efficiently.

© 2026 Di Bello Financial. All rights reserved.