PROBLEM FIVE

Toshiaki Minamiyama is a successful business executive. Over the years, he has allocated a portion of his large

salary to the building of an investment portfolio. He currently has a net worth of $$800,000($exclusive of retire$-$

ment plans$),$ as shown in the following chart.

Toshiaki seldom trades his investments as his strategy is to hold various types of investments for a long time in

order to delay any tax that may occur on their disposition. $($He is in the $45\%$ tax bracket.$)$ In fact, he chose not to

dispose of any investments when he needed money to purchase his house and sailboat.

Required:

From a tax planning perspective, what would you recommend Toshiaki do in order to enhance his wealth accumu$-$

lation? If possible, quantify how he would benefit from your recommendations, assuming a five$-$year time period.