<prompt> Human: I understand the concept but how does one actually go about implementing it? Specifically, how do I do it? Im in my mid-40s with 1.5 million net worth. Of this, the tax sheltered portion includes 261K in a 403b TSP, 156K in a 401k, 123K in my Roth, 117K in my wifes Roth, 33K in 529 plan, and 37K in a life insurance annuity. Outside of this I have about 825K invested in taxable investment accounts.In order to move assets around according to basic principles of tax efficient allocation at this point, I imagine would trigger a six figure capital gain in the process. I cant imagine that the benefit of tax efficient allocation would offset this major tax hit right now. Am I missing something or at this point am I best off just continuing as I have been doing allocating according to my risk tolerance and timeline but not paying attention to tax advantaged vs taxable accounts?  <response>: I cant imagine that the benefit of tax efficient allocation would offset this major tax hit right now.In your case its probably not worth it. You might be able to do a little bit of rearranging if you want to, and transaction costs are sufficiently low by selling off only those lots that have a capital loss or very small capital gains. However, if the majority of your shares have gained value then its best to simply keep investing according to your asset allocation,keeping tax efficiency in mind going forward. 