Physician Investment Portfolio

Positioning for retirement income

Repositioning for Retirement

As you approach retirement, your investment strategy must shift from growth to income and preservation. Coordinate portfolio changes with your retirement income plan.

Physicians often have concentrated portfolios requiring diversification. Build on the investment principles you established in earlier career stages while adjusting for retirement needs.

Portfolio Transition Priorities

Risk Adjustment

Gradually reduce portfolio volatility as retirement approaches for stability.

Asset Allocation

Rebalance toward income-generating and capital-preserving asset classes.

Sequence Risk

Protect against early retirement market downturns affecting sustainability.

Bucket Strategy

Consider time-segmented approaches for retirement spending and safety.

Recommended Asset Allocation by Phase

Retirement Phase	Equities	Fixed Income	Cash/Short-Term	Purpose
5+ Years Pre-Retirement	60-70%	25-35%	5%	Growth with gradual de-risking
2-5 Years Pre-Retirement	50-60%	35-40%	5-10%	Balance growth and preservation
Early Retirement (0-10 yrs)	40-50%	40-45%	10-15%	Income generation and safety
Mid Retirement (10-20 yrs)	35-45%	45-50%	10%	Sustainable income focus
Late Retirement (20+ yrs)	25-35%	50-55%	15%	Capital preservation priority

Common Mistakes

Maintaining aggressive growth allocation too close to retirement date
Ignoring sequence of returns risk in early retirement withdrawal years
Concentrating too heavily in a single sector or investment type
Not coordinating corporate and personal investment portfolios effectively
Underestimating inflation impact on retirement purchasing power over 30+ years

Keys to Success

Implement bucket strategy with 2-3 years of spending in safe, liquid assets
Build diversified income streams from dividends, interest, and systematic withdrawals
Maintain some growth exposure to combat inflation over 30+ year retirement
Consider annuities for baseline income to cover essential expenses
Rebalance annually and adjust allocation as retirement progresses