How Should My Portfolio Be Structured in Retirement?
Portfolio Design for Retirement
Designing a purpose-driven portfolio to support retirement income, risk management, and long-term goals
Our portfolio design philosophy centers on aligning your assets with your purpose—empowering you to retire with intention
Why Portfolio Design Changes in retirement
Retirement changes the role of your portfolio. During your working years, investing is often focused primarily on accumulation. In retirement, your portfolio may also need to support withdrawals, provide flexibility, and help manage the effect of market volatility over time.
Investment planning in retirement is not just about chasing returns. It is about balancing growth, stability, liquidity, and diversification in a way that supports your broader retirement plan.
Investment planning in retirement is not just about chasing returns. It is about balancing growth, stability, liquidity, and diversification in a way that supports your broader retirement plan.
Portfolio Design Within the 7 Pillars Framework
Portfolio design is one expression of the 7 Pillars Planning Framework. Through this framework that brings retirement decisions into one coordinated plan, we evaluate how investment decisions fit your retirement plan. For some clients, that work becomes more specific through 7 Pillars Purpose-Driven Portfolios™.
What We Evaluate in Portfolio Design
During our discovery process together, we learn about your investing profile and objectives. Then we begin to structure a portfolio that meets those objectives.
- Your risk tolerance and risk capacity
- Time horizon and expected withdrawal needs
- Diversification across major asset classes
- How the portfolio supports your retirement paycheck strategy
- Tax considerations across different account types
- Whether additional customization may be appropriate based on your goals and preferences
How Portfolio Design Supports the Retirement Plan
Investment planning is one part of a broader retirement strategy. Through our 7 Pillars Investment Planning® framework, we evaluate how your portfolio can support your written retirement plan, your retirement paycheck, and your long-term goals.
That means portfolio decisions are made in the context of your income needs, tax picture, risk profile, and changing circumstances rather than in isolation.
That means portfolio decisions are made in the context of your income needs, tax picture, risk profile, and changing circumstances rather than in isolation.
Core and Satellite Portfolio Structure
For some clients, implementation within our 7 Pillars Investment Planning® framework may include 7 Pillars Purpose-Driven Portfolios™ using a Core and Satellite approach. In simple terms, the Core is the broadly diversified foundation of the portfolio, while Satellites can be used more selectively where additional income goals, values, or investment preferences are appropriate.
The goal is to maintain a stable, retirement-focused foundation while allowing for thoughtful customization where it truly fits the plan.
The goal is to maintain a stable, retirement-focused foundation while allowing for thoughtful customization where it truly fits the plan.
- Core: a diversified foundation designed around retirement needs, risk, and long-term objectives
- Satellites: specific allocations that may reflect specific income goals, values, or other investing preferences
Examples of Satellite Themes:
- Dividend Aristocrats
- Tax-Efficient Income
- Healthcare and Longevity
- Faith-Based Values Investing
- Real Assets and Infrastructure
- Disruptive Technologies
- Private Markets
- Energy
- Global Dividend Income
Not every Satellite theme will be appropriate for every client. Any Satellite allocation would be evaluated in the context of your broader retirement plan, your goals and preferences, and your Risk Score. For some clients with a higher Risk Score, limited exposure to one or two more specialized Satellite themes may be appropriate. For other clients with a lower Risk Score, those themes may not be used.
How Satellite Portfolios Can Customize the Core
Customization within a Retirement-Focused Framework
While the Core of your portfolio provides long-term structure and diversification, Satellite portfolios can offer more selective exposure where it supports your goals, values, income needs, or investing preferences.
Each Satellite is intended to complement the Core rather than replace it. This allows us to tailor parts of the portfolio more intentionally while keeping the broader retirement plan, risk profile, and long-term objectives in view.
Each Satellite is intended to complement the Core rather than replace it. This allows us to tailor parts of the portfolio more intentionally while keeping the broader retirement plan, risk profile, and long-term objectives in view.
Low-Cost and Diversified
Our portfolio design generally emphasizes diversification, long-term discipline, and investment costs that are kept in view. Depending on your needs and preferences, implementation may include low-cost ETFs, mutual funds, index funds, select dividend stocks, and other appropriate investment vehicles.
The objective is not speculation. It is to build a portfolio structure intended to support retirement spending needs, risk management, and long-term sustainability.
For clients who want portfolio design to reflect certain values or preferences, those considerations can be incorporated where appropriate without losing sight of the broader retirement plan.
The objective is not speculation. It is to build a portfolio structure intended to support retirement spending needs, risk management, and long-term sustainability.
For clients who want portfolio design to reflect certain values or preferences, those considerations can be incorporated where appropriate without losing sight of the broader retirement plan.
Implementation and Ongoing Support
Investment planning does not end once the portfolio is designed. It can continue through periodic retirement plan reviews or through investment management as part of ongoing retirement planning support, depending on how you prefer to work together.
To learn more about how 7 Pillars Investment Planning® and 7 Pillars Purpose-Driven Portfolios™ may support your retirement income planning, see:
To learn more about how 7 Pillars Investment Planning® and 7 Pillars Purpose-Driven Portfolios™ may support your retirement income planning, see:
Ready to Talk Through Your Investment Plan?
Schedule a ConsultationIf you would like to explore how your portfolio may need to be structured for retirement, I invite you to reach out. We can start with a no-charge, no-obligation consultation to discuss your retirement plan, your investment questions, and the level of support that may fit best.