Reflecting on 2025: A Year of Growth
Over 1 month into 2026 we look back at 2025, many physicians have seen significant appreciation in their retirement portfolios. Driven by strong performance in the technology and healthcare sectors, the equity portions of your Keogh and 401(k) (TSR/TSA) plans likely reached new heights. While this growth is a testament to the power of a disciplined investment strategy, it also creates a natural “drift” in your asset allocation that requires attention as we enter 2026.
What 2025 May Have Changed
Strong markets can quietly shift your portfolio away from its original design.
If your target allocation was balanced, last year’s gains may have left you more exposed to equity risk than intended. Reviewing your allocation now helps ensure your strategy still matches your time horizon and tolerance for volatility.
Why it matters: Rebalancing isn’t about predicting markets. It’s about protecting gains and keeping risk intentional.
Physician Compensation in 2025: What Did the Year Reveal?
Physician compensation is often a leading indicator of broader shifts in healthcare. After a year marked by staffing shortages, productivity pressures, and rising operational costs, what did 2025 reveal about physician earnings—and what might it signal heading into 2026?
Industry data suggests compensation growth remained uneven. Procedural and productivity-based specialties saw modest increases, while many employed physicians experienced flatter income growth. At the same time, benefit packages—particularly retirement contributions—quietly became a larger component of total compensation as healthcare systems focused on retention)
(Medscape 2025 Physician Compensation Report) (Becker’s Physician Leadership 2025 Trends) (AMGA 2025 Survey).
Explore compensation trends by specialty and employment model in 2025
Quiz
In 2025, approximately what percentage of physicians said retirement benefits were a primary reason for staying with their current employer?
A. 18%
B. 32%
C. 47%
D. 61%
Keep scrolling to see if you got it right.
Source: Medscape Physician Compensation Report
2026 Retirement Roadmap
A clearer way to think about your retirement benefits this year
As we move into 2026, many physicians are coming off a strong year for retirement portfolios. Equity-heavy allocations—particularly in healthcare and technology—likely pushed 401(k), Keogh, and other retirement plan balances higher in 2025.
That growth is welcome. But it also means it’s time to reassess risk.
“Invest in as much of yourself as you can. You are your own biggest asset by far”. – Warren Buffett
Quiz Answer
C. 47%
Nearly half of physicians reported that retirement benefits played a key role in their decision to stay with their employer, highlighting how critical plan optimization has become as compensation growth moderates (Medscape 2025 Physician Compensation Report).
Five Strategies for Your 2026 Investment Strategy
1. Expand Investing Options:
The Schwab Personal Choice Retirement Account (PCRA) is a “window” within your plan that allows you to move beyond the standard core fund lineup. By linking your PCRA, you gain access to thousands of individual stocks, ETFs, and specialized mutual funds. This is essential for physicians seeking to build a more customized, sophisticated portfolio that the standard plan options may not support.
2. Roth vs. Pre-Tax: The 2026 “High-Earner” Shift:
Under recent IRS changes (SECURE 2.0), starting in 2026, many high-earning physicians (those earning over $145k-$150k in the prior year) are required to direct their “catch-up” contributions (for those 50+) into Roth accounts. We recommend evaluating whether to voluntarily shift more of your base contributions to Roth as well. While you lose the immediate tax break, the benefit of tax-free growth and tax-free withdrawals in retirement—when tax rates may be higher—can be a massive hedge against future tax law changes.
3. The “Mega Backdoor Roth” Opportunity:
Your plan structure often allows for after-tax contributions beyond the standard $23,500/$24,500 limit. If you have not maxed out your total “annual additions” limit (which rises to $72,000 in 2026), you may be able to contribute after-tax dollars and immediately convert them to Roth. This is one of the most powerful wealth-building tools available to SCPMG partners and associates.
4. Immediate Action: Update Your Beneficiaries:
A common oversight for busy physicians is neglecting beneficiary designations on the Keogh and 401(k). These designations override your Will or Trust. If you’ve had a life event—marriage, divorce, or the birth of a child—ensure your Schwab account reflects your current wishes. It takes five minutes on the Schwab Plan website but saves years of legal headaches for your heirs.
5. Optimize the Keogh Irrevocable Election:
For those nearing partnership or already in the Keogh, remember that your contribution percentage is often a one-time, irrevocable decision. As your income increases in 2026, ensure your cash flow is optimized to support the highest possible tax-sheltered contribution.
Don’t leave your 2026 strategy to chance. We recommend consulting with a local financial professional who understands the nuances of the SCPMG benefits package. We can help you draft a customized strategy that integrates your PCRA selections, tax-shifting goals, and estate planning into one cohesive financial plan.
Ready to optimize? Contact our office today to schedule a 2026 Portfolio Review and Benefit Analysis.
Book a One-on-One Planning Meeting Contact With our meeting coordinator
lucy@siliconbeachwealth.com
Schedule a conversation to review your retirement strategy, benefits, and planning priorities for 2026.
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