Retirement planning involves a series of critical decisions—when to claim Social Security, how to draw down accounts, and how to address rising healthcare costs. The quality of information available before retirement directly impacts these outcomes. The Federal Reserve's 2024 SHED survey found that only about one in three non‑retired adults feels on track for retirement. Below is a practical approach to evaluating financial education and determining when to engage a fiduciary advisor.
Common Mistakes
- Treating summaries as personalized advice: SECURE 2.0 changed RMD ages, catch‑ups, and plan options. However, the appropriate application of these rules depends on individual age, income, and account types. Implementing rules based solely on a summary can lead to unexpected tax implications.
- Missing "financial birthdays": Specific ages—50, 55, 59½, 62, 65, 70-73, and 75—trigger key options or obligations, including catch‑up contributions, penalty‑free distributions, Medicare enrollment, Social Security claiming decisions, and Required Minimum Distributions (RMDs). Overlooking these milestones can result in penalties or increased lifetime taxes.
- Underestimating long‑term care: Medicare does not cover most custodial care. Proactive planning for long-term care and Medigap before the need arises helps preserve income streams and protect assets.
- Piecemeal planning: Optimizing investments without considering tax brackets, Medicare Income-Related Monthly Adjustment Amount (IRMAA) thresholds, or beneficiary designations can lead to avoidable costs during withdrawals or inheritance.
What Reliable Financial Education Looks Like
- Topic‑specific, plain‑English guides: Materials that cover SECURE 2.0 basics, Social Security strategies, RMD rules, women's retirement planning, and tax planning are useful. Effective resources explain actionable steps and not just the regulations.
- Current and dated: Financial regulations and program rules evolve. Verification of recency is essential, particularly for RMD ages, Roth catch‑up provisions, and Medicare thresholds.
- Decision frameworks, not product pushes: Educational content should frame choices in terms of their trade-offs (e.g., Roth conversions during low‑income years) and identify situations where professional guidance is essential.
When To Call an Advisor
DIY approaches can be suitable for:
- Budgeting, establishing emergency funds, and setting contribution targets.
- Basic asset allocation and rebalancing within tax‑advantaged accounts.
- Reviewing beneficiary designations and account titling.
Engage an advisor when:
- Sequencing withdrawals across taxable, traditional, and Roth accounts to manage tax brackets and IRMAA.
- Timing Social Security benefits, including spousal considerations, while coordinating portfolio withdrawals.
- Planning Roth conversions during "bridge years" (the period between leaving work and beginning RMDs).
- Coordinating Medicare, Medigap, Health Savings Accounts (HSAs), and potential long‑term care coverage.
- Integrating estate planning goals with the advice of CPAs and attorneys to minimize taxes for heirs.
Chicago fiduciary firm Goldstone Financial Group publishes no‑cost primers and guides on SECURE 2.0, "important birthdays" after 50, maximizing Social Security, RMDs, tax planning, and women's retirement planning.
Evaluating a Client‑First Advisor
- Request an outline of the planning process (e.g., Discover, Evaluate, Plan) and the types of deliverables provided.
- Confirm fiduciary status and fee structure in writing.
- Expect proactive discussions on taxes, healthcare, and legacy planning, beyond investment management.
- Look for consistent updates tied to legislative changes, rather than isolated workshops.
Individuals approaching retirement—or already retired—who seek a clear financial plan can review current guides and articles from a fiduciary firm to understand the current statutory, regulatory, and market factors that could influence such a plan. The fiduciary aspect is of the utmost importance: clear guidance that places client interests above all else is the hallmark of sound retirement planning.
Goldstone Financial Group, LLC (“GFG”) is a registered investment advisor with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or qualification. This material is provided for informational purposes only. Opinions expressed herein are solely those of GFG. None of the information presented in this material is intended to offer personalized investment advice and does not constitute an offer to sell or solicit any offer to buy a security or any insurance product and is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.
