New retirement rules and Fed policy shifts are reshaping how financial advisors build plans. Here's what Chicago retirees should know. Learn more at https://goldstonefinancialgroup.com/chicago/
The Federal Reserve’s benchmark rate remains above 5% as of September, its highest level in over two decades. At the same time, new provisions of the SECURE 2.0 Act are taking effect, while the SEC has stepped up enforcement of fiduciary rules for investment advice. For retirees, those shifts make the choice of a financial advisor in 2025 a more consequential decision than in years past.
So what should Chicagoland pre-retirees and retirees look for when evaluating advisors? Recent policy changes and market volatility point to a few key factors.
First, look for advisors who understand the Fed’s new normal. After two years of aggressive tightening, the Federal Reserve has telegraphed its intention to keep interest rates higher for longer well into late 2025. For retirees who traditionally rely on bonds for steady income, this has created a paradox: higher yields today, but greater sensitivity to rate and inflation shocks tomorrow. The right advisor should be helping clients rebalance — integrating fixed income sources with equity exposure, annuities, and tax-efficient withdrawals. Those still using a “set it and forget it” approach to bond ladders risk being caught off guard.
Second, don’t overlook SECURE 2.0’s moving parts. The law continues its phased rollout this year, adjusting required minimum distribution ages, increasing catch-up contributions for those 60 and older, indexing qualified charitable distributions to inflation, and expanding Roth features in employer plans. A good retirement advisor isn’t just aware of these provisions; they can turn them into an actionable strategy. For example, delaying RMDs while carefully sequencing Roth conversions can potentially reduce lifetime tax burdens. These are not background details—they’re major decision points every retiree will face.
Third, prioritize fiduciary responsibility. The SEC continues to enforce Regulation Best Interest, and the difference between fiduciary advisors and commission-based brokers remains significant. Fiduciary advisors are legally bound to put client interests first, while brokers may only need to recommend “suitable” products. Ask your advisor directly: “Are you a fiduciary?” If they hesitate or seem non-committal, that’s your answer.
Fourth, watch out for common mistakes. Even financially savvy retirees stumble on a few recurring issues. These include overestimating income by failing to factor in healthcare inflation, underestimating longevity, ignoring sequence of returns risk, and delaying Social Security without a plan. Each of these can undermine retirement security if not carefully addressed.
Fifth, remember that local insight matters. Retirement isn’t only about federal rules and national markets. Chicago retirees face unique pressures, including property taxes, healthcare networks, and state estate tax rules. Illinois, for example, imposes an estate tax on assets over four million dollars—much lower than the federal threshold of over thirteen million. Additionally, the state does not permit portability between spouses, making planning even more crucial.
Bringing it together, retirees should focus on the fiduciary advantage. Advisory firms like Goldstone Financial Group build what they call a “Retirement Roadmap,” an integrated plan that addresses income, investments, taxes, healthcare, and legacy issues. Whatever term a firm uses, the critical point is this: if your advisor isn’t updating your plan annually with new tax, Fed, and healthcare data, you’re already behind.
Heading into 2026, higher rates, changing tax laws, and increasing fiduciary oversight are likely to continue. Choosing the right advisor starts with asking the right questions. Do they understand policy changes? Do they have a clear plan for inflation and taxes? And most importantly—are they committed to acting solely in your best interest?
The right advisor is not a product picker, but a guide who can integrate policy changes into a reliable plan. Click on the link in the description to learn more. Goldstone Financial Group City: Oakbrook Terrace Address: 18W140 Butterfield Road Website: https://www.goldstonefinancialgroup.com/ Phone: +1 630 620 9300 Email: contactus@goldstonefg.com