Broker Check

Retirement Income Certified Professional

July 03, 2019

What is a Retirement Income Certified Professional?  It is a designation for financial professionals that focuses on the unique challenges that individuals face as they transition out of the workforce and into retirement.  This particular designation focuses on how a retiree can spend the money they have accumulated during his or her career, and hopefully make their assets last for the duration of their lives.  Everyone has an idea of what retirement should look like.  Most people are unprepared from a planning stand point.  A retiree may need to reduce their spending habits and learn to live on 80% (or less for many) of their pre-retirement income.  This can be a difficult transition out of the workforce, especially if the individual has not started adapting ahead of time.  It will be important for a soon to be retiree to understand when they should claim social security.  Where will their health insurance come from if they choose to retire before they are eligible for medicare?  Social Security, in all likelihood, will not be enough on its own to replace an individuals pre-retirement income.  So what other assets are available to generate enough income to help a retiree maintain their standard of living?  Alternate income sources available for retirement funding would include any retirement accounts and investment accounts, as well as checking and savings accounts.  Does the individual plan to retire out right, or will they work part time at a job they enjoy, versus a job they need?  An RICP designee, will help individuals develop budgets and spending plans that will be unique to the client.  There are several unique challenges that retirees face. Living too long and long term care needs can be incredibly expensive.  The need for long term care can reduce and even eliminate the amount of assets that an individual planned on passing on to their loved ones. By working with a RICP, an individual will have a better idea of how to prepare for retirement, and how to navigate living on a budget.  I am often remind of a saying that I feel sums up planning for retirement.  Prior and proper planning prevents pretty poor performance.