Retirement Income Certified Professional - RICP

AAA

DEFINITION of 'Retirement Income Certified Professional - RICP'

A professional designation for experienced financial professionals who wish to become experts in retirement income planning. A Retirement Income Certified Professional helps retirees and near-retirees develop a plan for managing and using the assets they have accumulated for retirement in order to live within a realistic budget and not run out of money prematurely.

INVESTOPEDIA EXPLAINS 'Retirement Income Certified Professional - RICP'

The RICP program consists of three courses: Retirement Income Process, Strategies and Solutions; Sources of Retirement Income; and Managing the Retirement Income Plan. It is designed for financial professionals who already have a broad-based financial planning credential such as Chartered Financial Consultant, Certified Financial Planner or Chartered Life Underwriter or whose businesses already emphasize retirement income planning. Applicants must have three-plus years of relevant work experience, complete the three courses (which are all administered online), and pass a 100-question exam. RICPs must adhere to a code of ethics and meet continuing education and reporting requirements.

The American College in Bryn Mawr, Pa., a non-profit organization offering financial services education, created the RICP designation to serve the financial planning needs of America’s increasing population of retirees and near-retirees. The knowledge required to accumulate retirement savings and the knowledge required to use that savings to generate a comfortable and lasting income in retirement are two separate entities. While many financial professionals are experienced in advising and helping individuals to accumulate retirement assets, the increasing number of retirees means there is a large demand for expertise in how to manage and use those assets, and fewer advisers have expertise in subjects like how to determine when a client is financially prepared to retire, the rate at which retirement savings should be withdrawn, how an individual’s asset allocation should change during retirement, the best age for an individual to start claiming Social Security benefits, how to pay for health care and nursing home care, late-in-life tax planning, retirement housing and more. RICPs receive specific training to help clients to maintain their customary standard of living throughout retirement, to address income gaps, to create an estate plan and to limit risk. 

RELATED TERMS
  1. Asset Retirement Obligation

    An accounting rule established by Financial Accounting Standards ...
  2. Retirement Planner

    A practicing professional who helps individuals prepare a retirement ...
  3. Phased Retirement

    A broad range of employment arrangements that allow an employee ...
  4. Retirement Planning

    The process of determining retirement income goals and the actions ...
  5. Individual Retirement Annuity

    A retirement investment vehicle that is structured similarly ...
  6. Post-Retirement Risk

    The potential risks to financial security that a retired individual ...
RELATED FAQS
  1. What does U.S. law say about contingent beneficiaries?

    In the United States, posthumous asset transfers only require the listing of a primary beneficiary. Contingent beneficiaries ... Read Full Answer >>
  2. Places where I can open an IRA Account?

    An individual retirement account can be opened through a range of major financial institutions, including brokerage firms ... Read Full Answer >>
  3. Is a treasury bond a good investment for retirement?

    Individuals saving toward retirement use a variety of investments to accumulate funds over time, including stocks, bonds ... Read Full Answer >>
  4. What is a drawdown arrangement?

    A drawdown arrangement is most frequently associated with pension funds and how retirement income is received. The principle ... Read Full Answer >>
  5. What rate of return should I expect on my 401(k)?

    An employer-sponsored retirement plan such as a 401(k) can be a valuable tool in accumulating savings for the long-term. ... Read Full Answer >>
  6. How do you set up a revocable trust?

    A revocable living trust (RLT) is an arrangement in which a grantor transfers ownership of property through a trust. The ... Read Full Answer >>
Related Articles
  1. Retirement

    5 Lesser-Known Retirement And Benefit Plans

    These plans aren't widely used, but they fill a specific niche for employees in certain situations.
  2. Taxes

    Will You Pay Taxes During Retirement?

    Income taxes are one of the things that's certain in life. We'll explain the different tax situations when you retire.
  3. Retirement

    Deadlines You Must Meet If You Inherit A Retirement Account

    If you've inherited an IRA or any other retirement account, we tell you what deadlines you need to be aware of.
  4. Retirement

    Retirement Planning In A Changing World

    Retiring at the age of 65 is quickly becoming a thing of the past. So, what is happening to make this change?
  5. Retirement

    Some Tax Considerations For Your Retirement Income

    Even if you don’t plan to retire, it’s still a good idea to think ahead about where to live, your income and how it all interacts with Social Security.
  6. Professionals

    5 Vital Questions Advisors Should Ask New Clients

    By asking the right questions, listening and building trust, investors and their financial advisors can get the most out of their relationship.
  7. Retirement

    Equity Vs. Salary: What You Need To Know

    Equity payments are common at startup companies. Equity offers potential for a big payout but is also much riskier than a salary payment.
  8. Professionals

    Top Tips for Retirement Account Withdrawals

    Top things you need to know when it comes to managing the complex task of retirement account withdrawals.
  9. Professionals

    Advisors: Don't Overlook Not-Yet-Rich Millennials

    Financial advisors looking to grow their practices should focus on potential high-net-worth millennials.
  10. Retirement

    Top 10 Stocks for Retirement Portfolios

    Certain stocks are popular retirement portfolio options, but not all are as impressive as they used to be. Time to reevaluate?

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center