A Retirement Income Certified Professional Can Provide Help

Retirement today looks very different from a generation ago. Instead of slowing down, Americans now see retirement as a time to stay active, travel, explore passions, or even start new ventures. While these dreams are evolving, financial confidence isn’t keeping pace.

A study from Edelman Financial Engines (EFE) shows that many feel unsure about affording the retirement they want. That’s where a retirement income certified professional (RICP) can help.

A New Vision for Retirement

Insights from EFE shed light on a trend in how Americans view retirement: rather than simply slowing down, more people are envisioning a retirement that is adventurous and purpose-driven.

According to EFE’s survey of over 3,000 U.S. adults, 42% want to stay active and 39% seek adventure.

But this idea of retirement often doesn’t match what people can afford, with 35% thinking their dream retirement is too expensive.For those without financial advisors, 38% said the top area where they said wanted support was retirement income planning, up from 24% in 2023.

This gap between dream and reality showcases the importance of having an expert by your side like an RCIP.

What an RICP Can Do For You

Working with the right professional can make all the difference, as There are many financial decisions you’ll need to make about retirement.

“A RICP specializes in helping clients plan for a financially secure retirement by providing expertise in various areas,” said Travis M. Sherman, an RCIP at Travis M. Sherman Retirement Income Consulting LLC.

Sherman highlights several key areas where these professionals provide support and guidance:

• Income Planning: “RICPs assess clients’ current financial situations and future needs to create a sustainable income plan for retirement. This may involve analyzing savings, investments, pensions, Social Security benefits, and other income sources.”
• Withdrawal Strategies: “They help clients develop strategies for withdrawing funds from retirement accounts, ensuring that withdrawals are tax-efficient and last throughout retirement.”
• Risk Management: “RICPs evaluate potential risks to a client’s retirement income, such as market volatility, inflation, and longevity. They help clients understand these risks and develop strategies to mitigate them.”
• Investment Advice: “They provide guidance on appropriate investment strategies that align with clients’ risk tolerance, time horizon, and retirement goals.”
• Social Security Optimization: “RICPs assist clients in understanding when to claim Social Security benefits to maximize their lifetime benefits.”
• Estate Planning: “They offer insights into how to structure assets for passing on wealth to heirs effectively, ensuring that clients’ wishes are fulfilled.”

Additionally, Sherman points to education and ongoing support from RICPs as essential. Plans should be regularly reviewed and adjusted as clients’ needs and market conditions evolve, ensuring that the retirement strategy continues to align with a client’s goals.

How to Choose the Right RICP

To choose the right RICP, first confirm their credentials. The RICP designation, issued by The American College of Financial Services, reflects deep expertise in retirement income planning.

Once you’ve identified a potential advisor, your first meeting is a valuable opportunity to ask important questions. Sherman suggests asking some of these questions:

• What is your approach to creating retirement income?
• Do you recommend products that you don’t get compensated for or refer out to other financial professionals who can offer products that the RICP doesn’t offer or get compensated for?
• How do you determine whether or not a product or approach is suitable for my needs?
• Are you able to offer products from multiple companies, or are you limited to what you can offer by your registered investment advisor (RIA) or broker-dealer?
• Are you truly independent, or are you affiliated to a company which requires to recommend only what they approve of?
• What is your basis for determining whether a product or approach is in my best interest?
• Do you have a quota to meet?

The Bottom Line

Retirement isn’t just about exiting the workforce; it’s about living life on your terms. However, to do that with confidence, you need a solid income plan. By choosing the right RICP—one who understands your goals, communicates clearly, and puts your interests first—you’ll be better equipped to retire.