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Retirement
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The American College of Financial Planning Throws Its Weight Behind A New Retirement Designation |
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Tuesday, May 07, 2013 18:00
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Tags: retirement income | retirement planning | RICP
While the federal government is cracking down in bogus financial advisor designations, The American College of Financial Planning, recently launched the Retirement Income Certified Professional (RICP) designation. While designation proliferation is a growing problem for consumers, regulators, and advisors with legitimate designations, The American College is a well-established educational institution for financial professionals. This Website Is For Financial Professionals Only
Its entrance into the retirement income specialty is likely to be looked upon skeptically by some fee-only financial planners, but The American College has for decades had the financial backing of the insurance industry and its professional education programs are credible. In fact, Wade Pfau, an award-winning Princeton-educated retirement income analyst, in April joined the faculty of The American College as Professor of Retirement Income in a new Ph.D. program on Financial Services and Retirement Planning.
In April, the college announced that it had awarded its first RICP designations to 11 individuals. “The RICP educational curricula is the most complete and comprehensive program available to professional financial advisors looking to help their clients create sustainable retirement income,” according to press release.
Candidates for the RICP designation must complete a minimum of three advanced college-level courses and pass six hours of proctored exams to earn the credential.
Consumer Financial Protection Board issued a report on April 25 recommending ways to address the problems posed to senior citizens by designation proliferation, since some designations are little more than cover for selling products to seniors. The American College, an 86 year old not-for-profit educational institution, might have the influence and financial power needed to make RICP a recognized and respected designation, as baby boomers begin to hit their retirement years and retirement income becomes more important than ever.
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Stop Analyzing Social Security! |
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Monday, April 15, 2013 03:54
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Tags: financial planning | retirement planning | social security As a financial advisor, I frequently get asked when it’s best to take Social Security benefits. To do a thorough evaluation requires calculating the benefit amounts based on various starting dates, anticipated COLA increases, the client’s life expectancy, the client’s work plans, and the client’s tax situation.
This Website Is For Financial Professionals Only
These complicated calculations typically lead to the conclusion that, as long as the client will live into the 80’s, it is better to wait to claim benefits.
I’ve certainly done my share of those calculations. However, I haven’t done so in many years. Why? Because there is no reason to! I base my recommendation on just one simple question:
Is the client younger than full retirement age and still working?
If yes, don’t take benefits yet. If no, take the benefits as soon as possible!
My reasons are simple:
· It can make a difference to your client’s lifestyle now.
· Your client’s life expectancy might turn out to be shorter than expected.
· There is no guarantee that Social Security will continue unscathed in the future.
There might be rare exceptions that justify analyses (divorced spouse, non-working spouse, etc.), but I vote for common sense over pencil pushing!
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Free Social Security Benefits Evaluator Determine An Appropriate Social Security Strategy That Aligns With Financial Goals |
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Thursday, March 21, 2013 15:25
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Tags: client education | differentiation | income planning | marketing | social security T. Rowe Price has launched the Social Security Benefits Evaluator, a free online calculator to help individuals decide what Social Security strategy may be suitable for their financial goals. Advisors may want to link to it from their website or post a blog about it, pointing out that it's really useful for illustrations but not a tool you'd want to stake your retirement income on.
T Rowe Price's calculator could not be easier to use. The three-step calculation requires filling in your gender, marital status, age, and salary. Then, just select your desired retrement age and whether you want to get Social Security benefits starting then or delay them to get the maximum benefit. The calculator then gives you a year by year projection based on today's dolalrs of your benefits.
Since this calculator app is not nearly as in-depth as advice and analysis a financial planner would provide in designing a retirement income strategy, linking to it and telling people about the advice they will get from you is good marketing. And the tool does let people see that making a change in their Social Security benefit strategy can have a big impact on their retirement income.
This Website Is For Financial Professionals Only
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Affluent Americans May Be Underestimating Their Needs in Retirement Says New Schwab Survey |
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Wednesday, March 06, 2013 18:48
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Tags: retirement income | retirement planning More than eight in 10 investors say they have a retirement plan in place, and 80% say they are confident about their financial readiness for retirement. However, when it comes to estimating how much money they’ll need once they actually retire, respondents say they’ll need on average around $66,000 in income annually, far lower than their current average income that is approximately $115,000. This Website Is For Financial Professionals Only
“Everyone’s retirement saving and investing plan is going to be unique, but each plan needs to start with a realistic assessment of personal situation and goals,” says Carrie Schwab-Pomerantz, Charles Schwab & Co., Inc. senior vice president, CFP. “In many cases, we tell clients to assume they’ll need roughly the same annual income in retirement as they had beforehand unless they anticipate a significant lifestyle change, and to take into account longevity risk when planning how much money they might need.”
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Different Aspect Of Retirement Planning Could Differentiate Your Practice Instantly |
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Friday, January 25, 2013 13:17
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Tags: Advisor businesses | client education | retirement planning
An important aspect of retirement planning likely gets little attention from advisors as they work to set up a plan to ensure retirees will not outlive their assets.
Clients may secretly be dreading the adjustment in the way they will spend their time. And the change could also take a devastating toll on their marriages. This Website Is For Financial Professionals Only
Not to say advisors should become marriage counselors.
More and more, clients look to advisors as a resource for everything from finding a nanny to lining up junior’s first mortgage.
By steering clients’ retirement thoughts to include how they will handle the retirement lifestyle could be an excellent differentiator as well as robust client service.
Take the statistics that 75% of retirees believe their lives will be better in retirement but, in fact, only 40% of them actually find that to be true.
Spouses who are accustomed to finding themselves going their own ways during the day may suddenly not know how to handle being around each other all day, every day.
Men often define themselves by their careers. Who will they be when that career is gone?
Divorce rates have increased among retirees as couples who have been suddenly thrown together again find their interests less compatible.
Advisors who begin conversations about spousal relationships from a lifestyle and relationship perspective will give their clients a leg up toward a successful retirement.
A common interest in a hobby might require a retirement plan to support its pursuit. Or financial plans might need to be made so that each spouse can pursue his or her own interests in a way that will continue to add vitality to the relationship in similar fashion to pre-retirement life.
Of course, relationship preservation can’t really wait until retirement begins. Broaching the subject and even steering clients to a needed therapist can lead to much more satisfying retirements and will undoubtedly strengthen client relationships. |
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