RICP® vs CFP® and CLU®
There are several designations and educational programs at The American College of Financial Services that can help you become a certified financial expert. You should specialize in a financial service that aligns with the type of customer you wish to serve. For instance, if you have a passion for working with older adults, you could work toward the Retirement Income Certified Professional® (RICP®) designation to help people with retirement planning.
How to pick the right program for you
The College offers many education programs designations to become a knowledgeable financial professional: among them are the RICP®, CERTIFIED FINANCIAL PLANNER™ (CFP®) through our Certification Education Program, and Chartered Life Underwriter® (CLU®). To obtain each of these designations, you must complete the coursework and then pass an exam. Every program covers a unique range of information and will set you up for a different career path.
Most students come to The College with existing experience in a particular field. You may already have some experience with retirement income planning, for example, perhaps through a career working at a bank. Your colleagues will mostly be other financial advisors who are looking to improve their skills and offer better services to their clients.
Whatever your background, you’ll want to select a program that builds upon your existing expertise. Do you want to grow in your current position or start your own firm? One option is to deepen your knowledge of a specific field. Another is to pursue credentials that increase the number of services you can provide.
Retirement Income Certified Professional® (RICP®)
The Retirement Income Certified Professional® (RICP®) designation is the best way to learn how to support people planning for retirement. You’ll be taught how to create and execute a comprehensive retirement strategy from the ground up. You’ll explore different ways to utilize Social Security in financial planning, as well as best practices for your clients’ portfolio withdrawals to generate retirement income.
Most importantly, you’ll learn how to evaluate and address risks associated with aging, such as planning for long term care and legacy planning with clients. As an RICP®, you'll know how to create customized retirement strategies based on a client’s needs and resources.
It’s incredibly rewarding to provide security to older adults in a time of uncertainty. Whether you are a financial advisor, a wholesaler, a lawyer, accountant, or simply an individual looking for a deeper understanding of retirement planning, the RICP® designation equips you to deliver meaningful and sustained support to your clients.
CFP® Certification Education
In the CERTIFIED FINANCIAL PLANNER™ (CFP®) Certification Education program, you’ll undertake a broad range of studies that will give you a strong foundation for any career you choose to pursue in the financial industry. These are specifically designed to help you prepare for and pass the CFP® exam. The education program includes coursework on financial planning, insurance, taxation, retirement planning, investment strategies, and estate planning.
All CFP® Certification Education students will develop a case study as their final capstone course, which integrates their knowledge into a comprehensive financial plan. This process helps you prepare for the final exam, and it’s also a great portfolio piece if you’ll be seeking employment soon.
If you know you want to work in financial services, then the CFP® Certification Education is the right program for you. Learn about new topics and network with other financial professionals. Prepare to pass your CFP® exam with confidence (The College’s CFP® exam pass rate is higher than the national average). Enjoy both the higher income and increased professional respect that come with your new CFP® designation.
Chartered Life Underwriter® (CLU®)
The Chartered Life Underwriter® (CLU®) provides you with knowledge that covers the intricacies of life insurance and financial planning. In fact, the CLU® designation is known as the gold standard for life insurance education in the financial services profession.
In this program, you’ll take five courses that teach you about underwriting, life insurance law, risk management, tax aspects of organizing a business, estate planning, and how to serve professionals as well as business owners. Your education in underwriting will help advance your career, and you’ll leave with the confidence to provide solutions to the complex financial needs of modern clients.
A major benefit of this program is that in most states, you can be exempted from pre-licensing education and underwriting certification requirements with a CLU® designation. Another major benefit is that life insurance is here to stay, as both individuals and small businesses often require it. Plus, it’s quite lucrative, so a single sale could pay for your entire credential.
This credential is right for people who are ready to launch their insurance careers. It’s perfect for lawyers, bankers, wealth managers, or other professionals who need to understand life insurance underwriting as well. The CLU® designation is a great value-add for financial professionals who already have a certification like the Chartered Financial Consultant® (ChFC®), RICP® and/or CFP®. These professionals can apply coursework from other designations toward the CLU® designation.
FAQ
What does RICP® stand for?
RICP® stands for Retirement Income Certified Professional®. It means that someone is qualified to assist with planning and executing retirement strategies.
Is the RICP® designation worth it?
The RICP® designation is an affordable way to set yourself up for success as a retirement planning professional. With only three courses, it’s easy to complete this self-paced, self-study course. Plus, the designation is specifically designed to help you pass retirement planning examinations.
What can you do with the RICP® designation?
With an RICP® designation, you can advise senior clients on retirement strategies. This could include portfolio withdrawal advice, retirement income planning, long term care funding, and legacy planning. Most people utilize their RICP® designation either to improve their job prospects or expand the services they can offer to their existing clients.
More From The College:
Get more info on our RICP® Program
See our CFP® Certification Education Program
Learn about our CLU® Program
5 Questions with Ed Slott, CPA
1. First, can you briefly highlight the knowledge gap you identified over three decades ago? As a CPA, you started meeting clients who were unaware of the major tax issues sitting in their tax-deferred retirement accounts. Where was the financial services industry falling short?
IRAs first began in 1975 after they were created by ERISA in 1974, but after the 1986 Tax Act, the IRS released a slew of regulations on the distribution tax rules that seemed to be written in Sanskrit (or something else, but certainly not English!). IRAs were still relatively new and did not yet include large rollover balances, so most financial advisors only dealt with making contributions and never thought about helping clients plan for when these retirement funds would have to be withdrawn.
As a practicing CPA at the time, I sat down with clients at tax time to prepare their tax returns, and I started seeing the first signs of costly mistakes that often couldn’t be fixed. I was the messenger giving the bad news. When those early IRA tax regulations came out, it hit me that while advisors could help clients accumulate funds in IRAs, they were woefully unprepared for how to help clients plan for taking those funds out. That’s when I first recognized the beginnings of a dangerous knowledge gap between accumulation and distribution planning. Clients need advisors educated in both phases. Over the last three decades, that knowledge gap has grown significantly to worrisome levels given that for many, their IRAs are their largest single asset, so mistakes can be devastating for both the clients and their advisors who have to give them the bad news – that they were unprepared or unaware of the tax ramifications of IRA distributions.
I realized right then that this was a huge opportunity for someone to learn these complex tax rules, digest them, and translate that tax Sanskrit into understandable language with which both advisors and clients could plan correctly.
I also realized this was an opportunity for financial advisors (who back then were mostly brokers) to bring in new planning business. But for the most part, advisors didn’t want to invest their time in learning this area and chose instead to focus on investments. That was when I first recognized that there would be a huge knowledge gap here, and unfortunately, it’s still true today. The difference now is that most financial advisors do offer more planning-related advice, but as a rule, they still shy away from this critical tax advice, leaving clients exposed to the tax landmines that are extensive in this area.
In addition, unlike over 35 years ago, many clients now have accumulated substantial balances in their IRAs and company plans so there is more money at risk of loss through a lack of retirement tax planning. The knowledge gap still exists.
2. You were the pioneer in advanced education on IRA distribution planning. Do you think financial advisors are better prepared to help clients navigate IRA intricacies than they were when you started? If not, where are they still falling short?
No, absolutely not! The gap is still there today, but it’s more serious now since so much more of a client’s retirement savings is at risk. This is due to advisors’ general lack of serious education in IRA distribution tax planning. Many of them like to say (actually, cover themselves) in their company disclaimers that “we do not provide tax planning services,” but any advisor who touches a retirement account is doing tax planning since IRAs are loaded with taxes. Any advisor who takes in an IRA rollover or helps clients make IRA or Roth IRA contributions, or advises on a Roth contribution, or sets up a company retirement plan is doing tax planning whether they want to call it that or not.
So, now we have a situation where the average advisor is taking in millions in IRA dollars without the knowledge of how these funds will be distributed as part of a retirement, tax, or estate plan. That’s a dangerous combination. Then add the latest round of new tax rules and you have a ticking liability. It’s only a matter of time until judgment day. I’ve seen the horror stories for years, and it’s awful when mistakes can’t be fixed.
But this situation has a silver lining. It spells unprecedented opportunity today for advisors who invest in their education to learn how to do this planning. There’s one constant – educated advisors bring in the largest IRAs and don’t have to rely on commoditized transactional business competing on an ever-thinning price margin. Plus, their clients see them as valued advisors and are more likely to recommend them. Clients with serious money seek out educated advisors. They know the difference.
3. There’s a true synergy between your organization and The College, which emphasizes how to apply knowledge and education in the real world. You share that belief and structure your programs in a similar way. Can you talk about your passion for applied knowledge?
I love learning and teaching. As a practitioner myself for years, I constantly attended tax training programs often for days at a time. I wanted to learn all I could to enhance my professional planning skills. But I quickly realized that learning was meaningless unless I used that knowledge. My true practice growth exploded when I began applying the knowledge to my clients and their families. I was amazed at how quickly and easily consumers were drawn to me as an advisor who did real proactive planning, rather than simply tax preparation. I also was able to earn much higher fees as a tax planner rather than simply preparing taxes. I was no longer competing with low-cost tax prep companies. I was charging significantly more than most CPA firms and that seemed to attract even more higher-end clients who wanted that level of planning. It may seem counterintuitive, but I was actually attracting business by charging the highest price. For clients, the value they received eclipsed the fees. In fact, I took business from other CPAs that were charging much less. Based on the tangible results of tax savings, some clients still thought I wasn’t charging enough. I would often receive letters from clients (and even their beneficiaries after they died) saying that the fee they paid me was the best investment they ever made. They looked at my services as an investment, not as a fee for a commoditized service.
That’s the kind of practice every advisor should strive for, and when I began presenting advisor training programs, I made sure to design them with this same formula for success.
The formula is simple but powerful if applied consistently: Providing knowledge + showing how to apply it = applied knowledge = success!
That’s what The College brings to financial professions with the Retirement Income Certified Professional® (RICP®) program, and what our partnership will provide with Ed Slott and Company’s IRA Success powered by The American College of Financial Services.
The focus within each of our 12 courses will be for the advisor to gain the best retirement tax planning knowledge available and learn how to apply that knowledge to build their business, as well as help more clients achieve their retirement planning goals.
4. A key part of your mission is to democratize IRA education – which you’ve sought to accomplish through corporate and consumer training, holding your own live workshops, speaking for large institutions and organizations, and producing some of the highest fundraising Public TV specials in history. Can you talk about how you believe delivering an innovative e-learning program through The College will help you further that mission?
Education is the common bond we have with the mission of The American College of Financial Services, so it’s a perfect fit.
I’ve seen the horror stories where chunks of retirement savings were lost due to poor planning or costly errors made by financial advisors who didn’t know the tax rules. These people often came to me for help after the damage was done, and most times I could not fix the problem because many of these tax rules and options are irrevocable.
That’s one of the reasons I began to focus on retirement planning for the second half of the game – taking the money out – the critical distribution phase.
Consumers need the help, but they need to work with advisors who have specialized knowledge in retirement distribution and tax planning. I’m sorry to say most don’t.
Advisors generally do a good job helping people invest and accumulate retirement savings. No question, that’s the first major building block. But it’s just not enough. These hard-earned savings need to be protected. That‘s what I call the second half of the game – the distribution phase. It’s where the retirement game is won. With IRAs and other tax-deferred retirement accounts, it’s what you keep after taxes that counts, and that comes down to tax planning. With good planning, the amount of taxes that can be saved is astounding. This is money that will now stay invested and increase the retirement savings available for clients, as well as the amounts they pass on to their loved ones.
This e-learning program we created with The College focuses intently on this educational mission because, like me, they too believe that better educated financial advisors means more people can experience a successful and worry-free retirement. The ripple effect of a successful retirement and estate plan can impact families for decades and even generations. Financial advisors are equal beneficiaries in their clients’ success. When a client succeeds and has financial security, we all do.
5. How would you describe this program to a financial professional? Is there anything else in the market that combines this IRA thought leadership with e-learning delivery expertise?
This e-learning program is the only one in the nation that combines the decades of experience of myself and my team of IRA experts and presents the material in an easy-to-digest, anytime, anywhere format. Learning doesn’t have to be a tortuous experience. This program is unique in the material presented, how it’s presented, and in the tangible results that will follow.
Each of the 12 courses is focused on practical planning solutions that are easily translatable to real client situations, not esoteric tax code that will never be used or understood. We know what concerns clients. We know what keeps them up at night, and we show professionals how to address their anxieties, worries, and goals without spouting tax code or other useless tax jargon.
There’s nothing even closely comparable in the industry, and we’re proud to offer this program with The College. This will change how professionals learn to do retirement tax planning that gets results, both for the clients and themselves. True success is when everyone wins!
Retirement Financial Planner Designations for Financial Advisors
Which designation to get depends on many factors, but there is guidance in the form of the National Health and Retirement Study, which is intended to provide insight into the lives and needs of people over the age of 50. The study looks at health care, housing, assets, pensions, employment, and disability factors.
Armed with the information from this study, you can begin the process of deciding which designation is right for you. However, there are many other factors to consider as well, including the cost of training, the time commitment required for continuing education, and your specific career goals.
In this article, we’ll take a look at some of the common professional designations for financial planners looking to become retirement planning experts.
Retirement Planning Designations
There are several reasons for financial professionals to become accredited in retirement planning. For those just starting their careers, it can provide proof of knowledge and demonstrate a level of commitment to the profession. These reasons also apply when seeking a shift in job roles, as the earned credentials work as a form of shorthand that says, “I know what I’m talking about.” And lastly, for those seeking a promotion, earning additional certifications shows your employer you are serious about professional growth while also demonstrating that you are an expert in your field.
Retirement Income Certified Professional® (RICP®)
An RICP® specializes in retirement income planning and typically helps retired people use their assets to live comfortably in their retirement years. This designation, offered by The American College of Financial Services, is meant for financial professionals who already have a broader designation, such as a CERTIFIED FINANCIAL PLANNER™ (CFP®), and the experience and expertise that comes along with it.
To be accepted to the RICP® program, applicants must have three years of financial planning experience. The program is self-guided, with three online courses followed by an exam at the end of each course. To maintain the credential, RICP®s must complete 15 hours of continuing education every two years.
CERTIFIED FINANCIAL PLANNER™ (CFP®)
A CFP® offers a range of financial planning services, including investment planning, retirement planning, insurance, and more.
The CFP® designation has been called the gold standard for the industry. Among the general public, it is one of the most widely known. It is also challenging – the national average exam pass rate is 62% (though CFP® Certification Education programs offered through The American College of Financial Services boast higher student pass rates than the national average). A bachelor’s degree from an accredited college or university is a prerequisite, and training must be done through a CFP Board registered program. Coursework typically takes between 12 and 18 months to complete. Annual training programs are required to maintain certification.
Chartered Retirement Planning Counselor® (CRPC®)
Unlike the CFP®, a CRPC® concentrates on retirement planning. The program leading to certification provides successful graduates with expertise in the entire retirement planning process, from setting financial goals to income streams to estate planning.
After the designation has been granted, it is valid for two years. To renew, you must refresh your training.
The CRPC® can be started at any time. Once enrolled, you must pass the final exam within one year.
Certified Retirement Counselor (CRC)
Becoming a CRC requires two years of experience related to retirement planning, in addition to holding a bachelor's degree from an accredited college or university. The certification does not require formal study or coursework before writing the exam, although there are study guides and materials available. That doesn’t mean, however, that this is an easy designation to achieve. The exam takes four hours and includes 200 questions.
Retirement Management Analyst (RMA)
Also called a Retirement Management Advisor, this designation focuses on building custom retirement income plans for clients with a focus on mitigating risk.
Prerequisites for becoming an RMA include three years of financial experience. Alternatively, having a CFP® or CFA® designation also qualifies a person for the certification. Earning the designation requires completing an online course, a capstone course, and passing an exam. Once registered for the program, you have two years to complete it.
Chartered Retirement Plans Specialist® (CRPS®)
This designation is a bit different from the others, as it denotes a person who focuses on creating and maintaining retirement plans for businesses. As such, clients are businesses rather than individuals.
The designation, earned by passing an exam, is good for two years. After enrolling in the certification program, candidates have one year to pass the exam. To maintain the designation requires 16 hours of continuing education every two years after the initial designation is granted.
FAQ
What is the most difficult professional exam?
The Chartered Financial Analyst® (CFA®) designation is considered the most difficult to achieve. It involves 19 months of self-study and three exams.
Is getting a CFA® worth it?
Earning your CFA® can signal to employers that you have the work ethic and commitment necessary to perform the job well. It also can give you the required training to specialize in investment analysis and portfolio strategy. Additionally, a CFA® designation often comes with a starting salary above $90,000.
What is the easiest financial designation to get?
Each designation requires time and dedication to learning the subject matter. None are especially easy, although with significant financial experience and the associated knowledge, achieving a designation becomes easier, as you’ve likely already learned portions of the information through encountering it in professional situations.
More From The College:
Get specialized retirement planning knowledge with our RICP® Program.
Get the details of our ChFC® Program.
See our CFP® Certification Education Program.
Planning for Retirement: What to Do if It Comes Early
Key Takeaways
- If retirement comes earlier than you thought, smart planning is a must.
- Taking the right steps now can pay off over the long run.
- By minimizing taxes, a nest egg can last longer.
If you’re among the many older workers who may be looking at an early retirement due to the economic fallout caused by the COVID-19 pandemic, you’re not alone. From March to August of 2020, 2.9 million Americans ages 55 to 70, or about 7% of the workers in that age group, lost their jobs and left the labor force.1
Many of these individuals will be forced into early retirement, which could have severe consequences for their long-term retirement security. Early retirees lose not only wages, but also the chance to make additional contributions to their workplace retirement savings plan, and lose any future employer matching contributions they would have received. Historically low interest rates will also create significant challenges for anyone looking to generate retirement income with their savings.
Overcoming those challenges – or at least mitigating their impact – will require thoughtful execution of smart financial planning strategies. Planning for Retirement: What to Do if it Comes Early outlines nine steps to consider taking if you’ve recently been laid off or have received notice that you will be laid off, and as a result may be considering retiring earlier than planned.
Prudential served as the exclusive sponsor of the National Retirement Risk Index.
1The New School Retirement Equity Lab, “Status of Older Workers,” August 2020.
This content and information was created by a third party and not The College. The College assumes no legal liability for the accuracy, completeness, or usefulness of any such content and information and the views expressed therein do not necessarily represent the views of The College.