United States
Hong KongCFP or RICP: comprehensive against retirement income
The RICP specializes in retirement income planning - withdrawal strategies, Social Security claiming, annuitization and sequence risk. The CFP covers the same ground as one of eight domains, and the RICP is usually taken afterwards.
A specialist credential in the fastest-growing part of planning work, and rarely a substitute for the CFP.
What the RICP covers
Retirement income specifically: withdrawal strategies, sequence of returns risk, Social Security claiming, Medicare, annuitization, long-term care funding, housing wealth and legacy planning. One domain, expanded.
That is the CFP retirement domain - 18 per cent of the exam - expanded into a full curriculum, with more depth on distribution than the CFP has room for.
Why it exists
Because decumulation is a harder problem than accumulation and a large cohort is entering it at once. Timing is irreversible.
Accumulation has a broadly known answer: save consistently, diversify, keep costs low, stay invested. Decumulation has sequence risk, longevity risk, tax-efficient ordering, healthcare uncertainty and irreversible one-off decisions like claiming age.
The RICP is offered by The American College and covers one domain deeply. It does not substitute for comprehensive planning competence, and it is generally taken by people who already hold the CFP marks.
Which order
The CFP first, essentially always. It is the recognized credential, it covers the whole client, and a retirement income specialist who cannot answer an estate or insurance question is a limited adviser.
The RICP afterwards, where retirement income is the niche you want to serve - which for many advisers it increasingly is.
Is it worth adding
Where your client base is predominantly at or near retirement, yes. The depth is real and the material is directly applicable. Otherwise, skip it.
Where it is not, the marginal value over the CFP retirement domain plus continuing education in the area is smaller than the effort. A niche you do not serve is not worth a credential.
The overlap with the exam
Substantial. Anyone who has recently studied the CFP retirement and tax domains will find the RICP familiar, which makes the sequence efficient.
It also works the other way: an RICP holder pursuing the CFP has one domain covered and seven to learn.
CFP® is a registered mark of Certified Financial Planner Board of Standards, Inc. We are not affiliated with, or endorsed by, CFP Board. Other marks belong to their respective owners.
Common questions
What is the RICP?
The Retirement Income Certified Professional designation from The American College, specializing in withdrawal strategies, Social Security claiming, annuitization, sequence risk and healthcare funding.
How does it compare to the CFP?
It is the CFP retirement domain - 18 per cent of the exam - expanded into a full curriculum, with more depth on distribution than a comprehensive credential has room for.
Which should you do first?
The CFP, essentially always. It is the recognized credential and covers the whole client, and a retirement specialist who cannot answer an estate question is a limited adviser.
Is the RICP worth adding?
Where your client base is predominantly at or near retirement, yes. Otherwise the marginal value over the CFP retirement domain plus continuing education is small.
Why is decumulation harder than accumulation?
Accumulation has a broadly known answer. Decumulation involves sequence risk, longevity risk, tax-efficient ordering, healthcare uncertainty and irreversible decisions such as claiming age.