What Do My Credentials Mean (ChFC®, RICP® and CRPC®)?

A Chartered Financial Consultant^® (ChFC^®) is a financial professional who has completed advanced coursework in financial planning. The ChFC^® designation signifies expertise in areas such as retirement planning, estate planning, insurance, investment strategies, and tax planning. The coursework includes the same courses as the Certified Financial Planner (CFP^®) curriculum plus additional  required coursework.

 A ChFC^® works closely with clients to create comprehensive financial plans tailored to their unique needs and goals, helping them manage their wealth, minimize taxes, plan for retirement, protect assets, and address other financial concerns.

Unlike some other designations, ChFC^® focuses on a wide range of financial topics, equipping advisors to handle complex financial issues for individuals, families, and businesses. The ChFC^® is conferred by the American College of Financial Services.

A Retirement Income Certified Professional^® (RICP^®) is a financial advisor specializing in retirement income planning. They help clients create sustainable income during retirement, offering key services including:

• Retirement income planning: Creating strategies for sustainable income in retirement.
• Social Security optimization: Maximizing Social Security benefits.
• Tax-efficient withdrawal strategies: Minimizing taxes on retirement income.
• Managing retirement risks: Addressing risks like longevity, inflation, and market volatility.
• Annuities and investment management: Providing guidance on annuities and other income-producing investments.
• Legacy and estate planning: Assisting with wealth transfer and ensuring financial goals are met.

The RICP^® is conferred by the American College of Financial Services

A Chartered Retirement Planning Counselor^TM (CRPC®) is a financial professional specializing in retirement planning. They are trained to help individuals and families prepare for retirement by creating strategies tailored to their specific financial goals and needs. A CRPC® guides clients through the various stages of retirement, from accumulating savings and investments to transitioning into retirement and managing income during retirement.

Key services provided by a CRPC^® include:

• Retirement savings strategies: Helping clients maximize their savings, typically using retirement accounts like IRAs, 401(k)s, and other investment vehicles.
• Income planning: Creating strategies to ensure a sustainable income stream throughout retirement, including Social Security optimization, withdrawal strategies, and managing pensions.
• Tax-efficient planning: Minimizing the tax impact of retirement income and investments.
• Estate planning: Assisting clients in leaving a financial legacy for heirs or charitable causes.
• Risk management: Addressing risks such as longevity, healthcare costs, and market volatility.

A CRPC^® helps clients achieve financial security in retirement by offering personalized advice throughout the process.  The CRPC^® is conferred by the College for Financial Planning.

Alternative Minimum Tax (AMT)
The Alternative Minimum Tax (AMT) calculates income tax using stricter rules for deductions and exemptions, ensuring high-income taxpayers don’t pay a lower effective tax rate. To check if the AMT applies, taxpayers must complete IRS Form 6251.

Consumer Price Index (CPI)
The U.S. government’s main measure of inflation, calculated monthly by the Department of Labor.

Convertible Term Insurance
A convertible term life insurance policy allows the holder to switch to permanent life insurance, with limitations. Factors like age, health, and coverage type affect cost and availability. Policies have expenses, including mortality charges. Before choosing a life insurance strategy, check if you're insurable. Guarantees depend on the insurer’s ability to pay claims.

Deferred Annuity
An annuity is a contract with an insurance company that guarantees future payments in exchange for current premiums. Interest earned is tax-deferred until withdrawn. Guarantees depend on the insurer’s ability to pay claims. Annuities come with fees, charges, and possible surrender penalties if cashed out early.

Fixed and Variable annuities are suitable for long-term investing, such as retirement investing.  Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.  Variable annuities are subject to market risk and may lose value.

Management Fee
The cost of having assets professionally managed. This fee is normally a fixed percentage of the fund’s asset value; terms of the fee are disclosed in the prospectus.

Medicare
The federal government’s health program for individuals aged 65 and over and for individuals who have certain disabilities or end-stage renal disease.

Power of Attorney
A legal document that grants one person authority to act for another person in specific legal or financial matters in the event that said individual becomes incapacitated.

Required Minimum Distribution (RMD)
The amount that must be withdrawn annually from a qualified retirement plan, beginning April 1 of the year following the year in which the account holder reaches age 73.

Spousal IRA
A spousal IRA allows a working spouse to fund an IRA for a non-working spouse, with shared contribution limits. At age 73, required minimum distributions (RMDs) must begin. Withdrawals are taxed as income, with a 10% penalty for early withdrawals before age 59½. Contribution deductibility depends on adjusted gross income.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.