How prepared are you financially for the big switch from getting a regular paycheck from work to creating your own paycheck in retirement? If you are already in retirement, how’s it going?

A recent T. Rowe Price study of baby boomers and Gen Xers with investable assets of at least $50,000 found that 47% of them feel their ideal retirement is “very attainable.” Another 45% say it is “somewhat attainable”.

Steven Earhart & Jamie Hopkins Personal Retirement Paycheck
Image source: YouTube Video Screenshot
Steven Earhart & Jamie Hopkins

Other studies find similar levels of optimism about retirement, but it turns out that confidence might be misplaced.

A financial literacy survey by The American College of Financial Services, the nation’s largest non-profit educational institution devoted to financial services, found that financial literacy about retirement planning is poor – even among the more affluent.  In its survey of individuals between the ages of 60 and 75 with household assets of at least $100,000 (excluding their primary residence), only 20% scored 61% or better in a basic financial literacy test. That means 80% had failing grades.  The survey covered topics such as ability to maintain lifestyle, life expectancy, income generation, Social Security and company sponsored retirement plans.

It’s not just individuals who need to be educated. The American College of Financial Services has created a new program and certification for financial advisors called the Retirement Income Certified Professional, or RICP, which specializes in retirement income planning because this is relatively new territory for professionals too.

Our two WEALTHTRACK guests this week are involved in that effort.  We’ll be joined by Jamie Hopkins, one of the creators of the RICP curriculum. He has a chair in Insurance and Investments at the college, and is an Associate Professor of Taxation there.   He’s also Co-Director of The American College New York Life Center for Retirement Income. InvestmentNews named him one of the top 40 financial services professionals under the age of 40.

Our other guest is Steven Earhart, owner of the financial advisory firm Devon Financial Partners. He earned the Retirement Income Certified Professional designation, as well as several other professional credentials including Certified Financial Planner and Master of Science in Financial Services.

Several years ago he was recognized as a 40 under 40 by the Philadelphia Business Journal.

Both guests say the biggest financial challenge for the 10,000 baby boomers and their advisors is transitioning from accumulating assets to turning those assets into income. We’ll discuss why it takes a completely different mindset and tool kit to do it successfully.

As always, if you miss the show on Public Television, you can watch it at your convenience on our website.  You’ll also find my weekly Action Points there, plus our guests’ “One Investment” ideas.

Thank you for watching.  Have a great weekend and make the week ahead a profitable and productive one.

Best Regards,

Consuelo