Paraplanning is when a financial planner hires junior members of a financial planning group to take care of their administrative and clerical tasks.
A paraplanner is like a paralegal in a law firm. They help financial planners focus on working directly with clients and determining their investment needs. To do paraplanning, you have to look at what the customer wants and then research and suggest products that meet those needs.
What is a Paraplanner?
A paraplanner is a trained person who helps financial planners and advisors with daily tasks. A paraplanner often takes care of certain tasks, so financial planners have more time to help clients one-on-one. Since paraplanners do more administrative and clerical work, they do not usually talk to customers. But they may help customers indirectly by helping financial planners make reports and predictions for customers. When paraplanners get more experience, they usually move up to jobs with more responsibility, like financial planners or advisors.
Most paraplanners have a bachelor’s degree in finance, accounting, or a similar field.
Types of Paraplanners
There are two types of paraplanners that most people use: In-house and outsourced.
Companies hire these paraplanners from within, which helps them build relationships with their coworkers and get to know their customers. In-house paraplanners have a better chance of getting opportunities to move up, such as promotions or pay raises.
These paraplanners are independent contractors or freelancers who work with many businesses for shorter amounts of time. As an outsourced paraplanner, you can learn about many different industries or niches in the financial business. This is helpful if you want to go in different directions with your career in finance.
What Do Paraplanners Do?
Paraplanners are people who help financial planners with a variety of tasks and responsibilities. Here are some examples of these jobs:
Taking Care Of Administrative Tasks
Paraplanners often do administrative tasks like answering the phone, responding to emails, and setting up appointments, so financial planners have more time to help their clients. They may also do other secretarial work related to finance, such as finding and analysing bank data or taking notes during client meetings. Also, paraplanners file papers and put information into digital systems used by the company.
Even though paraplanners do not often work with clients, they often give financial advice that is in the client’s best interest. Based on a client’s financial situation, paraplanners help them reach their goals by making plans and suggestions. To make a good financial plan for a client’s future, you need to be able to do research and think ahead.
Putting Together Financial Reports
Paraplanners often help financial counselors by putting together financial reports. They may use analytical tools and research to determine a customer’s financial situation. After they finish their studies, they often write long reports that may include a client’s balance sheet with income and expenses. Companies like TNW Solutions provide the best paraplanning services you can get.
Putting Together Client Files
A paraplanner is also often in charge of organising client data. Financial planners may meet with many clients weekly. So their office must be well-organised. If a financial planner asks a paraplanner for a certain document, a good organisation can make it easy for both of them to find it. They may also put the information about a client into spreadsheets.
Most of the time, paraplanners work in an office for financial or insurance companies. Most of the time, they do administrative work and help professionals who work with customers. Even though paraplanners do not work directly with clients, they may sit in on client meetings with financial planners and take careful notes.