A paraplanner is a financial services professional who conducts research, makes recommendations, and helps clients implement detailed investment plans. He typically reports to one or two financial planners directly. Banks, investment firms, and financial services firms are common employers for this position.
It is widely assumed that this position was created to relieve financial planners of some of the administrative responsibilities that come with their jobs. A paraplanner was once just a clerk who gathered papers and double-checked facts and figures for his boss, a financial planner. His financial and investment knowledge was rarely put to use.
With the rise in popularity of financial planners, the majority of their time was spent meeting with clients to determine their general short and long-term goals and developing appropriate strategies. Many people began to rely on paraplanners to step in at this point and assist the client in making specific financial decisions. The financial planners’ schedules were freed up as a result of this delegation, allowing them to focus on new clients in need of general advice.
Initial meetings with investment clients are typically with a financial planner, who assesses their financial needs and risk tolerance levels before recommending general investment routes. A paraplanner will usually recommend specific funds and investment plans once these parameters have been established. If the client approves of the proposed investment plans, the financial planner usually refers the client to the paraplanner, who makes the purchases.
After that, the paraplanner usually keeps an eye on the portfolio and responds to the client’s questions on a regular basis. If a client wants to make changes to his investments, he usually does so. In most cases, an experienced person in this position makes financial and investment recommendations to the client without the involvement of the financial planner.
A paraplanner usually meets with each of his clients on a regular basis to review portfolios and discuss market trends. These appointments are usually scheduled every six months. In the meantime, if a client needs advice or information, the paraplanner or financial planner is usually available to help.
Excellent research and analysis skills are usually required for paraplanning success. The paraplanner is expected to be an excellent communicator, both in writing and in person. Integrity is generally regarded as a strong asset for people in this position because he is usually in charge of highly personal client information.
This job frequently requires a bachelor’s degree in financial services, accounting, or business administration. A minimum of two years of work experience in the financial services or banking industries is preferred. For paraplanners who want to work as financial planners, continuing education and investment service certifications are usually required.