I like paraplanners.
Personally, I have generally found them to be enthusiastic, dedicated and – in a sector that can occasionally be ever so slightly dull – good fun. And a bit nerdy but that’s not a bad thing.
Professionally, I see there are a lot of benefits to paraplanners. Commercially, it makes sense to use a lower cost paraplanner rather than a higher cost adviser. In addition, the quality is often as good or sometimes – particularly in respect of record-keeping – better. Outsourced financial planners can also make a lot of sense for smaller firms where there is not enough work to employ a paraplanner, when firms have particularly busy periods, or to provide an efficient and cost-effective option even for larger firms.
But there is also a potential regulatory benefit as well. Bluntly, paraplanners are generally not subject to the same biases that may apply to some advisers. Paraplanners’ interest is simply trying to find the best planning solution for the client; there are no subconscious leanings towards certain solutions that may be of greater benefit to the advisory firm. Also, they are generally younger and more diverse than the overall adviser community and can provide useful input and challenge to the firm’s approach.
Make the most of paraplanners that you employ or engage!