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A paraplanner researches, recommends and implements investment plans for clients, working under the guidance of financial planners. The position was created to relieve planners of administrative tasks, and requires excellent research and communication skills, as well as integrity. A bachelor’s degree and professional experience in finance or banking are typically required.
A paraplanner is a financial services professional who researches, recommends and implements detailed investment plans for clients. He usually reports directly to one or two financial planners. This position is commonly found in banks or investment and financial services companies.
It is generally believed that this position was originally created to relieve financial planners of some of the administrative tasks of their jobs. A para-planner used to be little more than an employee who collected papers and checked facts and figures for his superior, a financial planner. His finance and investment experience was rarely used.
As financial planners became more popular, most time was spent meeting with clients to determine their overall short-term and long-term goals and develop appropriate strategies. Many have begun to rely on planners to step in at this time to help the client make specific financial choices. This delegation freed up financial planners’ agendas to pass on to new clients who need general guidance.
Traditionally, investment clients hold their initial meeting with a financial planner who assesses their financial needs and risk acceptance levels and recommends general investment paths. Once these parameters are established, a para-planner will typically suggest specific funds and investment plans. If the proposed investment plans are acceptable to the client, the financial planner typically hands it over to the para-planner, who makes the purchases.
From that point forward, the paraplanner usually keeps an eye on the portfolio and answers client questions on an ongoing basis. If the client wants changes to the investments, he usually makes those adjustments. An experienced person in this position typically makes financial and investment suggestions to the client, independently of the financial planner.
A para-planner typically sets up a schedule with each of his clients to review portfolios and discuss market trends. These appointments are usually set at six-month intervals. If a client needs guidance or information in the interim, the para-planner or financial planner will usually be available to provide assistance.
Success in para-planning often requires excellent research and analysis skills. The paraplanner is expected to be a great communicator, both in writing and orally. Since he is typically responsible for highly personal customer information, integrity is generally considered a strong asset for people with this job.
A bachelor’s degree in financial services, accounting or business administration is often required to apply for this job. Generally, a minimum of two years of professional experience in a financial or banking environment is preferred. Continuing education and investment services certifications are typically recommended for planners aspiring to positions as financial planners.
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