The relationship between a financial planner and a paraplanner is much like that between Batman and Robin. A paraplanner, in-house or outsourced, plays an important role in a forward-looking financial planning business and their role is only going to become more important in the coming months and years. Good thing, we are in the business. However, hiring a paraplanner (in-house or outsource) when you actually don’t need one or for the wrong reasons can be costly and unproductive.
So here are my top five reasons NOT to hire a paraplanner…
- 5) You prefer being buried in research and reports to seeing clients! Most IFAs and Financial Planners enjoy spending time with clients and building relationships with their introducers but if your heart leaps for joy at the idea of spending eternity in front of the computer, analysing funds and comparing products, you probably should do your own paraplanning.
- 4) You aren’t really building a business! Having a good paraplanner means you can delegate, improve your bottom-line and build a great team to support your business now and in the future. If you are NOT building a business, you probably don’t need all that and it’s OK.
- 3) You’re a poor delegator and you have time on your hands! ‘If you want a job done right do it yourself’ or so the saying goes. Working with a paraplanner means an adviser can identify and focus what they are good at while leaving the paraplanner to get on with what they do best. Life is short and time is our most limited resource!
- 2) You can get the Mrs to do it! The reports, I mean. Absolutely nothing wrong with that! If she has the interest, the time and the technical expertise needed to deliver the goods. Goodluck, especially if she has little ones running around the house/office at the same time!
- 1) You need someone to simply chase paperwork, dot your “i”s, cross your “t”s and make some coffee! Inevitably the filling cabinet needs sorting out, paperwork needs chasing but you don’t need Level 4 Diploma, IMC or CFP to do any that! Someone else does all that better than a paraplanner …administrator is their middle name … and it won’t cost you an arm and a leg either.
If any of these five reasons applies …please don’t hire a paraplanner. Get an administrator, a wife or therapist!