It suits those people who are able to both look at the details of the case in front of them while also keeping an eye on the other bigger picture of cases that are in orbit. In my experience, diary management is a massively undervalued skill in this profession.
Paraplanners often work with more than one adviser. This can be an overlooked benefit, as you start to see different ways to get to a similar outcome, broadening your horizons and perceptions of what is possible.
Ultimately, paraplanning is a career where you know you are making a difference to people’s lives, you work as a team all with the prospect of good earnings too.
FTA: Is there anything that needs to change to entice more young people into paraplanning as a profession?
DD: I was asked to present to a room of finance undergraduates at Coventry University about what paraplanning is as a career and why I would recommend it.
It’s only when you get asked to do things like that you get the chance to take a step back and look at things with a fresh perspective and realise that it is a very niche way to earn a living.
As with anything, we need to make a noise if we want to be heard.
FTA: How has the role of the paraplanner changed in recent years?
DD: The role hasn’t changed, as such, but awareness of the role and perception of its contribution to a business has.
I’ve been doing this a really long time. Back in 2002 when I started The Timebank I was having to explain what paraplanning was and then try to explain why people should outsource it.
Today, advisers are more accepting of the value a paraplanner adds to the relationship when they act as critical friend. This is certainly a reflection of the fact the ideal paraplanner-adviser relationship is one based on good communication and managing expectations.
One thing that does need to change is the way paraplanning is managed. Too often I see paraplanners or paraplanning departments where the business owners know what paraplanning costs but have no idea of its value to the business, its contribution to the business’ profitability or even have any targets.
FTA: Are paraplanners the secret to success of a profitable advice business?
DD: Not necessarily. I don’t doubt that a financial advice business could be perfectly profitable without paraplanners. That is likely, however, to be the exception rather than the rule.
