Paraplanning – The Benefits of Outsourcing

Paraplanning has been a relatively recent profession within Financial Services. This role was first recognized in the last 20 years.

A Paraplanners’ role is to utilise their technical knowledge and expertise to research and create reports for Financial Advisers. PJM is proud to offer Paraplanning Services that go far beyond this!

Understanding Paraplanning

 Their main job is to prepare reports and plans for financial advisors. Larger companies have created new departments to fulfil these roles. Paraplanners might not be affordable for small companies due to the high cost of paraplanners.

Paraplanners often need more interaction with their clients. They instead prepare and develop plans that the financial planner has outlined. As clients change their situation, financial plans can be updated frequently to help them gather new information and give financial planners updated projections. Paraplanners will attend client meetings to collect information and follow up on administrative tasks. These include obtaining bank statements as well as identity documents. Other duties include the management of financial planning software and billing customers.

What Are The Benefits Of Outsourcing Paraplanning?

Paraplanning is something that many companies outsource for business reasons, such as cost. However, outsourcing paraplanning can allow firms to be more flexible and take on more cases than possible.

Our Paraplanners, a team of experienced and qualified professionals, have worked on a wide range of cases and earned a reputation for being experts in complex cases.

Partners and Advisers are confident that the team can handle multiple cases simultaneously.

Our client’s ability to pick up the phone to obtain their Paraplanner’s expert opinions on a case is a great asset.

Paraplanning vs Financial Planning

Paraplanning has a functional difference from financial planning. One of their significant differences is how closely they interact with their clients.

Paraplanners have no contact with their clients, while financial planners do. They offer guidance and advice to individuals about their investment goals and plans. The education and qualifications of financial planners are higher than that of paraplanners.

Types of Paraplanners

Paraplanners are divided into two categories: Outsourced third-party paraplanners (in-house) and external third-party paraplanners (outsourced third-party). Here’s a quick view of each.

Paraplanning in-house

Financial advisors can learn their staff’s specialised skills and talents by using internal paraplanning. Financial planners can instantly identify the right person to call if they need a paraplanner skilled at reading bank statements.

Internal paraplanners are less likely to leak sensitive client information to rivals than to hire them. There is a downside to in-house paraplanners being hired. They could be promoted above other staff or the firm to a more senior position.

Paraplanning Outsourced

PJM Paraplanning might be outsourced to paraplanners by financial planning firms. Outsourcing could be advantageous for small businesses with limited budgets who require extra help during busy times. This may be a good option for companies wanting to grow.

Financial planning firms looking to outsource their work should consider that they may lose control of their clients. A financial planner may need to be informed about the other work commitments of a contractor, which could cause problems in meeting tight deadlines. Contractors are held accountable when they set measurable goals.

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