Firstly, paraplanners are essentially financial experts who work closely with and assist financial planners and advisers with their daily tasks, freeing up time for them to help clients individually and deliver the highest quality customer service.
Their duties tend to be more clerical and administrative, and while they may not interact with clients regularly, they play a crucial role in indirectly supporting clients through:
- Performing essential research,
- Preparing client reports, and
- Undertaking financial analysis.
Similarly to the support paralegals offer practising lawyers, paraplanners offer support to financial advisers. They’re essential in ensuring the long-term success of financial advice organisations. To put it bluntly, financial advisers simply don’t have enough hours in their day to research, analyse and write a report, all while having regular meetings with clients. This would seriously affect the quality of service clients receive and impact the overall success of the business.
A financial adviser, on the other hand, is a finance expert that provides you with management tips and advice related to your financial goals. Whether that’s managing your retirement savings, assessing risk tolerance, or offering investment advice, financial advisers refine your financial objectives to help you stay on track and manage your portfolio successfully. Similar to how you would hire an architect to create a plan of your dream house, based on your desires and ambitions, a financial adviser is there to help you create a plan for your finances. This means that it’s vital that they understand every aspect of your financial health, to offer you the most accurate advice.
As a result, much of their day is spent conversing with clients to gain a better idea of their circumstances and what they can do to help. Factors considered include:
- Current income
- Spending and saving habits
- Mandatory expenses
- Financial vulnerability
- Risk appetite
- Financial fears, and
- Aspirations for the future.