Having a Paraplanner on your side is one of the most valuable assets in the advice process.
Having a HAPPY Paraplanner could be a GAME CHANGER.
Paraplanners are often asked how they can best assist a Financial Adviser. However, given that both parties are invested in the same outcome – the efficient production of an advice document – it makes more sense to turn this relationship into a two-way street.
Paraplanners are builders. Not builders of structures like houses. Instead, they build documents. And just like a house builder, they have their particular skills already honed in and tools ready to go. They just need the materials.
The better the materials provided, the greater the quality of the final build.Financial Advisers, take note. This is where you come in. The materials for a document are information, and the key is quality over quantity. Put a focus on improving the quality of the information, and then the rest will fall into place.
Below I have suggested 3 areas where Financial Advisers can drastically improve the information being provided that will result in a far happier Paraplanner.
Top 3 areas of happiness
Why is this being recommended?
The gold in an advice document is why the advice is being recommended and how it helps the client. So often, Paraplanners are given the ‘what’ but not the ‘why’. This means that they have to piece the story together by trawling through file notes or by guessing.
You provide a concise reason why a strategy or product is being recommended and how it will improve a client’s situation relative to their goals.
When the reasons for your recommendations are clear, it removes the need for generic text and guesses on the part of the Paraplanner. The text comes alive! Every section of the document can be threaded with a concise story running throughout. Your recommendations are aligned with the clients’ goals.
😃 😃 😃 😃 😃
What about existing products?
Whether existing products are being retained or replaced, a Paraplanner requires great detail. Many questions arise in almost all paraplanning requests, some of which are:
- Are the existing products in the scope of the advice? If not, why?
- If being retained, why is it the most appropriate product? What other avenues were considered?
- If being replaced, why could this product not have done the same or better job?
You provide detailed analysis and comments on all existing investment and insurance products regardless of the end recommendation.
Confusion and assumptions surrounding existing products can lead to errors. By providing detailed information on all products the client has, the Paraplanner can be sure to highlight these points in the relevant section of the advice document. A further benefit is greater efficiency by reducing the back-and-forth questions.
😃 😃 😃
We’re going to need to model this
It’s a familiar scene. All the strategy and product recommendations are there. It’s going to be a large and comprehensive advice document. There are going to be impacts on a client’s cash flow, tax, debts, investments, and superannuation to model. The Paraplanner goes to gather the information needed, and it’s just not there.
When you’re formulating the strategies needed for a paraplanning request, consider the type of modeling that is required. In particular, consider the impact on different areas such as cash flow, debt, or superannuation. All income, expenses, assets, and liabilities should be up to date and readily available.
Modeling can be a crucial part of illustrating the benefits and effects of the advice, and it’s essential for the paraplanning process to flow. If a paraplanner can keep modeling without having to come to you for additional information, there will be fewer mistakes and less frustration.
😃 😃 😃 😃