Why Should I Consider Becoming a Paraplanner?
Of course, I’m very biased when I say it’s a rewarding role. It’s not only financially rewarding, but it also feels great being able to help families secure their financial future without having to worry about money. On top of that, it satisfies my numbers-driven brain. I have no issues staring at Excel spreadsheets when in need of doing analysis. My love for interacting with people and educating gel seamlessly in this line of work.
Going into paraplanning is a great steppingstone to get into financial advising and/or financial planning. However, it is not a necessary or mandatory step. As a matter of fact, Scott never worked as a paraplanner, he jumped into the advisor seat from the get-go.
Second, it is suitable to start here if you’re hoping to develop on your personal and communication skills. Advising clients about money begins with communicating information effectively so they can make sound financial decisions. The numbers always come second. Therefore, if one isn’t comfortable talking to clients, paraplanning gives you a chance to be mentored and observe an advisor at work and leverage some experience from them. It also allows you to strengthen the other skills needed to thrive as an advisor, like preparing a plan, knowing how to analyze investment strategies, how to pick investment vehicles according to a client’s financial profile, etc.
Large numbers of baby boomers are retiring and many millennials are starting to think of their retirement, thus there is a significant need for financial help for their retirement. Being a paraplanner now could be a very valuable asset to a financial advisor or financial planner who is looking into growing his/her book of business. Not convinced help is needed? According to an Investopedia article, baby boomers are “the first generation to face-saving for retirement on their own” . With pension presence declining, these to-be-retirees need guidance to make key decisions for their future.
Lastly, the perk of being paid hourly or salary can be very attractive to some. As an advisor, you rely on your salesperson skills to build a book of clients in the hopes of generating revenue. And it may take a while for that revenue to sustain basic needs to pay the bills and support the business, which can be difficult. Additionally, while the income of an advisor virtually has no ceiling, paraplanning has its cap (make sure to check out my “how much do paraplanners make” blog). But the income is more predictable than that of an adviser, so there are benefits to taking the paraplanner route first.
In this blog, I covered the “why.” Join me in the next one where I explore the “who” and the personality traits that would make someone a good fit for this profession.