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Would you use a paraplanning service?

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Nov 21, 2006 3:41 am

It’s an idea I’ve been playing with while at college.  Maybe doling out tasks like report generation, individual equity / fixed income / etc. research, asset allocation reviews, creating communication media (website, flyers, business cards). 

The issues of privacy of client records come up, along with making sure to match up with advisor perspective in terms of stock picking or asset allocation methodology.  Anyone thought about doing this?

Nov 21, 2006 2:02 pm

Most (if not all) full service B/Ds already do these things. Why re-invrent the


Nov 21, 2006 2:58 pm

I am at a wire house and let me tell you, if you want to do a full blow retirement plan it is a long and painful process to get all the data inputted. It's a pain in the you know what.

For a couple thousand a month you can outsource things like data charts and graphs and other graphic reports and even research to a bright young MBA in India.  That's right.  You send the stuff over at the end of the day and it is done for you in the morning.  Once there is a way to make sure a clients confidentiality is guaranteed I would love to outsource my retirement, cash flow, and other plans I have to do but HATE doing.  There is probably a way to do it now but I don't have the option of pursuing it at my current employer.

Nov 21, 2006 9:35 pm

What if you were approached by a 3rd party firm for services like that?  I’m still enrolled and have many contacts with a large student body of  both an undergraduate and graduate business program who would be willing to perform paraplanning services at low costs, in exchange for hands on experience.

Would you only be willing to outsource investment plan generation, or actual financial planning tasks like creating an asset allocation as well?

Nov 21, 2006 9:44 pm

I could not do it at my wire house.  IF I was indy I would consider it.  I would supply client data with out giving names or addresses etc.  If someone could then do a complete retirement plan with the things I want in it at a reasonable price I would consider it.  As a side note, I have to have Monty Carlo simulation done also.  So, the report would have to include that. 

In my opinion, many reps like me cant stand doing these plans but they are important.  Guys like me are more asset managers than planners however we know for certain clients it really gives the feel of a value added service and helps cement clients to us.  If I could just gather the data and give it to someone else to do I would be very happy to do so.  Your market would be independent reps though, not wire house guys like me.  Just my opinion. 

Nov 22, 2006 12:28 am

Personally, I enjoy preparing retirement and financial planning analysis. I doesnt get me off like having a great meeting or watching a prospect turn into a client by signing an ACAT, but I feel its a necessary part of the process.

I have always felt that if I were to outsource the actual planning aspect of the case, then I would have much less of an idea in terms of proposing solutions. Its one thing to simply look at a finalized analysis and make guesses as to possible outcomes, and its another to actually do the work and know what variables make significant effects upon the plan.

As part of my workday, I tend to run these reports early in the morning before acceptable calling hours, and in the 'deadtime' between 4-6pm and late night calling to residences.

Just my deal though.