Why use an outsourced paraplanner?


It depends …

Some IFAs already have an in-house paraplanner

If this is you, I don’t need to tell you why paraplanners are useful. So you may be reading this because one of them is leaving, on holiday, or you’re expanding.  Either way, outsourcing some of your cases is a flexible way to cope until you decide whether to recruit.

Having tried outsourcing, some IFAs don’t bother to recruit again. Outsourced paraplanners might seem to be more expensive than in-house staff, but they work very fast. Do the arithmetic: divide the fully-loaded cost of an in-house paraplanner by the number of cases in a year and compare the cost per case with outsourcing……

Some IFAs don’t have a paraplanner

If this is you, you’ll know that a paraplanner would save you time: but it only makes sense if you can use that time to see more clients.

If your typical case is worth a fee of, say, £2,000 but it takes you a day to do the research, recommendations and report-writing in a fully-compliant way with proper audit trail for justification, then paying someone, say, £250 to do it for you is a no-brainer if you can use that day to see another client. You’ll end up richer. If you don’t think that more time would let you generate more business, however, there’s no point having a paraplanner.

The easiest way to find out is to use an outsourced paraplanner rather than take the risk of employing someone. Most IFAs never look back.