PARAPLANNING Meaning and
Definition
-
Paraplanning refers to the specialized financial planning support and assistance provided by professionals within the financial services industry. It involves working alongside financial advisors or planners to help them with the technical, research, and administrative tasks involved in creating comprehensive financial plans for clients.
In paraplanning, professionals may research investment options, analyze financial data, and conduct market research to provide valuable insights and recommendations to the financial advisor. This can include gathering and organizing information such as client financial statements, tax documents, insurance policies, and investment portfolios. Paraplanners also play a crucial role in creating financial reports, projections, and presentations that are used to inform clients about their financial situation and help make informed decisions.
Paraplanners are often detail-oriented individuals with a strong understanding of financial products, tax regulations, and risk management strategies. They possess excellent analytical and problem-solving skills to evaluate and interpret financial data accurately. Additionally, paraplanners may also possess knowledge of financial software and tools to assist in their research and analysis.
Overall, paraplanning serves as an essential component of the financial planning process, working hand in hand with financial advisors to ensure that clients’ financial goals and objectives are met effectively.
Etymology of PARAPLANNING
The word "paraplanning" is a combination of "para-" and "planning".
The prefix "para-" is derived from the Greek word "para", which means "beside" or "alongside". In English, it is commonly used as a prefix to indicate something that is subsidiary, auxiliary, or supporting.
The word "planning" comes from the verb "plan" which entered English from the French word "plan" in the early 18th century. "Plan" ultimately traces back to the Latin word "plannum", meaning "a flat surface" or "level ground".
Therefore, when combined, "paraplanning" suggests a role that works alongside or in support of the primary planning activities, usually in the context of financial or investment planning, where a paraplanner assists a financial planner or advisor with administrative and technical tasks related to the planning process.
