Q&A with Paraplanner of the Year Justin Pratt
A few weeks I was asked a great question about what the difference is between a financial planner and a paraplanner. So I wrote a blog outlining the major differences between the two professions and how they are related.
I also promised to get in touch with a paraplanner to get a few ideas about what paraplanning is really about. I did not just get any paraplanner either. I got Australia's finest (literally), Justin Pratt who won the National Paraplanner of the Year Award 2008. (Check it out here)
Justin worked as a paraplanner and now is a Financial Advisor. He went to the University of Wollongong studying commerce and now works for Mercer Wealth Solution in Sydney. He has numerous qualifications and worked in the industry for over a decade. His work has taken him across the globe as he continues to hone his skill to reach the best outcomes for his clients. I had the privilege of having a chat to Justin about his profession and his tips for grads.
So Justin I hear you won the Paraplanner of the Year Award in 2008. Amazing work. What did this involve?
Yes I did win this and it was a great experience. The crown is about to be handed over shortly unfortunately! I only have a couple more months of it. The paraplanner of the year award is a yearly competition that is sponsored by Australian Unity, Kaplan, FPA and Money Management. It is open to paraplanners and basically you answer a range of online questions that are technical and then more personal such as:
•
how you got into the industry •
what you have brought to the industry and where do you want to go
The second part of the competition was a little more subjective, whereas the first part of the competition was very objective, testing your knowledge. From this they selected state finalists (of which I was one). We were then flown to the FPA 2008 National Conference on the Gold Coast, some reference checks were done and fortunately I was lucky enough to win!
What is paraplanning exactly? What does a day’s work involve?
A typical day? There is not one that I could describe! I could give you a “typical week”. Last week, I worked on an investment portfolio for the CEO of one of the top companies in Australia. I put some insurance in place for a guy who just had a new kid - starting a new family.
I worked on a strategy for a couple who were going to retire next year and they were looking for advice going forward and some projections around what they should invest in and what they should do.
Later in the week I met a guy who had a pretty big debt built up so I put in some strategies to help him get out of debt. That’s a pretty varied week, huh. In a nutshell, a paraplanner assists a financial planner to develop strategies, and best possible outcomes for clients of many different situations and life stages.
How did you get into paraplanning? Is it something you always wanted to do?
I did a commerce degree at Uni and then I worked for a large financial company, AMP, initially. In that role I got a good overall view of superannuation. From there my career progressed more towards the one-on-one side of finance. It was partly an interest in finance but I did partly fall into it as well! Since those days the personal financial advice industry has expanded as well, a lot of opportunities have arisen. That’s how I got into it. I have heard of people coming from different walks off life, different backgrounds but most people have a commerce background.
What qualifications do you need to be a paraplanner?
There is not an actual “you have to have this” qualification. However, 95% of the paraplanners I work with are degree qualified, in one degree or another. There are some logical degrees that correspond, for example engineering and statistics to name a couple. I started with a Commerce degree. From there I did a Diploma in Financial Planning, then an Advanced Diploma in Financial Planning. The majority is on the job training, following up with CFP certification, the capstone of the whole lot. So there is no formal qualifications needed, but most people would have a degree at a minimum. Where I work they ususally look for someone who has a formal qualification, you need to know what’s going on! That RG146 is pretty much the basic minimum.
Do you plan on doing anymore study?
I am currently smack bang in the middle of the CFP Certification Program as we speak. It’s good. From what I have done so far it’s very in depth, it’s relevant and up to date. Personally, I think a financial planner without CFP certification is at a disadvantage compared with someone who does have it. The program covers such a broad scope, especially in the last subject, and then an all day exam to test that. I am finding it very challenging and helpful in my career. They go hand in hand. I definitely use things in the work place that I learnt in the CFP Certification Program. I come in here to work and go “Yeah I learnt that last week. That is helpful”. If you are studying something that is not relevant it is easy to forget what you are doing!
