Financial Planning with a Capital “P”
By Lou Davis and Allen Davis, The Davis Financial Group
Published in Northampton Living (March 2025)
Everyone needs to do some kind of financial planning. But your unique circumstances dictate what form that takes. Here are three examples:
The Do-it-Yourself Approach
Think of it as financial planning with a lowercase "p." Taking advantage of the vast resources available almost everywhere you look – your bank and other financial institutions, AARP, and, of course, the internet – you round up your information to get a one-time handle on your financial prospects. This approach may be adequate if your circumstances are relatively uncomplicated and stable and you keep your plan up to date.
Advice from an Advisor, Lawyer, or Accountant
If you're enrolled in Fidelity, TIAA, Voya, or another employer-based retirement plan, you can meet with their representative from time to time for advice on your investments, like converting an IRA to a Roth IRA. You might also talk with your lawyer or accountant about tax strategies to help increase your financial assets and protect your estate from probate expenses.
Financial Planning with a Capital "P"
The model we use in working with clients is an ongoing process rather than a one-and-done. If you’re a billionaire, there’s no question that you need Financial Planning. But professional financial planners often help people of more modest means deal with complex circumstances that prevent them from making decisions that could impact them for the rest of their lives.
This kind of financial planning is dynamic, responding quickly to changes in your situation (like if you lose your job or receive an inheritance), your needs (say you’re looking at a long series of dental implants), and your goals or wishes (like giving a child money for a down payment or taking a cruise).
EXPERT CONTRIBUTOR
Lou Davis
Financial Planner
Davis Financial Group
413 584 3098
ldavis@davisfinancialgrp.com
davisfinancialgrp.com
Why We’re Partial (with a Capital “P”) to Number Three
A financial planner can help you choose from a variety of options. What are the trade-offs among retiring today, in 10 years, or not at all? Would it be better to take your pension as a one-time, lump-sum distribution or to spread it out over time as an annuity? Are there tax planning strategies you can adopt today that will benefit you in the long run?
You might have options you never knew existed. Let’s say you decide to sell your current home and buy something closer to your adult children. Surprisingly soon, you find the perfect house, but the current one is taking longer to sell. Do you have to forego buying the new home? Maybe not.
Your financial planner may offer ideas for getting the money immediately, like making a temporary withdrawal from an annuity, IRA, or another type of investment account, or as a “margin loan” drawn against a non-qualified investment. A financial planner can help you weigh the feasibility, risks, and benefits, sometimes in consultation with a tax accountant.
No one likes financial planning – even billionaires. But in the end, almost everyone finds it empowering. It's a relief not having to figure it out on your own. You have a clear picture of your current situation and any alternatives. Above all, you have a financial plan that can flex and pivot in response to whatever happens in the years to come.
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