There Are Few Perfect Answers

Nothing is simple any more. At one time buying a TV was pretty straightforward. Screen size was pretty much dominant.

Not so much today.

About television decisions.

I read this article recently and I was quite fascinated at the depth of the problem in the LCD vs. OLED question. I can’t say I was too interested though.  Beyond the basics, TV sets are not a thing that interests me much.

I did notice an idea that applies to other things though.

Values clarification

We all do this in response to the, there is no perfect answer problem. I know I have done it in respect to computers. The basic is, “each one has strengths and weaknesses. Your job is to decide which strengths are more important and which weaknesses are less annoying to you.”

It’s all about you

If any two of us did the “values clarification” thing it is unlikely we would agree fully on the best mix of strengths and annoyances. Annoyances includes voids as well as things bolted on that you don’t want.

Apply to things non-electronic

Fixed income in retirement means trading off spending items. If I buy a Cadillac, I may have to curtail travel. Golf, or dining out more? Big house, or condo and more money for recreation?

Growth or security?

Physical fitness or physical problems?

Permanent or temporary life insurance?

Retire early and have more time but less income?

Decisions are harder when there are no perfect answers

For some odd reason we think that are answers for each problem. There are not. Some problems take so long to solve, or are so expensive to solve, that we decide they are not worth the trouble. Allocate the resources elsewhere.

We must learn to find optimal if not perfect answers.

Assess the values you must have, would like to have, don’t care about, would prefer not to have, or deal breaker.

That’s what values clarification is about. It does not take long to go through the list and it often leads to finding more information in a structured and focused way. It helps you find your unique meaning and that makes answers easier.

Remember rule one of risk management

If you can change your mind and afford to do so, the decision is riskless anyway. Values clarification will make that more easy to accept.

Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario.  In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.

Please be in touch if I can help you.  don@moneyfyi.com  866-285-7772

 

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