The pursuit of perfection = analyzing all options to make the absolute best decision possible.

More options lead to more complication.

More complication requires more time and effort devoted to analyzing and choosing the perfect option.

More time required to find the perfect option can lead to procrastination.

Procrastination invites anxiety, fear, and doubt.

Anxiety, fear, and doubt cause us to second guess ourselves and open us up to regret, or, worse, prevent us from ever starting in the first place.

This is as much a reminder and mantra for myself than anything else (hence, the above photo of a Post-It on my desk). The pursuit of perfection or a better option doesn’t necessarily equate to more satisfaction or a better outcome.

If the pursuit of perfection causes anxiety or regret, we may be happier simply knowing what constitutes “good enough” in our minds and aiming for that. This isn’t to say that we should divulge ourselves of all standards, but rather, reframing our expectations to be satisfied with an “A” instead of “100%”. Knowing what meets our standards for “good” makes it easier to get started, frees up more time to pursue other interests, allows us to focus more on the positive qualities of our decision, and lessens the likelihood that we look for flaws and regret our decision in the end.

That’s what I and many other fiduciary advisors are left asking this week. In a head-scratching decision, a court of appeals decided to overturn the Department of Labor’s Fiduciary Rule for financial advisors.

Not familiar with the “Fiduciary Rule”? The rule, at its core, would require any financial professional giving advice on retirement accounts to do so with their clients’ best interest in mind. Makes sense, right? That’s the basic assumption most people would make when working with a financial advisor. In a laughable argument, however, the opposition to the rule (mainly, large brokerage and insurance companies) argued that, in essence, “their advice amounts to nothing more than a sales pitch” and, therefore, requiring documentation of best interest advice would be an unnecessary cost. Or to put another way, “we don’t give advice, we sell products…but we’re going to call ourselves financial advisors because that’s what people recognize.” Really???

It shouldn’t be the responsibility of the client to fact check and determine if the advice they receive is in their best interest or to ask whether or not their advisor is a fiduciary. Doing what is in your client’s best interest should be a given for ALL who call themselves financial advisors. I hope, in spite of the D.O.L. rule being overturned, that a fire has been started and “fiduciary” responsibility becomes the standard expectation from clients and advisors. Expect more!

*THUMP* (sound of me hopping off my soapbox)

With that said, here are the stories that caught my eye this week:

KENTUCKY TEACHERS’ PENSION CALCULATOR: If you haven’t already, check out the updated pension calculator to compare your current Kentucky Teachers’ Pension Benefit with the pension reform proposed in the SB1 bill released on 2/20/18.

MONEY: Teachers and Annuities: A Questionable Match and Hard Products to Shed (New York Times)
Annuities can be a polarizing topic for those in the financial industry. At their core, they can be a valuable income tool for some, mainly those in or very close to retirement. But, for those that are still working and have many years before retirement, annuities are a “questionable match”. Unfortunately, 403(b) plans (retirement plans for teachers and other non-profit employees) are dominated by annuity companies, and vis-a-vis, annuities are the most widely offered type of investment in those plans. These investments have a tendency to be overly complex, charge high fees, and be very difficult to transfer or withdraw. Annuities can make sense but they should be approached with caution and due diligence before signing on the dotted line.

LIFE: Resistance Is Futile. To Change Habits, Try Replacement Instead (New York Times)
On a lighter note, I’m a sucker for life hacks. To be fair, I’m much better at reading and sharing them than actually putting them into practice, but nevertheless, I find them useful and entertaining. For instance, let’s hypothetically assume that while reading an email newsletter, Taylor Swift’s “Shake It Off” was mentioned and then you unwittingly began singing or humming along in your head. Studies have shown that simply focusing efforts on forgetting the song will only strengthen its resonance. Now, instead, try to replace the song with another song or activity and tell that other song to “Beat It”. If you’re lucky, you can say “Bye, Bye, Bye” to that repetitive beat that’s on a constant loop in your head.

KENTUCKY PENSIONS: KY public workers fear premium hike as health fund raided (Lexington Herald-Leader)
To help balance the state budget, lawmakers are planning on redirecting a large portion of the Kentucky Group Health Insurance Fund. The exact amount is still being discussed, but it is likely to be somewhere between $200-500 million. This move isn’t unprecedented but, rather, has become a common budgeting tactic for the state over the last 10 years as lawmakers have redirected over $700 million from the fund in that timespan. What does this mean for state employees? If group healthcare claims/expenses are higher than anticipated, it could lead to increased health insurance premiums in the near future for families, like mine, all across the state.