Analysis Paralysis

I suffer from a serious case of Analysis Paralysis. There!  I have come out and said it!  However in recent times I have noticed that the financial industry tends to amplify my inability to take a decision and execute to it.  With the myriad of options available for any financial product, it becomes very difficult to review the features of each product, compare against other similar offerings, and decide on the best course of action for my particular situation.  The inconsistent, many times inaccurate, and almost always needlessly complicated financial jargon, makes it practically impossible to decipher the pros and cons of the different products in a rational manner, and come to a critical decision.

Also, I constantly worry about either making the wrong decision, or choosing a sub-optimal product offering that does not give me the "best deal".  In the process of looking for the "best deal", the actual decision is not taken, or significantly delayed, which in reality might have a bigger impact on my overall financial health.  Take for example, my recent search for a good top-up health insurance plan.  I have been checking out health insurance documents and websites of several leading health insurance providers, trying to find a match for my requirements, and trying to secure the "best deal".  Its been six months now, and I have not settled on any single top-up plan.  The more information I read, the more data I collect, the more confusing it seems to get.  How do you deal with these kinds of situations?  In the personal finance world, there are always decisions that need to be made, and made at the right time.  Should I invest in this IPO or NFO?  Do I need more life insurance?  Are ULIPs a "good deal" now? Which MF should I pick?  Is it time to start a new SIP?  How should I save on taxes this year?  Are debt funds no longer financially attractive?  And the list goes on .. 

This reminds me of a childrens story from Aesop's Fables. The fable is about the smart and wily fox, and the simple straightforward cat.  One day the fox and cat are discussing ways to escape from danger.  The fox boasts that he knows a hundred ways to escape, he can run fast, he can zigzag, he can hide, he can walk on two legs, he can dance, he can sing, and the list goes on .. The cat on the other hand says she knows only one way to escape.  At this, the fox laughs derisively and touts his superiority and intelligence. Suddenly they both hear the sound of hunters and hounds rapidly approaching.  The dogs are running in fast and and both the fox and cat need to escape or risk getting caught. The cat quickly uses the only way she knows how to escape, and climbs up a tree as fast as she can, and out of harms way. The fox on the other hand tries to figure out the best way to outwit the dogs and the hunters.  He first decides to try and outrun the dogs, but then changes his mind and tries to hide, but then again he decides to run zigzag, but by then it is too late, and the dogs are upon him in a flash, and he is caught by the hunters.  This particular fable is ancient, and is even today a fun story to share with kids.  But the moral of the story remains clear.  Many times, it is better to take quick decisive action even if it may be simple or uncomplicated, or not the most optimal, rather than spend many hours thinking about the various possibilities but not end up making a decision.  

So now I have vowed to myself, that after I complete a basic or first-cut level of analysis for any financial product, I will take a swift decision and go ahead and execute to my plan.  I will not spend a ton of time and energy considering the many different options and secondary details, and end up with a delayed decision or worse no decision at all!  How about you?  Do you have this same issue?  Do you get an overload of information from news channels, news papers, magazines, your financial advisor, online websites, and your friendly uncle :-) Will you take the same vow and go in for a quick decision henceforth?  Let me know how it works out for you.