“Aim for success, not perfection. Never give up your right to be wrong, because then you will lose the ability to learn new things and move forward with your life.” — David M. Burns

The squirrel paused, sat up on hind legs, glanced with suspicion my way, then resumed counting the acorns buried just below the surface of a neighbor’s yard.

Mr. Squirrel appeared frustrated. Had enough tasty morsels been put away in the winter cupboard? Or was its nervous dance an indication of misplaced treasure?

I watched, fascinated as the storehouse inventory — a crucial step in the squirrel’s survival cycle — went on and on. There must be a point in the early days of autumn, when the squirrel must decide between cracking open an acorn to savor the meat, or adding the nut to its pantry.

The choice is between instant gratification or the discipline of saving for a stormy day.

As autumn comes on, here’s new information on handling a few frustrating human decisions:

—  Trim energy use, or go for a 2006 tax break?  For practical ways to cut costs, scan the Web at Home Energy Saver (http://hes.lbl.gov). But consider delaying a major project such as replacing windows until 2006, when new tax breaks take effect.

— Treasury stretches flexible-spending deadline. Many companies plan to give their workers more time to spend money set aside in flexible-spending accounts for health-care expenses. The U.S. Treasury says the spending deadline can now be extended up to 2 ½-months.

Previously, workers had to use up the pretax dollars in their accounts by the end of the plan year, or lose the unspent balance. Modifying the use-it-or-lose-it rule should make flexible-spending accounts more popular because employees have a tough time anticipating the scope of their health-care spending during a given year. It was the fear of guessing wrong and wasting money that deterred workers from participating.

— It’s unlikely that lower-octane fuel will harm an engine. Even though the owner’s manual for your car recommends 91-octane gasoline, regular unleaded or an E-10 ethanol blend is adequate.

If you’re a doubter, consider this background: Older car engines would sometimes suffer damage from “knocking” caused by the premature ignition of low-octane fuel.

Today, computerized engines adjust for functions such as ignition timing and fuel flow. You’ll save big bucks by using gasoline with lower-than-recommended octane.

There’s a dual tradeoff: Fuel economy might fall slightly. Also, the peak horsepower your car’s engine can deliver may suffer a bit, but you won’t notice unless this engine is mounted in a race car.    

— Trade in a laggard for a potential winner.   The waning weeks of 2005 are a great time to search through your mutual funds or individual stocks, looking for laggards, long-term underperformers, and  those which give shareholders little reason to hope for a quick turn around.

It’s time to ask a key investor psychology question: Should you stick with a loser?

Professional investors have a sell discipline: They often bail out early when there’s a negative earnings surprise, when top- or bottom-line growth slows, or when a major executive is fired. 

I used to be a buy-and-hold investor, especially when a company paid me to wait (a nice dividend) for a stock price rebound. But having patience can get you a nasty black eye, especially if company assets are constantly sold off to cover losses or pay down an ominous backlog of debt.  

Increasingly, my definition of long-term is about five years. When a company CEO promises, quarter after quarter, that any year soon his latest restructuring will produce profits, I get twitchy. If you’ve become nervous about the dubious performance of a fund or a stock, a do-it-yourself analysis can indicate whether dumping this investment might be a smart move.

First, calculate your cost basis. For tax purposes, you might have just a modest unrealized gain. Or if you have a capital loss, you may be able to use it to offset some capital gains.

Then, even though you might be reluctant to take a loss, adopt a positive stance: This step gives you a chance to trade up to another investment that may be a potential winner.

— Disaster relief tax threshold is high.  Damages caused by natural disasters are clearly eligible for a “casualty loss” deduction on federal tax returns. But the deduction may be much less than the full loss.

Here’s why: You must first take a $100 personal property deduction.

Casualty losses can then be deducted only to the extent they exceed 10 percent of adjusted gross income. For example, a taxpayer with an AGI of $60,000 could claim losses only over $6,000.

If you have a Lessons Learned topic to suggest, you can call Gene Kelly at 421-2861, write to him at 2611 Bretigne Circle, Lincoln 68512, or e-mail him at ck62819@alltel.net.