Perfection amidst imperfection
Timothy R. Yee, AIF, CPFA®, C(k)P®, CHSA, NQPA, CSRIC®, RI(k)
President at Green Retirement, Inc.
Happy New Year and Happy 2025 to one and all! Here is a short thought to start the New Year.
Yes, there are times where only perfection will do. Surgery, the Olympics, and the restaurant business come to mind. If you are going in for surgery, you certainly don't want the doctor making a mistake. Score a series of "10"s in Olympic gymnastics, and you very well may have a gold medal on your neck. And chefs expect to put out each dish with the same care and precision each and every time. Don't do that and the dish is coming back. Keep failing at that and your restaurant may be in a heap of trouble.
And yet there are times where we do find perfection amidst imperfection. The crowds in Pisa looking at the Leaning Tower are testament to that. The Tower began to lean during construction in the 12th century, due to soft ground which could not properly support the structure's weight. It worsened through the completion of construction in the 14th century. By 1990, the tilt had reached 5.5 degrees.
While one might wonder why the engineers back then did not consider the soft ground they were building on, it is what it is. The structure has been stabilized repeatedly over time and now is only listing 3.97 degrees which is manageable according to those in the now. In the above photo, Chief Love Officer Ka-Boom! is trying her level (!) best to nudge the Tower upright using just her nose (and maybe her paws).
In the world of 401k plans, advisors, record keepers, and plan sponsors strive for perfection but yes, mistakes happen. While it is easy to point fingers, I prefer to figure out what went wrong, fix the mistake, and then put procedures in place to try to ensure nothing like that (or something similar) happens again.
The IRS even has a Voluntary Correction Program where in a plan sponsor can self-report a mistake, the action taken to fix it, and to certify that procedures are in place to thwart that. In return, the IRS does not penalize, fine, etc. the plan. It is rare to find perfection but that does not stop us from striving for it.
In the meantime, stabilize the Tower, continue to admire (monitor the situation), and move forward into the New Year.