I’ve always had trouble with celebrating the advent of a new year. Truth be told, the older I get the more depressing it is. It comes with age: 2016? Already? I just started putting 2015 on my checks. I hope this doesn’t mean I have to stay up past 10 PM.
Then there are the business issues:
I was in sales, and the first of every year the balance reverted to zero. I’d think, last year was a good year, but how am I ever going to do it this year? For me it is all about numbers: January 1 = 0. Is it any wonder I felt like I was at the base of a very big mountain every January 1?
So just for the fun of it, I thought I’d take a minute to look at some numbers from last year that won’t revert to 0 on January 1. Boy wouldn’t that be fun? The guy who produced these numbers will rest easy at the start of the New Year.
The Department of Labor shook up the world of 401(k) service providers by dropping the revised proposed new regulations expanding the definition of "Fiduciary" as applied to retirement plans. The politics of this announcement don’t interest me as much as the underlying numbers supporting the proposed regulations. Let’s have a look:
All of this is my way of explaining why the Secretary of Labor can cut loose and celebrate the new year: All he has to do to match last year’s accomplishment is to find a way to save $0.06 for every $1,000 we spend on fees in our retirement plan. If he increases the savings to $0.07 for every $1,000 in fees, he will be up 16.7% year/year!
Wouldn’t it be fun to achieve that growth in your own business? 16.7% year/year. This is net by the way: you don’t think the DOL will pick up the cost of those savings do you?
That’s your job.