Ever listened to ordinary, non-finance men and women talk about money?
401(k), IRA, convert. The jargon is often at the guy’s fingertips, pattered off with half the words and double the clarity.
Why do women, more than men, struggle with finance?
Ask five regular, non-financial career men and five non-finance women to define, say, Alternative Minimum Tax. The majority of the women, even if they know what it is, will use lots of ums. The men will pull something out of their a____s like: The AMT is designed to prevent the wealthy from avoiding taxes by reducing deductions. Individuals pay either their regular tax or a minimum, whichever is more.
Is it because men write finance rules for men?
‘‘(iii) PLAN LOAN OFFSET AMOUNT.— 2 For purposes of clause (ii), the term ‘plan 3 loan offset amount’ means the amount by 4 which the participant’s accrued benefit 5 under the plan is reduced in order to repay 6 a loan from the plan. 7 ‘‘(iv) LIMITATION.—This subparagraph 8 shall not apply to any plan loan offset 9 amount unless such plan loan offset amount 10 relates to a loan to which section 72(p)(1) 11 does not apply by reason of section 12 72(p)(2). 13 ‘‘(v) QUALIFIED EMPLOYER PLAN.— 14 For purposes of this subsection, the term 15 ‘qualified employer plan’ has the meaning 16 given such term by section 72(p)(4).’’
—Excerpt from tax bill passed by Senate
What woman would invent such gibberish?
My husband assures me it is just language, like French, and not that hard. You have to practice. Men are more fluent because they think about it more.
But why do men think about it more?
Do you know your way around carried interest, compound interest, retirement plans, annuities, debt, excise taxes, Roths, 401(k)s, advised funds, hedge funds, MOB spread, adjustable rate mortgage debt, credit default swaps, Treasury notes-bonds-securities and collateralized debt obligations? If so, wow. How did you get there?
If you don’t understand a lot of this — what holds you back?
Featured Photo credit: Alfy