As I write this, I’m reflecting on an experience that has left me both grateful and contemplative. I recently fell in love with a spacious condo that has the floor to ceiling windows and inspiring view that I’ve dreamt of for years.
Knowing I could negotiate a better price if I paid cash, I borrowed from my IRA to make the purchase—risky because I had only 60 days to return the money or face a six-figure tax bill on the withdrawal. Thus when the buyer of my previous home missed three closings, I had to scramble for quickie “bridge loan” to replenish my IRA in time. While these loans are expensive, they’re less costly than paying a massive tax penalty. In the end, I was proud that I had the financial savvy and wherewithal to aggressively pursue and land the loan.
As I was venting about this ordeal, my brilliant new assistant pointed out that once upon a time, a woman couldn’t have made these or any other financial transactions on her own, no matter her know how. Indeed, as recently as the 1980s, when I went to buy a car, the salesman wanted my father to cosign though my income was more than sufficient.
Today, women take for granted the ability to negotiate property deals and manage our investments—privileges our ancestresses could only dream of. I feel strongly that all women, but especially those of us dealing with the vicissitudes of the creative life, must take advantage of this and have control over our financial lives, even if we are sharing that life with others. The times I suffered financially occurred when I was not paying attention, usually because I didn’t want to face my current condition. It can be hard to confront the old bank account, but facing reality and taking control diminishes anxiety and frees up our mental space for creativity and inspiration. And that’s where we want our energy to go, right?
Knowing I could negotiate a better price if I paid cash, I borrowed from my IRA to make the purchase—risky because I had only 60 days to return the money or face a six-figure tax bill on the withdrawal. Thus when the buyer of my previous home missed three closings, I had to scramble for quickie “bridge loan” to replenish my IRA in time. While these loans are expensive, they’re less costly than paying a massive tax penalty. In the end, I was proud that I had the financial savvy and wherewithal to aggressively pursue and land the loan.
As I was venting about this ordeal, my brilliant new assistant pointed out that once upon a time, a woman couldn’t have made these or any other financial transactions on her own, no matter her know how. Indeed, as recently as the 1980s, when I went to buy a car, the salesman wanted my father to cosign though my income was more than sufficient.
Today, women take for granted the ability to negotiate property deals and manage our investments—privileges our ancestresses could only dream of. I feel strongly that all women, but especially those of us dealing with the vicissitudes of the creative life, must take advantage of this and have control over our financial lives, even if we are sharing that life with others. The times I suffered financially occurred when I was not paying attention, usually because I didn’t want to face my current condition. It can be hard to confront the old bank account, but facing reality and taking control diminishes anxiety and frees up our mental space for creativity and inspiration. And that’s where we want our energy to go, right?
Until next time, here’s to being fiscally empowered, and have a Happy Thanksgiving.
