W hen your financial decisions are made more difficult by complex terminology and confusing jargon, you may find yourself paying a price.
According to our survey, most Americans (52%) report having made an investment where they did not like the outcome - like owing unexpected taxes or paying an early withdrawal penalty - because they felt confused about or didn't understand an investment.
All too often, this financial-speak can keep someone from investing altogether. Nearly one-third (30%) of those surveyed failed or waited longer than they felt they should have to invest because the information provided was confusing.
Even more concerning, nearly 20% of all respondents said they have failed to sign up for a retirement plan with their employer because they felt confused about how it worked.
For most of us, all this financial speak is just outright discouraging, as the following chart demonstrates.
| The use of jargon by financial services firms or professionals to describe their products and services makes investors feel... | |
|---|---|
| Confused | 76% |
| Intimidated | 59% |
| Frustrated | 71% |
| Turned off | 74% |
| Empowered | 38% |
|
% Who Responded "A lot" or "Sometimes" Source: AARP Financial Inc., 2008. |
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