The Long View

Meir Statman: ‘The Biggest Risks in Life Are not in the Stock Market’

Apr 23, 2024

Meir Statman, finance professor, discusses behavioral finance and well-being. Topics include wealth's impact on happiness, mid-life challenges, family support, and dimensions of well-being. Emphasizes the importance of holistic financial planning for overall life satisfaction.

54:09

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Episode guests

Meir Statman

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Episode notes

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Quick takeaways

Life well-being encompasses financial and non-financial factors, emphasizing the importance of balance in various life aspects.

Behavioral finance has transformed to view individuals holistically, integrating financial well-being with broader life considerations.

Deep dives

The Importance of Life Wellbeing

Life wellbeing encompasses financial and non-financial factors that contribute to overall well-being. While financial stability is crucial, life wellbeing also involves family, friends, health, work, education, religion, and society. Recognizing that money alone does not guarantee happiness, the holistic approach of life wellbeing seeks to balance financial security with broader life aspects.

Introduction

3min

Evolution of Behavioral Finance and Life Wellbeing

5min

Cultural Influences on Wellbeing and Family Support

11min

Exploring the Dimensions of Well-being

10min

Navigating Mid-Life Challenges and Aspirations

2min

The Interplay of Wealth and Well-Being

21min

Gratitude, Call to Action, and Disclaimers

2min

Today on the podcast, we welcome back Meir Statman. Meir is the Glenn Klimek Professor of Finance at Santa Clara University. Meir’s latest book is A Wealth of Well-Being: A Holistic Approach to Behavioral Finance. Other books include Behavioral Finance: The Second Generation, What Investors Really Want, and Finance for Normal People. Meir’s research has also been published in the Journal of Finance, the Financial Analyst Journal, the Journal of Portfolio Management, and many other journals. He received his PhD from Columbia University and his BA and MBA from the Hebrew University of Jerusalem.

Background

Bio

A Wealth of Well-Being: A Holistic Approach to Behavioral Finance

Behavioral Finance: The Second Generation

What Investors Really Want: Know What Drives Investor Behavior and Make Smarter Financial Decisions

Finance for Normal People: How Investors and Markets Behave

Financial Well-Being

“Financial Advisers as Well-Being Advisers,” by Meir Statman, financialplanningassociation.org, September 2019.

“More Time or More Money? How Wealth Affects What We Value,” by Meir Statman, avantisinvestors.com, October 2022.

Other

“Meir Statman: ‘We Are All Normal,’” The Long View podcast, Morningstar.com, Oct. 30, 2019.

“What Is Cantril’s Ladder?” by Michael Hartnett, sciotoanalysis.com, Feb. 9, 2024.