The Geometry of Wealth

A fantastic story about the father of modern portfolio theory, Harry Markowitz, brings this to life. Markowitz considered the optimal mix of assets for his personal portfolio but found it all too complicated to wrap his prodigious brain around. “I should have computed the historical co-variances of the asset classes and drawn an efficient frontier,

In the cycle of planning and adapting, demonstrating willpower (control before the fact) and resilience (control after the fact) is critical.76 In a large-scale and long-term study led by Mark Seery, it was found that “people with a history of some lifetime adversity reported better mental health and well-being outcomes than not only people with a

The path toward wealth is clearly marked, but only if you’re looking in the right direction. And willing to take three important steps: Define purpose: Illuminate the ingredients for a life well-lived; Set priorities: Chart a focused strategy to do the right things in the right order; and Make decisions: Employ simplified tactics to drive better ou

Uncertainty abounds. In many instances, we don’t know what we’ll want in the future. In fact, recent research goes even further and suggests that we don’t know who we’ll be in the future.

73% of Americans say money is the most stressful factor in life. It is more stressful than death, politics, or religion.

Wealth, truly defined, is only achievable in the context of a life in which purpose and practice are thoughtfully calibrated. In isolation, neither deep thoughts nor long checklists is up to the task. To succeed, clear minds and dirty hands must work together.

As we’ll see in the square, having a clear and up-to-date set of expectations for our investments is elusive, explaining why so many people have poor investment experiences. At the time of “consumption”—the moment you officially own the stock or bond or fund—none of your senses is engaged. Because nothing happens. Indeed, with investment products,

Hopefully the matching protocol sounds reasonable, but it’s important to recall that very few actually do this. It also stands in opposition to the favorite pastime for too many investors and financial advisors: beating the market. That’s a silly and fruitless game. It’s not tied to our real needs, it’s attached to our ego.

I’ve come to believe that there are four enduring sources of a joyful life. I call these Connection, Control, Competence, and Context. Connection is the need to belong. Control is the need to direct one’s own destiny. Competence is the need to be good at something worthwhile. Context is the need for a purpose outside of one’s self.