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

Taking more risk does not produce greater returns. Instead, taking more risk increases the variability of future outcomes. That’s not great bumper sticker material. Nevertheless, if there were a reliable relationship between more risk and bigger rewards, then technically you wouldn’t be taking more risk. Everyone would bet long shots all the time.

Whether you live on a country estate or in a one-bedroom flat; whether you have perfect features or are a strong candidate for plastic surgery; whether you enjoy family bliss or

Some of life’s more serious difficulties can be solved, in part, by writing a check. We can devote resources to help aging parents, support a wayward child, or deal with personal strife. Money gives us options for dealing with adversity. At lower incomes, being unable to address these means that not only do misfortunes persist, but we take on

With the growth of financial assets, there’s an overarching rule for managing expectations: The price you pay is a primary determinant of long-term results. Specifically, the more you pay, the less you will get. The less you pay, the more growth you will find.

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

Through most of history, people worked until they died. And those who outlived their human capital relied on traditional family structures for support. In Willy Wonka and the Chocolate Factory, bedridden Grandpa Joe and Grandma Josephine weren’t pensioners, nor did they have Social Security or some other government largesse to rely upon; they were

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,

Like our own attempts at planning for the future, this was hardly an exercise in precision: The chance of a deity was 50-50 and the consequences were either “infinite” or “small.” But by simple back-of-the-envelope reasoning, Pascal’s decision was obvious: Pay a small cost to avoid a potential catastrophe. And if the small cost led to large gains,