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

by Meir Statman, David Colacci (reader)

Unravel the complex relationship between finances and life well-being

In A Wealth of A Holistic Approach to Behavioral Finance, Professor Meir Statman, established thought leader in behavioral finance, explores how life well-being, the overarching aim of individuals in the third generation of behavioral finance, is underpinned by financial well-being, and how life well-being extends beyond financial well-being to family, friendship, religion, health, work, and education.

Combining recent scientific findings by scholars in finance, economics, law, medicine, psychology, and sociology with real-life stories at the intersection of finances and life, this book allows readers to clearly see how finances are intertwined with life well-being. In this book, readers will

How dating, marriage, widowhood, and divorce are all affected by finances and affect them Why the relationship between parents, grandparents, children, and friends changes as finances fluctuate How finances affect choices of education, such as colleges, and how these choices vary across different cultures around the world A Wealth of A Holistic Approach to Behavioral Finance earns a well-deserved spot in the libraries of financial advisors, financial planners, investors, and all individuals looking to move beyond standard finance and enhance both financial well-being and life well-being.

1 pages, Audio CD

Published October 29, 2024

About the author

Meir Statman is the Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University and Visiting Professor at Tilburg University in the Netherlands. His research focuses on behavioral finance. He attempts to understand how investors and managers make financial decisions and how these decisions are reflected in financial markets.

The questions he addresses include: What are the cognitive errors and emotions that influence investors? What are investor aspirations? How can financial advisers and plan sponsors help investors? What is the nature of risk and regret? How do investors form portfolios? How successful are tactical asset allocation and strategic asset allocation? What determines stock returns? What are the effects of sentiment? How successful are socially responsible investors?

Meir’s research has been published in the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, the Journal of Financial and Quantitative Analysis, the Financial Analysts Journal, the Journal of Portfolio Management, and many other journals. The research has been supported by the National Science Foundation, the Research Foundation of the CFA Institute, and the Investment Management Consultants Association (IMCA). Meir is a member of the Editorial Board of the Financial Analysts Journal, the Advisory Board of the Journal of Portfolio Management, the Journal of Wealth Management and the Journal of Investment Consulting, an Associate Editor of the Journal of Financial Research, the Journal of Behavioral Finance, and the Journal of Investment Management and a recipient of a Batterymarch Fellowship, a William F. Sharpe Best Paper Award, a Bernstein Fabozzi/Jacobs Levy Outstanding Article Award, a Davis Ethics Award, a Moskowitz Prize for best paper on socially responsible investing, two Baker IMCA Awards, and three Graham and Dodd Scroll Awards. Meir consults with many investment companies and presents his work to academics and professionals in many forums in the U.S. and abroad.

Meir received his Ph.D. from Columbia University and his B.A. and M.B.A. from the Hebrew University of Jerusalem.

Reviews

[Suresh Sivasubramaniam · Rating 5 out of 5]

A wonderful survey of the human condition

It is a wonderful primer/manual to analyze, or a mirror against which to calibrate, your own journey along the dimensions of utilitarian and expressive & emotional well being. Read it and profit from it to achieve Life Wellbeing

[Jered Skousen · Rating 1 out of 5]

Great introduction--it was the reason I bought the book. It set up the question: what helps folks be happy in all three aspects of happiness?

Instead of conclusions, the author continued to state the two-handed bottom line: on one hand, it is this but on the other hand it is the opposite.
For example, does work bring happiness? Conclusion section of the book (page 264): "Work is a prominent well-being domain for some people, whereas others count the days until retirement."
How about religion, does that increase happiness? Conclusion (page 264 again): "Religion is an important well-being domain for some people, whereas others are atheists."
With conclusions like this, why do I need a 270 page book? Is this the state of behavior finance--we know nothing conclusively: anything is good for some people and that same thing might also be bad for others?

And on a topic (Gender and sexual orientation) where there is already extensive research, he downplays the over aching research (gender confusion has significantly higher levels of suicide both before and after someone transitions) and gives some sub-topic about how it is harder to find housing because people will discriminate. Can you not draw any conclusions at all? Or maybe it is too hot of a political topic for him to touch. And if so, don't mention it at all.

I also found his tone off-putting that rich people are jerks and poor people are saints (p 26-29). There are lazy poor people and hard-working rich people (especially first-generation rich people, which is 80% of the rich). So to make broad statements like he did was not helpful (on the bottom of page 28 he quotes someone who says rich people have problems, but not real ones, like paralyzing illness and death of a loved one. I'm pretty sure that illness and death come to all people, rich and poor)

Another example: "The damage that [poverty] inflicts" is shown by Anne who says she made a list of things to do, "Eat Healthy. Read the Bible. Attend church. Thirty minutes of exercise per day. Don't compare yourself to others. (p 27)" [Where is the damage of poverty? That sounds like a great list for anyone, rich or poor. So why are you using that quote to show that poverty damages people?]

Clearly he was paid by Blackrock to do his research because he mentions them dozens of times. And I suspect he was paid by the word, because he leaves in extra paragraphs about a topic that doesn't relate to the point he is making.

I suppose after I was disillusioned, I really started to pile on. You can tell I was very disappointed in this book. Probably because I was so excited to read it after he set it up in the introduction. Instead I got a litany of ideas with no conclusions and rambling unfair commentary.

[Riccardo Marin · Rating 1 out of 5]

"Spending time with friends and engaging enjoyable activities, [...], adds to well-being"
"Indeed health, both physical and mental, is crucial in well-being"
"It is difficult to enjoy well-being in the domain of family when finances are inadequate to support a mother and her three children"
Collection of trivial and indecisive statements, yet apparently supported by numerous researches. Nothing new here for the vast majority of the readers, I guess. Also includes promotion of Blackrock, quoted everywhere.

[Ken The Librarian · Rating 4 out of 5]

Meir Statman is a master researcher who has put together a valuable collection of facts to ponder, all backed up by peer-reviewed and/or professional research. Despite the thickness of this book, it is a relatively quick and easy read, and it will leave you with at least a few (and possibly many, many more depending on your prior knowledge of financial well being) valuable points to ponder. My only criticism is that the introduction (and framework within) feels a little disconnected from the book.

[Nick Salenga · Rating 5 out of 5]

This is a great book that explores how financial well-being can lead to life well-being through 3rd generation of behavioral finance in which broadens lens of finance to see people as whole persons & show them in life well-being domains beyond finances including family, friends, work, education, religion, & society.

[Bakley Smith · Rating 3 out of 5]

An interesting look and amalgamation of the many ways one can define well-being. The author does a lot of collating and re-telling of good information. I could have used a little more opinion from the author, more of a narrative.