Retirement Answer Man Process Over Panic: Building a Great Life with Dr. Meir Statman
Meir Statman, behavioral finance scholar and author of A Wealth of Well-Being, explores how finance connects with life satisfaction. He discusses the U-curve of well-being, social and cultural capital, and why embracing "enough" and giving back matter. Conversations cover rebuilding relationships after career change and practical ways to cultivate energy, passions, and purpose in later life.
01:23:53
Behavioral Finance Must Include Life Wellbeing
- Behavioral finance should expand from markets to life well-being.
- Meir Statman argues finance is about life, combining psychology, sociology, law and well-being literature to understand financial decisions in a broader context.
Markowitz Knew People Chunk Portfolios
- Harry Markowitz understood real investor behavior beyond mean-variance theory.
- Meir Statman recounts collaborating with Markowitz, who recognized people treat money in separate mental accounts for different goals.
The U Curve Explains Later Life Contentment
- Life well-being follows a U-curve: declines into middle age then rises in later life.
- Meir Statman links the upswing to tempering ambition, accepting 'enough', and shifting toward giving back and purpose.
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Intro
00:00 • 2min
Rockin' Retirement Example
01:56 • 2min
Non-Financial Pillars Overview
04:19 • 2min
Mindset: Control What You Can
06:35 • 2min
Energy: Habits to Maintain Vitality
08:41 • 2min
Passions: Cultivate New Projects
10:17 • 2min
Relationships: Become Worthy of Friendship
11:58 • 3min
Exemplars of Resilience
14:48 • 4min
Introducing Meir Statman
18:22 • 1min
Why Meir Wrote A Wealth of Well-Being
19:38 • 2min
Markowitz, Portfolios, and Human Behavior
21:34 • 4min
Behavioral Finance Generations
25:54 • 4min
Financial Well-Being vs Life Well-Being
29:58 • 1min
The U-Curve of Life Satisfaction
31:19 • 6min
Accepting Enough and Giving Back
37:21 • 2min
Social Capital Defined and Its Value
39:25 • 2min
Rebuilding Social Capital After Retirement
41:47 • 9min
Cultural Capital Explained
51:15 • 6min
Learning New Tricks as You Age
57:23 • 4min
Personal Capital: Traits and Skills
01:01:41 • 2min
Integrating Well-Being Into Retirement Planning
01:03:50 • 38sec
Listener Question: Creating a Retirement Paycheck
01:04:28 • 6min
Accessing Retirement Accounts Early (72T & Rule 55)
01:10:19 • 7min
Listener Question: Fixed Annuity Tradeoffs
01:17:46 • 4min
Smart Sprint Challenge
01:22:10 • 36sec
Outro
01:22:46 • 1min
#50673
A Wealth of Well-Being
A Holistic Approach to Behavioral Finance
Meir Statman
Meir Statman's 'A Wealth of Well-Being' argues that finance should address life well-being in addition to financial outcomes, integrating insights from psychology, sociology, and ethics.
Statman examines how financial choices, products, and behaviors contribute to or detract from social, cultural, and personal capital.
He presents a three-generation evolution of behavioral finance and proposes frameworks for advisors to support clients' broader life goals.
The book blends academic research with practical stories to show how money serves purposes beyond utility, including emotional and expressive functions.
It aims to reframe financial advising toward enhancing overall life satisfaction.
#33013
• Mentioned in 2 episodes
A Wealth of Well-Being: A Holistic Approach to Behavioral Finance
Meir Statman
This book explores the third generation of behavioral finance, expanding beyond wealth maximization to encompass the various aspects of life that contribute to overall well-being.
#1105
• Mentioned in 35 episodes
The how of happiness
Sonja Lyubomirsky
In *The How of Happiness*, Sonja Lyubomirsky offers a detailed yet easy-to-follow plan to increase happiness.
Drawing on her extensive research, Lyubomirsky explains that while 50% of happiness is determined by genetics and 10% by life circumstances, 40% can be controlled through intentional thoughts and behaviors.
The book provides over a dozen uniquely formulated happiness-increasing strategies, including practicing optimism, savoring life's pleasures, and staying active.
It also includes diagnostic quizzes to help readers understand their 'happiness set point' and select activities that best fit their personality, resources, and goals.
Lyubomirsky emphasizes the importance of personalizing these strategies to achieve long-term happiness.
#1963
• Mentioned in 22 episodes
I Know Why the Caged Bird Sings
Maya Angelou
In 'I Know Why the Caged Bird Sings', Maya Angelou recounts her early life from the age of three to seventeen.
The book describes her experiences growing up in the segregated South, including her time living with her paternal grandmother in Stamps, Arkansas, and later with her mother in St. Louis and California.
Angelou delves into themes of racism, identity, and the struggles of being a Black girl in a male-dominated society.
The memoir also touches on her personal struggles, such as being sexually abused at the age of eight and finding solace in literature and her own strong spirit.
The book is a powerful exploration of resilience and the impact of societal oppression on individual lives.
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• Mentioned in 685 episodes
Man's Search for Meaning
Viktor Frankl
The book is divided into two parts.
The first part recounts Frankl's harrowing experiences as a prisoner in Nazi concentration camps, including Auschwitz, between 1942 and 1945.
He describes the inhumane conditions and the psychological and emotional struggles of the prisoners.
The second part introduces Frankl's theory of logotherapy, which posits that the primary human drive is the search for meaning, rather than pleasure.
Frankl argues that meaning can be found through three main avenues: work (doing something significant), love (caring for another), and suffering (finding meaning in one's own suffering).
The book emphasizes the importance of finding purpose and meaning in life, even in the most adverse conditions, as a key factor in survival and personal growth.
#7223
• Mentioned in 7 episodes
What the Happiest Retirees Know
Wes Moss
#124
• Mentioned in 154 episodes
Thinking in bets
Making Smarter Decisions When You Don't Have All the Facts
Annie Duke
In this book, Annie Duke teaches readers how to make better decisions by treating them as 'bets' on uncertain outcomes.
She emphasizes the importance of distinguishing between the quality of a decision and its outcome, acknowledging the role of luck, and avoiding biases such as 'resulting' and hindsight bias.
Duke draws on her experiences as a professional poker player and combines these with insights from cognitive psychology and other fields to provide tools for making more objective and thoughtful decisions.
The book encourages readers to get comfortable with uncertainty, seek truth through diverse opinions, and learn from outcomes to improve future decision-making.
#282
• Mentioned in 91 episodes
The Second Mountain
The Quest for a Moral Life
David Brooks
In 'The Second Mountain', David Brooks explores the concept of two mountains in life: the first mountain, which represents individual success and ego-driven achievements, and the second mountain, which symbolizes a life of deeper meaning, commitment, and contribution to a greater good.
Brooks argues that our society's extreme individualism has torn the social fabric, and the path to repair is through making deeper commitments to a spouse and family, a vocation, a philosophy or faith, and a community.
The book is both a personal reflection on Brooks' own life journey and a broader social commentary, offering practical advice and stories of people who have lived joyous, committed lives.
#85
• Mentioned in 193 episodes
BOWLING ALONE
The Collapse and Revival of American Community
Robert Putnam
In 'Bowling Alone', Robert D. Putnam presents extensive data showing how Americans have become disconnected from family, friends, neighbors, and democratic structures.
He argues that this decline in social capital has significant negative impacts on physical and civic health.
The book explores various factors contributing to this decline, including changes in work, family structure, suburbanization, and the influence of technology such as television and the internet.
Putnam also discusses historical precedents and potential solutions for reviving civic engagement and social connections.
It’s a super-sized episode today—and for good reason. We spend the bulk of the show in a deep, insightful conversation with Dr. Meir Statman, a leading voice in behavioral finance. I also walk you through the four non-financial pillars of retirement: mindset, energy, passions, and relationships. We'll talk about how to manage what you can control—and how to respond when life throws you the stuff you can’t. Plus, we answer a few of your questions. There’s a lot here, but it’s worth every minute. Let’s get to it.
SUMMARY OF THIS EPISODE OF THE RETIREMENT ANSWER MAN
- (00:00) This podcast is dedicated to helping you survive retirement with confidence
- (00:34) Today on the show we are going to focus on the non-financial realm as we continue talking about process and things we can control versus what we can’t control.
ROCKIN RETIREMENT IN THE WILD
- (02:14) Roger shares an anonymous message from a listener about her husband retiring and the confidence they have built in their retirement.
PRACTICAL PLANNING SEGMENT
- (04:50) Sometimes in retirement planning, we tend to overemphasize the financial side of things and forget about the rest of our lives.
- (06:23) Roger identifies controllables and non-controllables within the non-financial pillars of retirement.
- (14:50) Roger talks about some examples of people who focused on things that they could control and found success.
- (16:19) Roger says that the Rock Retirement Club has been a source of inspiration for him.
INTERVIEW WITH MEIR STATMAN
- (18:13) Roger introduces Meir Statman, author of A Wealth of Wellbeing.
- (19:34) Roger asks what motivated Dr. Statman to write his latest book.
- (22:10) Dr. Statman talks about his relationship with Nobel Prize winner, Harry Markowitz
- (25:57) Roger talks about behavioral finance and what it means from his perspective.
- (30:02) We talk about financial wellbeing but you also need to focus on life wellbeing.
- (31:06) Dr. Statman discusses a u-curve in life wellbeing.
- (37:25) Roger and Dr. Statman talk about accepting who you are.
- (39:30) Dr. Statman talks about the components of wellbeing.
- (41:49) Roger asks about social capital in retirement.
- (49:00) Starting a conversation is really important, Meir says
- (51:19) What is cultural capital?
- (57:32) Developing social, cultural, and personal capital becomes harder as you get older.
- (01:01:38) What is personal capital?
LISTENER QUESTIONS
- (01:04:42) Listener Brian sends a question about generating his retirement paycheck.
- (01:17:52) Another listener named Brian asks about investing in annuities.
SMART SPRINT
- (01:22:20) In the next seven days, before you get out of bed, smile and tell yourself it is going to be a great day!
BONUS
- (01:22:48) Roger reads from his grandfather’s WWII journal.
REFERENCES
- Nick Vujicic- Motivational Speaker
- Nelson Mandela
- Mier Statman
- Retirement Answer Man
- Sign up for The Noodle (previously known as Six Shot Saturday)
BOOKS
- Man's Search for Meaning by Viktor Frankl
- I Know Why the Caged Bird Sings by Maya Angelou
- A Wealth of Well-Being: A Holistic Approach to Behavioral Finance by Meir Statman
- The Second Mountain: The Quest for a Moral Life by David Brooks
- Bowling Alone: Revised and Updated: The Collapse and Revival of American Community by Robert Putnam
- The How of Happiness: A Scientific Approach to Getting the Life You Want by Sonja Lyubomirsky
- Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts by Annie Duke