Episode 76: Meir Statman talks about his new book, A Wealth of Well-Being, host Rick Ferri

Meir Statman, a professor of finance at Santa Clara University, joins the podcast to discuss behavioral finance and investor decision-making, particularly as explored in his book, *A Wealth of Well-Being*. The conversation traces the evolution of behavioral finance through three generations: from initial assumptions of investor rationality, to recognizing cognitive errors, and finally to understanding how well-being shapes financial choices. Statman argues that financial decisions are influenced by utilitarian, expressive, and emotional factors, not solely by wealth maximization. He introduces four kinds of capital—financial, social, cultural, and personal—and how they impact overall well-being. The discussion touches on the complexities of balancing spending and saving, the controversial aspects of the FIRE movement, and the surprising links between marriage, divorce, and financial health.