WE ALL WANT THE GOOD life, though we’d likely differ on what exactly that is. Still, our wish list might include things like meaningful work, a robust network of friends and family, minimal money worries, service to others, good health, a long life, and a sense of both serenity and purpose.
What stands in our way? As we strive to make the most of the limited time we’re given, it’s worth pondering how we’re constrained and what we can do to improve our lot.

THIS PANDEMIC HAS changed the way we live: Many people are physically distancing themselves, washing their hands more often and wearing a mask when they’re around others. But it’s also changed how I think about money—in six ways:
1. Emergency savings. Before the pandemic, I always thought a cash emergency fund equal to six months’ living expenses would be sufficient. Not anymore. The massive economic shutdown has led to millions of unemployed Americans—and it will take longer than six months for many of these folks to find work again.

I’VE BEEN MANAGING my own finances for a long time. Along the way, I did some things right that served me well and some things that didn’t—including three big blunders.
My money-management journey started when I got into a new middle school that was 12 miles from home. The daily commute involved a short bus ride to the nearest railroad station, a 20-minute trip on a suburban train and then a quick walk. To save money,

MONEY IS ONE OF THE most emotional issues we deal with. It can create both immense stress and moments of pleasure. I’m guessing the way each of us view money, and how we handle it, is as unique as our fingerprints.
My wife’s car of 14 years was kaput and headed for the junkyard. Fixing the wiring and computer on her 2006 Jaguar would have cost $5,000—far more than the car was worth, even though it was otherwise in very good shape.

TERM LIFE INSURANCE is popular not only because it’s a relatively cheap way to protect your family, but also it’s simple: You pay a premium for a chosen “coverage period” and, if you die during that time, your beneficiaries receive the policy’s death benefit.
Yet, despite its reputation for simplicity, term insurance comes with a surprising number of options. On top of that, there are now dozens of insurers offering the product. Yes, if you buy the cheapest 20-year term policy you can find from an insurer that’s rated A or better by AM Best,

I’VE BEEN LIVING with roommates since I graduated college two years ago. I decided it was time to buy my own place. I saved diligently and I figured I had enough for a down payment.
I also figured I could handle the monthly mortgage payment, which wouldn’t be much more than I was paying in rent. I was looking for a townhouse or condo, which might cost $250,000 to $300,000 where I live.
What I didn’t grasp,

AS AN INDIVIDUAL investor, what’s the key to success? It’s a question I hear a lot, especially in volatile times like this.
The answer, I think, is that there isn’t just one key, but rather five. The most successful investors seem to be equal parts optimist, pessimist, analyst, economist and psychologist. Together, I call these the five minds of the investor. If you can develop and balance all five, that—I believe—is the key to investment success.

THEY’VE LONG BEEN endangered, but 2020 may mark their demise: After four decades of falling interest rates, it seems safe investments offering attractive yields have finally disappeared.
At 0.7%, the payout on 10-year Treasury notes is below the 1.2% expected inflation rate for the next decade. High-quality corporate and municipal bonds offer more generous after-tax income, but hardly enough to excite investors. In the years ahead, the yield-obsessed will no doubt turn to riskier fare—high-dividend stocks,

“MONEY MAKES THE world go round”—and that means we’re constantly making financial decisions. Almost inevitably, some go awry. Like everyone else, I’ve made a lot of financial mistakes over the years. Here are some I wish I could take back.
When I was age 23, I graduated from college with a history degree. It wouldn’t take long for me to realize it was a mistake. Early in my career, I was passed over three times for a promotion because I didn’t have a business degree.

CHINA’S CRUSHING of Hong Kong’s independence is just the latest aggressive move to raise my hackles—and make me question the wisdom of investing there, as well as in much of Asia. Which puts me in a tough position, since the Pacific Rim represents nearly 70% of the emerging markets indexes.
I hear you saying that politics shouldn’t factor into investment decisions. True, if returns are your only consideration, political and moral issues don’t belong in the conversation.

IT SEEMS THE WORST of this economic crisis may have passed, though the health risks will be with us for some time. What have we learned? For many people, long-discussed financial risks became all too real in 2020.
There are two words that should always be part of our thinking: what if. Those two words aren’t always associated with bad things. What if I win the lottery? I have a plan for that, which varies depending on how much I win and whether it triggers estate taxes.

I LOVE BOOKS BY Bill Bryson. If you haven’t read his latest, The Body: A Guide for Occupants, you should.
It’s an encyclopedia of the wonders of the human body. The overriding message, jumping out of every page, is how truly miraculous our bodies are.
Did you know, for example, that you are made of seven billion billion billion atoms? That if you laid all the DNA in your body end to end it would stretch 10 billion miles,

MEGA-CAP TECHNOLOGY growth stocks were huge winners during the last bull market and even during this year’s coronavirus crash. But recently, they’ve lagged, while small-cap value companies have posted robust gains.
Indeed, after a decade of lackluster performance, diversified portfolios that contain sizable holdings of foreign, small cap and value stocks have started to perk up. Could mean reversion finally be taking place? Are we at an inflection point?
It could be—or it could be just another twitch in the market,

HUMANS ARE WIRED in ways that, alas, aren’t conducive to achieving our financial goals. Indeed, thanks to research by academics focused on behavioral finance, we now have a much better handle on the money mistakes that many of us regularly make. Want to become a better investor? Here are three insights into ourselves, compliments of behavioral finance:
The illusion of understanding. Once you’re aware of this illusion, you start seeing it everywhere,

EVERY YEAR, WHEN spring rolls around, investment folks trot out a favorite catchphrase: “Sell in May and go away.” This is based on the idea that the stock market lags during the summer, as people go on vacation.
While it may sound hokey as an investment rule, it’s hardly the only one. There’s also the January effect, which says that stocks do better just after the new year. Its cousin, the January barometer, stipulates that the market will have a good year if it has a good January.