REMEMBER 2020’S BIG market swings? Financial markets have been more boring of late. But are things too quiet?
The VIX is the most  commonly cited indicator of market volatility. Turn on CNBC or flip through The Wall Street Journal and you’ll likely learn the latest reading for the “fear gauge.” Last Friday’s close was among the lowest of the year, with the VIX at a little more than 15, versus an historical average closer to 20.

WHEN I GIVE presentations on retirement, I ask folks about their worries. For pre-retirees, their biggest concern is not having enough money. That’s no surprise. Financial firms spend millions pushing the importance of saving for retirement.
But when I pose the same question to recent retirees, I get a completely different answer. Overwhelmingly, their biggest concern is finding purpose in retirement. Similar results emerge from a recent survey by Age Wave and Edward Jones,

FINANCIAL EXPERTS often advise retirees to delay claiming Social Security. Their actuarial tables and statistics make a compelling case. Still, as soon as I’m eligible, I’ll strongly consider claiming Social Security.
Why? I never knew either of my grandfathers. My mom’s dad died of a stroke when she was age 19. One of my favorite photos of my parents’ wedding is that of my uncle—my mom’s oldest brother—walking her down the aisle. My grandfather never got to see my parents wed.

FEAR GETS A BAD RAP. From the old No Fear apparel line to mantras such as “only bad decisions come from fear,” our society seems to say that fear is always the creator of regrettable decisions.
I disagree. I think we need to distinguish between irrational and rational fear. Irrational fear is worrying that all strangers are a threat or believing that stepping out of your comfort zone is too fraught with peril to make it worthwhile.

FORGET BUYING A HOME or paying for college. In terms of complexity and cost, nothing comes close to retirement—a topic that encompasses saving, investing, taxes, Social Security, health care expenses and countless other financial issues.
Fortunately, there’s a growing body of research to guide us, and some of the best studies come from Boston College’s Center for Retirement Research (CRR). Here are just some of the insights I’ve lately garnered from CRR studies:
Valuing annuities.

AS I MENTIONED in an article back in June, my wife and I funded a custodial account for our son three years ago. He used the $1,000 we gave him to buy shares of Nike and Exxon.
We figured what’s good for our oldest child would also be good for No. 2. Our daughter recently completed fifth grade and is now age 11. Earlier this summer, we set up an account for her and added $1,000.

MONEY MANAGER GMO recently noted that, “There are no bad assets just bad prices.” The occasion was the S&P 500’s price outrunning earnings by 70% over the seven years through March. GMO’s punchline: The same thing happened in the seven years that ended with the dot-com peak in March 2000. This, of course, did not end well.
Two decades ago, I remember a friend telling me of steep losses in his retirement savings, the result of moving his entire 401(k) into aggressive,

AS MY TWINS DEPART for college, they leave behind a home base where they find food in the refrigerator, get new clothes and shoes when needed, have bills paid and extra-curriculars funded, and receive a small weekly allowance to save or spend.
Now, they’re headed far from familiar security. They gain instead independence and the opportunity to explore other ways of living and spending, all part of their higher education. Cold cereal for supper?

ONE FUN FACT I TELL my students about Daniel Kahneman: He won the Nobel Prize for economics without ever taking an economics course in college. Kahneman is a psychologist whose discoveries laid the foundation for the new science of behavioral economics.
One of his most important findings is that loss feels twice as painful to us as gain feels good, so the emotional scales aren’t balanced when we make economic decisions. For instance, workers will wait years to join a 401(k) because contributions can feel like a loss in spending power.

IN THE PAST THREE years, Jim and I have moved five times—three times in Spain and twice in Dallas. We sold almost all our possessions when we moved to Spain, taking just four suitcases and two cats. When we returned to Dallas, we didn’t bring home much more—five suitcases and two cats.
Fortunately, I’ve discovered that I prefer living in a smaller home. I love the design of Spanish houses, which are—on average—just half the size of equivalent U.S.

CONGRATULATIONS, your family has grown with the arrival of a first child or grandchild. As the celebration subsides, reality sets in: You want to do everything you can to pave the way for a secure future.
For new parents, the first step is to obtain two basic documents that’ll last a lifetime: a birth certificate and Social Security card. The hospital will start the process, but you need to be diligent. Is the name spelled correctly?

REAL ESTATE PRICES in California are through the roof. The price of a smaller home in our neighborhood just sold for $80,000 above the list price. Not only is housing expensive for retirees like us, but also the cost of living in California is very high. Gas, food and taxes are a lot higher here than in other places favored by retirees, such as the Sunbelt.
When I was going to school, I was never good at math.

WHEN YOU’VE BEEN saving and investing for a long time, you have a long list of things you wish you could do over. Like hanging on to Apple, instead of selling at $85 a share. Like buying an index fund, instead of that hot mutual fund that quickly turned cold. My wife calls these “what ifs.” We have a rule not to talk about them because they almost always lead to arguments about who was wrong.

THE AMERICAN DREAM. Rags to riches. The self-made man—or woman.
Everyone growing up in the U.S. is told of these ideals. We are sharks who must keep moving to survive. The only acceptable direction is up. We do it for ourselves, believing happiness is just over the next hill of “more.” We do it for our family because providing is an act of caring.
If there’s a least-debated rule in economics, however, it’s that everything comes at a cost.

IF YOU’RE MARRIED, it’s almost certain that one of you will outlive the other—perhaps by many years. What are the financial implications? Here are 10 issues to keep in mind:
1. Social Security. For a married couple, their Social Security benefits can consist of two workers’ benefits or a worker’s benefit and a spousal benefit. On the death of either spouse, the remaining benefit is the higher of the two benefits. For instance,