Financial well-being is distinct from income. Some people with high incomes suffer low financial well-being, as their incomes fall short of their aspirations. Such people feel propelled to reach their aspirations by taking risk and willing to bear losses. Conversely, some people with low incomes...

Cultural literacy is analogous to financial literacy and is almost as important. Cultural literacy matters to advisors as they design fitting financial plans because clients carry within them the cultures of their countries of origin long after they have settled in their countries of residence....

A client fires his financial adviser because his returns lag the market and the returns of his best friend.An adviser constructs portfolios from low-cost index funds, and his clients question why he trades so infrequently—only once a quarter when he rebalances portfolios.An organizer of a...