Elon Musk often describes “first-principle thinking” as breaking a problem down to its most basic truths and building back up. The same idea applies to personal finance. When you strip away products, predictions, and noise, nearly every financial decision rests on three first principles. These principles explain why some choices support long-term stability while others create unnecessary stress. They do not change with markets or headlines. They form the foundation for better financial...

Early in my career on the trading floor of the Chicago commodities exchange, I learned something early and hard: success in that world isn’t about how big your account looks, it’s about how much cash you actually have to absorb the swings and volatility that come with trading. One month you might win, the next you might lose—and if you haven’t built a buffer, your lifestyle becomes your liability. I saw—and personally experienced—traders who had great months, sometimes great years, only to...

The short answer is no.  Advisors will likely follow the same path engineers have taken in recent years. They will adopt AI to deliver more client-focused advice, improve productivity, and serve more households. Clients, in turn, will use AI to verify what they are hearing and ensure they are asking the right questions. That matters because trust is not automatic today. For example, is the fee in line with industry norms? If an advisor recommends rolling over a 401(k) into an IRA, are the...