In this episode, Stig Brodersen speaks with David Fagan about Total Wealth Performance and why someone with average investment returns can still build a meaningful net worth. They discuss why saving is the first step in wealth creation, why financial independence is a matter of intention rather than luck, and how idle cash quietly becomes one of the most expensive decisions investors ever make.

IN THIS EPISODE YOU’LL LEARN:
(00:00:00) Intro
(00:04:20) Why David has been a saver ever since he blew his entire net worth on a Hot Wheels racetrack at age eight
(00:12:34) Why money decisions that look odd are often rational given someone's lived experiences
(00:13:56) Why financial independence is not luck but small habits that compound
(00:17:47) What Total Wealth Performance is, and why the return on your broker statement is not your real return
(00:22:29) How Stig thinks about financial independence
(00:29:34) The ABCs of front-end performance: availability, behavior, and configuration
(00:37:55) Why idle cash is one of the most expensive decisions an investor can make
(00:45:00) Why net worth beats portfolio returns as a scorecard during the accumulation phase
(00:54:13) How and why tax is a real expense

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES
<ul>
 <li>Join the exclusive&nbsp;<a href="https://www.theinvestorspodcast.com/mastermind/">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a><a href="https://www.theinvestorspodcast.com/mastermind/">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠The Intrinsic Value Mastermind Community⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>.</li>
 <li>Check out Stig and David's free educational resource, <a href="https://compoundingsimplicity.com/">Compounding Simplicity</a>.</li>
 <li>Watch David Fagan's free <a href="https://compoundingsimplicity.com/education/">educational videos.</a>&nbsp;</li>
 <li>Read Charles Schwab's study, <a href="https://international.schwab.com/story/does-market-timing-work">Does Market Timing Work?</a></li>
 <li>Listen to our interview with David Fagan about <a href="https://www.theinvestorspodcast.com/episodes/simple-investing-beats-complexity/">Why Simplicity Beats Complexity</a>.</li>
 <li>Listen to our interview with David Fagan about <a href="https://www.theinvestorspodcast.com/episodes/simple-investing-w-david-fagan/">Simple Investing</a>.</li>
 <li>Listen to our interview with David Fagan about <a href="https://www.theinvestorspodcast.com/episodes/invest-like-a-business-owner-w-david-fagan/">investing like a business owner</a>.</li>
 <li>Listen to our interview with David Fagan about <a href="https://www.theinvestorspodcast.com/episodes/buffetts-favorite-business-book-w-david-fagan/">Buffett's favorite business book</a>.</li>
 <li>Connect with David on <a href="https://www.linkedin.com/in/david-fagan-cpa-ca-91431328/">LinkedIn</a> or through <a href="https://www.mbfca.com/contact-us">mbf Chartered Professional Accountants</a>.</li>
 <li>Stig's <a href="https://www.theinvestorspodcast.com/articles/stig-brodersen-track-record-portfolio/">blog post</a> on his portfolio and track record since 2014.</li>
 <li>Related&nbsp;<a href="https://prodcast.io/collections/we-study-billionaires-the-investor-s-podcast-network">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠books⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>&nbsp;mentioned in the podcast.</li>
 <li>Ad-free episodes on our&nbsp;⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠<a href="https://premium.theinvestorspodcast.com/">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Premium Feed⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.</li>
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