Beating Inflation and Protecting Your Wealth with Roth IRAs

Description

In this session, we talked about the hidden enemy of your wealth: inflation. Over the last 30 years, inflation has quietly eaten away at savings, averaging nearly 5% per year — and that’s not even counting food, energy, or medical costs. I showed why traditional savings accounts, CDs, or bonds simply can’t keep up, and how a self-directed Roth IRA invested in real estate and private lending can beat inflation every time. We also covered how to think about long-term purchasing power, why the government’s numbers don’t tell the full story, and why getting your money into tax-free accounts is the smartest defense.

Key Takeaways

Inflation quietly robs your purchasing power — even “safe” savings accounts lose money after taxes and inflation.
Government inflation numbers don’t include food, energy, or medical costs — the things we actually spend on.
A Roth IRA invested in real estate, notes, or private lending can generate returns that outpace inflation.
Real estate is a hard asset that historically appreciates faster than inflation.
Tax-free growth inside a Roth IRA multiplies the effect of compounding.
Every year you wait to move money into a Roth, you lose ground against inflation.
Protecting your money isn’t about chasing high returns — it’s about beating inflation safely.

Action Steps / Exercises

Inflation Reality Check: Look up today’s inflation rate and compare it to your bank’s savings interest rate. Write down the difference.
Purchasing Power Drill: Write out how much $100,000 will buy today vs. what it will buy in 20 years at 4% inflation.
Hard Asset List: List 3 assets you could buy inside your Roth IRA that will likely outpace inflation.
Switch Strategy: If you’ve got money sitting in CDs or savings, write out a plan to move some of it into a Roth IRA investment.
Family Conversation: Explain inflation’s impact to a spouse, child, or parent, and talk about why Roth IRAs are your best shield.