Tracking Your IRA, Understanding Risk, and Boosting Returns


Description

In this third session, I’m going to show you how to get online access to your IRA account so you can check balances, track your deals, and generate statements anytime. We’ll also dig into how to think about risk, how to calculate your true rate of return, and why putting your best investments inside your Roth IRA creates the most wealth. Plus, I’ll share one of my favorite strategies — using your Roth IRA like a savings account — and how to get your kids or grandkids started early with tax-free money that lasts for life.


Key Takeaways

  • You can log into your self-directed IRA account online to track cash, assets, and statements anytime.

  • Always aim to put your highest-return investments inside your Roth IRA to maximize tax-free growth.

  • Many financial planners don’t understand (or won’t tell you about) self-directed IRAs because they lose fees when you take control.

  • Traditional brokers may say self-directed IRAs are “risky,” but every investment carries risk — it’s about what you know and control.

  • Real estate and private notes can often produce much higher returns than typical stocks or bonds.

  • Understanding cash-on-cash return and compounding is critical — small deals can turn into massive growth.

  • Using leverage (small out-of-pocket, with financing) can skyrocket your returns.

  • A Roth IRA can function like a savings account — contributions can be withdrawn anytime tax- and penalty-free.

  • Teaching kids or young adults to save into a Roth IRA early sets them up for lifelong, tax-free wealth.


Action Steps / Exercises

  1. Set Up Online Access: If you haven’t already, register your IRA login with your custodian and explore the statement features.

  2. Run the Numbers: Take one of your past deals and calculate cash-on-cash return, appreciation, and debt paydown to see the total ROI.

  3. Do a Hypothetical Wholesale Deal: Run the math — what happens if your IRA puts $14,000 into a deal and wholesales it for a $10,000 profit?

  4. Talk to Your Advisor: Ask your accountant or planner what they know about self-directed IRAs. (Hint: many don’t!) Note their response.

  5. Start a Roth for a Child/Grandchild: If they have earned income, open a Roth IRA for them and treat it like a savings account.