Self Directed IRA Investing

I’ve been thinking for the past few weeks how best to organize and show important data like ROI and Cash on Cash Returns.   I’ve explained in detail my Yields or ROI in other posts.    Cash on Cash Return is the Yearly Cash Flow divided by the Cash Invested.  With out figures like that and a way to vaildiate them, quoted figures are hard to understand.   

I’ve taken all the important parts of the Notes I have in my Roth Self Directed IRA and logged them into a spreadsheet. I’m going to stick with this sheet and add to it every month.  I’m open to comments and if you think there is a better way to show what I have in my spreadsheet please email me or leave a comment, I’m interested in your ideas.

Here’s what I came up with. 

If you scroll down in the spreadsheet you’ll see that so far my Self Directed IRA has a Total profit of $10,927.89 and my ROTH IRA is worth $63,145.36

The return so far is 20.93% .  I came up with 20.93% by dividing my Profit by the Cost of Investments.  My Cash on Cash Return for this coming year will be 24.64%. 

I arrived at the Cash on Cash Return for the year starting last June 2007, because that’s when I started to have the current cash flow of $1072.13 a month.  The period for the Cash on Cash Return is from June 2007 to June 2008.  I think it’s a good benchmark to see if what you are about to do is worth the effort, however it not good enough for me to rely on that alone.

I Hope this helps to make it easier to understand why I take the effort to actively manage my own IRA account.  As always comments are welcome.  I think I have another Note I’m going to create and add to my Portfolio, I’ll write a post next week if the deal goes through.

Will

This entry was posted on Friday, September 28th, 2007 at 11:53 pm and is filed under My SDIRA Accounts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.