The Rule of 72 Explained - How to Double Your Money

Directed IRA Podcast

Directed IRA Podcast
The Rule of 72 Explained - How to Double Your Money
Aug 20, 2026 Season 8 Episode 10
Mat Sorensen and Mark Kohler

Tired of paying more to the IRS on your investment gains? A self-directed IRA can help you take advantage of tax-advantaged investing while giving you more control over where your retirement dollars go. Book a free 15-minute call with Directed IRA to learn more and get started 

In this episode of the Directed IRA Podcast, Mark and Mat Sorensen break down the Rule of 72 and explain how investors can use this simple calculation to understand the power of compounding and the time it can take for an investment to double.

The conversation explores how rate of return, taxes, fees, and the type of investment account can significantly impact long-term wealth. Mat and Mark use real-world examples to compare different rates of return and demonstrate how even seemingly small differences can create substantial gaps in portfolio growth over time.

They also discuss how self-directed IRAs can give investors greater flexibility to choose from a broader range of investments, including real estate, private lending, private funds, precious metals, cryptocurrency, and other alternative assets. The episode highlights the importance of considering not only potential returns, but also tax efficiency and investment costs when evaluating long-term strategies.

In this episode, they discuss:

  • How the Rule of 72 estimates the time it takes for an investment to double
  • Why compounding can have such a significant impact on long-term wealth
  • How different rates of return can change the trajectory of an investment
  • The potential impact of taxes and fees on investment growth
  • Why tax-advantaged accounts can help reduce the impact of taxes on investment returns
  • How self-directed IRAs provide the flexibility to invest beyond traditional Wall Street assets
  • The importance of evaluating investment opportunities based on long-term growth rather than short-term performance

The episode ultimately focuses on a simple question for investors: How can their money work harder for them over the long term?

For questions or to learn more about this episode's topic, book a call with an IRA specialist here: https://directedira.com/appointment/

Interested in learning more about alternative investments? Join us this year at the Alternative Asset Summit October 22 & 23, where you'll hear from industry experts and connect with like-minded investors exploring new ways to build wealth: https://altassetsummit.com/

Other:

Mat Sorensen: https://matsorensen.com

Mark J. Kohler: https://markjkohler.com/ 

KKOS: https://kkoslawyers.com

Main Street Business https://mainstreetbusiness.com