Rocket Dollar Review – Everything I Know About It

TL; DRMy Rocket Dollar review explains what I learned about the company after diving deep into the services provided. They offer a lot of IRA and 401k options today. If you’re interested in learning about the services, then check out the full review below. Review


Reviews of Rocket Dollar

Rocket Dollar is an affordable investment platform allowing ordinary individuals to utilize self-directed IRAs and solo 401ks, including traditional and Roth IRA options. Exploring self-directed accounts like those offered by Rocket Dollar’s investing partners could benefit self-employed individuals or possess substantial IRA or rollover IRA accounts. The platform strongly emphasizes ensuring the setup and management of its plans are uncomplicated, allowing users to divert their attention to other pertinent matters.

Distinguishing itself from other investment platforms, Rocket Dollar’s services extend to conventional investments and unconventional alternatives, specifically focusing on the latter. This alternative investment platform offers remarkable flexibility in investment choices, empowering investors to make well-suited decisions aligned with their financial aspirations. Nevertheless, it’s important to note that the platform’s array of investment possibilities might overwhelm or pose risks to the average investor.

Essential insights regarding the company and its array of services are presented herein.

What’s Rocket Dollar?

Established in 2018, Rocket Dollar’s mission is to simplify the process of storing retirement assets that go beyond the scope of traditional brokerage accounts. This innovative financial institution offers the opportunity to open an Individual Retirement Account (IRA) or a Solo 401(k) that accommodates a diverse range of assets.

Rocket Dollar transforms your investment account into a registered company upon creating a new account. In select states, the organization establishes a Limited Liability Company (LLC) for your IRA, allowing it to operate as an independent “enterprise” on your behalf.

While alternative approaches exist, this represents the most straightforward and fundamental method for leveraging a retirement account to invest in assets such as real estate.

Investment Possibilities

Enrollees of Rocket Dollar’s self-directed investment services gain access to various alternative asset classes, all of which can contribute to their retirement savings. The platform collaborates with multiple investment partners, streamlining the investment process experienced investors make through Rocket Dollar. Nevertheless, investors are not confined solely to the platform’s partners.

One of the standout features of Rocket Dollar is the freedom to invest in any desired asset, although the complexity may vary. Certain opportunities listed entail minimal setup requirements. Presently, these opportunities encompass:

  • Precious metals
  • Peer-to-peer lending
  • Commodities
  • Startup financing
  • Business loans
  • Equity crowdfunding
  • Conventional lending
  • Private equity investment
  • Various cryptocurrencies tailored to crypto investors
  • Real estate ventures, including Real Estate Investment Trusts (REITs) and rental properties

Additionally, Rocket Dollar embraces the concept of “BYOD” (Bring Your Own Deal). This process empowers investors to integrate unlisted offerings from private companies into their IRA or 401(k) account.

Fortunately, you won’t have to navigate the intricacies alone. Rocket Dollar’s team of specialists is readily available to assist you in setting up the necessary procedures, enabling seamless and effective diversification of your investments.

Investing in Conventional Assets

Rocket Dollar’s main allure is the ability it grants investors to capitalize on a wide spectrum of alternative investment options and opportunities. Unlike traditional IRAs and 401(k)s that adhere to the guidance of an investment team, Rocket Dollar facilitates a broader scope of asset choices.

While conventional options mutual fund investments like certificates of deposit, real estate, or mutual funds suit some preferences, Rocket Dollar becomes especially enticing for investors seeking greater portfolio diversity. This is particularly relevant for large-scale investors.

However, why restrict oneself to solely alternative assets? With Rocket Dollar, you can enjoy a blend of non-traditional and traditional investments. Though Rocket Dollar doesn’t overtly advocate traditional investments for retirement funding, it’s still feasible. You can achieve this by opening a brokerage account through your Rocket Dollar IRA or Solo 401(k), as long as the chosen brokerage accepts LLC application fees rocket dollar.

When setting up an account with the brokerage, you’ll utilize your LLC’s Employer Identification Number (EIN) instead of your social security number. Depending on your situation, you can:

  • Open a business trading account for your self-directed LLC
  • Open a trust trading account if you have a Rocket Dollar Solo 401(k) trust

It’s important to note that while margin accounts and shorting stocks aren’t available, you can still engage in options, puts, and calls trading.

Rocket Dollar Highlights

Empowerment in Retirement Investment

Rocket Dollar offers a level of control that distinguishes it from most brokers. While traditional brokers often limit you to selecting equities or mutual funds, Rocket Dollar goes further, allowing you to own unconventional assets like a herd of cattle.

The Concept of IRA LLC

At Rocket Dollar, initiating a new IRA involves the creation of a parallel Limited Liability Company (LLC) and an associated LLC bank account. This IRA LLC legally safeguards your assets and plays a pivotal role in functioning self-directed retirement accounts.

Checkbook Authority

Upon activation, your account grants you “checkbook control,” a term coined by Rocket Dollar. This allows you to acquire assets from the LLC bank account’s checkbook.

Note: Before proceeding, it’s strongly advised to consult legal experts to ensure your investments remain compliant and don’t inadvertently lead to prohibited transactions, which can result in substantial financial penalties.

Constraints to Consider

While investing through Rocket Dollar’s Self-Directed IRA or Solo 401(k) offers numerous benefits, such as diversified asset access and FDIC cash balance protection, akin to traditional investing with conventional assets, certain constraints and regulations exist that self-directed investors need to uphold. Ensuring your investments align with these parameters is crucial.

Here are a few factors to bear in mind when contemplating potential contributions to your retirement portfolio:

  • Solo 401(k)s exclusively cater to self-employed individuals and sole proprietors. You don’t qualify for this plan if you have employees or are part of a company with employees (excluding your spouse).
  • It’s imperative not to surpass the stipulated annual limits for employee and employer contributions. Since these limits are subject to annual changes, reviewing updated figures is advisable to avoid over-contributing.
  • According to IRS guidelines, certain assets, like life insurance or collectibles, fall under the “prohibited transactions” category. Before finalizing your investment choices, ensure your selections adhere to permissible asset categories.

Is Rocket Dollar Legit?

Rocket Dollar is a fully legitimate company. Originating in 2018, it operates a cutting-edge self-directed IRA and solo 401(k) platform, enabling investors to engage in traditional and alternative assets that usually lie beyond the scope of conventional brokerage accounts. The company’s reputation has garnered praise from numerous clients and industry publications, applauding its innovative stance on diversifying investment portfolios.

Rocket Dollar scrupulously adheres to the regulations delineated by the Internal Revenue Service (IRS) governing self-directed IRAs and solo 401(k)s. They furnish a legally compliant framework, be it an LLC or trust, to safeguard your assets. Furthermore, they equip you with the means to invest across a broad spectrum of assets—ranging from conventional stocks and bonds to alternative investment options, like real estate, cryptocurrencies, and private equity.

Stringent security protocols are embedded into the company’s operations to safeguard customer data. At the same time, their transparent monthly fee structure—comprising a one-time setup fee and an ongoing monthly charge contingent on the selected plan—reflects their commitment to clear communication.

Nevertheless, as with any investment platform, it’s paramount for prospective investors to grasp the inherent risks tied to investing, particularly in alternative assets. While it provides the tools and platform for investment, the onus rests on each investor to make well-informed investment decisions.

In addition, Rocket Dollar’s customer service is accessible and responsive, with the customer support team offering invaluable assistance in guiding customers through the intricacies of the process and addressing any queries that may arise.

Why Having Different Kinds of Investments in Your Retirement Account Can Be Good

Adding different alternative investments to your retirement account can bring some good things. It’s like giving your long-term money plan a special twist. Here are a few reasons to think about these not-so-normal investments:

1. Being Different:

These special investments, like land, stuff like gold, private companies, and online money, can make your collection of investments more mixed. They can act in their own way, unlike regular company pieces, which can help balance out problems and maybe make it so you don’t lose too much money when the markets get crazy.

2. Bigger Chances of Making More:

Some special investments, like private companies and new businesses, can make you much extra money, sometimes more than regular investing methods. But these can also be risky, so you need to be careful. Still, the chance to get way more money can make them worth adding to your retirement savings.

3. Guard Against Prices Going Up:

Special investments like land and important stuff can help when prices go up a lot. These things usually get more expensive when that happens, so it’s like they’re protecting the value of your retirement money.

4. Not Like the Regulars:

These special investments don’t always do what regular investments do. This can be good because when the regular things go down, these special things might go up, which can help keep your collection of money safe.

5. Finding New Ways:

Special investments can show your collection of money new things that are becoming popular. For example, putting your money in online money or new companies can help you be part of new ideas and cool business plans.

6. More Control:

If you know a lot about investing, having special investments lets you do more with your retirement funds and collection. You can use what you know to make more money, maybe.

But remember, special investments aren’t right for everyone. They can be more dangerous, complicated, and difficult to turn into cash than regular investments.

That’s why they usually say these are for people who know much about investing and can wait a long time. Like always, it’s smart to talk to someone who knows about money before you start trying these special investments.

Who Would Benefit Most from Rocket Dollar?

Rocket Dollar’s services are made for a certain kind of person who wants to handle their investments in a specific way. Because it’s all about investing on your own and trying out different investment styles, here are the types of people who might like using investment platforms from Rocket Dollar the most:

  • People Who Like to Decide

    Rocket Dollar is a great tool for you if you’re good at choosing where to put your money without needing much help. It’s like a playground for people who want to make their own investing choices.

  • Those Into Different Investments

    Suppose you’re curious about investing in special real estate, private companies, lending money to others, online money, and important stuff. In that case, Rocket Dollar is a place where you can do that. They’re not just letting you do it – they want you to!

  • Folks Who Know the Game

    Because special investments can be tricky and risky, Rocket Dollar works best for people who know much about investing and can handle the risks smartly.

  • One-Person Businesses

    If you work for yourself or have a little one-person business, the solo 401(k) option could help you. It might let you put more money away for later than a regular savings plan, and you can invest in lots of different things.

  • People Who Want to Mix Things Up

    If you’re tired of only having regular stocks, company pieces, and mutual funds in your savings, Rocket Dollar can help you add more exciting things to your mix.

  • Investors in it for the Long Haul

    Because special investments often take a long time to grow and IRAs and 401(k)s help you save on taxes, Rocket Dollar can be super interesting if you plan to invest for a long time.

But remember, even though Rocket Dollar can be perfect for these types of people, you should always consider your money goals, how much risk you can handle, and what you know about investing before you start trying new things or investing on your own.

Rocket Dollar Cost and Membership Options

When you sign up with a Rocket Dollar account, they’ll ask you to pay a fee to get started. The cost of starting up and being a member depends on the plan you pick.

Remember, there might also be extra charges for moving money around. And while Rocket Dollar doesn’t make you pay to invest, the places where you invest might charge you.

Remember these extra costs when considering saving money when you’re not working.

Types of Memberships

Right now, Rocket Dollar has two kinds of memberships: “Silver” and “Gold.”

If you choose the Silver plan, you must pay $360 to start. This money will help you set up your special company, which you’ll use to invest. After that, you’ll pay $15 each month. With the Silver plan, you get the basics like an investing dashboard, a way to track your investments, and you can use all of Rocket Dollar’s investing friends.

The Gold plan is for people who want things to happen quickly and extra special treatment. It gives you everything in the Silver plan, faster service, a special card to take money out of your account, help with taxes, and the chance to talk to customer service before others.

Conclusion: Rocket Dollar Is A Good Choice

Deciding on a Rocket Dollar plan involves understanding the fees, benefits, and services of each option. Whether you’re looking for a simple start or a more premium experience, choose the plan that aligns with your investing goals and preferences.