Self-managed retirement accounts are growing in popularity among advanced investors, as they offer a level of flexibility not found in traditional saving accounts. Our Rock Dollar review will tell you if this self-directed retirement investing platform has the tools and features to help you plan for your future.
Rocket Dollar Review: Overview
Rocket Dollar is an investment company geared towards experienced investors who want to take a more active role in their retirement investments.
Henry Yoshida, Thomas Young, and Rick Dude founded Rocket Dollar in 2018.
According to its website, Rocket Dollar wants to “make it safe, simple, and fast for people to take control of their retirement savings.”
It’s significantly less restrictive than typical retirement savings apps, many of which only offer a handful of cookie-cutter portfolio options.
Rocket Dollar’s higher-tier plan also includes cash management options, like debit cards and check writing.
Top-tier account holders also qualify for priority support and assistance with tax filing.
What Is Rocket Dollar?
Rocket Dollar sets itself apart from other investment platforms by allowing you to manage your own retirement investments, as opposed to traditional solutions such as IRAs and 401(k)s.
Unlike other investment platforms, you’re the one making all the decisions with your account, not stockbrokers nor financial advisors.
How Does Rocket Dollar Work?
Rocket Dollar’s services are designed for traders who want more control over their tax-advantaged retirement investments.
Users manage their own IRAs or solo 401(k)’s, so they have much more flexibility over what ends up in their portfolio.
Self-directed retirement accounts allow investors to use their retirement funds on alternative investments like real estate or precious metals, as well as cryptocurrencies and digital tokens.
Is Rocket Dollar Legit?
Rocket Dollar stepped onto the IRA scene back in 2018 and has been making waves ever since.
The company does not hold any of your funds, although the banks it partners with do.
Also, Rocket Dollar is a SOC-2 certified company and continues to update its systems with the best practices.
The company takes a somewhat hands-off approach to your retirement account, leaving you responsible for investments and decisions.
Rocket Dollar does not provide any form of investment advice.
Is Rocket Dollar Safe?
Yes. Rocket Dollar is safe to use, and the service has one guarantee.
The only guarantee Rocket Dollar offers is that you can always transfer your money to another source, even if the company goes belly up.
What Does Rocket Dollar Include?
Rocket Dollar offers a variety of investment options for your retirement portfolio, including alternative investments.
- Self-directed IRA
- Solo 401(k)
- Checkbook control of investments
- Asset classes
- Knowledge case
Rocket Dollar Self-Directed IRA Review
It goes without saying that the Self-directed IRA is the standout feature of Rocket Dollar.
An alternative to a traditional IRA through an employer, Rocket Dollar allows you to invest your money into a self-directed IRA account that puts all the options in your hands.
With 100% control over your Rocket Dollar portfolio, you can invest in whichever assets you prefer.
No Minimum Investment for Your Retirement Account
The beautiful thing about Rocket Dollar’s self-directed IRAs is that there’s no minimum investment amount and no requirement on the rate of investment.
These IRAs, like all others, are required to follow IRS guidelines on the total amount that can be invested per year.
With all of these plans, there are no auto-investing options.
You’ll have to manage your portfolio personally.
Rocket Dollar’s traditional IRA allows you to invest your money tax-deferred, just like any other.
It stands out by allowing you to invest in one or many different types of assets that you — and only you — control.
These funds can be deducted from taxes as well.
You are limited to contributions of $6,000 per year, or $7,000 if you’ve reached 50 years of age.
A Roth IRA is similar to a traditional IRA, except your money comes in pre-taxed.
Once it’s time to take the money out of your account, you can do so tax-free.
The Roth IRA still gives you the flexibility to invest in whichever assets you want, with the same limitations on how much you can contribute each year.
SEP (simplified employee pension) IRAs are set up for individuals with small businesses.
Employers are allowed to contribute up to 25% (with a maximum of $57,000) of an employee’s income, as desired.
Employees must meet specific criteria to qualify for a SEP IRA.
Rocket Dollar Solo 401(k) Review
It may come as no surprise that a Solo 401(k) plan is set up for a single individual.
A Solo 401(k) is designed specifically for self-employed workers who have no employees and offers the same benefits as a traditional 401(k).
What makes this plan really stand out is that owners can contribute as both an employer and an employee.
As an employer, you can contribute up to 25% of your total compensation to your Solo 401(k).
As an employee, you’re allowed to contribute up to $57,000 yearly.
To sweeten the pot further, you’ll also get all the tax benefits that come with such a plan.
Rocket Dollar Review: Checkbook Control of Investments
Rocket Dollar offers its users “checkbook control”.
This gives account holders complete control over their investments.
When you set up your retirement account, you’re required to open up a limited liability company (LLC) bank account for an IRA or a trust bank account for a solo 401(k).
Using these accounts, you can buy assets with a debit card or check, just like with regular bank accounts.
However, you don’t technically own these funds.
Rocket Dollar maintains legal ownership to prevent you from violating IRS regulations regarding the separation of investment and personal-use funds.
Rocket Dollar Account: Tax-Advantaged Investments and More
This distinction allows Rocket Dollar users to make tax-advantaged investments in a variety of assets.
Generally, it takes tons of paperwork and other special accommodations to purchase alternative assets through a retirement account.
Most 401(k) and IRA accounts don’t allow alternative asset investing because the legal process is so complicated.
However, Rocket Dollar’s approach makes it easy to expand your investing horizons while maintaining tax advantages.
Rocket Dollar Asset Classes Review
Here is a quick rundown of the kinds of asset classes you can add to your retirement savings account.
These investment classes include:
- Precious metals
- Real estate
- Private equity
- Traditional investments
There are plenty of unique asset classes you can invest in, so you can check the Rocket Dollar Website for more information if you’re interested in one that’s not on this list.
You can trade precious metals like gold, silver, palladium, and platinum through Rocket Dollar’s partner, the U.S. Gold Bureau.
Typically, holding precious metals is cumbersome because of the difficulties associated with storage and security.
However, Rocket Dollar allows you to easily purchase and store physical metals at the Texas Bullion Depository.
Most institutions won’t allow retirement accounts to purchase cryptocurrencies, so it’s hard to make tax-advantaged crypto investments.
However, Rocket Dollar users can buy crypto through the platform’s self-managed offerings.
There’s only one catch: you have to set up a crypto wallet to hold your digital investments.
Real estate is one of the best-returning assets and alternative investments from a historical perspective.
However, you can’t buy a property through retirement accounts that are under your own name.
If you decide to purchase real estate for your IRA, it has to be for investment purposes.
IRS regulations also prohibit you from residing in the property or personally managing repairs.
It sounds like it’s more trouble than it’s worth, but the potential tax benefits are astounding.
Thankfully, Rocket Dollar offers a variety of services to help you navigate these challenges, so investing in IRA real estate and other alternative investments is easy.
Companies typically undergo their fastest growth phase before they go public. In the past, most retail investors couldn’t partake in these exclusive deals.
However, Rocket Dollar allows you to buy shares of private companies with retirement accounts.
You can also use your retirement funds to make venture capital investments and issue expansion loans.
You can also buy traditional IRA/401(k) investments like stocks, bonds, and mutual funds.
However, Rocket Dollar is overkill if this is all you’re planning to do.
This is just a taste of the vast universe of investments you can make with your Rocket Dollar account.
You could even invest in cattle, racehorses, and livestock through the app, as Rocket Dollar makes it easy to incorporate alternative investments into your retirement accounts.
Money laundering regulations restrict investments in ATM-based businesses, but you can invest in practically anything other than that.
Rocket Dollar Knowledge Base Review
Mixed into Rocket Dollar’s knowledge base is a series of articles about different topics on traditional IRAs, a solo 401(k) or self-directed IRA, investment assets, and much more.
These are available to anyone who pays a visit to the Rocket Dollar website.
In addition, Rocket Dollar has the “Rocket Your Dollar” podcast with around 50 (and counting) episodes from the founders that cover similar topics.
How Much Does Rocket Dollar Cost?
A Rocket Dollar account is a bit different than other investment tools because it does not charge assets under management fees
Instead, Rocket Dollar has a subscription-based pricing model. Users can choose between two different plans.
However, each plan requires a base fee and a monthly fee to keep the account running.
Let’s check out Rocket Dollar pricing.
Rocket Dollar Core Account
The Core Account has all the fixings of a solid starter package to get your retirement portfolio off the ground.
There’s no minimum opening deposit you can come in at any level.
There’s no cost to transfer funds over from your current account, and you’ll have access to an investment dashboard to track investments.
Also included is the LLC to hold investments for IRAs, online storage for documents, and all the email support you need.
The Core Account has a $360 one-time setup fee, paid at the time of registration.
After that, no matter how much is in your account, you’ll pay a flat rate of $15 per month to keep it up and running.
Rocket Dollar Gold Account
In addition to everything the Core Account has to offer, the Gold Account gives you expedited service and transfers, and four free wire transfers per year.
You’ll also receive a physical debit card for your investment account, a custom named LLC for your IRA, and priority support should you have any issues.
Setting up a Gold Account costs a one-time fee of $600.
After that, users will pay $30 per month to keep the account active.
Rocket Dollar Review: Cancellation Policy
Rocket Dollar offers new users 30 days to feel out the plan.
If you’re not satisfied during that time, the company will refund you 100% of the initial one-time fee.
If you choose to cancel your account after the first 30 days, you can use your account for the rest of the billing month.
Afterward, it will no longer be available to you.
Rocket Dollar will work with you to transfer your funds out of your account.
Rocket Dollar offers a lot of flexibility for users, but there are a few drawbacks to consider as well.
Let’s take a look at some of the pros and cons of using Rocket Dollar, so you can decide if it’s the right service for you.
Rocket Dollar Pros
- No minimum initial investment
- Several assets to choose from, including solo 401(k) and self-directed IRA
- Access to more investment alternatives
- Multiple IRA options
- No minimum initial investment
- Flat monthly fee
- Easy setup
Rocket Dollar Cons
- Monthly Rocket Dollar fees are high for small accounts
- Some investment options are less liquid
- Solo 401(k) and self-directed IRA might not be a good start for someone who needs a more directed approach
- High setup costs
Is Rocket Dollar Right for Me?
Rocket Dollar’s services and self-directed IRAs have a lot to offer, thanks to the flexibility of available asset options.
Anyone who wants to step out of an employer-driven IRA and take control of their own retirement destiny will benefit from this service.
Some beginners to the world of IRAs may feel overwhelmed at first since Rocket Dollar doesn’t offer a whole lot in the way of instruction.
Fortunately, it shouldn’t take long to find your groove.
More advanced investors will appreciate the chance to make tax-advantaged investments in a wide range of assets.
However, you probably don’t need Rocket Dollar if you’re only interested in basic investing options.
Rocket Dollar is also an excellent fit for advanced investors interested in expanding their retirement portfolios beyond stocks and bonds.
Is Rocket Dollar Worth It?
Rocket Dollar is a unique platform that offers users the opportunity to invest in a wide variety of assets under their retirement accounts.
And its self-directed IRAs are a big draw for many investors.
Rocket Dollar’s unique ability to facilitate these transactions makes it a game-changer for these types of investors.
The tax advantages alone make this app a worthwhile investment.
If you’re interested in buying alternative assets through your retirement account, you should definitely give Rocket Dollar a close look.