Rocket Dollar Review 2023
|By: Jeremy Biberdorf||Nov 26, 2022|
In a nutshell: Rocket Dollar is a low-cost investment platform that enables regular people to use self-directed IRAs and solo 401ks. If you’re self-employed or have a big IRA or rollover IRA account, you might want to look into self-directed accounts like those offered by Rocket Dollar. It prioritizes making its plan simple to set up and control so you can focus on other issues.
Rocket Dollar’s services can be used for traditional investments as well as alternative investment options, although the latter is its specialty. With nearly complete investment flexibility, this alternative investment platform allows investors to make the best investment choices to meet their specific financial and investment goals. However, the sheer number of investment opportunities can make the platform overwhelming—or even harmful—to the average investor.
What you need to know about the firm and its services is here.
|Investment platform||$15/month plus a $360 setup fee||None|
- BYOD (Bring Your Own Deal).
- Investment diversification.
- Self-directed retirement accounts.
- Provides both IRAs and 401(k) plans.
- No standard investments or accounts.
- Expensive fees
- Lower-tier accounts have fewer customer service options.
Compare to Other Investment Platforms
Fees$0 per trade
Fees$0-$10 per month
Full Rocket Dollar Review
Consider Rocket Dollar if you’re looking to invest in alternative assets and are interested in a solo 401(k) plan or self-directed IRA.
You can invest in non-traditional assets using this Rocket Dollar’s platform, including cryptocurrencies, private equity, precious metals, real estate, and peer-to-peer loans.
Rocket Dollar is a great way to diversify your investment portfolio. You can still increase your portfolio even if your work offers a retirement plan by using Rocket Dollar to invest in non-traditional assets.
Rocket Dollar is best for:
- Self-directed alternative investment traders.
- Experienced investors.
- Everyday retirement savers.
- Day traders.
Although self-directed IRA service providers have been operating for some time, many investors have avoided them for two reasons: high fees and limited investment options.
These are the things new companies like Rocket Dollar have come to fix. It has a cutting-edge website that makes maintaining your account simple, offers transparent fees, and imposes no restrictions on the types of investments you can make.
What is Rocket Dollar?
|Services||Trading and investment platform|
Founded in 2018, Rocket Dollar aims to make it simpler for investors to store assets for retirement that aren’t possible with conventional brokerage accounts. You can open an IRA or Solo 401(k) with this special financial organization that works with almost any asset.
Rocket Dollar sets up your investing account as a company when you open a new account. Rocket Dollar will create an LLC for your IRA in some states to run its own “enterprise” on your behalf.
While there are other possibilities, this is the simplest and most basic approach we’ve found for using a retirement account to invest in real estate or other assets.
Those who subscribe to Rocket Dollar’s self-directed investing services will enjoy a wide variety of alternative asset classes. All of these assets can be used to fund an investor’s retirement savings. The platform works with a few different investing partners who offer a streamlined investing process through Rocket Dollar. However, you’re not limited to only investing with Rocket Dollar’s partners.
The best part about investing with Rocket Dollar is that you can invest in any asset you’d like, though the process is more complicated for some. Listed opportunities will require the least setup on your part. Currently, these opportunities include:
- Peer lending
- Startup lending
- Business loans
- Equity crowdfunding
- Conventional lending
- Private equity lending
- Various cryptocurrencies for crypto investors
- Real estate investments, such as REITs (real estate investment trusts) or rental properties
However, Rocket Dollar also supports “BYOD” (Bring Your Own Deal). BYOD is the process that allows investors to add unlisted deals offered by private companies to their IRA or 401(k) account. Fortunately, you won’t have to navigate the paperwork alone. Rocket Dollar’s team of specialists will help you get everything set up, allowing you to easily and effectively expand your investments.
Investing in Traditional Assets
The main appeal to Rocket Dollar is that it allows investors to take advantage of many different investment opportunities. Traditional IRAs and 401(k) are managed by an investment team, which restricts the types of assets you can invest in. These are fine options if you’d prefer to stick to more traditional options such as certificates of deposit, real estate investments, or mutual fund investments. However, if you’re one of the larger investors who need more variety in their portfolio, Rocket Dollar quickly becomes an appealing offer.
Nonetheless, why only invest in alternative assets? You should be able to enjoy both non-traditional and traditional investments; with Rocket Dollar, you can! Although Rocket Dollar doesn’t openly promote making traditional investments to fund your retirement savings, you still can if you open a brokerage account using your Rocket Dollar IRA or solo 401(k).
As long as the brokerage you’re considering accepts LLC applications, you’ll be able to invest in traditional assets on the brokerage through your LLC. When creating an account on the brokerage, you’ll need to provide your LLC’s EIN (Employer Identification Number) instead of your social security number.
- Open a business trading account if you have a self-directed LLC
- Open a trust trading account if you have a Rocket Dollar Solo 401(k) trust
It’s important to note that you will not be able to have a margin account or short stocks. However, you can still trade options, puts, and calls.
Rocket Dollar Features
Self-directed Retirement Investing
Rocket Dollar gives you complete and total control, whereas most brokers let you select your equities or mutual funds. You could even own your herd of cattle if you so choose.
At Rocket Dollar, when you create a new IRA, you also create a new LLC and LLC bank account. The IRA LLC legally holds your asset. This company is essential to the self-directed retirement account’s operation.
Once your account is active, you have what Rocket Dollar terms a “checkbook control.” This implies you can use the LLC bank account’s checkbook to purchase assets.
Note: Please consult your legal counsel to ensure that your investments do not turn into prohibited transactions, which could have very costly consequences.
Investing with a Rocket Dollar Self-Directed IRA or Solo 401(k) comes with many advantages, such as having access to various types of assets and FDIC cash balance protection. Still, similar to traditional investing with conventional assets, there are still limitations and restrictions that self-directed investors must adhere to. You’ll want to make sure that—if you have any potential investment in mind—your investments will fall within these guidelines.
Here are a few examples of things to keep in mind while considering potential contributions to your retirement funds:
- Solo 401(k)s are for self-employed persons and sole proprietors only. You are not eligible for this plan if you have any employees, and no employees—excluding your spouse—can make plan contributions
- You cannot exceed annual employee and employer contribution limits. These limits change yearly, so we recommend looking at the updated limitations to ensure you don’t over-contribute.
- Some assets—such as life insurance or collectibles—are considered “prohibited transactions” by the IRS. Ensure your investments are permissible assets before finalizing your investment.
Rocket Dollar Pricing
For creating your account, Rocket Dollar charges a one-time activation fee. The applicable activation fee and ongoing membership fee vary, depending on the plan you choose. You may also be responsible for ACH or wire transfer fees. While Rocket Dollar itself does not charge commission fees, the platform(s) you use to acquire assets may do so. You should take these additional costs into consideration when planning your retirement savings investment decisions.
Currently, Rocket Dollar offers two types of membership plans: “Silver” and “Gold.”
You’ll need to pay a one-time setup fee of $360 if you choose the Silver plan. This fee will cover the cost of forming your limited liability company, which will be used to make any and all investments. Besides the initial fee, you’ll also be charged a monthly fee of $15. The Silver plan includes all the basic features of Rocket Dollar, including the investment dashboard, investment tracker, and access to all of Rocket Dollar’s investing partners.
For investors in a rush who want a premium experience, there’s the “Gold” plan. This plan includes all of the benefits of the “Silver” plan, plus expedited service, an account debit card, tax filing services, and priority access to the customer support team.
Frequently Asked Questions
Yes, Rocket Dollar is a legit investment firm. However, it is still very new. It was founded in 2018 and had its headquarters in Austin, Texas.
It is not currently listed by the Consumer Financial Protection Bureau (CFPB) or registered with the BBB (Better Business Bureau). As a result, partnering with a startup company may involve taking a big risk. Additionally, other investment options may be unstable and illiquid.
The IRS establishes the rules for establishing an individual or solo 401(k), also known as a one-participant 401(k). You must have some sort of self-employment revenue from a business with no workers (aside from your spouse) to be eligible for a one-participant 401(k).