Preparing for retirement isn’t something that most people enjoy thinking about, yet it’s something we all need to do. For those who already have a 401(k) through their employer, the options seem fairly straightforward. However, things get a little more complicated for those who are self-employed.
If you are self-employed, chances are, you’ve probably heard of the term “self-directed IRA” before. This type of self-directed retirement account allows individuals to take advantage of investment opportunities using self-employment income (or roll over previous funds from a pre-existing retirement account).
In this article, we’ll be exploring the Rocket Dollar Self Directed IRA. Unlike many other investment platforms that only offer traditional retirement investing options, Rocket Dollar specializes in self-directed IRAs and solo 401(k)s.
This platform goes far beyond traditional options like stocks and bonds, enabling users to invest in many alternative investments as well. Is Rocket Dollar the right retirement solution for you? Keep reading to find out if this is the best platform for achieving your retirement goals!
Learn More About Rocket Dollar Self Directed IRA
What is Rocket Dollar?
Rocket Dollar is a low-cost investment company that allows individuals to open and manage self-directed IRAs and solo 401(k)s through an LLC. Rather than simply letting your taxable income sit in a savings account (accumulating minimal interest), Rocket Dollar’s platform enables you to take advantage of a variety of investment opportunities.
Beyond traditional investments, you’ll also be able to take advantage of alternative investment types (such as cryptocurrency, private equity, and real estate investments). The wide variety of investment opportunities available makes Rocket Dollar a good option for anyone, even those who are already employed.
Additional income (such as profits from a rental property) can be placed into these individual retirement accounts, allowing you to diversify the spread of your retirement contributions by using more than one retirement plan.
As always, we suggest talking to a financial advisor to ensure you stay within any relevant contribution limitations, requirements, and/or restrictions.
You can read a more in-depth explanation of the platform by clicking here.
What is a Self Directed IRA?
Self-directed IRAs (individual retirement accounts) are accounts that allow an individual to invest their retirement funds in a variety of alternative assets—such as REITs or mutual funds—in addition to more traditional assets.
Although the account itself is self-directed, you’re still required to have a custodian for the account. There are also certain limitations imposed by the IRS that restrict the types of assets in which you are permitted to invest.
Still, the added level of control and potential for higher returns make self-directed IRAs an appealing option to many people.
The Benefits & Drawbacks of Using Rocket Dollar
Here’s a quick overview of the main things you’ll want to think about when considering using Rocket Dollar.
- Transparent pricing – You’ll know exactly how much Rocket Dollar will charge you for its services before creating an account.
- No minimum deposit – Whether you have a lot or a little, Rocket Dollar is willing to work with you.
- Support for a wide variety of assets – The biggest advantage of opening a self-directed IRA is the support for various types of assets. Although alternative asset classes/nontraditional assets are the most common investment vehicles for these types of accounts, you’ll still be able to make traditional investments as well (if desired).
- Good customer support – The Rocket Dollar sales team will assist you in the process of making a limited liability company for your IRA. Silver members only have access to email support, whereas Gold members are granted priority support (phone & email).
- Ongoing expenses – You’ll need to pay a premium each month for the privilege of having a self-directed IRA.
- Complete control – Opening an IRA with Rocket Dollar will give you checkbook control, which allows you to make transactions as acting as your LLC. However, even though some investments are prohibited by the IRS, Rocket Dollar will still let you make these.
Pricing for Rocket Dollar’s service is extremely simple. You have the choice of two plan options: Silver or Gold. Both plans include the ability to make unlimited investments and allow complete access to the online platform. Pricing is as follows:
- Silver: $360 one-time setup fee, $15 ongoing monthly cost
- Gold: $600 one-time setup fee, $30 ongoing monthly cost
Certain types of investments—such as mutual fund investments or real estate investments—may incur investment fees. You may also be charged wire transfer or ACH fees.
How to Get Started with Rocket Dollar
It’s easy to begin the investment process with Rocket Dollar’s services. To start, simply head over to their website and create an account. From here, you’ll be able to select which plan you want. Rocket Dollars will guide you through the process of creating an LLC for your future retirement savings.
Once the initial setup process has been completed, you’ll be able to start funding your account using the available eligible investment opportunities, and purchase assets for the LLC using your checkbook control privileges. You can track your ongoing processes using Rocket Dollar’s provided investment tracker.
Rocket Dollar Self Directed IRA: A Summary
For those who want complete control of their retirement savings and want to be able to pursue alternative investment options, Rocket Dollar’s self-directed IRA services are an appealing option. The platform itself is relatively easy to use, pricing is transparent, and the company will provide a high level of support as you make each investment decision.
That said, a Rocket Dollar Self Directed IRA won’t be for everyone. If the idea of paying monthly fees in exchange for expanded investment opportunities doesn’t sound intriguing to you (or you simply won’t take advantage of the additional investment vehicles), then a traditional IRA may be a better option.
However, for those who want complete control and expanded investment opportunities, Rocket Dollar is definitely a promising prospect. You can learn more about—and sign up for—the service by clicking here!