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Rocket Dollar Review: Best Alternative Investments in Your IRA?

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Rocket Dollar Review

Rocket Dollar logo

Rocket Dollar is a U.S. based financial services company founded in 2018 to provide a one-stop-shop account for your retirement investments. The company is known for offering Self-Directed IRAs and Solo 401s allowing you to invest retirement savings into your chosen asset class.

Legit & Safe

Service Fees

Min Investment

Portfolio Mix

Pros

  • Flat account fee – $15 for Core account and $30 Gold account per month
  • A great variety of assets you can invest in (stocks, bonds, IRS asset class)
  • Easy to start – you can set up and open an account in just 10 minutes
  • No minimum initial investment

Cons

  • Setup costs – it costs $360 to set up a Core account and $600 to open a Gold account
  • Monthly recurring fee – no matter what investment you hold, you’re charged a recurring fee of $15 for Core account and $30 for Gold account

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What is Rocket Dollar?


Rocket Dollar is a U.S. based financial services company founded in 2018 to provide a one-stop-shop account for your retirement investments.

The company is known for offering Self-Directed IRAs and Solo 401s allowing you to invest retirement savings into your chosen asset class.

Self-Directed retirement investing enables you to make all of your investment decisions inside your retirement account.

However, don’t confuse Rocket Dollar with an investing company. They just partner with banks and institutions where you can access investments.

Is Rocket Dollar Safe & Legit?


Rocket Dollar is not a fraud company. They provide a way for you to access investments and plan your IRA better. But as Rocket Dollar never holds your funds, they don’t carry a Federal Deposit Insurance (FDIC), but its partner banks and institutions do.

The company doesn’t provide you any type of advice as well, meaning you’re responsible for your own investing decisions. 

On top of that, the only guarantee Rocket Dollar provides is that if they go out of the business, you’ll be able to transfer all of your investments to another provider.

How Does Rocket Dollar Work?


The way Rocket Dollar works is when you open your account, Rocket Dollar Sets up your investment account like a company. In some states, Rocket Dollar will even open a limited liability company (LLC) for you to allow your IRA to work for you and multiply your money.

And once your account is up and running, you have limitless options when it comes to investing. You can invest in nearly anything from stocks to real estate and even to precious metals.

As Rocket Dollar reports, some popular IRA investments include: 

  • Cryptocurrency 
  • Real estate
  • Private equity
  • Precious metals
  • Peer-to-peer lending

If you’re interested in venture capital or angel investing, you can just write a check from your LLC bank account and you’re all set.

Rocket Dollar Fees


Rocket Dollar offers 2 types of account subscriptions – Core and Gold. 

Core account is a basic checkbook control retirement account that you can fund and make investments. 

On the other hand, a Gold account is best for customers who prefer white glove experience from start to finish.

Pricing for each Rocket Dollar subscription:

  • The Rocket Dollar Core: $360 sign up fee, plus $15 per month.
  • The Rocket Dollar Gold: $600 sign up fee, plus $30 per month.

30-Day Money-back Guarantee

Rocket Dollar offers a 30-day money-back guarantee. So if for any reason you’re not satisfied with your experience using Rocket Dollar, you can request a full refund within30 days of purchasing your membership.

And if you cancel your membership after 30 days, Rocket Dollar will just stop charging you the recurring fee starting next calendar month.

Rocket Dollar Account Options


Self-Directed IRA

With a Self-Directed IRA account, you can enjoy checkbook control to your retirement savings. This account enables you to invest quickly and with confidence in any assets IRS offers to IRA accounts. The asset classes you can invest in are not predetermined by the company.

Self-Directed IRA includes:

  • Traditional IRA
  • Roth IRA
  • Rollover Roth IRA
  • SEP IRA

Traditional and Roth IRAs allow you to invest up to $6,000 annually, or $7,000 if you’re at least 50 years old. 

Rollover IRAs enable you to contribute the amount being transferred from another qualified plan.

And finally, a SEP IRA is much more generous when it comes to contribution limits. It allows you to contribute up to 25% of your business net income within an annual limit of $56,000.

Be aware that the IRS prohibits IRA funds to be contributed into life insurance, collectibles, S-Corp stock, gems, most coins and metals (except gold, silver, platinum and palladium), gems and alcoholic beverages.

Solo 401(k)

As the name suggests, a solo 401(k) plan is a regular 401(k) plan but for a single individual. If you add employees to this plan (which you legally can), it will become a regular 401(k) plan and you can no longer hold it with Rocket Dollar.

Probably the best part about solo 401(k) accounts is the amount of contribution. Plus, you can make contributions as either an employer or employee of your business.

For example, as an employer, you can contribute up to 25% of your net income. On the other hand, as an employee, you can contribute up to $19,000 or $25,000 if you’re 50 or older.

But you are limited to total contributions you make both as an employer and employee and it cannot exceed $56,000 annually.

You can also borrow up to $50,000 from your solo 401(k) account and pay yourself back over time.

Similar to a Self-Directed IRA, you are allowed to invest in anything that IRS permits for IRA accounts. 

Rocket Dollar Asset Classes


Rocket Dollar enables you to invest in any asset classes that are allowed by the IRS.

Here’s the list of asset classes you can invest in with Rocket Dollar:

  • Stocks & Bonds
  • Real Estate
  • Private Equity
  • Precious Metals
  • Digital Assets & Cryptocurrencies
  • Startups
  • Crowdfunding
  • International Investments
  • Peer-to-peer Loans, Debt, & Promissory Notes
  • Other alternative investments

Rocket Dollar Pros & Cons


Pros

  • A great variety of assets you can invest in, such as stocks, bonds, real estate, private equity and precious metals
  • Easy to start – you can set up and open an account in just 10 minutes
  • No minimum initial investment

Cons

  • Setup costs – it costs $360 to set up a Core account and $600 to open a Gold account
  • Monthly recurring fee – no matter what investment you hold, you’re charged a recurring fee of $15 for Core account and $30 for Gold account

Rocket Dollar Alternatives


Rocket Dollar vs ALTO

ALTO is a popular alternative to Rocket Dollar, enabling you to easily manage your retirement investments. While ALTO has a much lower setup fee of $49 (compared to Rocket Dollar’s $360), you will exceed your expenses in annual fees, which is up to $499 for ALTO and up to $180 for Rocket Dollar. 

Apart from the fees, Rocket Dollar outperforms ALTO by the account types they offer. As we’ve already seen, Rocket Dollar offers you 2 types of accounts – Self-Directed IRA and Solo 401(k). On the other hand, ALTO only offers the IRA account.

Rocket Dollar vs MySolo401kFinancial

MySolo401kFinancial is very close to what Rocket Dollar offers. Just like Rocket Dollar, MySolo401kFinancial also allows you to choose between the 2 accounts – IRA and 401(k). 

However, the fees slightly differ between these 2 companies. While setting up a Rocket Dollar account will cost you up to $360, MySolo401kFinancial account setup costs $425. When it comes to annual fees, MySolo401kFinancial charges you up to $125 annually while Rocket Dollar fees may total $180.

Rocket Dollar vs Honest Dollar

Honest Dollar is an investment company that enables you to create IRA or 401(k) accounts and manage your retirement investments. While this sounds similar to what Rocket Dollar has to offer, unlike Rocket Dollar, Honest Dollar also provides an advisory service for the fee of 0.25% on your daily accumulated funds.

Is it Worth Investing with Rocket Dollar?


If you’re a confident, experienced investor and want to add alternative assets to your self-directed IRAs and solo 401(k)s, Rocket Dollar is a great option for you. 

However, as you’re responsible for your own investments, I’d suggest to really understand the asset classes you plan to hold in your retirement account before you invest.

Rocket Dollar

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