Rocket Dollar Review

Saving for retirement is among the key pillars of sustainable personal financial management. It should be at the top of the priorities of any individual, no matter the age. However, despite being so crucial, it is often overlooked because it is considered too complex or too out-of-sight. Rocket Dollar is a platform designed specifically to address this issue. Its goal is to ease individuals on their investment journey by providing self-directed individual retirement accounts (SDIRAs). So, let’s deep dive into our Rocket Dollar review and see what makes the retirement investment app unique and how it can help you achieve your long-term personal financial goals.

rocket dollar review

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What is Rocket Dollar?

Rocket Dollar was established in 2018. It positions itself as a low-cost and easy-to-use platform for self-directed investors. It was started to provide investors with a convenient way to include alternative assets in their retirement accounts. Alternatively, to give them the freedom that traditional IRA brokerage accounts lack.

Rocket Dollar is a self-directed IRA account provider designed to simplify retirement planning and unlock a more extensive investment universe. With Rocket Dollar, aside from stocks and bonds, you can complement your retirement investments with alternative assets like ETFs FX, cryptocurrencies, mutual funds, and more.

What makes service providers like Rocket Dollar unique is that they provide investors with the ability to take advantage of the trends and potential of assets and sectors like real estate, precious metals, commodities, early-stage startup companies, franchises, and more.

That way, individuals planning for retirement can surpass conventional IRA account limits and incorporate higher risk into their portfolios. This makes platforms like Rocket Dollar an excellent choice for those who have started planning for retirement in advance and have a horizon of 20 or 30 years in front.

On the other hand, SDIRAs might not be so beneficial to individuals nearing their retirement age and who want to settle for lower but more stable and consistent returns from more conservative assets.

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How Does Rocket Dollar Work?

Setting up, managing, and investing in SDIRAs is a bit trickier than traditional IRA accounts. That’s why you should choose a reliable service provider with the resources to guide you through the whole process and ensure the best retirement savings opportunities.

When you sign-up for Rocket Dollar, the platform will set up a corporate investment account for you. Depending on the state where you reside, it can open a limited liability company (LLC) so that your retirement account can operate its own business on your behalf. Setting up an LLC is Rocket Dollar’s go-to strategy because it provides account holders with more flexibility and opportunities.

The process happens automatically, and it will take you no more than 10 minutes. Once you have an active Rocket Dollar account, you will be able to roll over, transfer, or contribute funds to it with a check, debit card, or a wire transfer from your bank account. There are no minimum deposit requirements to open a retirement account.

If you face any challenges while trying to open an account, you can get in touch with customer service. They are knowledgeable and always willing to help by providing step-by-step guidance throughout the whole process.

Once you fund your account, you will have access to various alternative investments and non-traditional assets. They are brought to you thanks to Rocket Dollar and its partnership with leading investment service providers. You can access offering in various fields, including consumer goods & inventory, cryptocurrencies, early-stage investing, farmland, energy sector, precious metals, real estate, private equity, and many more.

Accounts

Rocket Dollar offers two types of accounts – self-directed IRA (SDIRAs) and solo 401(k) plans. This brings investors the flexibility to personally tailor and shape their portfolios without relying on a list of a pre-defined list of investments or exposure to just one asset. With Rocket Dollar’s IRA or solo accounts, individuals looking for suitable retirement plans can invest in any asset class allowed by the IRS.

Self-Directed Individual Retirement Accounts (SDIRAs)

RocketDollar’s SDIRA offerings help overcome the limits of conventional tax-deferred savings accounts by giving you exposure to various asset classes.

Think of them as more powerful and improved Roth and Traditional IRAs. Investors can use Self-Directed IRAs to save for retirement in a tax-deferred account while at the same time diversify their portfolio with alternative investments. All of the assets in the account are administered by a trustee or custodian.

The account is available to anyone with US taxable income or an old retirement account. However, to make new contributions to a new IRA account, the individual must be younger than 70 and 1/2.

Self-Directed Solo 401(k)

This type of account is a good choice for individuals with self-employment income. What makes Rocket Dollar’s offerings unique is the high contribution limits, the abundance of investment options, and the flexible terms.

Self-directed solo 401(k) accounts are considered the ultimate choice if you want to make the most out of your retirement portfolio. With RocketDollar, you can contribute up to $57 000 annually and invest in any asset allowed by the IRS. You won’t be charged excessive fees, and you can take advantage of substantial tax deductions.

Besides, it gives you a safety net by allowing you to borrow up to $50 000 from your account and pay the loan back over time. Self-directed solo 401(k)s are available only to self-employed individuals with no full-time employment.

If this is the right account for you, bear in mind that it might take between 2 and 4 weeks to open one on RocketDollar.

Rocket Dollar Pricing

Finally, we’ve come to the pricing and fees – the essence of our Rocket Dollar review. The platform offers two paid plans – Core and Gold.

The Core Plan has a $360 registration fee and costs $15 per month. It covers all the essentials you need, including an LLC opening, online documentation storage, email support, and more.

The Gold Plan features everything from the “Core” one and offers a premium service, including expedited transfers, priority support, a physical debit card, custom-named LLC, and more. It comes at a $600 registration fee and costs $30 per month.

Although the monthly rates aren’t too high, the issue is that you will have to pay them no matter the state of your retirement funds and account. The costs are ongoing, so make sure to time the moment and set up your account once you are ready to start contributing.

Rocket Dollar has a refund policy that allows all users who aren’t completely satisfied with the service to request a refund within 30 days of payment of the initial account setup fee. The refund covers 100% of the sum.

Rocket Dollar doesn’t incur any asset or transaction fees.

Rocket Dollar Pros and Cons

Our Rocket Dollar review wouldn’t be complete without focusing on the benefit and the drawbacks of the investment platform. There are several other service providers like Rocket Dollar, and finding the best one isn’t always an easy task. So, which one to choose?

We’ve curated a list of the advantages and disadvantages of RocketDollar to help you understand how it fares to the rest of the service providers in the niche.

Pros

  • Easy-to-use platform with an excellent interface
  • Quick onboarding and registration process
  • Low fee structure, suitable for larger portfolios
  • Self-directed 401(k) support
  • Extensive “Learn” center with educational content

Cons

  • Relatively new and not so established as other companies in the niche
  • High initial setup fee of $300 to $600
  • The self-directed element might be a bit complicated for first-timers

Rocket Dollar Summary

We can conclude our Rocket Dollar review by saying that the platform is among the best service providers in the niche. If you are interested in SDIRAs and have an extensive portfolio, going with Rocket Dollar is wise. It will give you control, flexibility, and access to various alternative investments through its network of partners. If you don’t find the platform useful or consider it too expensive, you can have a refund directly to your bank account.

However, if you own a smaller portfolio and can’t justify the service’s cost, it might be better to look elsewhere. There are other equally competitive but much lower-priced investment platforms like MySolo401kFinancial, for example, which will fit your investment goals better and give you everything you need at a lower price.

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About the author: Alexander is the founder of daytradingz.com and has 20 years of experience in the financial markets. He aims to make trading and investing easy to understand for everybody, and has been quoted on Benzinga, Business Insider and GOBankingRates.