Rocket Dollar Reviews 2022: Best Solo Crypto IRAs And 401(K)

Rocket Dollar Reviews:- You have many options for investing in stocks or bonds for retirement. However, things become more challenging if you want to hold real estate, actual precious metals, agricultural assets, or startup stock.

To change that, there is an investment firm called Rocket Dollar. You may purchase almost any assets with a Rocket Dollar account.

Although you could invest in equities and bonds using a Rocket Dollar retirement account, it works best for holding assets like investment properties that you cannot have in a conventional brokerage.

Although it isn’t free, it makes sense for various investment objectives and uses scenarios.

Rocket Dollar Reviews

Rocket Dollar

A low-cost investment platform called Rocket Dollar enables ordinary people to benefit from self-directed IRAs. Consider self-directed solutions, such as the accounts provided by Rocket Dollar, if you are self-employed or have a significant IRA or rollover IRA account.

Beyond stocks and ETFs, Rocket Dollar provides a distinctive range of alternative investment possibilities. (traditional ira) Investment alternatives such as crowdfunding, startup loans, and real estate rental income are available through a self-directed Rocket Dollar account.

Read our comprehensive Rocket Dollar review to determine if this self-directed platform suits you.

Rocket Dollar- Highlights

Product NameRocket Dollar
Fees$15/month plus a $360 setup fee
Minimum Investment$0
Type Of AccountSelf-Directed IRA and Solo 401k
PromotionNone

Rocket Dollar Detailed Review

For investors looking for self directed alternative investments with off-the-market alternatives, this broker is a fantastic choice.

Rocket Dollar enables you to use a self-directed IRA and solo 401(k) to invest in alternative assets (k). You can even bring your contract, which makes it highly versatile. However, costs could be higher than those of certain rivals.

Pros & Cons

Pros

  • Offers a vast selection of investment possibilities
  • Allows you to bring your investment transaction
  • Easy fee structure
  • Your choice of cryptocurrency exchange is up to you.
  • Bring your own deal (BYOD).

Cons

  • No traditional accounts or investments
  • High prices

Top Benefits

1:- Accounts for self-directed retirement

Rocket Dollar makes self-managed retirement accounts more simple. It takes care of back-office paperwork and links users to attract investment partners. The broker provides both solo 401(k) accounts and self-directed IRAs.

The broker provides both solo 401(k) accounts and self-directed IRAs. A Rocket Dollar user’s investment will increase tax-deferred as retirement accounts (tax-free with a Roth IRA). (precious metals) This implies that high-yield investments can help investors save thousands of dollars in taxes.

2:- Bring Your Deal (BYOD)

Without a support group, self-directed investing can be challenging. Fortunately, the staff at Rocket Dollar can help you in various circumstances, including taking your investment to the table.(mutual funds) Users can transform an unlisted deal into an investment opportunity by collaborating with the Rocket Dollar team.

3:- A wide range of investing options

Investors can access the full range of IRS-approved investments through self-directed retirement accounts. The standard stocks, bonds, and mutual funds pale compared to these assets. Users of Rocket Dollar can invest in some of the following things:

  • Real estate
  • Metals
  • Commodities
  • Cryptocurrency
  • Crowdfunding for equity
  • Loans for private equity
  • Startup financing
  • Traditional financing
  • Personal Finance

But what if the Rocket Dollar platform doesn’t offer your preferred investment? Its team covers you.

What could be done better

1:- No traditional accounts or investments

Some traders will skip particular alternative investment accounts and types of assets in favor of the investment opportunities a self-directed account offers. But for many people, it’s difficult to ignore the lack of access to more conventional investment kinds.

Trading in stocks, bonds, ETFs, mutual funds, options, CDs, and other traditional ira assets is not permitted with Rocket Dollar.

Furthermore, it doesn’t support custodial accounts, HSAs, brokerage accounts, or margin accounts. Rocket Dollar is targeted at seasoned investors rather than the typical investor. Before deciding whether self-directed investing is the correct choice, investors should conduct thorough research.

2:- High Fees

Since brokerage firms are competing to charge the lowest possible fees and commissions, Rocket Dollar’s $360 (or $600 for Gold) up-front price may shock some investors. Even the $15 monthly price ($30 for Gold) is much more expensive than the few other brokers who also charge a subscription fee.

Rocket Dollar might make it simpler to open and utilize a self-directed retirement account, but some users might find its cost excessive.

IRA vs Roth IRA

How does Rocket Dollar IRA Work?

Opening an account with Rocket Dollar is accessible from a tactical perspective. Register online, fill out a few forms and then finance your investments. You can write a check and purchase any lawful investment as soon as you have funded your investments.

At first glance, everything seems to be very simple. However, when the curtains are opened, you can see how much effort Rocket Dollar is making (and how easy it is to screw things up).

You’ll create an LLC when you open an account with Rocket Dollar (limited liability company). Your account will be the owner of this business. The LLC’s checkbook is impacted by any funds used for investments or earnings from investments. Personal and investment monies cannot be mixed.

It is simpler to remain in line with all rules relating to self-directed investments when the LLC is in charge of your account’s assets. It’s crucial to remember that you must exercise caution when purchasing and disposing of assets.

According to Rocket Dollar, it is illegal to “self-deal” or to buy or sell assets that you or your company held.

Additionally, as part of your ongoing services with them, Rocket Dollar will help you file form 5500 for you if necessary.

Related article:

Rocket Dollar: Pricing and Features

  • Self-directed retirement investment:  Rocket Dollar allows complete and total control, whereas most brokers let you select your stocks or index funds. You could even manage your herd of animals if you so choose. See the section after for some of the favorites of those with active accounts.
  • IRA LLC: When you create a brand-new IRA at Rocket Dollar, you also create a brand-new LLC and an LLC bank account. The IRA LLC legally holds your property. This company is essential to the self-directed pension account’s operation.
  • Checkbook Control: Once your account has been set up, you have what Rocket Dollar refers to as “checkbook control.” This indicates that you can use the Company bank account’s checkbook to purchase assets. For instance, you should fund the deal with the Rocket Dollar accounts so that it becomes the legal owner if you are completing a new investment property. Kindly contact your legal counsel to ensure that your purchases do not turn into unlawful transactions, which could have very costly results.
  • Flat price: Costs are fixed regardless of the size of your account or other variables. Without any guesswork, it costs simply $15 a month. Rocket Dollar advises using an external credit or debit card to pay this fee to prevent depleting your account’s balance and any resulting tax consequences.
  • Quick setup: No minimum initial deposit is necessary, and you may open an account in about 10 minutes. Consider including your contact information as well as specifics about your funding strategy. For tax and identity-related reasons, your Social Security number is also necessary. 
  • Gold Service: The core membership plus accelerated services, an account checkbook and debit card, and tax filling services are all included in the $30 per month gold subscription.
Rocket Dollar

Rocket Dollar Fee & Charges

Users of Rocket Dollar must pay just one setup fee and a subsequent monthly fee. There are two membership levels available: Silver and Gold. All the features mentioned in this review are included with the Silver membership.

For investors looking for a white glove service, the Gold membership offers priority support and a debit card for making investment-related expenditures. There is no commission cost associated with Rocket Dollar.

ParticularsMain AccountGold
Activation Fee$360$600
Monthly Fee$15$30
Available accountsSelf-directed IRA, Solo 401(k)Self-directed IRA, Solo 401(k), Inherited IRA

For creating your account, Rocket Dollar charges a one-time activation fee. According to the company’s website, the monthly charge is for administrative and safety services. Compared to standard brokerages, Rocket Dollar has a very different cost model.

Concerning the value of the assets it manages, Rocket Dollar doesn’t impose assets under management (AUM). The 0.25% AUM fee is collected from your account by well-known Robo-advisors like Betterment and Wealthfront.

On a $10,000 investment, a 0.25% yearly charge equals $250. When you invest in Rocket Dollar, you pay $540 for the first year’s activation fee and $180 for a core account each year. (precious metals) Although it can cost significantly less to open an account with a well-known brokerage, this price structure is more predictable than most.

Although you won’t find Rocket Dollar’s investment alternatives at conventional brokerages, they make it unique.

Rocket Dollar Self-Directed IRAs and Solo 401(k) Accounts 

Rocket Dollar offers the self-directed IRA and the self-directed Solo 401(k) contribution as its two essential products.

1:- Self-Directed IRA

Both regular and Roth IRAs can be self-directed. Your investing options are limitless with a self-directed IRA with Rocket Dollar.

You can hold almost all unavailable assets in Robo-advisors or conventional investing brokerage accounts.

Therefore, you could include tangible assets in your account instead of a real estate investment trust. As previously said, you will create an LLC held by your IRA, and you can make alternative investments through that LLC.

Using the same model, you can also invest in venture capital, private startups, and hard money loans.

2:- Self-Directed Solo 401k

The Solo 401(k) plan functions similarly to the self-directed IRA; however, instead of setting up an LLC, you enter into a trust controlled by the organization. Through the trust, your alternative investments are held. A Solo 401 cannot be established if you are not self-employed (k).

The main benefit of a Solo 401(k) plan over an IRA is the considerably higher contributions. For 2019, as an illustration, your annual contribution limit is $19,000, or $25,000 if you’re 50 or older.

But in addition to your employee portion, you can contribute as much as 25% of your salary as an employer. Employee and employer payments may total up to $56,000, or $62,000 if you are 50 or older.

You can quickly build up a sizable retirement fund with the Solo 401(k) plan, and it will also offer a sizable tax deduction. A Solo 401(k) plan lets you take out a loan against the account. You can borrow up to $50,000, or 50% of the plan’s worth.

Comparison With Others

Though there aren’t many companies in this industry, Rocket Dollar isn’t the only one. You will only select a few businesses if you’re looking for a Solo 401k or a Self-Directed IRA.

How does Rocket Dollar match up?

Rocket DollarAlto MySolo401KFinancial
Rating4/53.5/54.5/5
Setup Fee$360$49$425
Annual Fee$180$499$125
Types Of PlanIRA & 401(K)IRAIRA & 401(K)

Others To Consider

Due to the use of an LLC, Rocket Dollar has the advantage of being very flexible. With this, you can invest in various assets that are by the IRS and even bring your deal.

However, setting up an account with Rocket Dollar can take some time because it is a little more complicated than some of its rivals. Additionally, some competitors provide reduced rates and far superior service for asset classes like cryptocurrency.

1:- Bitcoin IRA

Bitcoin IRA

One of the most well-known crypto IRA investment services is Bitcoin IRA. Thanks to this tool, you can spread your portfolio with a wide range of famous altcoins and more than 60 prominent cryptocurrencies. Additionally, it allows you to generate passive income using your cryptocurrency and cash balances, which is something that not all competitors do.

The primary drawbacks are the 5.99% setup cost, the 0.08% monthly fee, and the 2% fee for crypto trading. Bitcoin IRA is an excellent option for the convenience of use. However, we still favor Rocket Dollar and Alto CryptoIRA.

Read also: Alto Crypto IRA vs iTrustCapital 

2:- iTrustCapital

iTrustCapital

iTrustCapital is a trendy choice for investing in cryptocurrencies with a retirement account, similar to Alto and Rocket Dollar. You can invest in more than 25 well-known cryptocurrencies, including Bitcoin and Ethereum, for just 1% transaction fees. Additionally, iTrustCapital doesn’t collect monthly fees as Rocket Dollar does.

Investing in gold and silver is also supported on the platform in addition to cryptocurrency. Compared to Rocket Dollar, there is a smaller selection overall, but the costs are lower, and the account setup is quick.

You should choose this company if:

  • A variety of various investments is what you need: Almost all self-directed investments legally permitted by the IRS can be traded using Rocket Dollar. The potential for Rocket Dollar traders is endless, with more than ten different alternative asset class to pick from.
  • As an experienced trader, you’re looking for self-directed accounts: A passive investment strategy involving standard investments is sufficient for most people to ensure a secure financial freedom. For those with experience and good judgment, Rocket Dollar gives you the controls.
  • A high up-front cost didn’t stop you: Nowadays, most brokers don’t even charge a beginning fee or a commission.

However, the additional upfront payment can be well worth if Rocket Dollar manages your self-directed accounts.

Final Words

There is a simple logic behind Rocket Dollar. However, the issue it resolved was fairly complex previous to its discovery. Owning rental property was always simple if you could afford it, but doing so in your retirement account was a very different story. Opening a new account at Rocket Dollar is now just as simple.

Real estate, private equity, and angel investing are fascinating possibilities when going outside the traditional IRA boundaries. (financial institution) However, depending on your objectives and past experiences, you can arrive at something entirely different.

Overall, Rocket Dollar offers an excellent service if you can afford the cost and have a decent asset class in mind. (small business) A self-directed Rocket Dollar account can be the best option if you want to be more innovative with your retirement funds.

If you want reduced fees and better business bureau crypto assistance, we recommend Alto IRA.(sep ira) But stick with Rocket Dollar if you want the most flexibility or to bring your bargain.

Frequently Asked Questions

Is Rocket Dollar a good deal?

Rocket Dollar

Rocket Dollar is a specialized retirement plan investment service that isn’t right for all investors. Those knowledgeable about alternative investments and have the necessary risk tolerance to include them in their retirement plans would benefit the most from it.

How does Rocket Dollar work?

Bitcoin IRA

A self-directed IRA or solo 401(k) can be opened using the retirement savings platform rocket dollar (k). Rocket Dollar, however, allows you to develop your portfolio using alternative investments like cryptocurrencies, real estate, and startup businesses, in contrast to conventional retirement plans.

Who can make contributions to a Solo 401k?

iTrustCapital

There are no restrictions on age or wealth, but you must be the sole owner. Up to $58,000 in total in 2021 and $61,000 in 2022, with a $6,500 catch-up contribution if you’re 50 or older.

Is Rocket Dollar legitimate?

Rocket Dollar

Rocket Dollar is a legitimate company, but it is still in its early stages. It was founded in 2018 and is headquartered in Austin, Texas.
It is not currently registered with the BBB or listed by the Consumer Financial Protection Bureau (CFPB). As a result, you may be taking a significant risk by working with a company that has yet to make a name for itself. Furthermore, some investment options may be illiquid and volatile.

Is Roth IRA self-directed? 

Rocket Dollar

A self-directed IRA is a form of traditional or Roth IRA. Thus it shares the same contribution limitations and enables tax-advantaged retirement savings. Only the assets you have in your self-directed IRA differ from those in other IRAs.

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