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Rocket Dollar is a financial services company that specializes in self-directed retirement investments. The platform aims to help its members access their IRAs and make investments in assets of their choice using their IRA funds. Although the company is relatively new, having only been founded in 2018, the team behind it has over 100 years of experience in the financial services sector combined.
- Low monthly account fees – membership costs $15 per month for users on the Core plan. Users on the Gold plan pay $30 per month for extra services.
- 30-day money back guarantee – if you are not satisfied with the platform’s services, you can get a refund on the account fees you paid within 30 days.
- Invest in over 7 different asset classes – choose from real estate, private equity, cryptocurrency, small businesses and startups, loans, and more.
- No minimum investment sum – start investing from as little as $1 in initial capital and slowly build up your investment portfolio over time.
- High setup cost – there is a one time fee of $360 for setting up a new Core account. This one time fee is $600 for setting up new Gold accounts.
- Recurring monthly fee – regardless of the size of investment, you will have to pay at least $15 in fees per month. May not be suitable for small sums.
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Compare to Other Investment Apps
Invest in real estate properties with a $10 minimum initial investment
Historical annual return varies from 8.8% to 12.4% (2019 – 9.47%)
Low annual fees: advisory – 0.15%; management fee – 0.85%
Manage your portfolio of stocks, ETFs, and crypto investments – all in one place
Over 5000 stocks and ETFs to choose from (dividend stocks available)
Follow other investors, see their portfolios, and exchange ideas
How Does Rocket Dollar Work?
How Much Can You Earn With Rocket Dollar?
Since the assets each user chooses to invest in may differ, your earnings may vary. Thus, do your research when choosing investments to estimate your potential profits from investing in them.
Who Is Rocket Dollar Best for?
Rocket Dollar is best for individuals who want to invest for their retirements in assets that a traditional IRA might not offer. For example, if you wanted to invest in Bitcoin using your retirement savings, you would not be able to do so with a traditional IRA account. However, Rocket Dollar’s self-directed IRA accounts allow you to do so.
Rocket Dollar Fees: How Much Does It Cost to Invest With Rocket Dollar?
|Fees||$360 sign-up fee, plus $15 per month||$600 sign-up fee, plus $30 per month|
The features you can enjoy with the Silver plan include:
- No minimum opening deposit
- BYOD (Bring Your Own Deal)
- Online document storage
- Investment dashboard to track investments
- Email support
- No cost cash transfers from your current custodian
- Fair Market Value reporting on Form 5498
The Gold plan includes the features in the Silver plans, along with additional ones like:
- Expedited service and transfers
- Four free wire transfers per year
- Option for IRA LLC
- Priority support
- Roth IRA conversion assistance & tax filing for 1099-R
- Tax filing for Solo 401(k) Form 5500
Rocket Dollar Features: What Does Rocket Dollar Offer?
With a Self-Directed IRA account, you can enjoy complete control over your retirement savings. You will not need to invest in pre-determined asset classes, and you can easily invest in alternative assets such as cryptocurrency.
The different types of self-directed IRA accounts you can have include:
- 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 are at least 50 years old. Rollover IRAs enable you to contribute the amount being transferred from another qualified plan. A SEP IRA allows you to contribute up to 25% of your business net income within an annual limit of $56,000.
Note that the IRS does not allow you to contribute IRA funds to life insurance, collectibles, S-Corp stock, gems, most coins and metals (except gold, silver, platinum, and palladium), gems, and alcoholic beverages.
Unlike a regular 401(k), a solo 401(k) plan is designed specifically for a single individual. The Solo 401(k) plan is ideal for self-employed individuals, and you can contribute up to $57,000 per year or more if you are 50 or older. You can add employees to your Solo 401(k), although doing so will convert it to a regular 401(k) plan.
Like Rocket Dollar’s Self-Directed IRA account, you can invest in any asset the IRS allows.
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Rocket Dollar Requirements
To create a new IRA account and contribute to it, you must be younger than 70 and 1/2. You must also have earned income to make contributions to an IRA account.
If you have a 401(k), 403(b), 457, SEP-IRA, or SIMPLE IRA, you may also be eligible to roll over into a Rocket Dollar Self-Directed IRA.
Rocket Dollar Payout Terms and Conditions?
Rocket Dollar IRA accounts follow the same rules as traditional IRA accounts. Thus, you can only withdraw the funds from your account when you are between 59 and 1/2 and 72. Once you reach this age range, you can sell any investments that you might have in your IRA and keep the profits.
You are also not required to withdraw funds from your accounts before age 72.
Note that you may need to pay taxes when making a withdrawal, depending on factors such as the type of withdrawal.
Rocket Dollar Risks: Is Rocket Dollar Safe to Invest With?
Rocket Dollar is one of the safest platforms you can use to invest funds for your retirement. The company does not provide financial advice.
Instead, it simply works as a service provider, allowing you to invest in non-traditional asset classes. Thus, you will be responsible for your own investment decisions, and you should do your due diligence before each investment.
Note that all investments carry risk, and you could make a loss on your investments.
How Does Rocket Dollar Protect Your Money?
Rocket Dollar does not directly hold your funds. Instead, it works with partner banks and institutions with Federal Deposit Insurance (FDIC), meaning that your investments are well-protected by legitimate organizations.
Rocket Dollar Reviews: Is Rocket Dollar Legit?
|Review Website||Rocket Dollar Review|
|4.7 out of 5 stars|
However, some reviewers have complained about the high fees involved with creating and maintaining an IRA account with Rocket Dollar.
What Are the Rocket Dollar Pros & Cons?
Rocket Dollar Pros
- You can invest in a variety of different non-traditional assets such as cryptocurrencies.
- It is easy to create an account, and you can set up your account in under 10 minutes.
- There is no minimum investment required.
- You can rollover your investments from another IRA account.
Rocket Dollar Cons
- There is a high initial setup cost starting from $360.
- Regardless of how many investments you have, there is a recurring monthly fee of at least $15.
How Good Is Rocket Dollar Support and Knowledge Base?
Rocket Dollar has a comprehensive knowledge base on its website. There is also a knowledge base tutorial video that you can watch to find out how to navigate the knowledge base.
The knowledge base contains answers to many of the most common questions users have. If you still face any issues when using the platform, you can contact a customer service representative via the Help button on your Rocket Dollar dashboard.
Rocket Dollar Review Verdict: Is Rocket Dollar Worth It?
If you are a confident, experienced investor who wants to add alternative assets to your IRA account. With Rocket Dollar, you will have complete control over the investments you make.
In addition, Rocket Dollar also offers different types of IRA accounts that can be tailored to your preferences and needs. The platform has a straightforward fee structure. You will need to pay a one-time setup fee starting from $360 and a monthly fee starting from $15.
However, unlike other investment platforms, Rocket Dollar does not provide any financial advisory services. All the investments you make will be will be completely based on your own decisions. Thus, it may not be advisable for beginner investors to start investing with Rocket Dollar.
Sites Like Rocket Dollar
Rocket Dollar vs. Acorns
Unlike Rocket Dollar, Acorns does not allow you to create an IRA account. Instead, it allows you to invest your loose change in different stocks and ETFs. Acorns specializes in its Round-Up investing feature. This feature allows you to round up your spending to the nearest dollar. The platform will then save your loose change and help you invest it.
Acorns also provides users with five pre-determined portfolios they can choose to invest their funds in. Because Acorns helps you select your investments, it may be more suitable for beginners and new investors to learn more about investing.
You can start investing with Acorns to learn more about it before creating a Rocket Dollar IRA account.
Rocket Dollar vs. Fundrise
Fundrise is a good alternative platform to Rocket Dollar you can use if you want to invest in real estate. The company specializes in real estate investment trusts (REITs) that investors can buy shares in. Since these REITs are privately owned and managed by the company, you can only invest in them by joining Fundrise.
With Fundrise REITs, you can earn a profit whenever the value of the properties in the REIT you invested in increases. You can also earn dividends, which are disbursed regularly whenever the REIT earns a profit from rental incomes.
Rocket Dollar vs. Public
Public is an alternative investment platform that allows users to choose from different stocks and ETFs. Unlike Rocket Dollar, your investments are not limited by an IRA account. Thus, you can withdraw funds from your Public investment account at any time without any fees or penalties.
In addition, Public also does not charge any account maintenance fees or commission fees. Public also provides free educational materials for users to learn more about investing. Thus, it may be a better alternative platform to Rocket Dollar for beginner investors.
Other Sites Like Rocket Dollar
Rocket Dollar FAQs
What Is Rocket Dollar?
Is Rocket Dollar FDIC insured?
The FDIC only insures banks and other financial institutions. Since Rocket Dollar does not hold any investments on behalf of clients, it does not have FDIC insurance. However, all of the company’s partners are FDIC-insured.
What bank does Rocket Dollar use?
Rocket Dollar primarily works with Solera National Bank.
Is Rocket Dollar a good company?
Rocket Dollar is a reliable company with a large client base and reputation.
Is checkbook IRA legal?
Checkbook IRA is legal and has been legal since 1996.
Is self-directed investing a good idea?
Self-directed investing can be a good idea if you are familiar with investing. However, if you are new to alternative assets, it may be better to learn more about investing first.
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