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RocketDollar Review: Viable or Vulnerable?

Rocket Dollar is a non-traditional investment platform designed to help individuals create self-directed IRAs, 401(k)s, and other types of retirement investments. Whereas most retirement investment accounts only allow contributions (but lack control), Rocket Dollar enables will-be retirees to be in full control of their money. In this RocketDollar review, we’ll cover the benefits, limitations, and practicality of this non-traditional approach to retirement investing.

Rocket Dollar is best for…

Individuals who want complete control of their retirement investments. It’s also an excellent platform for those seeking to benefit from tax laws, as investing through Rocket Dollar—which requires individuals to create their own LLC—can help minimize their taxable income. The platform offers various investment opportunities for its users. While other platforms (such as Acorns) often allow their users to make retirement investments, these platforms generally only allow traditional investments. Often, these platforms make specific investment decisions in place of the client! With Rocket Dollar, its users are free to manage their own money and choose their own investments while also reaping the potential tax benefits.

Pros & Cons

If there’s anything you’ll want to take away from this RocketDollar review, it’s the pros and cons of this specific platform. While Rocket Dollar does an excellent job at enabling users to take advantage of investment opportunities, it doesn’t offer them any guidance while doing so. This could be problematic for newer investors who want to maximize their gains, but don’t know how. We suggest pairing Rocket Dollar with a stock suggestion service (like Motley Fool) to give yourself the best chance at success.

Pros Cons
 

Can reduce tax liabilities

Offers additional investment opportunities

Has educational resources

Affordable monthly fees

IRA and 401(k) options

 

Startup fees

Lacks dedicated financial advisors

Requires an LLC

Full refund not guaranteed

Newer company

Minimum investment

Technically speaking, there isn’t a minimum opening deposit to fund your Rocket Dollar account. However, you’ll still need to have some funds set aside, as there are additional costs to consider before you start sorting through your investment options. For starters, you’ll need to create your own LLC to use Rocket Dollar. This process will cost between $40 and $500, depending on where you live. The exact timeframe will vary, but you can expect to complete this process within a few weeks.

Once you’ve successfully formed an LLC, you’ll need to start thinking about Rocket Dollar’s “one-time setup fee.” While you’ll only need to pay this once, it will cost either $360 or $600 (depending on which plan you’ve opted for). At most, you will have paid approximately $1,100 to create your account. However, you will also need to fund your account in order to start making investments.

Plan Cost per Month
Silver $15 (plus a one-time startup fee of $360)
Gold $30 (plus a one-time startup fee of $600)

Investment Opportunities

Both the “Silver” and “Gold” plans offer the same investment opportunities. Unlike traditional retirement investing options, Rocket Dollar allows you to make alternative investments including precious metals, cryptocurrency, and real estate. Adding these to your portfolio will help secure gains during an unpredictable market. Rocket Dollar also allows for more traditional investments like stocks and bonds (if you wish).

  • “Silver” plan members receive email support, online document storage, an investment dashboard, no transfer fees, and no rollover fees.
  • “Gold” plans enjoy all of the same features as Silver, but also receive a few additional benefits. Gold members receive expedited service, four free wire transfers, tax assistance, Roth IRA conversion assistance, the ability to create a custom-named IRA LLC, and priority support from Rocket Dollar.

Convenience

Rocket Dollar makes it easy for users to take advantage of alternative investment opportunities. Your account is easy to access via the website, and users can keep track of their portfolio performance using the investment dashboard. Although Rocket Dollar doesn’t offer any financial advisor services to its users, the site has many investment resources its users can access. These can be accessed in both the “Blog” and “Resources” sections of the website.

Limitations

Since Rocket Dollar remains compliant with federal regulations, certain investment opportunities—such as cannabis—are not available on the platform. Additionally, the platform only makes investing in one’s self-funded IRA or 401(k) possible: it doesn’t give specific financial advice to its users. For investors who are unsure where or when to invest, it’s best to subscribe to a secondary service that can provide them with quality recommendations to improve their portfolio.

Summary

We’ve discussed many different points in this RocketDollar review. While the platform isn’t ideal for those starting with little-to-no capital, it makes sense for people actively trying to expand their retirement investments in the most tax-efficient way possible. The unorthodox approach of using an LLC to realize tax breaks may be off-putting to some, but those who decide to pursue it will surely benefit from the results. If you’re ready to start maximizing your investments while reducing your tax liability, click here to get started with Rocket Dollar!

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