Top perks
Self-directed retirement accounts
Rocket Dollar simplifies the complexity of self-managed retirement accounts. It handles back-office documentation and connects users with preferred investment partners. The broker offers both self-directed IRAs and solo 401(k) accounts. As retirement accounts, a Rocket Dollar user’s investment will grow tax-deferred (tax free with a Roth IRA). This means investors can save thousands of dollars in tax savings on high-yield investments.
A broad universe of investments
With a self-directed retirement account, investors have the entire universe of IRS approved investments at their fingertips. These investments go far beyond the traditional stocks, bonds, and mutual funds. Some of the investment opportunities available to Rocket Dollar users include:
- Real estate
- Metals
- Commodities
- Cryptocurrency
- Equity crowdfunding
- Private equity lending
- Startup lending
- Conventional lending
- Peer-to-peer lending
But what if your investment of choice isn’t available on the Rocket Dollar platform? Its team has you covered.
Bring Your Own Deal (BYOD)
Self-directed investing can be tough without a support team. Luckily, Rocket Dollar’s team can guide you through a wide range of situations, including bringing your own investments to the table. By working with the Rocket Dollar team, users can turn an unlisted deal into an investable opportunity.
What could be improved
No traditional investments or accounts
For some traders, the investment opportunities presented by a self-directed account are well worth forgoing certain other investment accounts and asset types. For many, though, the lack of access to more traditional investment types is hard to ignore. Rocket Dollar does not allow traders to buy stocks, bonds, ETFs, mutual funds, options, CDs, and other traditional assets. Additionally, it does not support brokerage accounts, margin accounts, HSAs, or custodial accounts. Rocket Dollar is not designed for the average investor, instead catering to the experienced. Investors should perform due diligence before deciding whether self-directed investing is right for them.
High fees
The brokerage industry is in a race to the bottom when it comes to fees and commissions, which is why Rocket Dollar’s $360 ($600 for Gold) upfront fee can give investors sticker shock. Even the $15 per month ($30 for Gold) fee is significantly higher than the few other brokers charging a subscription fee. Rocket Dollar may make opening and using a self-directed retirement account easier, but its price may be too steep for some users.
