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2 min read

3 Reasons Folks Love Rocket Dollar Accounts

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People take advantage of Rocket Dollar accounts for many reasons. Whether they want to save money on taxes, diversify their retirement savings, or take advantage of an investment opportunity, every account holder is in a different situation and has unique goals. While everyone is indeed different, our team has identified three major themes that cause the most people to transfer some or all of their retirement savings into either a Rocket Dollar IRA or Solo 401(k).

Diversification of Retirement Savings

We all know that diversity in your investments is a good thing. Being exposed to multiple asset classes and investment types can result in a portfolio that's better suited to take advantage of a broader range of opportunities and withstand market shocks and volatility. But, did you know that most folks don't know what exactly is in their retirement accounts? Sure, we hear about having a mix of stocks and bonds and probably have a few different mutual funds, but is that true diversification?

Folks love Rocket Dollar accounts because they are free to invest in any asset class allowed by the IRS. Whether it's a single-family home, they plan to rent out and collect monthly payments on, or a startup they find promising, they are free to diversify outside of stocks and bonds and take advantage of more opportunities.

Yield

The investment landscape is continually changing, and opportunities arise in different places. One of the main advantages of a Rocket Dollar account is that if a specific asset class or individual opportunity comes up, you are only limited by whether the IRS allows it in a retirement account or not. When you are free from only being allowed to invest in stocks and bonds, you can take advantage of opportunities in real estate, cryptocurrencies, private companies, lending, and much more!

Several of our investors have participated in real estate syndications with our partners. One of our partners, HJH Investments, invests in commercial properties around the country and provides his investors with monthly cash flow and a preferred return upon exiting the investment. Most IRA providers make it impossible or prohibitively expensive to participate in syndications like these. In addition to syndications, other Rocket Dollar account holders have bought and sold cryptocurrencies inside their accounts and have ridden the surge in the price of various virtual currencies.

With the tax advantages of a retirement account, you also increase the amount of money you keep from every investment. When you exit an investment, you re-invest every dollar you get back. There is no need to save some for the tax-man! This is great on an individual investment, but if you calculate the savings over multiple investments, the tax savings are astronomical.

Impact

Our account holders make all sorts of unique investments daily, but our favorite thing to hear is when our investors share the investments they make in their local communities. Whether investing in a local coffee shop, startup, or buying a rental house, investing in your local community is great for both investors and the community.

One of our favorite stories involving one of our accounts is about a customer who learned of a family who attended his church who had fallen on hard times. He used his Rocket Dollar account to purchase a single-family home that he rented to them until they got back on their feet. There are multiple stories like this one, and our team loves to talk to our customers about the investments they make.

If you're interested in discussing how a Rocket Dollar account can best work for you, please reach out to a member of our team at info@rocketdollar.com.