People take advantage of Rocket Dollar accounts for many reasons. Every investor is in a different financial situation and has unique goals, whether they want to save money on taxes, diversify their retirement savings, or take advantage of an investment opportunity. The Rocket Dollar team has identified three major themes that result in people allocating some money into either a Rocket Dollar self-directed IRA or a solo 401(k).
1. Diversification of Retirement Savings
Diversification in your investments is a good strategy because owning different assets and investments can result in less volatility in the returns in a portfolio. Investors are also better suited to take advantage of a broader range of opportunities and withstand market shocks and volatility.
Increasing the amount of diversification so you can receive more income once you retire can be accomplished in self-directed IRAs. The IRS states that investors can allocate money to investment opportunities such as business and residential real estate (includes rentals, foreclosures, land and tax liens among others), small and mid-sized independently owned businesses, startups, precious metals, hard money, peer-to-peer lending, and cryptocurrencies such as Bitcoin, Ripple, Ethereum, Bitcoin Cash, Litecoin, and Monero.
The investment landscape is constantly changing and opportunities arise from different places. One of the main advantages of a Rocket Dollar account is that if an investment opportunity is available, you can fund it at any time.
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 U.S. and provides investors with a monthly cash flow and a preferred return upon exiting the investment. In addition to syndications, other Rocket Dollar account owners have bought and sold cryptocurrencies within their accounts and have been able to receive gains when the prices of the various virtual currencies rose.
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. The tax savings add up quickly over time and will provide more income for you during your retirement.
Our account holders can invest in various unique investments frequently, but we enjoy hearing about investments you have made in your local communities. Whether investing in a local coffee shop, startup, or buying a rental house, investing locally can be a great source of pride for many investors.
One of our customers said he learned of a family in his area struggling financially. He used his Rocket Dollar account to purchase a single-family home that he rented to the family until they had a better financial situation. These alternative investments can benefit both investors and their local communities, giving people more opportunities during difficult times.
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 firstname.lastname@example.org.