This guide will compare Rocket Dollar vs Alto IRAs and will try to conclude which one is better suited to your needs.
Both Rocket Dollar and Alto are self-directed IRAs that allow you to invest in financial products beyond conventional stocks, bonds, mutual funds, etc.
In self-directed IRAs, you take your own investment decisions and can invest in non-conventional financial products like precious metals, commodities, private placements, limited partnerships, tax lien certificates, real estate, crypto, and other sorts of alternative investments.
Read a complete Rocket Dollar review here.
Read a complete Alto IRA review here.
Read a complete Alto crypto IRA review here.
Table of Contents
Rocket Dollar vs Alto IRA: A complete analysis
| Features | Rocket Dollar | Alto IRA | |
| Flexibility and ease of investing | Easier to invest via an LLC. | Comparatively less smooth investing. | |
| Type of IRA accounts supported | Traditional IRAs, Roth IRA,s, SEP IRAs as well as solo 401(K) for self-employed individuals | Traditional IRAs, Roth IRA,s, SEP IRAs | |
| Alternate investment options | A number of alternate investment oprions like Real estate, Metals, Commodities, Cryptocurrency,Equity, crowdfunding, Private equity lending, Startup lending, Conventional lending, Peer-to-peer lending. | Same, though if you are interested in real estate, Rocket Dollar is much more suited. | |
| Two factor authentication | |||
| SOC Type II audit for data security, confidentiality, integrity and privacy | |||
| Insurance | Yes. The funds are kept in a Trust Bank which is FDIC insured up to $250,000 | Digital assets are kept with Coinbase which offers a commercial crime policy of up to $320 million and a cybercrime policy of up to $3 million | |
| Monthly maintenance fee | Please check here | Please check here | |
| One time set up fee | Please check here | Please check here | |
| Trading fee | Please check here | Please check here | |
| Account closing fee | Please check here | Please check here | |
| Staking allowed |
Rocket Dollar vs Alto: Flexibility and ease of investing
Rocket Dollar provides added flexibility and ease of investing as compared to the Alto IRA (especially in Real Estate).
This is due to the fact that Rocket Dollar allows you to form an LLC owned by your Rocket Dollar self-directed IRA. You can invest in alternative assets via the LLC.
Whereas Alto is the custodian for your IRA investments and it does not form an LLC for your investments.
A self-directed IRA LLC gives you certain benefits over a normal self-directed IRA, like a fast approval process and ease of movement of funds.
Rocket Dollar vs Alto: Type of IRA Accounts supported
Both Rocket Dollar and Alto IRAs support traditional IRAs, Roth IRA,s and SEP IRAs. However, Rocket Dollar also allows self-employed individuals to open solo 401(K). Alto does not support solo 401(K).
For self-employed individuals, Rocket Dollar offers to establish Retirement Trust and a Trust Bank Account.
Hence, when it comes to self-employed individuals, Rocket Dollar is the go-to IRA provider, which offers them self-directed 401(K) accounts.
Rocket Dollar vs Alto: Investment options
Both Rocket Dollar and Alto IRA allow you to invest in a number of high-risk yet high-rewarding alternative investment options like startups, cryptocurrencies, real estate, precious metals, and more.
A list of investment options via both Rocket Dollar and Alto is given below.
- Real estate
- Metals
- Commodities
- Cryptocurrency
- Equity crowdfunding
- Private equity lending
- Startup lending
- Conventional lending
- Peer-to-peer lending
Although as said earlier, investing via an LLC (or Trust) formed by Rocket Dollar is easier and more flexible when compared to via the custodian Alto.
Rocket Dollar vs Alto: Safety of your funds
Security provided by Rocket Dollar:
Two factor authentication: Rocket Dollar uses two-factor authentication, for you to log in to your account.
SOC II certification: Rocket Dollar is a SOC-2 certified company, and continuously updates its systems to comply with the best security practices.
Each year Rocket Dollar undergoes a SOC2 Type audit to ensure the highest levels of security standards for data security, availability, confidentiality, integrity, and privacy processes.
Security for cryptocurrencies: With Rocket Dollar the cryptocurrencies are owned by you (under your LLC formed by the SDIRA). You can choose to keep them in hot or cold wallets or with cryptocurrency exchanges partnering with Rocket Dollar-like e.g. Kraken, Gemini, Coinbase.
Insurnace: Rocket Dollar helps you to create an LLC or Trust (for the self-employed individuals) in the name of your self-directed IRA. The LLC keeps all your funds in a partner Trust Bank account. The funds kept in the Trust Bank account are FDIC insured up to $250,000.
Note: But if you ask me, if you want to play for the long term in the cryptocurrency space, then always opt for a hardware/cold wallet storage. It prevents your digital assets from online hacks and malicious practices.
Security provided by Alto IRA:
Two factor authentication: Alto IRA offers two-factor authentication powered by Authy or Google Authenticator.
Security for cryptocurrencies: In Alto IRA, cryptocurrencies or tokens are bought and sold using Coinbase (when you choose Alto crypto IRA).
Coinbase keeps your digital assets in hot or cold storage.
Insurance: Digital assets with Coinbase are protected by a commercial crime policy of up to $320 million. Furthermore, digital assets with Coinbase are protected by a cybercrime policy of up to $3 million
On the other hand, Alto is the custodian of your assets and funds. You do not directly own your assets and funds. Although Alto claims that your funds and assets are kept separately and are not used in its own operations.
Rocket Dollar vs Alto: Fees and other charges
Rocket Dollar offers two plans or subscriptions-Silver and Gold. Alto IRA can be subscribed as a normal Alto IRA or Alto crypto IRA.
All the features offered in Rocket Dollar Silver are also included in its Gold subscription. The Gold plan offers premium services like expedited account opening, problem resolution, and more.
The normal Alto IRA facilitates investment into alternative investment options like gold, real estate, startups, private equity, cryptocurrencies, and more via Alto partners, who offer these alternative investment options.
Whereas Alto crypto IRA facilitates investment into cryptocurrencies and tokens via its partner Coinbase.
Let us check the fees and other charges for these four categories.
| Rocket Dollar Silver | Rocket Dollar Solo- 401(K) | Rocket Dollar Gold | Alto IRA(normal) | Alto crypto IRA | |
| The minimum amount needed to initiate an account and invest | Zero | Zero | Zero | $10 | $10 |
| Monthly fee (maintenance) | $15 per month | $15 per month | $30 per month | $10 per month or $100 one time for the entire year | Zero |
| One time set up fee | $360 | $360 | $600 | Zero | Zero |
| Trading fee | Zero | Zero | Zero | Zero | 1% |
| Account closing fee | Zero | Zero | Zero | $50 | $50 |
Please note that both Alto and Rocket Dollar IRAs facilitate alternative investment options via their partners. Rocket Dollar and Alto are merely the bridge between you and all the investment partners. These partners can have their own fees and charges. Please do proper research or consult with your financial advisor before making an investment decision.
Rocket Dollar vs Alto: Insurance
The cash in Alto IRA is FDIC insured up to $ 250,000. Coinbase also offers insurance of $320 million. Alto IRA also offers errors and omissions and cyber liability insurance.
Likewise, the preferred banking partner of Rocket Dollar-Solera National Bank has all its cash and deposits -FDIC-insured up to a limit of $250,000.
For your self-directed IRA LLC and solo 401(K), cash and deposits kept in the account in the bank are FDIC insured.
Rocket Dollar vs Alto IRA : Pros and Cons
Rocket Dollar Pros and Cons
Alto IRA Pros and Cons
Rocket Dollar vs Alto: Conclusion
Both Rocket Dollar and Alto IRAs help you form self-directed IRAs to invest in non-conventional (riskier yet potentially more rewarding) financial products like cryptocurrencies, startups, real estate, precious metals like gold, commodities, private equities, and more.
Alto IRA is comparatively cheaper than Rocket Dollar. If you just want to invest in cryptocurrencies, then Alto is better suited, as it provides a list of over 200 cryptocurrencies to choose from at a mere 1% trading fee.
However, if you want to invest in real estate, want to Bring Your Own Deal (BYOD), or are a solo self-employed investor, then you should opt for Rocket Dollar. It allows you to form an LLC, which smoothens your investment in real estate and BYOD. Alto does not offer individual 401(K).
Rocket Dollar helps you form an LLC or Trust(for self-employed individuals), owned and managed by you. Every investment via the Rocket Dollar is made in the name of the LLC or Trust formed. An LLC or Trust is not formed in Alto. Investments via an LLC are easier and more flexible which is well reflected in every investment made via the Rocket Dollar.
Nicely compared
Thanks Harleen
Thanks Harleen