It’s not always fun (or easy) to manage your company’s 401k or retirement accounts.
How can you tell if you have invested in the correct funds? You may be missing hidden fees. Maybe you’re not contributing enough to your future in accordance with your financial goals.
Some people may be able to manage their own 401ks. However, others lack the time, knowledge, or interest. Blooom is a great tool for investing.
Here is a review on Blooom. It will explain how it works and what other options are available to you.
Sign up for their free analysis to learn more about your retirement account, find hidden fees and much more.
Table of Contents
What is Blooom?
Blooom’s Philosophie
Blooom is best for whom?
Blooom: How it Works
Blooom’s Product Specifications
Blooom Pros & Cons
Is Blooom Legit?
What is Blooom?
You might wonder what Blooom does, since I alluded to this in the introduction.
Blooom is a robo-advisor which analyzes and optimizes your 401k. It will manage your retirement account for you automatically based on specific goals.
You can consult their team as well, so the product still has a human touch, which is great.
Blooom can also analyze and monitor your 403b or 401a accounts, as well as your 457, TSP, or 457a.
Note: IRAs were previously not managed by their platform. These have been recently added to the platform!
The mission of their website is very simple, and I believe that their “about” page sums up their message:
“401ks are confusing. It’s great that your company offers these plans, but it isn’t enough. Blooom’s unbiased experts can help get your 401k back on track… and maintain it there.
Blooom’s Philosophie
It is also important for me to know more about Blooom’s philosophy. There is a lot of uncertainty in the investment industry when it comes to money.
Financial institutions and 401k Plans are looking to kill your growth with fees. Advisors want fat commissions. And funds may not be of the quality that you need.
It is not meant to scare anyone, but you should be aware that there are many sharks out there who do not have your best interest at heart.
The philosophy of their company resonates with me, and I think it should resonate with all investors who have 401ks.
We are here to serve you, not your broker, company or institution. “We believe that everyone should have access to independent professional financial advice.”
Blooom is best for whom?
Blooom is not for you if you like to manage and maintain your own 401k plan.
Even then, it is worth signing up for the free financial analyzer to make sure you’re on the right track.
Who is Blooom the best fit for? Blooom is a good option if you already have a TSP, 401k, 401a or 403b account.
See if you also fit any of these categories:
You may feel like your 401k is a foreign tongue. Not everyone enjoys personal finance and investing. If it seems like another language, then you might need help to stay on track.
It’s hard to find the time to monitor and manage your 401k. Blooom allows you to have your say, while simplifying the process.
You probably care about your financial stability and health: most people care about their future and financial health. You are probably one of them. Blooom is a great tool if you are genuinely concerned about your retirement and you’re making a concerted effort to achieve it.
Blooom is not for everyone. It might not be worth it to choose the paid plan of $120 per year if your account is small. Once your account grows, the fee is comparable to that of other robo-advisors.
Blooom: How it Works
Blooom’s platform and process are designed to be easy. Blooom’s algorithm creates the optimal asset allocation using your age and target retirement date.
Blooom works with all retirement accounts sponsored by employers, as long as they have internet access.
You are not transferring any of your accounts to Blooom, and your company does not even need to know that you have signed up for it.
Here’s a quick rundown of how it works.
Blooom will ask a few questions to learn more about you and your goals.
Blooom can give you an overview of your current allocation, diversification, and fees. All free!
Blooom will remove any funds that don’t align with your goals.
Blooom will then choose the best funds for you based on their algorithm.
Blooom’s advisor will check your 401k allocation.
Blooom, for those clients with the Standard or Unlimited membership plans, will manage your account automatically, monitor for changes and rebalance. When these things occur, you will be notified.
Some of the advanced steps are included in their paid plan. In the next section, I’ll go into more detail about that.
Blooom’s Product Specifications
The product has two simple options. Depending on your retirement account and interests, you can choose either option.
Free Analysis
You can get a free analysis by visiting their website. I would recommend that anyone who has a retirement plan sponsored by an employer consider this option.
This option is free, until you upgrade to the next tier.
The free 401k Analysis includes the following:
Find out what hidden fees you may be paying for your investment
Simple explanations of diversification
You will receive tailored recommendations on how to improve your portfolio
Get Your Free Analysis
Pay Plan (As Low As $120/year).
Blooom offers a variety of paid plans that offer more control and access to the built-in roboadvisor.
This can be an excellent choice if you don’t have the time or interest to do it yourself, but want professional advice and optimization of your entire portfolio.
What’s included in the top-tier paid plan?
All you need to know about the free analysis
Find out how to reduce investment fees that could harm your return.
Rebalance and adjust your investments regularly
Expert advice is available via phone, email or chat
Alerts when there are suspicious withdrawals or activities on your account
Join Your Paid Plan
Blooom Review – The Simple Way to Optimize your 401k
Blooom Pros & Cons
You’ll find pros and cons with every money tool or investment product. Here are some of the things I find important to note about Blooom.
Pros
Free portfolio analyzer (401ks, IRAs)
Find out how you can save on investment fees
You can change your asset allocation at anytime
You can cancel the service at any moment without paying any fee
Work with a variety of plan providers
The fees are taken directly from the credit card or debit card and not your investment
Members of the Advisor Access and Financial Consulting Tiers can ask questions to real advisors.
You can also find out more about Cons
It does not work with taxable accounts
If your account balance is low, you will pay high fees for the paid plan
Stock allocations that are aggressive for young investors
Signing up for a free report is something I would highly recommend. You will get great recommendations and insights without spending a penny.
If you’d like to take it a little further, you can upgrade to the paid plan. It costs about $10 per month (billed annually at $120). This option is for those who feel they need more advice and help.
Sign up for 401k Management
Is Blooom Legit?
Is Blooom legit, that’s the question. Yes! They have done something very special with their 401k-robo-advisor.
They offer 256-bit security, as well as bank-level protection and third-party verification.
I am very careful about the products that handle money.
The company’s great products and affordable payment plan makes it easy for you to succeed.
Blooom is a great solution to a real investment problem. Companies need to earn money with their products or services.
