☑️ Blooom takes the complicated tasks of investing and makes it easy to understand and fast to make smart, informed decisions.
☑️ For a service offering high-value, the costs of managing your account is very low, at just $10 per month
☑️ It’s an impressive service for hands-off investors who want to get the most out of their investments
- Supported accounts: Employer-sponsored plans: 401(k), 457, 403(b), 401(a), TSP
- Account minimum: $0
- Account management fee: $10 per month, regardless of account size
- Other associated fees: None
- Account rebalancing: Portfolios are automatically checked at least every 90 days and rebalanced
Blooom: What is it and how does it work?
Blooom is an online registered investment advisor that can help you manage and optimize employer-sponsored retirement plans without over complicating the details. As of July 2018, they manage more than $2 billion in assets.
What sets this robo-advisor apart from others is its narrowed focus on a single type of account: workplace retirement plans. These include 401(k)s, 403(b)s, 457s, 401(a)s, and TSPs (thrift savings plans).
By relying on a combination of human advisors and automated technology, Blooom is able to make the most out of your chosen investments and plan offerings, sharing the best informed possible options with you in a way that’s easy to compare and choose. After setting up your portfolio to your liking, Blooom continually checks for rebalancing opportunities at least every 90 days. Note: Other events may also trigger a rebalance.
Also worth noting is Blooom’s standing as a fiduciary, meaning they’re required by law to act in your best interest, not theirs. This is important since it helps the company remain unbiased when making recommendations and eliminates conflicts of interest.
Requirements: Do You Qualify?
As long as you have an employer-sponsored retirement plan, you’re eligible to sign up for Blooom.
How to Get Started
Get started with a 100% free retirement analysis from Blooom in just a couple of minutes.
Simply create a free Blooom account, connect eligible retirement accounts, and the service will look over your investment portfolio and recommend how to immediately optimize your earnings.
Here’s a nice overview of the process:
Let’s breakdown each step of the process on how Blooom uses its proprietary algorithm to analyze your eligible account(s):
Step 1 – After plugging in your details, Blooom gets to work reviewing your portfolio and uses automated technology to flag funds that don’t make sense for you to invest in.
Step 2 – They will then scan through index funds that may prove to become better investments and will present them to you as options. Occasionally, you will also receive options for funds that require active management to gain investment exposure where needed.
Step 3 – Once all the appropriate funds have been swept and identified, Blooom will select the most ideal investments based on expense and manager experience.
Step 4 – From there, a Blooom advisor will double-check the results and cross-reference recommendations with your retirement account allocations.
According to Blooom, 45% of clients weren’t aggressive enough with their 401(k) portfolio and 8% were too aggressive with allocations before using Blooom.
Blooom understands working with a robo-advisor may feel unsettling at first – especially if it's your first time. That’s why it’s good to keep in mind that while most of the work is handled by Blooom’s algorithms, your portfolio is subject to review by licensed advisors to make sure everything is operating they way it should and your portfolio remains balanced.
Remember: You have ultimate control over your account and plan and can freely make whatever changes you choose, no matter what Blooom advises.
Is Blooom safe?
Blooom proactively takes strong measures to ensure customer security and confidence. Along with ensuring bank-grade security and encryption, Blooom also protects against potential fraudulent activity by scanning for viruses 24/7 and goes the extra mile by using secure third-party verification for additional security.
How much does Blooom cost?
Blooom’s fees and fee structure are incredibly simple and straightforward – they charge a flat-fee of $10 per month to management your account, regardless of account size.
Does Blooom support all retirement accounts?
No, Blooom is only available to the following employer-sponsored retirement account types: 401(k)s, 403(b)s, 457s, 401(a)s, and TSPs (thrift savings plans).
What about an IRA – are those supported?
To date, individual retirement accounts (like IRAs and Roth IRAs) or other taxable accounts are not supported by Blooom.
What’s the catch?
Blooom is a top-ranked service for those who have no idea where to begin when it comes to 401(k) accounts and would prefer to just leave it to the professionals. But it’s not everyone’s cup of tea – many prefer to actively manage their own accounts. If you fall into the latter category and prefer to dive into the deep-end of managing your own account, Blooom may not be for you.
What type of customer usually signs up for Blooom?
Blooom is a great service for investors who:
- Don’t fully understand employer retirement plans but intend to make regular contributions
- Don’t have time to handle investments on their own
- Pay for advice from expensive individual advisors
- Are curious to try a robo-advisor account management service to compare results with how they were previously managing their account
What if I sign up for Blooom and want to cancel?
Considering it’s reasonable fee, it’s worth a try to see if you like the service. If you’re unhappy with it, you can cancel any time. Blooom is a month-to-month service with no penalties for canceling. Just keep in mind canceling your account terminates services immediately, which just means you’ll need to resume overseeing and managing your retirement plan once you cancel.
How can I contact Blooom?
You can call their customer service number at (888) 446-8416, email, or live chat with customer support.
Disclaimer: This content and the opinions expressed here are the author’s alone and have not been provided, commissioned, or endorsed by any financial institution. All information was accurate at the time of publication but terms and conditions may change at any time.