- Editor Rating
- Rated 4 stars
- Excellent
- Blooom Review
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Contents
Blooom’s robo-advisor service manages your 401(k) plan on your behalf. It is relatively easy to use, working with any retirement accounts you hold that provide online access. However, Blooom will not take into account your individual tolerance for risk.
Searching for a financial planner? Take a look at SmartAsset, which is free to use.
They are a fully registered and reputable Investment Advisor business that specializes in both 403(b) and 401(k) plans. Blooom analyzed more than 25,000 401(k) plans, stating that after careful and intricate analysis, over 80% of these plans were not being managed correctly. They won’t get involved where IRAs or taxable investments accounts are concerned.
The 401(k) market is not overly crowded, and one of the significant benefits of what they offer is their ability to manage almost any 401(k) plan, regardless of with who or where it is held. Above all else, because Blooom is a fiduciary, they are obliged by law to always act in your best interests.
The challenge that their services resolve for clients is that the majority of employer-sponsored plans will be quite random in the range of investment options which can be a little bit challenging to understand. Investors are left confused and uninformed of what is happening with their funds. Moreover, the likes of Betterment and Wealthfront will not manage plans that are provided by employers – enter Blooom.
Compare top Robo-Advisors with SuperMoney
Earn A $40 Amazon Gift Card Per Referral With Blooom
Once you’re a member of Blooom, you can start making referrals to earn a $40 Amazon gift card per referral. You can receive up to $600 in referral payments in any calendar year.
- Once you sign up to become a client, you’ll get a personalized link to share with friends.
- This will guide them through an account analysis and end with a personalized investment strategy, ALL FOR FREE.
- Share your referral link wherever, whenever. Use social media, email, text, whatever floats your boat.
- After their free analysis, your friends will have a choice to become an actual client of blooom AND they get will $20 OFF their annual subscription.
- Check the the program terms for additional terms and conditions.
How Does Blooom Work?
Using a combination of human advisors and automation, they deliver on their promise of maximizing a client’s plan. Every 90 days they will check for opportunities to re-balance. Customers of Blooom can access financial advisors at the company through a live chat function or contact them via email – you cannot contact them by phone.
Once you have signed up to the service, you retain absolute control of your account, but you give Blooom Legal power of attorney to act on your behalf. They will not be able to remove any funds from your retirement account, but they will be able to invest it on your behalf. You do not need to transfer your account or open up new ones. As long as your account has online access, they can manage it on your behalf.
They will look at your expected retirement age and your current age. In the earlier stages of your retirement plan, they will weigh more heavily in favor of stocks. Then, as this plan matures and you come closer to your retirement, they will orientate this more towards bonds.
Who Is Blooom Suitable For?
- Ideal for investors who prefer a hands-off approach
- Perfect for those who have employee-sponsored retirement plans
- Those you prefer a greater than average tolerance to risk
- Those who want a specialist and comprehensive approach to employee retirement plans
Bottom Line
Blooom provides a superb, hands-off solution for those who need help to manage their employee-sponsored retirement plan. It makes it easy to sign-up and test the waters with a free, no obligation analysis tool. They also provide clear and upfront pricing that is competitive with no surprises in terms of hidden fees or charges.
Overall, their approach to managing retirement plans is spot-on. The algorithm they use places a particular emphasis of low-cost investments and diversification; both of these principles have been firmly supported by countless years of research.
*My Investments Disclosure
I’m constantly tweaking my investment strategies as I gain more insight and as investment options evolve. Below is my current lineup.
- Thinkorswim platform from TD Ameritrade. This is the desktop platform I currently use to trade
Forex, Futures and EquitiesOptions. My strategies are always evolving but my main focus currently is on selling Put Options. - Vanguard funds. As the great Warren Buffett recommends, I invest a good portion into an S&P 500 index fund directly with Vanguard. Most of my investments here are in the VOO Vanguard S&P 500 ETF. With an Expense Ratio of just 0.04%, this is a great way to diversify and save a great deal on fees. I’ve also decided to diversify further with the total stock market, investing in the VTI ETF with Vanguard.
- Wealthfront. If you’re a good number of years before reaching retirement, many finance experts suggest going with a robo-advisor. With so many good reputable robo-advisors on the market, I decided on Wealthfront based on their track record, client reviews, and because I’ve been able to waive all management fees through their referral program.
- Fundrise. I wanted to have an alternative to stocks and bonds, and decided to dip my toes in the private real estate arena with Fundrise. I’m not all-in on this strategy just yet, and only have a small account open.
- Online Savings. This is how I store my emergency funds. The best online Savings accounts will provide much better rates than your traditional big banks will. Rates aren’t quite as good during this current macroeconomic environment. Click the link to compare the nation’s best rates.
- Bitcoin and cryptocurrency. This is simply for fun and I can’t recommend this option to anyone with all the unknowns. I’m currently not so optimistic on cryptocurrencies.
See the list of the current best Robo-Advisors here.
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