Are you sure you are getting the best returns on your retirement investments? Different organizations employ various investment techniques, and your advising service may not provide you with the best results.
Blooom, a renowned robo-advisory, can assist you in maximizing your returns while staying within your risk tolerance. So, you earn a higher rate of return than if you use a fund manager that manages your investment portfolio in a one-size-fits-all manner.
Let’s take a look at everything there is to know about Blooom.
What exactly is Blooom?
Blooom is an SEC-registered investment advising firm based in Leawood, Kansas, that was founded in 2013. Blooom is the only robo-advisory service we could locate that can help you manage your company’s retirement plan.
Blooom’s advising services are available without having to leave your employer-sponsored IRA or 401(k) or transferring accounts from your present trustee.
Blooom manages the account, so you don’t need to ask your boss for permission to use the advisory. You get more control over your retirement planning as a result.
Features of Blooom
While Blooom’s main selling point is that it can handle your 401k, there are a few more aspects worth mentioning:
- Blooom will keep an eye on your portfolio and make adjustments as appropriate. This involves looking into new funds and adjusting your portfolio as necessary (optional).
- Blooom optimizes your portfolio to help you reach your goals, rather than merely investing your money in a set of ETFs. This includes finding a portfolio that works for you, determining your risk tolerance, and maybe lowering investment expenses.
- Blooom provides access to financial experts at no additional cost to Standard and Unlimited users. Within 2-3 business days, you’ll get a response—or access to a live chat.
- Withdrawal warnings, if there is a withdrawal from your retirement savings, Blooom will send you a text message alert.
Who is Blooom designed for?
Blooom is an excellent robo-advisory solution for managing your company’s retirement plan. Blooom is the right choice for maximizing your portfolio results if your IRA is kept with Fidelity or Vanguard.
For people who don’t know anything about investing, Blooom employs a “passive” investment method. It offers a terrific hands-off way to managing your retirement funds if you don’t know have any idea about the stock market, trading ETFs, or managing money.
Finding the correct assets and making the right deals is not a problem. Blooom takes care of everything for you without you having to do anything. You may relax and enjoy the growth of your retirement account.
What is the mechanism behind it?
Blooom’s robo-advisory tries to optimize your portfolio once you sign up. After learning about your preferences, their system selects the best funds for your portfolio, resulting in a well-diversified, low-cost lineup with the best results.
Blooom provides a unique set of management services for US workers’ retirement accounts that are often overlooked or underestimated by other top advising firms.
Blooom handles only employer-sponsored retirement plans, such as 401(k), 457, TSP, and 401(a) accounts, as well as Roth and traditional IRAs. It’s worth noting, though, that Blooom’s IRA engagement is limited to Vanguard and Fidelity accounts.
Types of Blooom Accounts
Many people are drawn to Blooom because of its capacity to handle 401(k) accounts, but that’s not all it can do. It can take a wide range of account types:
- 401(k)
- 403(b)
- 457(b)
- 401(a)
- TSP stands for Thrift Savings Plan (TSP)
- Traditional Individual Retirement Accounts (IRAs)
- SEP IRA (Self-Employed Individual Retirement Account
- IRA (individual retirement account)
- Simple IRA
- Spouse IRA
It’s important to note that Blooom does not support any taxable account. This makes sense because it focuses on retirement accounts.
Blooom’s charges
The annual management cost varies between $45 and $250 each year.
Transaction fees: Transaction fees vary depending on your retirement plan, but Blooom will tell you before executing a transaction that may cost $50 or more.
Aside from the initial portfolio review, which is free, Blooom charges a flat price for its services rather than a portion of your assets, which is a popular robo-advisor pricing structure. Blooom now offers the following packages, organized by price point:
Essentials – $45 per account, per year
A portfolio that is unique to you (this includes Blooom researching the funds in your account, giving recommendations based on your investor profile, and keeping your portfolio on track as your target allocation shifts)
Standard – $120 per account, per year
- A portfolio that is unique to you
- Alerts for transaction activity
- Blooom can place trades on your behalf if you choose.
- With access to a financial advisor and responses within two to three business days,
Unlimited — For an annual fee of $250, you can have an unlimited number of accounts.
- A portfolio that is unique to you
- Alerts for transaction activity
- Blooom can place trades on your behalf if you choose.
- Live chat access to financial advisors
Additionally, you may incur transaction costs connected with some funds as Blooom begins to convert your current retirement portfolio into the portfolio it suggests for you. Blooom will contact you before completing any transactions that will incur a transaction fee of more than $50.
Blooom’s Investing Options
Accounts for retirement
Blooom accepts IRAs and employer-sponsored plans, so you can open an account even if you don’t have a job. For 401(k)s, 401(a)s, 403(b)s, thrift savings plans, as well as for IRAs, the robo-advisor provides individualized management.
However, there is a catch to IRAs. Blooom accepts fidelity IRAs. Blooom supports standard IRAs, Roth IRAs, spousal IRAs, nondeductible IRAs, SIMPLE IRAs, and self-directed IRAs if this brokerage is your IRA provider.
Accounts for brokerage services
Blooom’s platform now includes a brokerage option. They let you link your brokerage account to the free, unmanaged version of the app; however, you can’t trade with it for now. According to Blooom’s website, this allows you to see your whole portfolio in one spot.
Is Blooom the correct choice for you?
Blooom gives employer-sponsored retirement programs much-needed investment management. This is a significant benefit because most people who have such plans utilize them as their primary retirement vehicle. Other robo-advisors have underserved this market.
However, before you sign up, perform the arithmetic to see what proportion of your assets you will pay based on your account balance. Check to see whether you have access to similar services through your 401(k) or other employer-sponsored retirement plans; some even provide free investing advice.
Pros & Cons
The Bottom Line
Blooom provides much-needed investment management to 401(k) and IRA plans provided by employers, as well as some IRAs. Investors can also use the company’s free analysis tool to try out the service.
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FAQ
When Blooom was founded?
Blooom was founded in 2013.
What is Blooom?
Blooom is an SEC-registered investment advising firm that can help you manage your company’s retirement plan.