Having financial security at retirement can be a huge source of stress. Many people feel locked into their employer’s offerings and don’t see how to make the numbers match up to what they will need when they want to leave that job behind.
The Stock Dork wants to help you out! We take a look at other types of investment platforms for retirement so you can rest easy.
This review of Blooom aims to help you determine if the robo advisor investment platform is right for you.
Blooom Review: Overview
Blooom is a robo advisor that focuses on one section of the investment marketplace: retirement. The services that are offered are often overlooked by other investment management platforms and robo advisor services. Blooom can manage your employer-sponsored retirement plan, 401k, 403 b, 457, a thrift savings plan, 401 a, traditional IRA, and Roth IRA.
Investment management is important in today’s world, and saving for retirement is a must. Blooom offers free account analysis, account rebalancing, investment advice, and no account minimum to get started.
With reasonable costs and a one-time annual fee, the platform is a good way to manage savings for your retirement. If you need help with investment management and personal finance for your retirement, Bloom is the way to go when it comes to robo advisors.
Blooom grew out of the fertile minds of a team based in Leawood, Kansas, in 2013.
The robo investment advisor helps manage your 401k, IRA, and other retirement plans. As an account manager, Blooom does not take control of your plan, leaving you still in control.
The service’s cost is reasonable, and users can opt to pay a flat fee to use the platform. There is no account minimum to start, making it a good choice when it comes to retirement investment options.
What is Blooom?
Blooom is a robo advisor focusing on one investment marketplace section: retirement. The services that are offered are often overlooked by other investment management platforms and robo advisor services.
Blooom can manage your employer-sponsored retirement plan, 401k, 403 b, 457, a thrift savings plan, 401 a, traditional IRA, and Roth IRA.
Investment management is essential in today’s world, and retirement savings is a must. Blooom offers free account analysis, account rebalancing, investment advice, and no account minimum to get started.
Blooom Review: How Does Blooom Work?
Blooom works by offering a free analysis of your accounts. As a robo advisor, the service can help manage most retirement plans, including traditional and Roth IRAs.
It can search your accounts for investment fees often included in a 401k or other employer-sponsored retirement plans, which may be higher than usual.
Blooom Review: Is Blooom Legit?
Blooom is legally required to work for your best interest. As a fiduciary, it must follow specific guidelines when it comes to managing your retirement account.
It also uses bank-level security encryption, so you can be sure that your information is safe. While Blooom does not offer SIPC insurance since it does not take full custody of your retirement account, your plan trustee does provide the needed coverage.
Blooom Review: What Does Blooom Include?
Blooom provides a few key things when it comes to managing personal finance for your investment accounts.
- 401k Analysis
- 401k Account Management
- IRA Account Management
- Automatic Rebalancing
- Registered Investment Advisors
Blooom analyzes your investment accounts to see if you could be saving money. It will assess any investment fees associated with your accounts to see if those investment fees could be lower with different fund choices. Blooom will then advise you on lowering or eliminating them to make more money from your investment.
The service manages your 401k or other retirement accounts by creating a retirement portfolio based on your current age, retirement age, and risk tolerance. This helps the advisor pick funds to invest in that are unique to your profile.
The 401k account management feature is where Blooom shines the most. The service can help you create and manage your portfolio for your 401k and other retirement accounts.
At this time, Blooom is the only service on the market of its type. The platform does not take over your account but instead works as an investment management tool, leaving you with total control of your investments.
Unlike some robo advisors, where employer consent is needed, you do not need your employer to give you the go-ahead to use Blooom’s services.
Since the company operates by analyzing your 401k and other retirement accounts, it works with your existing employer-sponsored retirement account to choose funds that are in your best interest.
The service can work with accounts that are located anywhere, making it a top choice when it comes to investment management services.
Blooom will also show you where you could be saving money, such as on investment fees you may not be aware of.
Blooom does not use individual stocks when creating your portfolio but instead focuses on mutual funds and ETFs – based index funds to help grow your investment. The exception to this rule is your company’s stock, which Blooom advises being less than 10% of your overall portfolio.
IRA Account Management
Blooom also offers management for both traditional and Roth IRA accounts. You can use Blooom to manage just an IRA or both your IRA and employer-sponsored retirement account.
With employer-sponsored retirement accounts, Blooom can work with accounts that are placed anywhere.
However, with IRA accounts, the service only handles accounts that are with Fidelity, Charles Schwab, or Vanguard.
You can also use self-directed investing, allowing Blooom to only manage only part of your account while you handle the rest.
Blooom will review your accounts about every 95 days to see if the account needs optimization.
Blooom keeps track of any shifts in your account until another account rebalance is needed. Rebalancing takes place anywhere from one and four times annually, depending on your investments.
Registered Investment Advisors
Blooom has advisors available to answer any questions you may have. With some plans, a registered investment advisor is on hand to speak with you about your account during regular business hours.
Blooom Review: Blooom Cancellation Policy
You can turn off auto-renewal for your Blooom subscription at any time. There are no refunds for the service, but you’ll be able to continue using the service until your billing cycle is up.
Blooom Review: How Much Does Blooom Cost?
The DIY plan costs $45 per year, per account. It only includes a personalized portfolio and does not provide anything else. This is the bare-bones option that Bloom offers.
The standard tier costs $120 per year, per account. With the Standard pricing plan, you will get:
- A personalized portfolio
- Auto optimization
- Withdrawal alerts
- Activity alerts
- Advisor access
This plan offers access to financial advisors. You can ask questions about your investments and get help with financial planning. You will get a response from a financial advisor within 2-4 business days.
The most inclusive plan offered is the unlimited plan, which comes with an annual fee of $250. The Unlimited plan provides management of unlimited accounts that belong to you. With this plan, you will get:
- A personalized portfolio
- Auto optimization
- Withdrawal alerts
- Activity alerts
- Advisor access
- Priority advisor access
The priority advisor access in this plan allows you to speak with a registered financial advisor and receive independent financial advice at any time during regular business hours. This plan is best if you want help with your financial planning for your employer-sponsored plans or your IRA.
Blooom Review: Pros & Cons
The robo investment advisor is rather unique and offers a number of exciting features. That being said, there are a few limitations you should be aware of before diving in.
- No minimum initial investment
- It can manage most plans
- Low cost compared to other robo advisors
- Professional account management
- Asset allocation
- No need for employer consent
- Management of any retirement plan
- Personalized investment management
- IRAs must be with one of three custodians
- The service is for retirement accounts only
- The monthly fee is high for small accounts
- Blooom does not offer phone support
Blooom Review: Is Blooom Right for Me?
Blooom may very well be a good choice for you if you struggle to manage your retirement investments. Blooom handles the hard part of investing- figuring out which funds to invest in to best grow your portfolio based on your retirement age and risk tolerance.
Should you already have a retirement account, whether that be a 401k, IRA, or both, Blooom could help you better reach your retirement goals. The robo advisor offers a good way to manage your retirement assets with a hands-off approach.
The major selling point of Blooom is that it offers a free 401k analysis, which is great for anyone who is not exactly sure if they are investing wisely. The free analysis is also great for seeing if you can lower your investment fees by allowing you to see the fee structure on your accounts.
Blooom offers a good service for most novice investors when it comes to individual retirement, especially those who need help managing their portfolio but do not wish to spend too much money.
You should, however, check to make sure your current 401k or other employer-sponsored retirement plan does not include similar services. If it does, Blooom may not be worth the added cost.
Blooom Reviews from Customers
Customers who use Blooom typically have good things to say about the service. As Blooom is a relatively new company, there is not much data on the service available in the form of customer reviews. Plus, the company is not able to share customer reviews due to SEC regulations.
The online reputation of the company is good overall. There are only two complaints on the Better Business Bureau website which give Blooom a rating of A-.
Some Reddit users do report problems with Blooom, with one even mentioning that the management platform actually caused their profits to decline.
Of course, investing can be a gamble, and specific outcomes for some customers may be poor due to their set risk tolerance and account balances.
Final Review: Is Blooom Worth It?
Blooom is overall a good choice for hassle-free investing. When it comes to retirement, it is never too early to start saving. The robo investor handles the difficult aspect of investing for retirement, making Blooom a good choice for many investors.
However, you should be aware that using Blooom for accounts with small balances might not be the best decision. This is simply because you would be spending a good percentage of your retirement savings just on account management. It may be more worthwhile to wait until you have more savings to start using Blooom.
In all, the service offers some outstanding features. Blooom is good at managing many types of employer-sponsored retirement plans and even IRAs.
Account alerts, access to financial advisors, asset allocation, rebalancing of assets, and overall portfolio management make Blooom a good choice when it comes to managing your retirement savings.