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Blooom review: Robo-Advisor to manage your 401k: Pros and cons 2019

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Blooom is a robo-advisor who provides professional assistance to manage retirement plans in the workplace like you 401k, helping clients make the most of their money as retirement approaches.

The company was founded with the idea of ​​making 401k professional help simple, available to all and intelligent. The goal is to provide impartial advice to all Americans, not just those who are rich and can afford to hire private professionals.

The team behind Blooom is made up of experts who are dedicated to helping customers manage their 401k online in an affordable and simple way. The idea is that with Blooom, people have the confidence they need to make smart decisions using the dollars they worked so hard to earn.

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Note: This publication contains links from affiliated partners.

Simplifying 401ks

Blooom aims to overcome the complicated nature of 401ks. It is a well accepted fact that these types of savings accounts tend to be very confusing. While most companies offer a 401k, few go into details when it comes to explaining the plan or giving advice on how to manage it.

By using Blooom, you get access to unbiased experts who can give you explanations and help you with the 401k administration, directing your plan and making sure it stays there.

Blooom website
401k guides

Blooom's philosophy

The philosophy behind Blooom is to help its customers. There is no hidden reason, such as helping an institution, a broker or your company. Instead, Blooom wants to give everyone access to independent financial advice from professionals.

Blooom believes in three main parts of the investment: performance, decision making and cost. Blooom feels that he can only control decision making and cost, which is where the company helps its customers.

In terms of performance, Blooom does not claim to be able to predict the market as other companies do. Instead, Blooom focuses on managing risk and other proven methods over time. Blooom takes time to investigate risk management through the appropriate asset allocation to keep it on track.

About Blooom

In terms of cost, Blooom believes that, instead of following historical performance, investment-related rates better predict their ability to achieve retirement goals. Part of this is choosing the lowest cost option within each category of funds so you don't have to worry about the fees that are charged with your savings.

In terms of decision making, Blooom is responsible for managing your account, so there is also an expert who provides advice. Blooom advisors are always there to help you with your smart decisions and keep your account up to date.

How does Blooom work?

Blooom works to optimize the 401ks of clients or provide the same optimization services for any other employer-sponsored retirement account. Blooom can work with a 401k, 401a, 403b, 457 or TSP. There is no minimum account size.

To use Blooom, start by entering your 401k login information and answering some basic questions. With this information, Blooom will give you an unbiased analysis of your 401k.

There is no commitment to this part, and it is completely free, without the need to enter a credit card. This process verifies your investment rates, risk tolerance and diversification.

From there, you can choose to have Blooom fix it. This requires that you sign up for the affordable payment plan. Blooom will make the suggested changes in the free check, optimizing your account and performing the other services explained below.

Personal analysis

Blooom optimizes your fund options by combining bonds and stocks based on your objectives, eliminating investment rates and regularly adjusting your account as your retirement date approaches.

From there, you can sit back and let Blooom take care of your account. The company will manage your risk while maximizing your earnings.

Blooom experts will take care of everything from helping you guide you through the ups and downs of the market to planning.

An algorithm handles most of the heavy work, but the authorized advisors, as well as the Blooom account coordinators, will periodically confirm and verify that rebalances are performed accurately.

Blooom rates

There are two options for Blooom, a free version and a paid version. The free version of Blooom is a quick scan of your 401k that takes less than five minutes. Or you can pay $ 10 per month for 401k of administration and monitoring. To make Blooom more affordable, the company offers a 10 percent discount if you pay annually instead of monthly.

Blooom rates

What does Blooom include?

Whether you choose the free or paid version of Blooom, the company will find hidden investment rates in your account that are costing you money.

Blooom will also show you your investments and allow you to quickly understand the diversity of your account funds. Blooom also always includes recommendations. These are expert suggestions for a combination of assets such as bonds and stocks to help you reach your retirement goals.

By paying for Blooom, you also get a long list of additional features that add value to the services. Blooom will minimize your hidden rates.

Instead of just finding them and letting them know that they exist, Blooom will take steps to potentially reduce those rates that are decreasing its 401k.

What's included

Blooom will also regularly adjust its portfolio. This implies optimizing investments so that they always align with their objectives and help them stay on the path of retirement.

In addition to the regular recommendations that all Blooom users receive, paid customers also receive financial help from experts. This includes the ability to ask advisors any questions related to finance, whether they specifically involve 401k or not.

Blooom also provides a layer of protection by giving you alerts of suspicious activity so you can detect any attempt to steal your earned dollars with so much effort immediately and act.

The most important feature of Blooom is that you don't have to do anything. Instead, the 401k team experts monitor your account for you so that you know that your hard-earned dollars are working for your best possible skills and you can focus on something else.

How does the selection of investments work with Blooom?

One of the key elements of Blooom is the way in which the company selects the right investments so that you make sure that your 401k works as well as possible.

Blooom is proud to facilitate the understanding of your 401k so you don't have to feel overwhelmed by the various options or worry about whether you made the right 401k selections.

Blooom wants people to be aware that their employers only provide 401k; They do not succeed. Instead, you as an individual are responsible for managing it.

Most people simply do not have full confidence in their decisions, especially considering the importance of a retirement fund.

Blooom account

Blooom adapts its suggestions for clients based on their current funds and the amount of time they have left until retirement.

For example, for those who are at the beginning of their careers (with more than 20 years before retirement), they suggest placing most of the retirement portfolio in stock. Since it will be a long-term investment, you can handle ups and downs along the way.

Losses will only be felt if you sell. Blooom feels that if you are too conservative with your investments, you could miss out on great potential gains.

For those who are approaching retirement or already there, Blooom suggests putting a greater emphasis on investing in bonds. The company still recommends that a reasonable portion be invested in shares so that it continues to see returns.

In this case, however, the security associated with the bonds is more important. If you are too aggressive with too many actions at this stage of your life, Blooom warns that if the market hits down, it could affect your ability to withdraw on time.

The general idea is that Blooom works for its customers. Blooom adapts your investment selection to your particular needs, including your retirement horizon and age.

Blooom works with clients of all ages, ages 18 to 76, and in thousands of companies, which makes the company's experts very familiar with the various investment options and how those variations attract different people.

What is the orientation of the Blooom market?

Blooom offers customers market guidance, including resources, so that they can easily work with the company that leads to a successful future. It deals with "heavy work" and the worst part of work while you only bring money and your goals.

Blooom also understands that the market has ups and downs. When he declines and takes his savings, Blooom will guide you through this depression, making sure you know your options. The company will prevent you from dropping solid investments just out of fear.

It is not possible to continuously beat the market every time. Blooom's methodology takes this into account and focuses on the long term, along with strategies to minimize loss in crises.

How does Blooom save you on hidden fees?

As mentioned, one of the services that Blooom offers in its free analysis is to detect hidden rates in its 401k investments that you may not be aware of. For paid customers, Blooom works to reduce these hidden fees.

The company even has an accountant on its website that calculates how much it has saved customers so far. At the time of writing this article, this accountant had a cost of $ 966.6 million in investments for life.

Blooom translates that figure into 19,476 fewer years of collective work for Blooom customers. These savings can translate into the ability to retire earlier than you could otherwise or the possibility of spending retirement traveling or with activities that you could not otherwise afford.

Save rates

Investment management fees

One of the most important ways that Blooom saves customers from excessive Wall Street fees is by exposing hidden investment management fees.

An example of hidden fees would be if your employer offers 401k, but instead of paying them on your own, they allow you to pay the rates. Since rates are automatically deducted from your balance every quarter of the year, you are unlikely to notice them without taking a closer look.

Blooom will examine the hidden rates within each fund of its 401k. For those with paid service, Blooom transfers their money to the funds with the lowest cost available within their plan and keeping their recommended allowances.

Fees for managed account services

Another way that Blooom eliminates excessive fees is to get rid of the fees for managed account services. This is the very common offer of an important institution that invests your 401k for you but does it for an additional fee.

This rate usually comes as a percentage of the balance of 401k. While that means that the rate stays nice and low when you just start saving, it also means that the rate increases as your balance increases and you approach retirement, even though the financial institution does not necessarily provide you with more services .

There is also the related problem that an important institution will always have some kind of conflict of interest when choosing the funds to invest its 401k.

Target Date Funds

Finally, Blooom keeps you away from target date funds. Blooom acknowledges that, in theory, they look great, as he can choose a fund closer to when he plans to retire.

However, the company notes that the annual rate is typically half a percentage higher than the funds that Blooom would select for you.

In many cases, the financial institution will also be the owner of the Target Date Fund, which means that they recommend their own services for profit.

No conflicts of interest

As Blooom is a stranger, he has no equity or related conflicts of interest. This means that Blooom will suggest the funds that are best for you instead of those that can make them earn money.

The rate with Blooom is also transparent and flat, so you don't have to worry about paying more for the same services as you approach when you plan to use the money in your 401k.

Blooom rebalancing

One of the features that Blooom announces is the rebalancing, which helps to keep the 401ks of the customers under control without the account holder having to make any effort.

The first rebalancing can be particularly complicated, since that is when Blooom will examine your funds and your retirement goals, then use your professional experience to route your 401k.

Blooom is proud to go further to ensure you have the lowest rates and the ideal combination of bonuses and stocks for your funds.

Blooom graphics

From there, Blooom automatically rebalances the wallets regularly. This means that if your employer no longer offers a specific fund or your retirement change goals, Blooom can take action and ensure that your 401k stays on the right track.

The methodology used by Blooom is based on evidence and is based on decades of market data.

Blooom Financial Advisory Service

As mentioned, Blooom gives clients access to a financial advisor who is ready to answer any of their questions. Most of the questions that clients ask tend to be related to retirement or 401ks, but financial advisors can cover anything related to their finances.

This means that Blooom customers can get financial advice for things like buying a new car or getting a puppy. The advisors are there to answer your questions, large or small, so you can determine how your choices affect your financial situation.

Because Blooom is not a financial institution or a bank, you can count on the information to be impartial without any conflict of interest.

You can get financial advice by live chat or by email for convenience.

Suspicious Activity Alerts

Blooom constantly monitors the activity of its clients' accounts to detect suspicious activities, as well as large withdrawals. In addition to the various protections that most major financial institutions have to protect 401ks and other retirement funds, Blooom adds an additional layer.

If Blooom detects a loan or withdrawal (which is unlikely), you will receive an alert by text message.

Account security

Blooom provides protection to customers in three main ways. This includes protection against hidden fees associated with most 401k Wall Street accounts, protection against unpleasant surprises due to fraudulent activities and protection against your instinct to react to any changes in the market as experts control your portfolio and are there to answer questions immediately.

There is also additional security in a traditional sense through 256-bit data encryption, bank-level security, third-party verification and secure servers.

conclusion

Blooom is a new generation of advisors that works to manage 401ks for anyone. Its objective is to make it possible for the average person to obtain professional financial advice and management for their 401ks and other retirement plans.

The company performs a completely free analysis and then gives you the option to register so that your team can manage your 401k.

This service is a flat rate of only $ 10 per month that includes a rebalancing based on your goals and the time remaining until retirement, access to financial advisors and more.

Blooom only works with employer-sponsored plans, such as 401 (k), 401 (a), 403 (b), 457 and TSP plans, and is ideal for investors who prefer to adopt a non-intervention approach in their 401ks and leave Let the experts take control. It should be noted that Blooom does not work with IRA or taxable accounts.

The fact that there is no minimum account size helps Blooom attract the widest variety of customers possible.

Blooom's offer provides the investment management necessary for planning your retirement and considering your low rates seems like a great offer and you can cancel at any time, so we recommend you try them.

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Blooom

Blooom

Pros

  • No minimum account
  • Low rates
  • Professional account management
  • Automatic rebalancing

Cons

  • Only 401 (k), 401 (a), 403 (b), 457 and TSP plans
  • No IRA or taxable accounts

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Disclaimer: The opinions expressed herein are only those of the author, not those of any bank or credit card issuer and have not been reviewed, approved or endorsed by any of these entities.

Disclaimer: The answers below are not provided or commissioned by the bank advertiser. The responses have not been reviewed, approved or supported by the bank advertiser. It is not the responsibility of the bank advertiser to ensure that all publications and / or questions are answered.

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