My Blooom Review
Discover BLOOOM.com, an innovative solution transforming the way you manage your retirement investment accounts. Unlike traditional robo-advisors, BLOOOM.com specializes in optimizing employer-sponsored retirement plans, a realm often overlooked by others in the field.
This distinct focus acknowledges the significance of workplace retirement accounts as primary savings avenues. By bridging this gap, BLOOOM.com offers tailored investment management for a segment that’s typically underserved.
Whether you’re just starting your career or nearing retirement, BLOOOM.com’s approach aims to align your retirement goals with a personalized investment strategy.
Delve into a unique platform that zeros in on enhancing your financial future through optimized retirement planning.
If you want to know more about this platform, then this Blooom review may help you!
Blooom Review: An Overview of the Best Financial Advisors?
Blooom is no doubt the best and most sought-after robo advisor today for the complete and inclusive investment management of employer sponsored retirement plans.
Blooom can also help in handling all of your plans, like an individual retirement account or IRA account. The best thing about it is that there is no need to transfer the account to an exceptional platform or ask employer’s consent.
Blooom is an excellent option if you are searching for a workplace retirement plan specialist.
Blooom operates as a specialized robo-advisor catering specifically to retirement plans, encompassing both employer-sponsored plans and IRAs.
Its expertise lies in retirement portfolio creation and management. Notably, it excels in pinpointing concealed investment fees that might be lurking within your plan.
This is particularly crucial within employer-sponsored plans, where inflated investment fees can be prevalent.
The potential to diminish these fees holds immense value, given that certain employer plans tend to carry higher-than-average fees.
Blooom’s ability to curtail such fees carries the potential to positively impact the overall long-term performance of your retirement assets.
By addressing this significant issue, Blooom contributes to optimizing the effectiveness of your retirement planning and investment endeavors.
Opposed to other robo advisors, Blooom manages employer-sponsored retirement plans. Think of 401k match plans that companies offer. This is also the only platform that provides this kind of specialization.
By helping to lessen hidden investment fees, Blooom can aid the progress of the performance of long-term portfolios.
Blooom Review Features
Aside from providing traditional and Roth IRA accounts, Blooom extends its services to cover a range of retirement options like 401(k) investment account, 403(b), 457, 401(a), and Thrift Savings Plan (TSP).
For employer-sponsored plans, Blooom collaborates with the custodian linked to your plan, while for IRAs, it exclusively partners with Fidelity, Vanguard, and Charles Schwab.
Blooom operates as a fiduciary, obligated by law to prioritize your best interests. It ensures your security using bank-level protection with 256-bit encryption to safeguard your details.
It’s worth noting that Blooom doesn’t offer SIPC insurance, as it doesn’t have custody of your plan – the coverage is provided by your plan trustee.
Additional Blooom Features Comprise
Available across all three Blooom plans, this feature examines the funds within your plan, selects the most suitable options based on your circumstances, and can potentially minimize concealed investment fees. If you hold a Standard or Unlimited plan, you can even opt for them to carry out trades on your behalf.
Ensures your portfolio remains aligned with the market’s shifts (known as periodic rebalancing). This process occurs approximately every 95 days, only if necessary, to sustain the desired portfolio allocation.
Sends you a text alert if any account withdrawals are detected.
Delivers responses to your financial inquiries within a span of two to three business days.
Preferred Consultation Access
Presents a live chat avenue to discuss your financial queries with an advisor during standard business hours.
Is Blooom a Good Fit for You?
Blooom fills a crucial gap by managing investments in retirement plans offered by your employer. This is valuable, especially since these plans are often the main way people save for retirement. Not many other automated advisors focus on this.
However, before you join, make sure to calculate how much of your money you’ll be paying, depending on how much you have saved.
Also, find out if your 401(k) or employer plan offers similar services directly, as some provide free investment help.
Blooom Fees and Pricing
You can pick between one of the three different service plans, such as Essentials, Standard, and Unlimited.
With an annual fee of $45, this provides access to a personalized portfolio, trying to reduce hidden fees related to investment.
With an annual fee of $120, you have access to auto-optimization of your accounts, access to your advisor, and withdrawal alerts.
With a yearly fee of $250, this takes account of unlimited accounts. The unlimited plan takes account of all of the perks of the other employer-sponsored plans. This also comes with priority access to human advisors.
No matter what plan you decide, you are required to have a credit card. This evades the need for Blooom to withdraw money from retirement accounts that would also establish a taxable plan allocation.
The payment structure is based on flat annual fees, there are no hidden fees of any type. But, there are hidden fees related to the individual investments in each plan, like ETF fees, and other charges which might be charged by the administrator or plan custodian. Those fees are compensated to third parties, not to Blooom.
Should you opt to discontinue the service, the handling of the annual fee takes one of two routes:
You retain the option to maintain your subscription until the conclusion of the plan year, or
You could qualify for a prorated reimbursement determined by the remaining duration of your ongoing subscription.
Specialized Emphasis on 401(k)s
Blooom distinguishes itself amidst a crowded landscape of robo-advisors by concentrating its efforts on a specific realm – retirement plans encompassing 401(k)s and IRAs. Catering to the retirement holdings of individuals, Blooom addresses management aspects that frequently remain overlooked by other advisory services.
Blooom’s approach is refreshingly simple. With no minimum account balance, its management incurs a flat annual fee ranging between $120 to $295, contingent on the chosen service level.
Enrolling for a Blooom account and availing of complimentary analysis of your 401(k) is hassle-free. For those seeking heightened engagement, the upper two tiers offer access to financial advisors and tailored guidance.
Advantages of Blooom.com
Focused Expertise: Blooom.com specializes in optimizing employer-sponsored retirement plans, addressing a specific and often underserved segment of the investment landscape.
No Account Minimum: Blooom.com’s lack of an account minimum ensures that investors of all levels, including those just starting out, can access its management services.
Transparent Flat Account Fees: The straightforward flat fee structure offers transparency, allowing investors to understand and plan for costs without hidden surprises.
Tailored Asset Allocation: Blooom.com’s algorithmic approach tailors asset allocation, optimizing your investment strategy based on your time horizon and risk tolerance.
Personalized Advice: Depending on the chosen service tier, Blooom.com provides access to personalized advice, including automatic trades and consultation with registered advisors.
Restricted IRA Management: Complete IRA management through Blooom is solely accessible to individuals holding accounts at Fidelity.
Costly for Modest Balances: While the flat fees gain appeal as your account balance increases, they prove relatively higher for brokerage accounts with more modest balances.
Lack of Phone Support: Blooom solely offers customer support and interaction with financial advisors through digital channels, limited to online chat and email correspondence.
No Service for TIA: It does not offer management services for a taxable investment account.
Blooom is Most Suitable For:
Individuals enrolled in employer-sponsored retirement plans, benefit from its specialized focus on optimizing these plans.
Those possessing Individual Retirement Accounts (IRAs) specifically with Fidelity, enable them to leverage Blooom’s comprehensive management services.
Investors who prefer a hands-off approach, entrust Blooom’s expert management to navigate their investment portfolios.
Anyone seeking a complimentary 401(k) portfolio analysis, allowing them to gain valuable insights into their retirement savings strategy.
Is Blooom a Smart Choice?
Blooom stands out as a unique contender due to its specialization in optimizing employer-sponsored retirement accounts. An added advantage is its user-friendly approach that allows you to maintain your existing account without requiring employer consent.
However, the decision to embrace Blooom’s services hinges on the extent of your investment portfolio. Notably, smaller portfolios may find the fixed-rate pricing less favorable, while larger portfolios unlock more favorable terms.
Opting to invest a minimum of $120 annually for access to personalized advice from a financial advisor or human advisor could be justifiable, especially for those seeking tailored financial guidance.
Take a moment to assess the fees you incur with Blooom about your total investment, and factor this into your deliberation.
If Blooom has the potential to reduce fees and provide you with a sense of financial security, the yearly expense could be well-justified.
Additionally, it’s important to highlight that signing up for Blooom comes at no initial cost. Their software offers an assessment of your 401(k) investments, including potential fees and asset allocation, after linking your account.
While this requires account integration, it serves as a valuable starting point for evaluating the alignment of your asset distribution with your financial objectives.
No Initial Investment Required
Unlike numerous robo advisors that impose minimum account balances, necessitating a specific account balance for eligibility, Blooom takes a distinct approach. This means that even those in the early stages of their investment journey are not excluded from availing of its services.
Blooom’s absence of an account minimum ensures that novice investors can enlist its management right from the outset, providing them with a more favorable opportunity to initiate their investment endeavors on a positive trajectory.
Account Management Fee
Blooom aims for customers to perceive the value of delegating their 401(k) management akin to their subscription-based services like Netflix.
The straightforward, annual flat fee model has its merits. It provides transparency as investors are acutely aware of the exact expense, and the fee is directly billed to a credit or debit card, circumventing any deductions from the account balance.
Blooom’s uniform fee structure empowers customers to select a service level tailored to their specific requirements. The initial tier, starting at $120 annually per account, offers the Personalized Portfolio package encompassing portfolio monitoring and fund suggestions.
The subsequent tier, priced at $165 yearly per account, introduces the Advisor Access package, supplementing the Personalized Portfolio with automated trades and the option to connect with registered advisors through chat or email.
The most extensive tier, the Financial Consulting package, comes at $295 annually and covers an unlimited number of accounts. It amalgamates the offerings of the Personalized and Advisor Access tiers, coupled with a 30-minute live consultation with a registered advisor annually.
However, the flat fee structure does have its downsides. When comparing costs with other advisory services, both automated and human, it becomes imperative to assess this fee as a percentage of the assets under management.
Investment Cost Evaluation
Unrated When it comes to employer-sponsored plans, the investment options at hand are often restricted, and some of these options may carry fees that exceed the norm.
Typically encompassing a range of fund types — such as mutual funds, index funds, or exchange-traded funds — each of these funds generally comes with an investment expense ratio. This ratio is a fee directed back to the fund company to cover its operational costs.
Blooom addresses this scenario by categorizing the investments within the account into distinct asset classes. Subsequently, it selects the investment with the lowest internal expense ratio for each category, thereby optimizing the investment choices.
While it’s not uncommon to encounter situations where only one fund exists within a category, leaving little room to reduce expenses, Blooom’s investment expense assessment proves valuable.
This audit has the potential to assist investors in lowering their overall costs while ensuring a suitable asset allocation and diversification strategy is maintained.
Asset Allocation Assessment
Unrated During the evaluation of different service providers, Blooom’s composition of asset allocation displayed a tilt towards a more assertive approach, emphasizing a higher exposure to equities (stocks) when compared to its counterparts.
Blooom’s philosophy is grounded in the belief that younger investors directing their efforts toward retirement savings should allocate their 401(k) holdings away from cash and bonds. The algorithm employed by Blooom.com tends to favor equity allocations until approximately two decades before retirement.
Blooom adheres to fiduciary standards while dispensing advice, ensuring that its recommendations are guided by the client’s best interests.
Its operational framework limits advisors to work within the offerings presented by the client’s plan. Notably, Blooom does not engage in proprietary products and is devoid of any incentive to direct client funds towards cash or other financial instruments that could potentially bolster its financial performance.
Retirement Income Estimator
To assess your progress towards your retirement objectives, you have the option to connect your accounts to Blooom’s retirement income calculator.
This tool provides an approximate estimate of your potential monthly income during retirement. If the projected outcome doesn’t align with your expectations, Blooom can recalibrate your strategy, guiding you toward a more favorable trajectory.
Final Takeaway on Blooom
For those grappling with the complexities of overseeing their employer-sponsored retirement plan, Blooom emerges as a potential resolution.
It stands alone as the sole entity offering management specifically for employer-sponsored plans. With the potential to curate and handle your investment portfolio, along with aiding in the reduction of investment fees, Blooom can liberate you to focus on other aspects of your life, assured that your retirement strategy is entrusted to capable hands.
Expanding its scope to encompass your entire retirement landscape, Blooom might also extend its investment management prowess to include your IRA account(s).
Should you possess multiple employer plans and IRAs, Blooom’s Unlimited Plan could streamline matters, managing multiple accounts for a single flat annual fee.
However, it’s important to note that Blooom’s flat fee structure could pose a disadvantage for smaller account balances.
Additionally, it’s worth highlighting that Blooom does not offer management services for taxable accounts. Nonetheless, considering the plethora of alternative robo-advisors available to cater to taxable accounts, this drawback may be easily circumvented.
IMPORTANT: Unfortuantely, Blooom has closed their offices and services are no longer offered. However, I do have an alternative approach that you might consider choosing.
Alternative Investment Offers
My suggestion would be to check out one of the companies listed below as an alternative to Blooom, especially if you’re looking for alternative investment opportunities. All of the options below are worth looking into! Check out each of them.
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