Update: Blooom has shut down and is no longer available
Blooom.com is a fully registered and reputable Investment Advisor business that specializes in 401(k)s, some IRAs, and other retirement plans.
Blooom’s robo-advisor service manages these retirement plans on your behalf. It is relatively easy to use, working with any retirement accounts you hold that provide online access.
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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.
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Once you’re a member of Blooom, you can start making referrals to earn a $20 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 program terms for additional terms and conditions.
About Blooom
Blooom was started in 2013 in Leawood, Kansas. It is a registered investment advisory firm and a robo-advisor, but it only works with retirement accounts. In fact, what makes blooom stand out from its competitors is that it was the first robo-advisor for employer-sponsored retirement plans.
Blooom has always been about managing employer-sponsored plans, like 401(k)s. But recently, they added IRA account management to their program.
The company is in charge of more than $3 billion in assets.
Blooom fills a very important but often overlooked domain. Even though there are a lot of robo-advisors that take care of IRAs, there are almost none that take care of investments for employer-sponsored plans.
Millions of people have put trillions of dollars into these plans, and now there is a way to have them managed by professionals. This is a big help for people who don’t have the knowledge or desire to manage their own retirement plan.
How Does Blooom Work?
Using a combination of human advisors and automation, they work to get you an appropriately diversified allocation based on your age and years to retirement, focused on long-term growth.
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 should be able to 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.
Ways To Invest With Blooom
Retirement Accounts
Blooom works with both Individual Retirement Accounts (IRAs) and employer-sponsored plans, and it makes trades on your behalf.
They can also help you manage your 401(k), 401(a), 403(b), 457(b), thrift savings plan, and IRA in a way that is unique to you.
This investment broker also doesn’t have minimum account balance requirements and charges flat annual fees for its advisory services.
The fees for Blooom’s three pricing options, Personalized Portfolio, Advisor Access, and Financial Consulting, range from $120 to $295. Blooom’s website says that each plan includes research and portfolio design, risk allocation and management, fund diversification, and low investment fees.
One thing to note when it comes to IRAs. Blooom says it can suggest investments for IRAs with Vanguard, Charles Schwab, and TD Ameritrade, but it can only manage IRAs with Fidelity.
Blooom can help you with traditional IRAs, Roth IRAs, spousal IRAs, nondeductible IRAs, SIMPLE IRAs, and self-directed IRAs if Fidelity is your IRA provider.
Brokerage Accounts
Blooom’s main job is to take care of retirement accounts. This means that standard brokerage accounts won’t receive portfolio management. But Blooom still lets you connect brokerage and other accounts to your dashboard so you can track your progress as a whole.
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
Blooom is best for investors who don’t want to do much work and want someone else to manage their retirement accounts. This investment platform gives personalized robo-advice for IRA, 401(k), 401(a), 403(b), 457(b), and thrift savings plans, among others.
If you like the idea of being able to talk to a real person about your finances, this platform also lets you ask experts questions through email or live chat.
Even if you’re not sure if Blooom is right for you, the company will look at your 401(k) and other retirement accounts for free to help you decide what to do.
Is Blooom Legit?
The Better Business Bureau has given Blooom an A+ rating. Since the BBB’s ratings are mostly based on customer complaints, this means that Blooom interacts with its customers pretty well.
When giving a company its final rating, the bureau also takes into account a number of other things. These include a company’s licenses, reviews of its ads, actions by the government, and past bankruptcies.
But it’s important to know that the BBB says its ratings don’t guarantee a company’s performance or reliability. Because of this, you should also do your own research before picking a service for investing.
Customer Service
Monday through Friday, from 9 a.m. to 4 p.m. central time, you can contact Blooom customer service by email or live chat. There is no direct phone service.
Bottom Line
Blooom provides a hands-off solution for those who need help to manage their employer-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.
Blooom takes care of 401(k)s and other retirement plans at work, as well as some IRAs. The company offers a unique service for a reasonable price.
See the list of the current best Robo-Advisors here.
READ MORE: SEE THE BEST BANK BONUSES HERE AND THE BEST INVESTING BONUSES HERE.
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