Blooom Review: Get Help With 401(k) Management - a podcast by ListenMoneyMatters.com | Andrew Fiebert and Matt Giovanisci

For many working Americans, a 401(k) is often the single largest asset they have. Unfortunately, managing a 401(k) can be extremely complicated, resulting in the poor management or complete negligence of this very important savings account. Fortunately for most Americans thought, they have some time to plan. As one of my favorite retirement quotes says,

“Hang in there, retirement is only about 30 years away” – My jerk Uncle Dave.

This is why Blooom was created. The robo-advisor-based service helps Americans of all income brackets with managing their investments through their employer-sponsored retirement funds, including 401(k), 403(b), 401(a), TSP, and 457 accounts. Blooom aims to make managing a 401(k) simple, easy and accessible — no matter how much money is in your account.



In this Blooom review, we’ll cover the ins and outs of the service, along with areas where Blooom stands out and falls short, so you have a better idea of if the service is right for you.

What is Blooom?

Blooom is an automated online tool that manages your workplace retirement plan for a flat fee each month. As a Registered Investment Advisor with the U.S. Securities and Exchange Commission, Blooom is a fiduciary, meaning the company is required by law to act in your best interest and does not invest your funds based on conflicts of interest or additional revenue for the firm.



For only $10 per month, Blooom applies its proprietary algorithm to allocate funds for you to help you achieve a greater return by the time you retire. Its direct management approach makes it, unlike other robo-advisors that merely analyze your 401(k) and send advice on how to manage your investments on your own. Once Blooom allocates funds to bonds and stocks on your behalf, your account will be rebalanced every 90 days to ensure appropriate investment.

A considerable benefit of the Blooom service is that it works with virtually every retirement savings account that can be accessed online.

All you need is to provide some personal information and the login information you use to access your online 401(k) account — and Blooom does the rest. Users can receive a free portfolio overview that shows the strengths and weaknesses of the account before choosing to enroll in Blooom’s services.

Founded in 2013, Blooom currently manages more than $2 million in assets, with customers ranging from 18 to 76 years of age. One of the founding principles of the company was to provide day-to-day management of retirement funds to the overlooked Americans who may not qualify for additional investment assistance. Blooom is also currently the only robo-advisor that focuses specifically on 401(k)s.

While this tool is great for individuals who need more assistance managing their 401(k), it may not be the best option for those who have multiple types of investments, such as IRAs. It is also designed to execute more high-risk investments, although this feature can be altered by the user.



If you are interested in Blooom but are not quite sure if it is right for you, the rest of this article will provide a deeper dive into how the service works, including its strengths and weaknesses.

Blooom quick view: Pros and cons

How Blooom works

Users start with Blooom by creating an online account and providing basic personal information like a...
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