If your company provides a 401k plan for its employees, are you getting the best returns possible on your 401k? The upside to 401k retirement planning is that you have some level of flexibility when it comes to deciding who will manage your investments until you’re ready to retire. Unfortunately, many experienced investment advisors are too expensive for everyday folks who just want to maximize their savings so they can retire by 65 or earlier.
For this reason, the founders of Blooom started their company to offer affordable 401k planning services to the 99% (according to their website). With Blooom, you don’t need to deal with a bunch of hidden fees, costly advising services, and other hassles that come with complex retirement planning. Instead, Blooom seeks to help employees learn more about 401k retirement planning and maximize their gains for a minimal cost.
Blooom Review – A Robo 401k Advisor
If you’re ready to take the leap and increase your rates of return on your retirement account(s), then here are some things you’ll want to know about Blooom before getting started:
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is a SEC-registered investment advisory company that was founded with one goal in mind: making 401k retirement planning easier for people who want to reach their retirement goals without spending a lot of time or money getting the best returns possible. The company’s approach is simple: they use an algorithm to determine the best allocation for 401a, 401k, 403b, and 457 retirement account investments.
You’re able to tailor your investments to a certain extent based on your retirement goals (such as current age, years left until retirement, current income, etc.). They continuously track how your portfolio performs, makes adjustments as needed to improve your returns, and offer certified financial planners to answer any questions you might have along the way.
Reputable media sites and financial resources such as Fast Company even named Blooom the “World’s Top 10 Most Innovative Companies of 2015 in Personal Finance” due to its unique service offerings for folks who perhaps can’t afford top-notch financial advisors for their retirement portfolios.
Blooom’s cost model is pretty straightforward. Regardless of the size of your account, your monthly service charge is just $10. There are no hidden fees involved, and Blooom estimates they’ve saved their customers over $528,000,000 in fees (compared to other 401k management options).
The $10 per month fee includes a variety of services, including access to financial advisors, professional monitoring services (to ensure optimal growth of your investments), periodic rebalancing (to eliminate poorly performing investments before they drag down your portfolio too much), and informative resources related to all things investing.
401k Plan Analysis
When you sign up for Blooom, they’ll perform a free analysis on your existing 401k account to highlight areas for improvement, uncover which types of investments are best suited for your retirement goals (More conservative? More aggressive?), pinpoint hidden fees that are currently dragging down your portfolio’s gains (and eliminating these fees to help you save money), and much more.
The #1 retirement killer is an apathetic attitude towards your investments – after all, you wouldn’t be able to retire without a significant nest egg, to begin with! So, Blooom makes it easier for anyone to manage their retirement accounts, even if you don’t have a lot of time to study the markets or a lot of money to pay a pricy human advisor to manage your funds.
Blooom Security Protection
Cyber security is becoming more of a concern for the financial industry in wake of the Equifax hack, but luckily Blooom has plenty of security measures in place to help your accounts stay locked down and secured against hackers. The website uses SSL encryption to protect your information, as well as 24/7 hacker scans to remain vigilant in case someone manages to get past the massive security barrier they have in place. Blooom also has 3rd party verifications, secure servers, and bank-level security measures applied to your personal and financial information.
Is Blooom Right for You?
Blooom isn’t the perfect solution for anyone with a 401k account, but it can be a preferable alternative to your current advisor. They can help you avoid making mistakes with your 401k by actively seeking out areas where your investment performances can improve, eliminating wasteful fees, and charging a relatively low, $10 monthly premium for their services. Best of all, Blooom offers extensive informational resources and access to certified financial planners so you’ll have more control over your retirement account, minimize unnecessary costs associated with portfolio management, and maximize gains to ensure you meet your retirement goals in a timely manner.