Because it is essentially the only service in the space, Blooom is the go-to Robo advisor for managing the investments of your employer-sponsored retirement plan. If you have multiple plans, including an IRA, Blooom can help you manage them without requiring you to switch to a new platform or even get approval from your employer. If you need a professional in retirement plans, Blooom may be the way to go.

What Exactly Is Blooom?

Blooom, which began operations in 2013 and is headquartered in Leawood, Kansas, is the only robot-advisor firm designed solely to administer employer-sponsored retirement plans. The service can be used with your existing company plan without switching trustees. To use Blooom, you need not ask your employer's permission because the service manages your account and does not assume ownership of it.

Although Blooom does not offer its investment management service for traditional IRA accounts held at Fidelity, it does so for Roth IRAs. Thus, Blooom is an expert in handling retirement accounts through Fidelity. (They also provide do-it-yourself guidance for IRA accounts with Vanguard and Schwab.)

The Bloom's Pristine Perks

Since Blooom doesn't take custody of your plan, your plan's trustee is responsible for providing SIPC insurance on your behalf. However, Blooom is still a fiduciary and must act in your best interest.

Specific Portfolio

Available on all three Blooom plans, this feature investigates the available funds, selects the best funds based on your needs, and helps keep your investment costs down. If you have a Standard or Unlimited subscription, you can also have them make deals for you.

Constant Optimisation

Allows you to maintain a consistent asset allocation despite market fluctuations (aka periodic rebalancing). About once every 95 days, if necessary, to keep goal portfolio choices in line.

Refund Warnings

Provides you with a text message alerting you of any detected withdrawals from your account.

Possibility Of Consulting With A Professional

You can expect a response to your financial questions within three business days.

Getting In Touch With An Advisor Quickly

Provides access to a financial expert via real-time messaging accessible during work hours.

How Does Blooom Work?

Blooom primarily manages investments for companies' 401(k) and IRA programs.

Growth Of 401(k) Programs Provided By Companies.

Blooom 401k review has spent most of its seven years in business dedicated solely to this subset of the investment market. Employers and trustees of retirement plans can now use Betterment to manage their bloom 401(k)s. However, Blooom is the only investment management solution that may be used to handle an employee's employment plan.

Investments In Individual Retirement Accounts

This option has been available on the Blooom menu in the past year or two. However, the firm's history of overseeing other retirement plans made it a perfect fit to handle IRAs.

Increase Costs And Rates

Choose from three distinct service tiers: Essentials, Standard, or Unlimited. To keep your investments from costing you too much, the Essentials Plan charges $45.00 yearly for access to a customized portfolio.

The annual fee for the Basic Plan is $120. Besides a specialized portfolio, you'll have access to automated account optimization, withdrawal warnings, and a financial expert. When you sign up for the $250 annual Unlimited Plan, you get unlimited accounts. This package offers priority access to advisers in addition to all the perks of the other levels.

Cancellation

There are two options for how the annual charge will be handled if you decide to cancel your service. You can either keep your subscription active until the end of the plan year or request a refund for the remaining time on your subscription.

Disadvantages And Advantages

Pros

• care for a 401(k) plan.
• There is no minimum balance required.
• Evaluation is at no cost to you.
• Use of professional financial guidance.

Cons

• Handling of IRAs on a limited, direct basis.
• Fees are high relative to the size of the account balance.

Do You Need Blooom?

Regarding employer-sponsored plans, Blooom is one of the only viable possibilities. Blooom is convenient because it doesn't demand approval from your company and lets you retain your account where it is.

However, the value of Blooom to your portfolio will determine if you should sign up. Blooom's set price can be relatively high for low-volume portfolios. However, investors with larger portfolios benefit greatly. If you want supplementary, customized financial guidance, pay at least $120 annually for access to a human advisor.

Expanding Prospects

Blooom stands alone as an innovative investment platform with no direct competitors. It's the only investment service that can handle employee options for employer-sponsored programs. However, IRAs can be managed by Blooom, so we'll talk about their alternative investment offerings instead. The following services are more comparable to Blooom in terms of features and pricing, and they all enable the management of taxable brokerage accounts in addition to IRAs.