Blooom promotion offers, bonuses, incentives for opening new 401K account. Promo codes for free sell trades.

Blooom Promotion

Open Blooom account and get 15% off.

Open Blooom Account

Blooom Overview

You probably haven’t heard of the 401K advisor/manager called “Blooom” (that’s right, there are three Os) because they are relatively new, but they are worth taking a look at if you are concerned about the fees you’re paying through your 401K investments. Blooom markets themselves as a cost-effective, 401K optimizer for those who are not and don’t care to be investment-savvy when it comes to their retirement plan. This article will provide a brief overview of what Blooom is and what they do.

What is Blooom?

Blooom is not a broker in the sense that you can open an account with them and start trading. They recognize that there are many people with 401Ks who simply choose to invest in their employer’s recommended fund(s) or in target date funds based on somewhat generic advice. Blooom believes that in many cases these recommendations are not specific enough to best serve each individual and their unique financial situation and goals. Furthermore, Blooom recognizes that many of these individuals that simply choose the default investment(s) that are recommended to them are paying above average management fees.

What Does Blooom Do?

Blooom will do a deep analysis of your current 401K investments for free to see if your allocations are properly aligned to your risk appetite and retirement goals, and more importantly they will analyze the management fees and expense ratios that you’re paying via your current 401K investments. They’ll take this information and leverage it with the research they’ve done on thousands of mutual funds and ETFs to create a more cost-effective portfolio with your optimal asset allocations. And if you choose to become a Blooom client and link your 401K with them, they will implement the optimal portfolio they created for you and rebalance it as needed when your goals change.

How Does Blooom Create My Optimal Portfolio?

Blooom recognizes that no one can predict the future and no fund managers can achieve positive alpha forever, which is why cutting down on costs is a major part of their portfolio optimization process. After asking you a series of questions to better understand your current finances and your retirement goals, they will create an optimal asset allocation model for your portfolio. They will then leverage their database of mutual funds and ETFs to locate the best performing investments with the lowest management fees to put in your portfolio.

What Happens After They Setup My Portfolio?

After you link up your current 401K to Blooom (there’s no need to transfer it), they will automatically take control of it, moving your money into the appropriate funds and maintaining and adjusting your allocations over time as your goals shift and you get closer to retirement.

What are the Costs?

The initial analysis to see if your current allocations are appropriate for your goals and to uncover any exorbitant management fees in your investments is free. If you choose to link up your 401K with Blooom and become a client, then they will charge you a flat $10/month. Because Blooom’s fee is flat, it could be on the expensive side as a percent of AUM for smaller portfolios but is a decent deal for larger portfolios. For example, the $120 fee would be 1.2% on a $10,000 portfolio, but only 0.12% on a $100,000 portfolio.

Is Blooom Right For You?

If you don’t have the time or desire to actively research mutual funds and manage your 401K, and you’re not sure if your current employer 401K plan is giving you the best advice with respect to your goals and controlling your portfolio’s costs, Blooom might be worth a try. If your employer is more thorough about explaining your investment options and is already offering you plenty of low-cost options, or if your retirement portfolio is on the smaller size, Blooom may not be worth the fee.

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Blooom Promotion reviewed by Rating: 4