Blooom Review

Donny Gamble
April 20, 2022
4.0
Personalincome rating

If you already have an IRA with Fidelity, you can get more out of Blooom, but typically it’s revered for its 401(k) capabilities.

You can maximize your return with their unique 401(k) approach that helps you make the most out of your funds, which is where Blooom really shines.

Blooom logo
on Blooom's website
Blooom
FEES
$45 - $250
annual fee
ACCOUNT Minimum
$0
PROMOTION

$10 off with code REEETIRE10

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The information provided on this page does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual.

Key Takeaways

  • 401(k) Management: Get your account professionally managed to maximize your return as effectively as possible.
  • Max $250 Annual Fees: Depending on how much you invest, you could see fees up to around $250 per year, but that’s the max.
  • New Perspective: You get access to a unique 401(k)-centric perspective that includes services that are often overlooked by other investors.

Pros & Cons

Pros
  • Financial advisor access
  • Free account analysis
  • Low account management range
  • Perfect for retirement accounts
Cons
  • IRA management is limited
  • No phone-in support

In order to stand out with all the robo-advisors on the market, you have to create something with an angle. A specific way to help people invest.

Blooom is all about your 401(k) and helping it grow so you can maximize your retirement savings as early as possible. They work with IRAs and provide portfolio analyses for anyone who wants to understand how they can put their money to work for them even harder, but is it all too good to be true? 

We wanted to find out.  In this Blooom review, we investigate their automated investing practices and see if their robo-advisor is really worth all the hype.

About Blooom

Blooom is a platform designed to help existing 401(k) holders and existing IRA holders with their investments. It’s a very niche, specific corner of the robo-advisor marketplace, so it does not intend to be your sole investment platform.

Instead, it’s one financial tool that you can use to improve your retirement assets from within the container of your retirement accounts. Blooom basically works in the background while you’re making money.

Blooom is specifically a 401(k) and IRA robo-advisor program, designed to help you invest within the container of your retirement fund.

It can help you grow your investments to increase your maximum return, meaning that if you started out your 401(k) or IRA late like many of us have, you can catch up as fast as possible thanks to Blooom.

Services

Blooom is specifically a robo-advisor that works with 401(k) and IRA services. They don’t offer anything else, but in our eyes, it’s worth it for such a niche category of personal investment.

Would you rather have a Jack-of-all-trades who does everything pretty well, or a specialist who does the best possible job at that one particular task?

We’re willing to bet that just like us, you’d prefer the latter.

Pricing

Blooom pricing is fairly straightforward, but we do have some information about it that we want to share. It works like this:

  • DIY Package: This is $45 per year and account. You get a personalized portfolio. It’s a DIY package because you’re the one doing the investment setup. Honestly, it doesn’t make much sense to use their DIY package because it’s devoid of auto optimization.
  • Standard Package: This is $120 per year and account. You get  a personal portfolio, auto optimization, transaction activity alerts, and access to advisors. Basically, it’s everything you need in a service.
  • Unlimited Package: This is $250 per year and allows for unlimited accounts. This would be ideal for a family with multiple 401(k)s and IRAs that they want managed together. You also get priority advisor access, which would be ideal if you’re dealing with a lot of accounts at the same time.

A flat $250 is great. We’re going to opt for the Unlimited Package specifically because it works for individuals with both a 401(k) and IRA account.

Keep in mind that the average cost of a robo advisor is around 0.25% annually, and while that’s strictly for account management without everything else you get, let’s do some quick math.

If you were to give a quarter of a percent of your portfolio towards management fees, you would need $100,000 to have that number reach $250 at 0.25%.

If you aren’t planning on reaching that number within 2-3 years of investing with Blooom, you may want to go for the Standard Package, which would reach that 0.25% at $48,000 to make it the industry equivalent cost. Just some food for thought.

Who is Blooom Best For?

Blooom is best for hard-working individuals that want to invest, but don’t have the time to fiddle with their IRA or 401(k) investments in the meantime.

They’re busy making money, and want that earned income to work for them while they support their families. Blooom is best for anyone who wants to get the most out of their hard-earned cash.

Compare to Other Advisors

Betterment logo
MANAGEMENT FEES
0.25%
ACCOUNT MINIMUM
$0
PROMOTION
Up to 1 year of free
M1 Finance logo
MANAGEMENT FEES
$0
ACCOUNT MINIMUM
$100
PROMOTION
Up to $2,500 Bonus
Personal Capital logo
MANAGEMENT FEES
0.49%-0.89%
INVESTMENT MINIMUM
$100,000
PROMOTION
6 months of free wealth management

Blooom FAQ's

Is Blooom safe and legit?

Yes, Blooom is safe and legitimate. They’ve been around since 2013, and to date they’re responsible for over $5B in assets under management, which is impressive for any financial institution.

We can’t find any supporting information to go against Blooom other than anecdotal reviews. They are safe, they pay, and they can be trusted with your money for the long-term.

Does Blooom work with IRAs?

Yes, but they only work with Fidelity IRAs. If you don’t have an IRA through Fidelity, they simply won’t work with it. This is a very restrictive part of Blooom’s business model, because going from a 401(k) to an IRA is a common move for a lot of investors as they max out their 401(k) through the year.

It’s a bit of a pain to not have an all-inclusive service unless you’re also a Fidelity customer.

How does Blooom make money?

Blooom primarily makes money through portfolio/account management. It can run up to $250 per year depending on your investments and what you need from your account.

Thankfully, there are no account fees for annual, transfer, or closing. They also offer automatic rebalancing, and some business models can profit/benefit from this.

Does Blooom sell any of my personal information?

Yes, they absolutely do, and they’re not shy about it. Blooom will sell your personal information and other information you allow them to gather, or they gather on the basis of your agreement in their privacy policy, however they state that it’s anonymized when they release it to third parties.

They justify selling information by saying it’s “to provide a benefit and reward to you and other Blooom users.” This is a red flag for us, and as one of the first pieces of information we learned about their practices, we took it as an initiative to look at their other business arrangements more closely.

Blooom

Link your IRA or company-sponsored retirement account today. Put the power of a financial advisor behind your retirement.

  • Blooom
  • Rating: 4
  • Reviewed by:
  • On April 20, 2022
  • Last modified:April 24, 2022

Review Summary:

Link your IRA or company-sponsored retirement account today. Put the power of a financial advisor behind your retirement.

Review of: Blooom

Reviewed by:
Rating:
4
On April 20, 2022
Last modified:April 24, 2022

Summary:

Link your IRA or company-sponsored retirement account today. Put the power of a financial advisor behind your retirement.

About the author 

Donny Gamble

I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

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