Blooom 401(k)

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Blooom 401(k)

Is Your 401(k) Stressing You Out? Blooom Can Help

Face it. You know more about the latest smart speakers than you do about your 401(k). You might not be one of the 1-in-5 workers who don’t contribute to your work retirement plan, but you probably filled out your contributions when you started your job and haven’t looked at it since. Geeking out on your 401(k) may not seem sexy, but according to Fidelity Investments, in 2018 the number of 410(k) millionaires hit an all-time high. While that growth takes decades, it shows that paying attention to your retirement now can pay off in the long run. If you’re looking to take more ownership of your retirement, you may want look into online 401(k) robo-advisor Blooom.

Blooom offers a unique online solution that focuses on 401(k) management. One thing that sets Blooom apart is that they are a fiduciary financial advisor, meaning that they are legally required to act in your best interest. “We want to help the average American who doesn’t understand all the gobbledygook that’s in their 401(k),” says Claire Harrison, head of all things marketing at Blooom. You can break that help down into three parts: a free 401(k) analysis, fund optimization and financial advice.

A Free 401(k) Check-up

With employer matching and tax incentives, 401(k) plans are a great way to save for retirement. Our employers usually have a number of funds to choose from, which will usually vary by risk or retirement date. Blooom’s free analysis will break down the costs of your chosen funds and estimate ways that you could save and even increase your retirement using a different combination of funds in your employer provided portfolio.

Harrison says the algorithm builds “an analysis based on diversification, whether or not you’re paying too much in fees, and whether or not your stock bond mix is right for your nearness to retirement.” Even if you don’t choose to use their service, the free analysis is a great way to see the potential costs in fees of your current fund choices.

Win Retirement With Lower Fees

You may be surprised to learn that there are fees associated with your employer retirement fund options. These fees can be in the thousands of dollars over the course of your career. “A lot of people are invested in target date funds,” Harrison notes. “That is a great concept, but they are super expensive. So, we basically recreate the benefits of a target date fund at more often than not a lower cost.” They share the potential savings of their service in the free analysis. This could be thousands of dollars put back into your retirement.

Blooom charges $10 a month for their service. If you’re just starting out or have a complex account, the fee is the same. “People are interested to learn that it is a flat fee,” Harrison says. “We don’t make money off the funds in your account. We are truly unbiased, fiduciary, out for you only.”

For that flat fee, Blooom’s algorithm will work to lower your fees and manage your fund selection to get you the highest returns. They also monitor your account, rebalancing the funds to ensure you’re on the right track.

Get Your Questions Answered

You’re not left to your own devices, as the service offers online financial advice. “With your Booom membership,” says Harrison, “you also get access to our financial advisors, where you can ask any question, 401(k) or otherwise.” This can be a big sanity check for investors who worry about the peaks and valleys of the market. And while Blooom’s focus is on your 401(k), it is nice to know that you can ask them how your debt, other investments, or a mortgage can impact your retirement plan.

Despite being the largest nest egg for our retirement, our 401(k) can be an afterthought. Blooom gives you a way to not only feel more in control but to be more informed about your retirement fund, especially when it comes to lowering costs.

How to Get Started With Blooom

You can sign up on their website, either for a free analysis or their management & monitoring package, which starts at $10/month.

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