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If you’re looking for a way to manage your retirement plans without taking so much of your time, Blooom is indeed worth it. Plus, you don’t have to worry about having a low account balance as Blooom can still manage that for you. Additionally, you don’t have to worry if your account is supported in Blooom. With its wide selection of supported plans, you can be sure that you’ve found your financial managers. Finally, Blooom is a fiduciary, meaning it’s set out to act in your best interest, not theirs. So you can trust them to get your retirement funds ready when you need them.
Pros
You can get free portfolio analysisIt supports a great selection of retirement plansIt doesn’t take custody of any of your accountsYou can reach out to human advisors
Cons
There’s no phone support teamThe IRA management is quite limited
Jump to: Full Review
Compare to Other Investment Apps
Fundrise
Invest in real estate properties with a $10 minimum initial investment
Historical annual return varies from 8.8% to 12.4% (2019 – 9.47%)
Low annual fees: advisory – 0.15%; management fee – 0.85%
Public App
Manage your portfolio of stocks, ETFs, and crypto investments – all in one place
Over 5000 stocks and ETFs to choose from (dividend stocks available)
Follow other investors, see their portfolios, and exchange ideas
Acorns
Invest your spare change in a diversified portfolio built by experts
Expect up to 7.5% annually returns with plans starting from $3 a month
Earn bonus investments from 350+ Acorns Earn partners
How Does Blooom Work?
Blooom is an online Registered Investment Advisor that provides financial planning and investment management services. The company mainly provides its services to individual IRAs and employer-sponsored retirement plans such as 401(k) plans.
Blooom mainly provides management services for employer-sponsored retirement plans and IRAs (Individual Retirement Accounts).
Some of the employer-sponsored plans that you can use Blooom for include:
If you want to use Blooom to manage your retirement plan, you will not need to get permission from your employer. The company allows you to retain control of your retirement plan. It helps you analyze your investment options so you can take advantage of opportunities that interest you. It also helps you lower your investment costs.
When you sign up for an account, the company provides you with a free analysis of your latest portfolio allocation. It then helps you design a new portfolio comprising index-based ETFs and low-cost mutual funds based on your preferences and risk appetite.
If you are holding your employer’s company stock, Blooom does not sell it but recommends that you keep these stocks under 10% of your entire portfolio value.
IRAs (Individual Retirement Accounts)
Blooom also offers management services for IRAs. When the company helps you manage your IRA, you cannot select specific investments unlike with employer-sponsored plans. Nonetheless, you can still modify your portfolio allocation by updating your investor profile.
To use this service, you will need to move your IRA to one of the following service providers:
Charles Schwab
Fidelity
Vanguard
You can maximize the potential of your IRA by using Blooom to manage a portion of your IRA. You can then manage the rest through self-directed trading.
How Much You Can Earn With Blooom?
Your earnings with Blooom may vary based on several different factors.
Some of these factors include:
Specific funds performance
A mix of investments based on the client’s age
Time until retirement
Risk tolerance
Because there are so many different factors that might affect your earnings, the company does not provide data about its average returns. Nonetheless, you can choose which ETFs you want to include in your portfolio based on the returns of these individual ETFs.
Blooom Reviews: Is Blooom Legit?
Blooom is a legitimate investment platform that you can use to grow your wealth. The company has received an A rating from the Better Business Bureau, indicating that it is a reliable and trustworthy platform.
Moreover, the company has also received many positive reviews from its users. Users have praised the platform, stating that they have had positive experiences while using the platform.
However, there have been some users who have complained about the withdrawal process. They stated that because Blooom does not hold their investments directly, they had to contact their custodian directly.
Who Is Blooom Best for?
Blooom is ideal for individuals who need help with managing their retirement plans and IRAs. The company’s goal is to help individuals from all backgrounds save for retirement and grow their wealth.
Both beginners and experienced investors can benefit from using Blooom to manage their retirement investments.
Blooom Fees: How Much Does It Cost to Invest With Blooom?
The platform offers a free plan that is ideal for beginners, and you can enjoy a variety of features on unlimited retirement accounts.
Some of the features you can enjoy on the free plan include:
Retirement Goal Setting
Financial Planning Tools
Expert Insights
Optimal Strategy Defined
Analysis of Current Investments
Ideal-to-Actual Comparison
Tips for Improvement
If you want access to more features, you can also subscribe to one of the company’s paid plans.
PlanPrice per YearPersonalized Portfolio$120Advisor Access$245Financial Consulting$395
You can consult the Blooom website to compare the different plans and choose one that suits your needs.
Blooom Features: What Does Blooom Offer?
Personalized Portfolio
Blooom analyzes the funds and investments in your plan, choosing those that meet your preferences. It also helps you identify hidden investment fees and improper portfolio allocations that might negatively impact your retirement savings.
If you choose a plan with advisory services, the company can also trade on your behalf. You will also be able to consult a financial advisor to get personalized recommendations.
Automatic Portfolio Rebalancing
With this feature, Blooom reviews your account every 95 days. If your investments are no longer in line with your targets and goals, the company will help you rebalance them.
Blooom also regularly updates your portfolio allocations over time to ensure that you are on track to retire when you want.
Portfolio Tracking
Blooom also allows you to connect all your financial accounts and view your investments from a single dashboard. You can also use the platform’s predictive tools to see how your annual savings and retirement age might impact your retirement.
Blooom Requirements
Blooom does not have any minimum requirements for you to join. As long as you have an employer-sponsored retirement plan or an IRA, you can sign up to use the company’s services.
There are also no account minimums and you can invest with Blooom even if you have a new retirement account.
Blooom Payout Terms and Options
The company does not manage your funds directly. If you want to withdraw money from your retirement account with Blooom, you will need to contact your custodian directly.
However, the company recommends that you consider your options carefully before withdrawing your retirement savings and investments. If you have a plan that comes with advisory services, you can contact your advisor to better understand the implications of making a withdrawal and find possible alternatives.
Blooom Risks: Is Blooom Safe to Invest With?
Blooom is a safe platform that you can use to diversify your portfolio. The platform creates a portfolio allocation for you based on your age and years until retirement. Thus, you can use it to plan and invest in your long-term financial goals.
Moreover, Blooom has a fiduciary relationship with its clients. This relationship requires the company to act in the best interests of its clients.
How Does Blooom Protect Your Money?
Blooom also uses bank-level encryption and will never initiate a withdrawal out of your account. A high level of security ensures that your investments and funds remain well-protected.
The company also does not hold your assets directly. Instead, it works with an external broker or custodian. Thus, you should check with your broker or custodian to see if they are SIPC-insured. SIPC insurance protects your funds in the case of unforeseen circumstances.
What Are the Blooom Pros & Cons?
Blooom Pros
You can get a free portfolio analysis for your current investments
The platform creates and customizes an investment plan for you based on characteristics like your age and retirement goals
Blooom does not hold your assets directly, meaning that they are safe with your broker or custodian
If you have any questions, you can contact a human financial advisor
Blooom Cons
Paid subscriptions start from $120 per year
The platform’s IRA management services are quite limited
How Good Is Blooom Support and Knowledge Base?
Blooom has a comprehensive knowledge base on its website where you can find answers to frequently asked questions. In addition, it runs a Blog where you can find expert articles to learn more about financial management.
If you wish to get in touch with a member of the support team, you can use the contact form on the Blooom website to send an inquiry. Their advisors are available between 9 AM to 4 PM CST Mondays through Fridays.
If you subscribe to one of the paid plans, you will also be able to speak with a financial advisor via live chat.
Blooom Review Verdict: Is Blooom Worth It?
If you are looking for a way to manage your retirement plans conveniently, Blooom is one of the best platforms you can use. If you are new to retirement planning, you can use Blooom to get a free portfolio analysis. The platform will also help you generate a custom portfolio based on your characteristics, such as your age and years to retirement.
If you enjoy using the platform, you can subscribe to a paid plan for a fee starting from $120 per year. The paid subscription plans give you access to many premium features, such as live chats with financial advisors.
Moreover, the company also has a fiduciary relationship with its clients. Thus, you can be certain that it will act in your best interests.
How to Sign Up With Blooom?
Step 1: Create an Account
To use Blooom, you will need to start by creating an account on the company’s website.
To complete the sign-up process, you will need to provide some information about yourself, including:
Name
Age
Email address
And more
Step 2: Select Your Goals
After creating an account, you will need to provide the company with information about your retirement and investment goals. This information allows the platform to help you generate a portfolio that best suits your needs.
Some of the questions you will need to answer include questions about the age you wish to retire at and your risk tolerance. You will also need to choose the type of lifestyle you want to live after retirement.
Step 3: Choose a Plan
Using your information, Blooom will help you generate a portfolio that can help you maximize your investment potential.
If you want to use this portfolio, you will need to sign up for a paid subscription with Blooom. After signing up, you can then link your financial and investment accounts to Blooom.
Sites Like Blooom
Blooom vs. Acorns
Acorns Summary
Low account fees from just $3 per monthGet $5 in your account for referralsLow minimum starting investment amountHigh average return on investments of 7.5%
Like Blooom, Acorns is a platform that allows you to invest in stocks and ETFs. However, unlike Blooom, Acorns does not focus on retirement planning and investment. Instead, Acorns specializes in helping users invest their spare change.
Acorns is most popular for its Round-Up investing feature. This feature allows the app to round up your spending to the nearest dollar and save the change in your Acorns account. Once you have at least $5 in your account, Acorns will automatically help you invest it.
If you are a beginner who wants to invest primarily in stocks and ETFs, Acorns is a good platform to consider.
Blooom vs. Fundrise
Fundrise Summary
Low minimum starting investment of $10High historical returns of 8.8% to 12.4%1% of management feesDiverse portfolios of up to 16 investments
Like Blooom, Fundrise is a platform that allows you to diversify your investments. Fundrise specializes in crowdfunded real estate investing. It pools together the money from its investors and uses these funds to purchase properties, which it then manages through its real estate investment trusts (REITs).
Fundrise also has low service fees of just 1% per year. Moreover, you can also start investing with just $10, making Fundrise a great alternative to Fundrise that you can consider if you are looking to invest in real estate.
Blooom vs. Public
Public App Summary
Invest in stocks, ETFs, and crypto$0 commission fees for any stock tradesOver 100 articles to learn about investingLow 1-2% commission for crypto trades
Public is a brokerage website that you can use to invest in stocks, ETFs, and cryptocurrencies. The platform does not have a minimum investment amount, making it an ideal option for beginner investors.
Like many other brokerages, you can buy fractional shares starting from just $1 with Public. Fractional investing allows you to diversify your investment portfolio into a wide range of different assets without having to purchase entire shares of expensive stocks.
Other Sites Like Blooom
Blooom FAQ
What Is Blooom?
The company is led by a team of experienced financial advisors and developers who have created a Robo-advisory service to help members grow their retirement savings. Its mission is to provide expert financial advice to individuals from all backgrounds.
Blooom has been around since 2013 and the company’s headquarters are in Kansas, United States. It currently manages over $5 billion worth of assets on behalf of its clients.
How secure is Blooom?
Blooom is a secure platform that uses bank-level security that has 256-bit encryption.
Does Blooom work with IRAs?
Yes, Blooom works with various types of IRAs.
Some of the types of IRAs you can use with Blooom include:
Traditional
Roth
Non-deductible
Spousal
Self-directed
SIMPLE
SEP
Does Blooom have an app?
Yes, Blooom has an app that you can download on your iPhone or Android device.
How many clients does Blooom have?
As of 2024, Blooom serves the investing needs of over 20,000 clients.
Does Blooom work with TSP?
Yes, Blooom works with TSP investment plans.
