Are you putting money into your 401k but have questions about how it's being invested? Blooom is new 401k optimization tool that can automatically optimize and manage your 401k.
Opening a 401k is your first step to financial safety when you reach retirement age. But did you know that healthy contributions, along with 401k optimization, can also make you a millionaire?
While there are many ways to grow a million-dollar 401k, it won't happen automatically. Obviously, you need to contribute aggressively and consistently over many years. (Look to see if you're contributing enough!) But, also you'll need to spend time on 401k optimization to ensure your funds are in low-free investments and optimized correctly. Fail to do so, and your investments won't grow nearly as much as they could.
When you sign for you 401k, you'll get a worksheet or a website to visit so you can choose how to invest your money. Unfortunately, most people just guess. It's a mistake that could cost you hundreds of dollars in excessive fees and/or forgone gains over course of your career.
And that's exactly where Blooom comes in.
Blooom provides online 401k optimization, making difficult invests decisions for you - automatically. Blooom works behind the scenes to make sure your 401k earns you the most money possible.
How Blooom 401k optimization works
Blooom starts by giving you a free 401k analysis. Blooom looks at the options in your 401k and they eliminate the funds that don't make sense for your retirement goals (i.e. when you want to retire, etc.)
After this initial step, Blooom uses an algorithm to choose the ideal investments based on expense and manager experience.
If you enroll in a substriction for $10 a month, Blooom watches your account for any changes to your account preferences, until it's time for another regularly scheduled rebalance.
They also make sure you have access to a Certified Financial Planner available for any questions you might have. This is also why Blooom is necessarily a robo-advisor, although their platform is entirely online. Behind Blooom is a group of registered advisors with, as they say, "decades of experience in retirement planning and 401k management."
Blooom's important features
Invest options
Retirement funds are confusing. That's why people pay big buck to financial planners. Blooom doesn't believe you should go broke managing your investments (although, there is still $10 a month fee with Blooom).
Blooom wants to actively manage your account to insure that you're investing wisely.
401k monitoring
For safety and to make sure you're investing as best you can, Blooom is constantly monitoring your account.
They offer 24/7 hacker virus scans to insure you're protected against fraud. They also protect confidentiality through encryption - what Blooom says is "bank level security."
Rebalancing
After your first rebalance when you initially sign-up with Blooom, your account will be regular rebalanced just in case your employer stops offering a certain fund, your retirement goals change, or market movements put your portfolio out of balance.
Your money stays put
Unlike many investor advisors that can only make changes to non-401k accounts and may require you to move those accounts into their custody, Blooom connects with leading 401k providers to rebalance your account automatically online. Although Blooom can make account adjustments for you - Blooom doesn't require you to move your money. In fact, Blooom cannot withdraw money from your 401k account - only you can.
Who should use Blooom?
Anybody with a 401k should head over to Blooom and at least take advantage of their free 401k analysis.
After the free analysis, the beautiful thing about Blooom is that it costs just $10 a month ($120 a year), which is far cheaper than hiring a fee-only financial planner at cost of several thousand dollars. Professional investment advisors cost even more - generally around 1 percent of your investable assets. And many won't work with you unless you have 6- or 7- figure investment portfolios!
If you're like millions of Americans, your 401k represents both your first and your largest investment account. Blooom can help you ensure it's on track for less than your gym membership.
With a larger 401k balance, Blooom is really a no-brainer. And yet, when someone with a newish 401k between $5,000 and $25,000 can benefit from Blooom to ensure the money you're putting in is allocated in the best way to compound over the next 20 or 30 years.
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