FAQ

You have questions. We have answers. We also have a lot of other really neat stuff if you stick around.

Expand All

Blooom Service


Take a look at how blooom works.


No. Your 401k stays put. You don't have to open up a new account or transfer it. We can work with any 401k plan as long as it has online access.


Nope. You could just be starting out with your 401k or you can have a gazillion dollars. It doesn't matter to us. We help all 401k participants.


Nope. Way back when you signed up with them, you told them what percentage to invest and where. They merely help you implement your own advice - be it good or bad.


Yes. We are a fiduciary. This basically means we are required by law to act in your best interest, not ours. We wish this was the case for all advisors in the good ol' US of A, but it's not. Read more about choosing a fiduciary or The "F" Word in the Financial Industry


Most of the time no. Here is why: most brokerage firms won't allow their sales people to offer specific advice because that would mean they were acting as a fiduciary. Brokerage firms don't want the liability of bad advice from their sales people.


Most of the time the account will be adjusted within 7 business days. Sometimes it can take a bit longer depending on the institution where your account is held or the occasional access issue with the institution, but rarely more than that.


Both. While our machine (algorithm) does all the heavy lifting, our registered advisors and account coordinators audit and perform quality assurance tests to ensure rebalances are completed accurately.


We will take a peek under the hood and see if we need to make any adjustments. If we need to tweak something we'll do it for you.


Sure. Shoot us a message on our Contact Us page and we'll get back to you as soon as we can!.


Of course, you maintain full control of your account at all times. If you ever want to make a change in your account, just call your 401k custodian and they will help you do so. That said, keep in mind that any changes you make to your allocation may interfere with the service we are providing and may mean delays or issues with your blooom service the next time we attempt to rebalance the account.


Yes. Anytime we make investment adjustments we will send you an email.


At this point, we work from a 'discretionary management agreement.' This is pretty much boilerplate for financial advisors. It basically states that you signed off on the allocation and we can place trades on your behalf.

The reasoning behind why we can't run each change by you is two-fold:

1. It's a bandwidth issue. We're aiming to help millions of Americans over the long-term and asking for approval before we take action would slow things down and increase your cost dramatically.

2. We're a fiduciary, which is fancy speak for blooom acting in your non-emotionally charged, rational best interest. If you really feel like you need control of every trade that's made then blooom may not be a perfect fit. We were designed for folks who want to delegate their 401k to professionals.


Not at this time. Each family member will need to have their own blooom profile, in order to enter their own individual information (age, retirement date, etc).


We manage each account individually. However, keep in mind that if each of your accounts is individually diversified, your holistic financial picture should also be appropriately diversified.


Our support team and advisors are available from 8-5 Central, Monday through Friday. Simply use our Contact Us form to send us your questions and we will get back to you as soon as we can!

Pricing


Our pricing is on a per account basis, offering a discounted rate for accounts added after the first account, whether it be your second account or your 10th, you get the same discounted rate.

We only offer a flat fee option, so you will always know what you are paying to have blooom manage your account(s). There are 2 billing options to choose from. You can pay quarterly or annually, whichever one makes the most sense for you. During registration you are presented with these options, along with your rate.

Accounts are automatically renewed each quarter or year depending on the subscription you have selected, using the payment method indicated during registration. The auto renewal feature can be cancelled once you are registered and your account will then automatically cancel at the end of your billing period.


We know, most people are shocked at how little we charge. But we think that solid advice should be available to all – and we've priced our services accordingly.


Blooom doesn't have any hidden fees. However, the investments in your 401k have internal expenses. Blooom seeks to use the most cost effective funds in your 401k allocation.


None. It is pay as you go. You can cancel anytime or turn off auto-renewal for your subscription so that you are not billed again at the end of your billing cycle.


Your subscription to blooom requires no commitment and can be cancelled at any time directly online after your account has been processed.

To turn off auto-renewal of your subscription: --> Click the menu in the upper right hand corner --> Billing --> Renewal Settings --> Turn Off

Please give us a shout if you have any questions, thanks!

IRA


We are happy to say that we are able to manage both IRAs and Roth IRAs at specific institutions. We are currently offering this option for accounts held at Fidelity, Vanguard, and Charles Schwab.


Our pricing works on a per account basis, with the same flat fee structure as with our 401k management service. See How does blooom’s pricing work? for more details.


We will contact you if we need any additional information from you. Making the investment changes to your account is a two part process: 1) Selling your current investments into cash. 2) Buying into the recommended investment portfolio. This process can take multiple days to complete. Please reach out to our service team for any additional questions.


If you have individual stocks in your IRA you are prompted during the registration process to either keep your current positions in those stocks or allow us to sell those stocks and manage your entire account. While we aren’t believers in holding on to any individual stocks within your retirement accounts, we do offer you the option. We will not actively manage individual stock holdings.


During the process of implementing our recommended portfolio there may be transaction fees associated with the funds that you are currently invested in. We will continue with processing the transaction if those fees do not exceed $50. If they do exceed $50 we will reach out to you directly for how you would like to handle those fees.


While you will need to contact your institution in order to complete the rollover process, we can help with the management of your new IRA, once it’s opened. We can currently manage IRAs at Fidelity, Vanguard, and Charles Schwab.


Each one of our clients have circumstances and factors to consider that are unique to them. Once you have a blooom membership, our advisors can take a look at all the factors specific to you and help you determine the best plan of action.

HSA, 529


At this point in time we do not offer management for HSAs or 529 accounts. If you have a 401k, 403b, 401a, 457, IRA, or Roth IRA account managed through blooom, our advisors are available to assist you with any number of financial questions you may have, including general advice on how to invest your HSA or 529 College Savings. However, at this time, we do not have an option to solely sign up for our advisory service without having a managed account. Stay tuned!

Account Management


From your blooom profile homepage --> Click the menu in the upper right hand corner --> Profile --> Edit Risk Tolerance. You can retake your risk quiz and change your allocation.


From your blooom profile homepage --> Click the menu in the upper right hand corner --> Profile --> Edit Retirement Age.


We see provider changes all the time.

The best way to handle this is once the new account is established: Click the menu in the upper right hand corner --> Accounts --> Switch Management at the bottom of the page​.

This will walk you through the steps to link/enroll the new account and cancel the old account. If you've already added the new account, you'll get the chance to select that when you go through the process.

Please give us a shout if you have any further questions.

Investments


We don't time the market. We believe that effectively timing the market is impossible. Study after study supports this theory. If however, you believe that you can time the market, then blooom probably isn't for you.


We don't use a tactical approach. Tactical is a glorified version of market timing. We believe in constructing well-diversified portfolios and then actively rebalancing when necessary.


We take your current age, retirement age, and comfort with risk into account in order to determine the ideal mix of stocks and bonds for you to be invested in. We then implement a plan that will automatically move you into more conservative, less volatile investments as you get closer to retirement.


Target date funds are a great tool for 401k participants that want a one-size-fits-all approach. Blooom Clients get customized portfolios that are monitored specifically for their retirement goal and adjusted accordingly.


At this point, we work from a 'discretionary management agreement.' This is pretty much boiler plate for financial advisors. It basically states that you signed off on the allocation and we can place trades on your behalf.

The reasoning behind why we can't run each change by you is two-fold:

1. It's a bandwidth issue. We're aiming to help millions of Americans over the long-term and asking for approval before we take action would slow things down and increase your cost dramatically.

2. We're a fiduciary, which is fancy speak for blooom acting in your non-emotionally charged, rational best interest. If you really feel like you need control of every trade that's made then blooom may not be a perfect fit. We were designed for folks who want to delegate their 401k to professionals.


We focus on three main things…

Here is the order of importance within our methodology:
1. Get the stock:bond ratio appropriate for your timeframe to retirement.
2. Get you exposed to every appropriate asset class possible within your 401k fund lineup.
3. Select the lowest cost funds for each asset class.


We don’t recommend having more than 10% of your portfolio invested in company stock. We will only manage the portion of your account balance that is not invested in company stock.

However, in some cases your institution may not allow a rebalance without including the company stock in each transaction. In these cases, if you have less than 10% of your account in company stock, we may need to round your holdings to the nearest whole percent and either buy or sell shares of your company stock. The company stock transaction in this scenario will never be more than 0.499%.

If you have more than 10% of your account in company stock, we will round your holdings down to the nearest whole percent, meaning we will sell your company stock. The company stock transaction in this scenario will never be more than 0.999%.

Our advisors can take care of the process of reducing your company stock for you, should you choose to do so. Just let us know what specific percentage you would like to hold in company stock, and we will take care of it from there.

If you have your future contributions to company stock percentage set above 10%, blooom will lower it to 10% for ongoing contributions and adjust the remaining 90% of your future contribution portfolio accordingly. If you have less than 10% set for future company stock contributions, we’ll leave your company stock future contribution percentage the way it is and adjust the rest.


We will manage ONLY the portion of your account balance that is not invested in the self-directed brokerage


We don't have any of that information set up on our back-end. There are an unbelievable number of variables involved in 401k accounts that make those metrics extremely difficult for us to report. For example, we can't see what growth comes from your paycheck contributions and what comes from the market.

Overall, we try to help folks invest for the long-term. We don't want to get too caught up in short-term performance.


In some retirement plans, there are funds with restrictions on moving money in or out. If you have a fund or funds in your plan with transaction restrictions we may not be able to include those assets in your rebalance.

Deposits, Withdrawals, Transfers


No. We never will take money out of your account. You will have to contact your custodian to initiate a withdrawal or a loan. That said, if you’re thinking about dipping into your nest egg, don’t hesitate to reach out to a blooom advisor using our Contact Us form. They can lay out the implications of doing so and help you consider some alternatives, if appropriate.


Yes. We can assist you with the management of this account too.


No. We will not change the amount that you are withholding out of your paycheck to fund your retirement. But if you want our general advice, we’d be happy to help you determine an appropriate percentage, based on your plan’s match and your financial situation. Just use our Contact Us form to let us know you are looking for help determining how much to contribute and an advisor will follow-up!

Security


Yes. We take security and privacy very seriously. We recognize that before we can help you with your 401k, we have to keep your information safe and secure. To learn more about our security, please check out our entire page dedicated to security!

Ready to grow your 401k?

Learn More Pricing Start Now
blooom-logo