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Blooom Review 2022: Is Investing with Blooom Worth It?

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Blooom Review

blooom logo

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.

Safe & Legit

Fees

Earning Potential

Ease of Use

Pros

  • You can get free portfolio analysis
  • It supports a great selection of retirement plans
  • It doesn’t take custody of any of your accounts
  • You can reach out to human advisors

Cons

  • There’s no phone support team
  • The IRA management is quite limited

Jump to: Full Review

Compare to Other Investment Apps

Acorns

Acorns logo

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

Fundrise

Fundrise logo

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

Public App logo

Invest in stocks and funds from $1 (no membership or commission fees)

Over 5000 stocks and ETFs to choose from (dividend stocks available)

Follow other investors, see their portfolios, and exchange ideas

What is Blooom?


Blooom is a Registered Investment Advisor that offers automated investment management and financial planning for 401k and other retirement plans. It launched in 2013 and built its headquarters in Leawood, Kansas. 

The company aims to provide robo-advisers while keeping lower fees in their customers’ IRAs. Through them, you can build a financial plan to secure your retirement. 

More than 22,000 customers have trusted Blooom for its affordable retirement savings management. Because of that, its market share has reached $1 billion in the last few years.

How Does Blooom Work?


So, how does Blooom work? First, you can choose from its main services: 

For Employer-Sponsored Retirement Plans

Blooom offers full management of your 401(k), 457, TSP, and 403(b) plans. Additionally, you don’t need to ask your employer before choosing this service. 

Also, Blooom won’t take over your plan entirely, leaving you with full control of it. What it does, though, is analyze your investment options and mobilize your money to funds that fit your portfolio. This strategy also helps you lessen investment costs. 

Right after signing up, Blooom will provide a free analysis of your latest portfolio allocation. This way, you can see how much investment fees you’re paying, getting you in the know.

Once you continue to use their services, Blooom constructs your portfolio through its partner index-based ETFs and low-cost mutual funds. 

An important thing to note here is that Blooom will not use individual stocks, and it never has. In case you have those in your plan, Blooom will sell those and allocate the funds into the more ideal ETFs. 

On the other hand, if you’re holding your employer’s company stock, Blooom will not sell those. It does, however, recommend keeping those stocks under 10% of your entire portfolio value. 

For IRA (Individual Retirement Account)

The IRA service is one of Blooom’s latest offerings. How Blooom manages IRAs is quite similar to how it does to employer-sponsored plans. However, you’ll need to move your account to any of the following if you opt for this service:

  • Charles Schwab
  • Fidelity
  • Vanguard

As these are the largest retirement trustees in the country, Blooom assures that your IRA account is safe. But unlike with employer plans, signing up to Blooom to manage your IRA means you can’t select specific investments. 

On the other hand, you can modify your portfolio allocation by updating your investor profile. Another way to maximize your IRA potential is to let Blooom manage a certain portion. At the same time, you’ll be managing the rest through self-directed trading. 

Who is Blooom Best For?


Blooom is an excellent tool for those unsure of how to manage their retirement plans. When its founders created Blooom, their vision targeted practically everyone with a retirement plan. 

To embody this vision, Blooom doesn’t require a minimum account balance. You don’t have to worry about your plan reaching a certain amount before a financial services company manages that. 

Ultimately, Blooom offers its services to everyone, from beginners to long-term investors. 

How Much You Can Earn with Blooom?


Blooom is pretty straightforward when asked about average client returns through their services. According to Blooom, this is based on several factors, such as:

  • Specific funds performance 
  • A mix of investments based on the client’s age
  • Time until retirement
  • Risk tolerance

Because of that, setting a specific earning expectation or average client returns, according to Blooom, is highly unlikely. It can also be misleading. 

Blooom Fees: How Much Does it Cost to Invest with Blooom?


As previously mentioned, there’s no minimum amount required on your account to invest with Blooom. However, you’ll have to pay for their services and you can choose from the following Blooom plans:

PlansPrice per YearInclusions
Personalized Portfolio$120– Plan ResearchControl of Placing Trades
– Fund Recommendations
– Investment Monitoring
– Unlimited Accounts
Advisor Access$245– Personalized Portfolio
– Advisor Access
– Trade Assist
– Withdrawal Alerts
Financial Consulting$395– Everything on lower-tier plans
– Annual one-to-one guidance from a Financial Advisor through a 30-minute video or phone call

Blooom Features: What Does Blooom Offer?


 You can enjoy the following features depending on the Blooom plan you opt for your account:

Supported Accounts

Blooom can manage the following accounts for you:

  • 401(k)s
  • Thrift Savings Plans (TSP)
  • 457s, 403(b)s and 401(a)a
  • IRAs such as traditional, SEP, SIMPLE, Roth, nondeductible, self-directed, and spousal

Personalized Portfolio

Blooom analyzes the funds in your plan, picking up the optimal funds based on your situation. Doing so also helps you save money on investment fees. If you’ve paid for the Blooom Advisor Access plan, they can also trade on your behalf. 

Automatic Portfolio Rebalancing

With this feature, Blooom reviews your account for 95 days since the last adjustment. If your account has drifted from your investment targets, it does a rebalancing. Otherwise, it only monitors your account until an adjustment is needed. 

Withdrawal Alerts

Available in the Advisor Access plan, this feature sends you a text message if Blooom detects a withdrawal from your account. 

Blooom Requirements


After signing up for Blooom, make sure to link your retirement accounts. You’ll need to find out the institution and the password of your retirement account you want Blooom to work with. 

If you’re opting for a paid Blooom management plan, you’ll need to add a credit card on file. This way, they won’t charge the annual fees to your retirement funds. 

Blooom Payout Terms and Options


Blooom doesn’t keep floating cash on your account as it invests any sales from previous funds to other funds during portfolio rebalancing. 

Only you can withdraw money from your account. This is why Blooom added a security feature to alert you when a withdrawal has been processed. 

Blooom Risks: Is Blooom Safe to Invest with? 


Blooom looks to diversify your portfolio allocation that is appropriate for your age and years until retirement. Thus, it’s mainly focused on long-term goals.

It does not, however, adjust your portfolio based on market fluctuations. After all, market drops and recession are nonremovable parts of the economic cycle.  It goes without saying that every investment comes with risks. 

It’s also important to note that Blooom is a fiduciary. The law requires it to act in your best interests. 

As for the safety of your accounts, it uses bank-level encrypted servers. If you’re still wondering how safe it is to use, think of the first people to try Blooom- the founders’ friends and families.

How Does Blooom Protect Your Money?


Blooom protects your money through the regulation of the U.S. Security and Exchange Commission. You also don’t have to worry about losing your investment since Blooom doesn’t keep your assets. 

But, make sure to check with your broker, or whoever has custody of your assets, if they are SIPC-insured. SIPC insurance protects your funds against the loss of cash and securities, such as stocks and bonds.

Blooom Reviews: Is Blooom Legit?


Without a doubt, Blooom is a legitimate company and BBB gave it an A rating. It considers customer complaints, and there hasn’t been one during the last 12 months.

Meanwhile, it received an average 3.0 rating on Trustpilot. Some users expressed their wonderful experiences with Blooom. On the other hand, others filed complaints about not getting their withdrawals. 

What are the Blooom Pros & Cons?


Blooom Pros

  • You can get free portfolio analysis
  • It supports a great selection of retirement plans
  • It doesn’t take custody of any of your accounts
  • You can reach out to human advisors

Blooom Cons

  • There’s no phone support team
  • The IRA management is quite limited

How Good Is Blooom Support and Knowledge Base?


Blooom offers a knowledge base where you can find answers to frequently asked questions. Besides that, it runs a Blog section where you can find expert articles on financial management. 

As for connecting with their support team, you can use a contact form to send an inquiry. Their advisors are available between 9 AM to 4 PM CST Mondays through Fridays. 

If you’re looking to talk to an actual financial advisor via live chat, you’ll need one of their paid plans.  

Blooom Review Verdict: Is Blooom Worth it?


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. 

How to Sign Up with Blooom?


Here are the steps to sign up for Blooom:

  1. Go to their website and click on the Let’s Get Started button at the top. 
  2. Provide your first name. 
  3. Choose an applicable investment-related question.
  4. Enter your age. 
  5. Enter the age you hope to retire. 
  6. Answer retirement-related questions
  7. Choose your risk tolerance. 

Based on your answers, Blooom proceeds you to sign up for services and choose a plan. After that, you can link your accounts. 

Sites Like Blooom


Here are other sites like Blooom to help you manage your investments and retirement plans. 

SitesFeesAccount Minimum
Blooom$120 per year$0
Acorns$3 to $5 per month depending on investment account$5 
Fundrise1% plus $125 for IRAs$10
Public App$0$0

Blooom vs. Acorns 


Acorns Summary

  • Low account fees from just $3 per month
  • Get $5 in your account for referrals
  • Low minimum starting investment amount
  • High average return on investments of 7.5%

Like Blooom, Acorns can help you save for the future for such a low price. You can even invest with spare change and schedule deposits to your portfolio. 

However, the two differ on supported accounts. Acorns work mostly with Exchange-Traded Funds o ETFs. 

Blooom vs. Fundrise 


Fundrise Summary

  • Low minimum starting investment of $10
  • High historical returns of 8.8% to 12.4%
  • 0.15% advisory 0.85% management fees
  • Diverse portfolios of up to 16 investments

Similar to Blooom, Fundrise provides the option to diversify your investments. But instead of bonds and stocks, it introduces customers to real estate. For as low as $500, you can invest in a property, along with other investors.  

Blooom vs. Public App


Public App Summary

  • Start investing from as little as $1
  • $0 commission fees for any stock trades
  • Over 100 articles to learn about investing
  • Low 1-2% commission for crypto trades

Sites like Blooom and Public App ensure that you can start investing any amount. It imposes no account minimum. Besides, these platforms consider stocks among the options to build your portfolio. 

But unlike Blooom, another notable investment method in Public App is cryptocurrency. While it can be a promising option due to the rise of Bitcoin, it is more volatile than stocks. 

Blooom FAQ


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. It works with traditional, Roth, nondeductible, spousal, self-directed, SIMPLE, and SEP.

Does Blooom have an app?

Yes, Blooom has an app that you can download on your iPhone or Android device.

Who founded Blooom?

Christ Costello, Kevin Conard, and Randy AufDerHeide founded Blooom. 

Does Blooom work with TSP?

Yes, Blooom works with TSP.

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