Blooom offers automated portfolio management for employer retirement plans and more.
Blooom; Insider
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Bottom Line: Blooom Automated Investing is great for retirement investors looking for a low-cost, hands-off approach to wealth-building. However, Blooom only manages IRAs held at Fidelity, so you may need to consider other options if you aren’t willing to open a Fidelity IRA.
Overall rating
FeatureInsider rating (out of 5)Fees4.00Investment selection4.00Access5.00Ethics5.00Customer service3.75Overall score4.35
Is Blooom right for you?
Blooom Automated Investing is best for passive investors who want their retirement accounts managed for them. This investment platform offers personalized robo-advice for an array of retirement plans, including IRAs, 401(k)s, 401(a)s, 403(b)s, 457(b)s, and thrift savings plans.
If you like the idea of having access to human financial advisors, this platform also lets you ask experts questions through live chat or email. And even if you aren’t sure that Blooom is right for you, the company provides free investment analysis for your 401(k) and other retirement accounts.
Blooom vs. Betterment
Blooom
Betterment
Min. Investment
$0
Min. Investment
$0 or $100,000
Fees
$120 to $295
Fees
0.25% to 0.40%
Investment choices
Index funds
Investment choices
Stock ETFs and bond ETFs
Blooom Automated InvestingBetterment
Blooom and Betterment both have automated investing options for those who who prefer professional portfolio management. But Betterment is a stronger choice if you’re looking to automate both general investment accounts and IRAs.
Blooom strictly supports retirement accounts, so it’s mainly ideal for those with IRAs or employer-sponsored plans.
Blooom vs. SoFi Invest
Blooom
SoFi
Min. Investment
$0
Min. Investment
$0
Fees
$120 to $295
Fees
0%
Investment choices
Index funds
Investment choices
Stocks and ETFs
Blooom Automated InvestingSoFi Invest
Compared to SoFi, Blooom falls short when it comes to fees. Both offer access to human advisors, but, once again, Blooom’s products are strictly for those with retirement assets.
SoFi is a better option for investors of all types. The platform offers both self-directed trading and automated investing, and its investment selection features stocks, ETFs, and cryptocurrencies.
Ways to invest with Blooom
Retirement accounts
Blooom Automated Investing supports both IRAs and employer-sponsored plans, and it executes trades on your behalf. The automated advisor also offers personalized management for 401(k)s, 401(a)s, 403(b)s, 457 (b)s, thrift savings plans, and IRAs.
In addition, the investment broker has no minimum account size requirements, and it charges flat annual fees for its advisory services. Blooom’s three pricing options — Personalized Portfolio, Advisor Access, and Financial Consulting — have fees ranging from $120 to $295. According to Blooom’s website, each plan includes research and portfolio design, risk allocation and management, fund diversification, and minimized investment fees.
But when it comes to IRAs, there’s a catch.
While Blooom says it can offer investment recommendations for Vanguard, Charles Schwab, and TD Ameritrade IRAs, it only manages IRAs held through Fidelity. If this brokerage is your IRA provider, Blooom supports traditional IRAs, Roth IRAs, spousal IRAs, nondeductible IRAs, SIMPLE IRAs, and self-directed IRAs.
Brokerage accounts
Blooom Automated Investing primarily manages retirement accounts. This means you won’t receive portfolio management for standard brokerage accounts. However, Blooom still lets you link brokerage and other accounts to your dashboard to keep track of your overall progress.
Is Blooom trustworthy?
Blooom Automated Investing has received an A+ rating with the Better Business Bureau. Since the BBB primarily considers customer complaints when assigning its ratings, this suggests that Blooom interacts fairly well with its customers.
The bureau also takes into account an array of other factors when arriving to its final rating for a company. These include a company’s licensing, its advertising reviews, government actions, and bankruptcy history.
However, it’s important to note that the BBB says its ratings don’t guarantee a company’s performance or reliability. For this reason, it’s also best to do your own research before choosing an investment app.
Blooom’s record is currently clear of any major lawsuits or scandals. BBB data shows that the company has closed one complaint in the last three years.
Blooom — Frequently asked questions (FAQ)
What does Blooom do?
Blooom offers automated portfolio management for a vast suite of retirement accounts. These include IRAs, 401(k)s, 401(a)s, 457(b)s, 403(b)s, and thrift savings plans. In addition, the platform gives you easy access to human financial advisors who can help with any of your investing questions.
Does Blooom work with Fidelity?
Yes. Blooom only manages IRAs offered through Fidelity, but it also provides recommendations for IRAs held through Vanguard, Charles Schwab, or TD Ameritrade.
Does Blooom have an app?
Yes. Blooom has an iOS mobile app that Apple users can utilize to access their investment accounts. Unfortunately, the company doesn’t offer an app for Android/Google Play users at this time.
Related terms
IRAs: Any individual above age 18 with taxable income can open an IRA. Retail investors can mainly utilize traditional and Roth IRAs and earn several tax perks in the process. Both allow you to contribute up to $6,000 per year (or $7,000 for those 50 and older). In addition, small businesses and self-employed individuals will have access to other IRAs, such as SEP IRAs and SIMPLE IRAs.ETFs: These funds contain a blend of stocks, bonds, commodities, and other securities. ETFs are similar to stocks since you can easily buy and sell both during the stock exchange’s trading hours. But these investments are also less risky than stocks because they essentially contain a basket of different securities.Mutual funds: Like ETFs, mutual funds contain a blend of several investment types, but these funds are usually managed by professional money managers.Fiduciary: Blooom is a registered investment advisor (RIA). All RIAs are required to act as a fiduciary, meaning they must place each client’s best interests above their own.