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Blooom investing review: Automated management for 401(k)s, IRAs, and other employer-sponsored plans

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Learn more about Blooom in our review, below.

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Is Blooom right for you?

Blooom 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 app 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.

The investment app also has no minimum account size requirements, and it charges flat annual fees for its advisory services. Blooom’s three pricing plans – Essential, Standard, and Unlimited – have fees ranging from $45 to $250. According to Blooom’s website, each plan includes research and portfolio design, risk allocation and management, fund diversification, and minimized investment fees. 

The Essential plan, which costs $45 per year, gives you access to personalized investment management. Standard plans, which cost $120, include personalized management, human advisor access, withdrawal alerts, and Blooom trade executions. In other words, with the Standard plan, Blooom chooses investments and places trades for you.

Unlimited plans cost $250 per year and have all the perks of both the Essential and Standard plans, but this option gives you exclusive access to financial advisors through live chat.

One thing to look out for is that Blooom only provides automated services for retirement accounts. If you’re looking for robo-advice for a traditional investment account, this advisor may not be the best fit. 

Additionally, if you’re thinking of connecting your IRA account to Blooom, you’ll need to make sure your current IRA provider is compatible with the platform. Blooom only accepts IRAs held at Fidelity.

Blooom Logo
Editor’s rating 4.0 out of 5
Fees $45 to $250
Account minimum $0
Promotion None at this time.
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Blooom pros and cons

Pros

  • Automated and personalized management for 401(k)s and other employer-sponsored plans
  • Free 401(k) or IRA analysis
  • No account minimum
  • Human financial advisors available through Standard and Unlimited pricing plans

Cons

  • Account management only available for employer-sponsored plans and IRAs
  • Only supports IRAs held at Fidelity
  • No phone customer support

How does Blooom compare to other investment platforms?

Blooom Logo
Betterment Logo
SoFi Logo

Min. Investment

$0

Min. Investment

$0 or $100,000

Min. Investment

$0

Fees

$45 to $250

Fees

0.25% to 0.40%

Fees

0%

Open an account Open an account Open an account

Ways to invest with Blooom

Retirement accounts

Blooom supports both IRAs and employer-sponsored plans, so you can set up an account even if you aren’t currently employed. The robo-advisor offers personalized management for 401(k)s, 401(a)s, 403(b)s, 457 (b)s, thrift savings plans, and IRAs.

But when it comes to IRAs, there’s a catch.

Blooom primarily accepts IRAs held through Fidelity. If either of these brokerages is your IRA provider, Blooom supports traditional IRAs, Roth IRAs, spousal IRAs, nondeductible IRAs, SIMPLE IRAs, and self-directed IRAs.

Brokerage accounts

Blooom recently added a brokerage option to its platform. Though you can’t currently trade with this option, Blooom lets you link your brokerage account to the free, unmanaged version of the app. 

Blooom says on its website that this makes it easier for you to see your entire portfolio in one place.

Is Blooom trustworthy?

Blooom 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. 

What is Blooom?

Blooom is a registered investment advisor (RIA) providing automated investment management for employer-sponsored retirement plans and IRAs. The robo-advisor supports several account types, including IRAs, 401(k)s, 401(a)s, 403(b)s, 457(b)s, and thrift savings plans. 

Blooom says on its website that it believes everyone deserves access to professional, independent financial advice. The company’s three Os come from staying “on target” with the right investment strategies, staying “on track” with ongoing retirement account monitoring, and staying “on your side” by providing unbiased advice, according to its website.

Blooom was formed in 2013 by Chris Costello, Kevin Conard, and Randy AufDerHeide. The investment company’s headquarters is located in Leawood, Kansas. 

Blooom currently oversees more than $5 billion in client assets.

Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.

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