Features

Blooom is a wealth management company that provides advice and fund management services to people with a 401(k). Instead of focusing on just the large players, Blooom provides its services to all types of investors. The company was founded in 2013 by Chris Costello, Randy AufDerHeide and Kevin Conard and is based in Leawood, in the greater Kansas City.

Who Is Blooom Designed For?

Blooom is designed for anybody who has a 401k and would like some advice on how to manage it better. There are no minimums or maximum account balances. 

How Does Blooom Work?

A 401(k) is a retirement savings plan that is sponsored and set up by an employer. It's a great savings tool that allows employees to invest a chunk of their paycheck in their retirement in a tax-efficient way. However, many people either don't know how or don't have the time to learn how to best invest their 401(k) savings. This results in badly managed 401(k)s that are not performing at their full potential. As of October 2015, Bloom has analyzed $409 million in assets. It has found that 83% of 401(k)s are invested incorrectly. Blooom targets those investors by providing a simple and intuitive user interface and handing the management of your 401(k) to professional financial advisors. 

To get started investors must register with Blooom, provide the investment company and login credential where their 401(k) are held. Blooom then analyzes each 401(k), points its strengths and weaknesses, such as the level of risk it presents and whether it's properly diversified. It then provides clear advice on how to fix any issues by showing easy to understand comparisons. Blooom can then take the reins of your 401(k) and select the funds that best fit your investor profile for you. Blooom makes these changes for you, monitors your portfolio and rebalances it quarterly.

According to research by AON Hewitt on 401(k) plans, 87 percent of people who sought professional advice in running their funds did better than those that didn't. In fact 

How Much Does Blooom Costs?

Blooom offers free analysis to all users. Once users hire Blooom to manage their 401(k), it charges $1 a month for accounts with less than $20,000 and $15 a month for accounts with more than $20,000. 

How Is Blooom Better Than Other Wealth Management Companies?

Blooom doesn't require investors to have a minimum balance. It offers affordable professional fund management to all portfolio sizes. Its advice is spelled out in easy to understand language without all the mumbo jumbo only finance majors can decipher. The initial analysis is free and Blooom doesn't move your funds. Savings stay at the current institution where Blooom makes all the necessary changes and transactions. Instead of charging expensive commissions, Blooom has a flat fee, does not charge hidden fees and customers can cancel at any time.

 

  • Independent/Registered Investment Adviser
  • Software Managed
  • Asset Mgmt Fee
    1%
  • Commission Based
  • Fee Based
  • CPAs On Staff
  • Total AUM (in millions)
    $409
  • Min Account
    5000
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