A 401(k) robo-advisor with a human touch

Lower fees and strengthen your current portfolio.

Advertising Disclosure

  • Unchecked 401(k) fees could cost a fortune over decades
  • Reportedly a third of 401(k) contributors don't know fees exist
  • 401(k) robo-advisor with automated trade assistance and the oversight of a financial advisor 

Although 401(k) is one of the most popular retirement plans out there, many 401(k) holders don’t actually contribute enough every month in spite of the high annual limit of $20,500 in 2022. Furthermore, more than a third of 401(k) account holders don’t even know that 401(k) fees exist.

How much do you pay to invest in your 401(k)?

A portion of your monthly 401(k) contributions goes towards your plan provider’s operational, maintenance, and advertising costs; this could go as high as 2.56 percent of your 401(k) asset value annually. For a $100,000 401(k) account, you could therefore pay $2,560 in fees in a year, which is quite high. 

Plus, since the charges are percentages of your asset, the amount of money you shed with every passing year will grow proportionately with your asset value. Unchecked 401(k) fees could cost you a fortune by the time you retire.

This AI-powered 401(k) robo-advisor could minimize those expenses 

Blooom is one of the few robo-advisors that manage 401(k)s with the aim to lower fees, find long-term stocks with good returns, and keep your portfolio within asset allocation that suits your risk profile.

Their AI bots offer to monitor your investments at all times and use mega repositories of market information to recommend investment decisions that could do well for your retirement.

With Blooom’s Financial Consulting package (only $33 a month), you will get access to human financial advisors through email, chat or even video consultation for query resolution and financial planning. The package includes automated trade assistance based on Blooom’s proprietary technology and the oversight of a financial advisor for a completely hands-off investing experience.

Financial advisors follow either fiduciary or suitability standards. While the former requires an advisor to legally and ethically find the best investments possible, those following suitability standards are only required to make investment recommendations that suit your profile and not necessarily the best. All of Blooom’s advisors follow fiduciary standards.

Signing up on Blooom is completely free of charge. When you link your 401(k) on their secure platform, you may proceed to view an actual-to-ideal comparison of your current 401(k) and how it could look with low-fee funds and revised portfolio allocation. Who knows? It might work better for you.