Blooom Robo Advisor for 401k asset allocation

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KATNYC
Posts: 500
Joined: Fri Apr 07, 2017 4:34 pm

Blooom Robo Advisor for 401k asset allocation

Post by KATNYC »

Anyone using Bloom for asset allocation? Yes, it has 3 o's. :confused

I tested it out with the free trial but am not convinced it's worthwhile since it's not accurate.
It only analyzes 401k accounts and analyze CIT's.

The 401K has CITs with 91% of holdings. Similar funds/ticker are noted:
Large Cap Equity Index Fund - NT Collective S&P 500 Index Fund - VFIAX
Small & Mid Cap Equity Index - NT Extended Equity Market Index Fund - VEXAX
International Equity Index Fund - All Country World ex-US Investable Market Index Fund - VTIAX
Company stock - large cap

Morningstar ranks them like this:
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Bloom ranks like this:
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We have VISVX & VFSVX in ROTHs plus DGS in HSA which cannot be added to Blooom.
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nedsaid
Posts: 15051
Joined: Fri Nov 23, 2012 12:33 pm

Re: Blooom Robo Advisor for 401k asset allocation

Post by nedsaid »

I do not use Blooom Robo Advisor but I will say that the definitions for Large-Cap, Mid-Cap, and Small-Cap vary. My guess is that Blooom lumps Mid-Cap and Small-Cap stocks together. I wouldn't fret over this.
A fool and his money are good for business.
Bendee
Posts: 69
Joined: Wed Aug 17, 2016 8:41 am

Re: Blooom Robo Advisor for 401k asset allocation

Post by Bendee »

I just looked at Blooom after a friend asked about it, and while I would say it might be good for a beginner investor just using a 401k, basic allocation errors make me doubt it a bit, namely that they do not appear to split holdings. I am shown as having no smallcap when I have FSEVX (They list it as mid-cap only) and no emerging markets when I own VTIAX (21% of which is emerging, according to Vanguard).

The latter is what I'm really concerned about, as they recommend 28% to 8% developed int'l to emerging, so about 22% of all intl holdings should be emerging (which VTIAX essentially hits). If someone followed this and continued to use VTIAX but added an emerging intl find, they would have 14% of their holdings in emerging markets. These are not small funds that Blooom is only seeing for the first time. I could see a similar inaccurate allocation issue occuring if Blooom considers TSM to be only large cap.

The other thing I'm seeing is that Blooom doesn't look at IRAs or other accounts, so someone who has money in an IRA that doesn't match the Blooom allocation will be even more off-kilter.
ThePrince
Posts: 443
Joined: Sun Aug 20, 2017 9:15 pm
Location: U.S.A.

Re: Blooom Robo Advisor for 401k asset allocation

Post by ThePrince »

I have used Blooom for the past two years and have been extremely pleased with their service and the performance of my portfolio.
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CyclingDuo
Posts: 4465
Joined: Fri Jan 06, 2017 9:07 am

Re: Blooom Robo Advisor for 401k asset allocation

Post by CyclingDuo »

ThePrince wrote: Wed Feb 21, 2018 8:50 pm I have used Blooom for the past two years and have been extremely pleased with their service and the performance of my portfolio.
What fee do they charge for the service?
"Save like a pessimist, invest like an optimist." - Morgan Housel
Cop51
Posts: 128
Joined: Sun Jul 09, 2017 12:42 am
Location: NJ

Re: Blooom Robo Advisor for 401k asset allocation

Post by Cop51 »

They charge $10 a month or 10% discount if you pay for the year in full. I like the idea of the service having a 3rd party advisor review the portfolio and not putting you in a high cost target date fund, or some high fee fund that your 401k rep at work might put you in or an automatic actively managed account. It is really for someone who knows nothing, and could be better than an activity managed account by your 401k company. The problem with all this is they are only looking at 401k and similar plans. As far as I know they aren't looking at other wealth management accounts like ROTH IRA, 529, HSA, EF and so on.
MisterBill
Posts: 739
Joined: Thu Dec 24, 2015 3:21 pm

Re: Blooom Robo Advisor for 401k asset allocation

Post by MisterBill »

It's been a while since this thread was active, but I don't really feel like creating a new thread, so I figured I'd post here. If you have a 403b and are/were a teacher, you can get a year of free service. I have one from TIAA that I have not been good about managing. Has anyone actually used them?

It wasn't showing the free price when I went to sign up, but when I got to the payment page, it does show it being free for all three plans. You need to give them a credit card to be billed in 2022, although Google Pay is an option, and presumably I can remove the authorization before then, or cancel the renewal. You can enter the code TEACH on the payment page if you do not enter with the special link (which I have been able to figure out without including my personalized link).

It’s Teacher Appreciation Day.
ALL YEAR LONG.

Are you a teacher or know one? Don’t be mistaken, we see you out there hustling during the pandemic! While you’re buying school supplies and coordinating virtual (or masked) activities, let us navigate your retirement. Sign up your 403b account today using the code TEACH and receive for one free year of blooom to get on track for retirement.

use promo code
TEACH
for one free year


Update -- I signed up for the free year of the $250 plan, will see how it works out.
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