Blooom Grows to $2 Billion in AUM as Hardworking Americans Flock to Simple, Affordable 401k Help

LEAWOOD, Kan., Jan. 23, 2018 /PRNewswire/ -- Blooom, the independent robo-advisor making simple, affordable 401k help available to millions of Americans, announced today it has doubled assets under management to over $2 billion less than six months after reaching the $1-billion milestone and a full year faster than quasi-competitors Betterment or Wealthfront.

"The more people take advantage of our free look inside their 401k, the more they're surprised by the potential impact from unbiased, simple, online professional help," CEO and co-founder Chris Costello said. "We've seen 47 percent of people participate in our free analysis convert into clients, which shows Americans are taking their retirement strategy to the next level."

With more than 16,000 clients, blooom projects its median client will save $41,456¹ in hidden investment fees alone over their working careers.

Blooom has also discovered via an analysis of its accounts:

• 79 percent of 401ks were racking up too much in hidden investment fees;
• 53 percent of 401ks were not properly aligned to retirement goals; and
• 39 percent of 401ks were invested in one or more target-date funds with an average fee 45 percent higher than alternative investments.

"Americans have over $7 trillion invested in 401ks," Costello said. "If you ask people how important their 401k is to their retirement, they'll tell you it is the single most valuable asset they have. But if you ask them if they like to manage their 401k, they'll say they'd rather do just about anything else."

Blooom recognizes that people need and want help with their 401ks—but they want a partner who is independent, and will manage their money without moving it to another institution or charging an exorbitant fee. Unlike many other institutions, blooom charges a straightforward $10 a month and doesn't make money based on the investments selected.

In just five minutes, anyone can link their 401k to blooom, and see what an unbiased professional would recommend and, if convinced, never have to think about it again by putting blooom on their side.  Once hired, blooom picks the optimal funds in your existing 401k and makes the trades on your behalf.

About blooom

Blooom is the first robo-advisor that focuses exclusively on Americans with a 401k or other workplace retirement accounts. It is a Registered Investment Advisor with the SEC, aiming to scale fiduciary best practices on low fees as well as appropriate asset allocation and diversification to millions of Americans who have workplace retirement accounts but no access to a financial advisor. Blooom recently reached $2 billion in assets under management more quickly than any other independent robo-advisor. Fast Company named blooom one of the most innovative companies in the world in 2015. Blooom counts former FDIC chairwoman Sheila Bair as an advisor. For more information about blooom and to get a free look inside your 401k, visit blooom.com.

¹$41,456 investment fee savings based on median blooom client 401k balance of $47,131 assuming $5,000 annual contribution, pre-blooom investment expense ratio of .56%, post-blooom investment expense ratio of .22%, and 30 years until retirement as of January 9, 2018.  Blooom is limited to the funds available in your employer sponsored retirement account.  There is no guarantee blooom can or will reduce your fund expenses.

Media contact:
Kendall Clark
[email protected]
203.687.9821

SOURCE blooom