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Are You 100% Sure Your 401k is Right for You?

Are you sure your 401k plan is going to meet your needs? Get a free 401k review and find out!

For almost six-of-ten Americans (59%), a company 401k plan is their largest or only source of retirement savings. That’s neither good nor bad. These plans usually come with a company match and all offer tax benefits.

The problem is that most 401k plans suck at helping people reach their goals or even at helping investors understand those goals.

More than half of all 401k investors don’t understand the fees they’re paying. Nearly two-thirds say they are concerned they won’t meet their goals and 70% wish they had some kind of personalized 401k advice.

For decades, the industry that runs 401k investments has failed to help investors or answer their questions.

A new company is trying to change that. It was the fastest growing robo-advisor last year and the first to offer low flat-fee pricing everyone can afford. It’s already saved investors over $500 million in fees and helped answer their questions about 401k investments.

Now that company is offering to review your 401k for free to estimate how much you could save and whether you’re on track to meet your goals. It’s also providing unlimited online access to a financial advisor for all your retirement questions.

how to get a free 401k reviewIf you have a 401k and you’re counting on it to help pay for your retirement, read on.

Do You Know What’s in Your 401k?

As important as their 401k is to most people’s financial future, many still have no idea what investments they hold or the fees they pay.

Even after the 2012 fee disclosure rule by the Department of Labor, requiring 401k plan sponsors to clearly list total fees, more than half of participants report not knowing how much they pay on their retirement plan.

Nearly one-in-four people didn’t even know they were paying fees on their 401k according to a recent LIMRA survey.

The Society for Human Resource Management (SHRM) reports that the average 401k plan costs participants 1.46% annually plus fees charged on each fund investment.

Beyond not helping workers understand fees in 401k plans, plan sponsors do a horrible job at advising people on how much they need and other financial questions.

In a 2016 survey of 401k participants by Charles Schwab, 56% of respondents said they were only somewhat confident or not confident at all they could make 401k decisions on their own. Nearly three-quarters (70%) wanted personalized investment advice for their 401k and a third reported feeling stressed out about choosing the right 401k investments.

survey 401k investors needs

Most Common 401k Plan Needs

Why Your 401k Investment Strategy Sucks

First, if you don’t know exactly what’s in your 401k and how much you’re paying, it totally sucks. I can almost guarantee your plan sponsor has pushed you into the most expensive funds whether they meet your needs or not. Plan sponsors have no fiduciary requirement, meaning they are not bound by law to look after your best interest when they help you set up your 401k plan.

Even if you have an idea about what’s in your account, there’s a good chance your 401k investments aren’t cutting it.

Most plans overemphasize active fund management, investment managers trying to ‘beat’ the stock market. This means super-high fees versus a passive index approach and generally funds that underperform.

What Questions Do You Have about Your 401K?

The Schwab survey of 401k investors also asked participants what they need help in when managing their 401k plans.

Four key questions stuck out as the top needs; calculating how much was needed for retirement, determining the age at which someone could retire, understanding expenses in retirement and anticipating tax expenses.

how to get free 401k advice

Most Common 401k Questions by Investors

How to Get a Free 401k Review from Blooom

Blooom launched in 2014 to meet this need for better 401k advisory and planning. The 401k advisory service is the first robo-advisor to offer flat fee pricing instead of a percentage of your investments.

Now, Blooom is offering a no-obligation review of your 401k plan to help make sure you’re on track to reach your goals.

You enter your basic information and select the plan sponsor managing your 401k account. Then Blooom analyzes your account versus 25,000 funds to instantly find the hidden fees in your plan.

The whole process takes less than five minutes and will also tell you if you have the right mix of stocks and bonds as well as how to reduce the risk in your retirement investments.

The review will also estimate how much Blooom can save you with its $10 a month 401k management service. It could be quite a lot. To date, Blooom has saved clients a total $518,534,255 with an average 37% reduction in fees.

Click to get your free 401k review in just five minutes

How Blooom Works for Putting Your 401k on Track

The 401k review is free and there’s no obligation to use Blooom. If you do decide to let Blooom help manage your 401k plan, you don’t have to do anything else. The company connects to your 401k, optimizes it to reduce fees and regularly adjusts your investments to stay on track.

Blooom has analyzed over $1 billion in 401k investments from customers and works with every major plan sponsor.

For a flat fee of $10 a month, Blooom will:

  • Constantly monitor and rebalance your retirement account to keep your investments on track, without costing you more in fees
  • Decrease hidden investment fees by finding the best, low-cost funds to meet your needs
  • Keep your account invested in the appropriate stock/bond mix according to your age and other factors

Maybe the biggest benefit to the service is that you’ll get unlimited online access to a financial advisor. You’ll have the opportunity to ask all those questions you wanted to ask about finances and investments for as long as you’re a Blooom client.

Click for more information about how Blooom can help you get back on track

There’s no obligation to the free 401k review and it takes just a few minutes. Even if you don’t use the Blooom service, you’ll be able to see if there are hidden fees in your 401k plan and if you’re on track to meet your goals. If you have a 401k plan and are not 100% confident that it is your best, low-cost option and that you’re on track to meet your goals, get it reviewed.

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