Author Archives: Claire Harrison

Claire Harrison
Claire Harrison is a Campaign Manager at blooom. A high-fiver, thinker, and coffee drinker, Claire loves the Oxford comma and clean design. She’s werkin’ hard to help people learn about their retirement savings and how easy blooom is to use.

401k Q&A

The following questions are real, and we hope our answers are real helpful. See what’s on the enquiring minds of our actual members as we tackle anything and everything (you’ll see) happening with regards to their – and your – 401k.

 

“I’m on vacation and turned on the news this morning. I’m four years away from retirement and wondering what you’re going to do with my account if/when Trump starts WWIII.”

My first most important piece of advice for you while you’re on vacation, especially given everything going on in the world right now is to avoid the TV and as much access to the outside world as possible. Secondly, even in the unlikely event that we were to find ourselves in the middle of WWIII, no one knows what that would mean for stocks. I think we can be pretty certain that in the short term we’d see some significant volatility, but shockingly, stocks have actually done extremely well historically during just about every major war. History can be comforting, but there are of course no promises that another war would see the same results for stocks. Rather than trying to guess or panic and risking future growth on your account IN retirement, it’s important to remember that this is exactly why global diversification using both stocks AND bonds is so important. A heavy portion of your account should be held in fixed income, which potentially reduces any stress to your portfolio.

 

“Since Bitcoin is under $10k again, I want in. How can I do that in my 401k? And tell me why I shouldn’t. It is the future of money after all.”

Don’t mistake Bitcoin and other cryptocurrencies for an investment, especially in an account with a very high priority goal like retirement. First off, you’re not going to have a way to get exposure to cryptocurrencies in your 401k as things stand today. And even if you could, I wouldn’t put anything into Bitcoin or other cryptocurrencies that you wouldn’t be okay losing all of within your first 20 minutes of entering a casino.

 

“I was wondering if medical marijuana stocks are worth betting on in their current early stages. I would love some more insight on who to keep my eyes on.”

We’ll be blunt: Although individual stocks are outside our area of expertise, any investment in a single stock or sector is going to carry a higher risk than a diversified portfolio. So, it’s important to keep the investment to a small portion of your overall wealth. There may be some funds or ETFs targeted at the sector, and that would be a good way to diversify more than a single stock. In most emerging sectors, it’s very hard to predict which companies in that sector are going to succeed. You could be right on the success of the sector, but pick the wrong stocks within that sector and miss the gains entirely. A sector fund or ETF is a good way to minimize that risk.

 

*The information is provided for discussion purposes only and should not be considered as advice for your investments. Investing involves risk. Your investments are subject to loss of principal and are not guaranteed.

Read More
don't settle default investment option

Soar Strong Like Queen B: To The Left Default Investment!

Welcome to another episode of Retirement Jargon Sampler. Wicka wicka whaaaaah!?

Allow me to drop a beat while we break down the complicated world of 401k management.

(If you missed the blooom team’s first track, the beautiful echoes of a 401k, check it out .)

Track #2 DROPS NOW! It’s Titled “Default Investment Option”

Watch me translate the jargon as I break it down flip it and reverse it….

“You must not know ‘bout me

You must not know ‘bout me

I could have another you in a minute

Matter fact he’ll be here in a minute, baby

You must not know ‘bout me

You must not know ‘bout me

I can have another you by tomorrow

So don’t ever for a second get

To thinking you’re irreplaceable …”

Read More

Don’t Call Me Lazy

I am always intrigued by the comments we get on blooom’s Facebook page. Some are wonderful and uplifting, some are hilarious, and others. . . well let’s just call them “interesting.” But the ones that really catch my attention are those that are critical. And it’s why they are critical that concerns me. These comments criticize our clients for using blooom’s service. They are critical because these people believe that personal finance should remain personal—handled solely by that individual.

More specifically, the comments call out the blooom clients for being lazy or dumb. I came across one this past week and for some reason the following comment hit me hard and prompted me to write this blog:

Why pay someone to look over your money when you should be the one doing it[?] And you wonder why so many Americans are in debt, cause they are lazy with their finances. Sorry not paying someone to make money off of me cause I’m [too] lazy to watch over my own 401k.

When I read this, I didn’t get upset because I am an employee of blooom. I got upset because I am a client of blooom. According to this person, that makes me lazy and to some others who have commented, it also makes me dumb. So not on behalf of blooom, but rather on behalf of blooom clients, I feel compelled to provide a more expansive response to these types of Facebook comments.

Read More

There are a Thousand Ways to Save: Pick One and Start Today

We are mid-way through National Save for Retirement Week so it makes sense that it’s also “Brown Bag” your lunch day. There is no shortage of “how to save money” blogs on the internet and maybe I am just feeding the beast by offering my five tips. But the good news is, there ARE thousands of articles out there about saving. So whether you are focused on saving for your “Life After Work” or have other goals like saving to pay extra on your student debt or saving for the down payment on your first home, there is never a shortage of tips to help you along the way. Just pick a few that you like and start saving!

  1. Remove yourself from alerts: It’s hard to resist the temptation of shopping when every day you are receiving emails and text messages about the next “can’t miss” sale. Shut down the impulse noise to keep your budget on track.
  2. Make it a competition: My husband and I follow the Dave Ramsey Cash Envelope System. We take out a certain amount of cash each week that we allocate for our own personal use. We call it our “fun money.” But we still found ourselves putting some incidental purchases on our cards that caused a lot of budget leakage. So we now have a bet. We can only make purchases with our “fun money” cash. Whoever puts any “extras” on the debit or credit card has to treat the other person to dinner and pay for it with their “fun money.” The thought of losing a bet to my husband is a great motivator to keep the plastic in my purse.
Read More
1 10 11 12