Category : financial wellness

Your 401k Workout Plan

Forget your pecs. This year, invest in something that could actually get better as you get older! Make sure your company-sponsored retirement account is in tip-top shape to conquer the new year and beyond with these easy exercises.

Exercise 1: Match it pound for pound.

Just contributing to your 401k is a HUGE step in the right direction. So, pat yourself on the back for taking that leap! If you really want to make strides, muscle up and meet your company match. (It’s basically free money.)



Exercise 2: Stretch out your dollars.

Retirement is a marathon, not a sprint. Make sure you’re invested in the right mix to meet your goals. Maximize the distance, while protecting yourself against big injury to your account as you get closer to retiring.



Exercise 3: Avoid heavy lifting.

If you’re not properly trained, attempting to overhaul your 401k could be dangerous! A wrong move could be a real toe crusher. Luckily the independent experts at blooom are here to spot you when you’re ready.



Exercise 4: Sweat the small stuff.

Hidden fees and management percentages may seem small now, but by the time retirement hits could mean the difference of hundreds of thousands of dollars. Make sure you are minimizing the fees in your 401k.


Does a 401k exercise still sound like too much effort? Outsource the workout with blooom.

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blooom’s Year-End Checklist

The end of the year is a great time to reflect on your financial situation and plan ahead for next year. Here are some tips from one of our advisors:

  1. Update wills/trusts and beneficiaries.
    Get married this year? Have kids? Get divorced? Big life events mean it’s time to make sure legal docs like your will or trust, powers of attorney, life insurance policies, and account beneficiaries are all up-to-date. Forgetting to make these updates can be disastrous for families at some of the worst possible moments in their lives. Get in the habit of reviewing these things annually so nothing is missed.
  2. Get a handle on your debt and plan ahead for next holiday shopping season.
    Lay it all out there to get ready to tackle debt in the new year. If you’re like most Americans, you probably racked up some credit card debt you aren’t proud of this holiday season. What can you learn from that going into next year? Figure out how much of a holiday spending budget you need to plan for, divide that by 10 or 11 months and automate your savings into a savings account dedicated to holiday spending.
  3. Use your raise (and possibly your bonus) to increase your 401k contributions.
    Starting this year, get into the habit of taking a portion of any raise you receive and dedicating it to your 401k. For example, if you get a 5% raise, consider bumping up your contributions by 1% or more. Your paycheck still goes up, but your 401k also gets a boost. This habit can help you work toward maximizing your contributions over time, while having no real impact on your cash flow or budget. Also, see if your employer will allow you to contribute all or part of any year-end bonus you may receive toward your 401k. This can help reduce your taxable income come tax season and it also means you avoid the extra tax withholding on bonuses for that money.
  4. Set aside time for a year-end financial review.
    Look back on the year and take note of what you were able to accomplish financially and what setbacks you may have had. Use this past year as an opportunity to continue making smart financial decisions in the new year and learn from any of the times you may have stumbled. If you have a family, talk about upcoming trips, savings goals, and any other things you need to focus on next year. Set goals and even plan to celebrate financial accomplishments as a family throughout the year. Make money fun and before you know it, you’ll feel the freedom that comes along with financial security and eventually, financial independence!
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Is your 401k naughty or nice?

The year is almost over and it’s time to evaluate how you have done for yourself financially. 401k included! Much like Santa’s reindeers, your 401k can be the driving force for a jolly retirement. Here are some easy ways to find out if your account has been naughty or nice.

If your 401k looks like it could use a little more jingle, no worries! Blooom can get you back on track. Here’s to a happy holiday and a healthy new year!

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Keep searching for better option than TSP?

Leaving Public Service? TSP = Red Tape You Might Not Cut

Government service is often thankless. I saw firsthand bouncing around the country from town-to-town as the son of a life-long USDA employee. But in comparing notes between my Dad’s Thrift Savings Plan (TSP) and what I know of 401ks, the TSP might be one area where the public sector got it right. How so?

If you’re a person with a 401k, we at blooom often start with a simple question. Know what you’re paying in investment fees? Generally, the answer is no. And the cost of what they’re invested in often surprises them. That’s where we come in to help 401k clients. For people in a TSP, the fee discussion is a little different – on the surface.

And that has more to do with predatory Wall Street practices than the plans themselves.

Investment selection, rebalancing and fiduciary services could help federal employees achieve a better retirement. So, let’s explore why current and former federal employees should consider those services before cutting that last bit of government red tape known as the TSP.

Thrift Savings Plans (TSP) Have Few Investment Fees

TSP participants have access to one of most inexpensive employer-sponsored retirement plans, but only 40% of military service members take advantage of this benefit.

A TSP is a lot like a 401k, but the investment expenses are generally better in the former. Say 20 times better. Compare the average expense ratio of 0.03% for a TSP to the median 401k expense ratio of 0.60% we see pre-blooom rebalance.

Millions of federal workers are in the plans. A 2014 CNN Money article surmised why many millions more are bypassing these low-fee plans (or opting out when they leave their federal job) and perhaps paying thousands more in fees in other retirement savings vehicles.

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A Penny And 401k Fees Both Overpriced

Penny for Your Thoughts: You Pay More For 401k Than You Think

The U.S. Government has recently engaged in serious talks to abandon the production of the penny. Why? Because each penny costs 1.4 cents to produce, resulting in a cost of more than $100 million per year to taxpayers. If you’re a 401k investor, does this sound familiar? How so, you ask? The answer lies in knowing how much you’re paying in the hidden investment fees associated with your 401k account. Based on NerdWallet research, nearly 92% of people have no idea what they’re paying in 401k fees.

Why Paying 401k Fees Can Be a Big Deal

Fees unnecessarily sap the potential long-term results of your 401k. The average American will pay $138,336 in 401k fees. That’s 2.5 years of earnings for the average U.S. household.

Want to see the fees you could strike from your life? Check out our hidden fee calculator to get an estimate. Or, evaluate your actual account for a truer picture.

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