Episode Summary:
With more and more money flowing into asset allocation solutions in 401(k) plans, the options for plan sponsors to consider are growing as well. While managed accounts are not a new concept, as they continue to evolve and improve, some predict they are the next frontier in 401(k) plans to offer participants a customized solution that will adjust over time. To help explain what a managed account is, how they work, how they differ from target date funds and much more, Chris Costello, the Co-founder and CEO of Blooom joins me as our guest today. Chris in his team created Blooom as a disruptor in the space by leveraging modern technology and plain English communication to provide solutions for any investor with a workplace retirement plan for the investment of their most critical retirement savings, regardless of account size or where their retirement account is held. And people are taking notice! Blooom was recognized by Fast Company Magazine as one of the worlds top ten most innovative companies in personal finance and is now the fastest growing robo advisor in the market. Chris shares some passionate stories and perspectives about the realities of participant investment interest, challenges they face on their journey to retirement and thoughts on leveling the playing field to provide those who don't like managing their investments, an easy to use and affordable investment solution.
Guest Bio:
Chris Costello, CEO and Co-Founder of blooom, is a lifelong Kansan. After graduating from the University of Kansas with a degree in Business in the mid-1990s he began a career in the Investment industry. Chris holds the prestigious CERTIFIED FINANCIAL PLANNER™ designation.
Chris worked for several large Wall Street brokerage firms before co-founding The Retirement Planning Group in 2004, an SEC Registered Investment Advisory firm. Today that firm manages more than $500 million of individual client portfolios.
In 2013 Chris, along with his 2 business partners, started blooom –the first of its kind online 401(k) management service that uses an algorithm-based automated technology to manage clients’ employer sponsored retirement accounts. Chris builds the actual models blooom uses to generate 401(k) investment allocations which allows its clients to tap into investment advice traditionally available to only wealthy investors.
Chris has been married for almost 20 years and has 2 daughters.
401(k) Fridays Podcast Overview:
Welcome to the 401(k) Fridays Podcast, where employers come to learn and retirement industry leaders come to share their unique stories, experiences and perspectives. My name is Rick Unser, and I am your host. Each episode leverages my nearly two decades of experience as a retirement consultant and features a candid interview with an industry expert to help enhance fiduciary protection, streamline plan operations or improve participant retirement readiness.
For more information please visit www.401kfridays.com