Plootus Review: AI-Powered 401(k) Analysis

Plootus is a free (for now) financial planning platform that analyzes your 401(k) plan and recommends the proper asset allocation for your investment goals. It also identifies the lowest-cost options to help you save on fees.

These days, most employees participate in defined contribution plans through their work. But employers don't do the best job of providing their employees with educational resources to help them make the best investment decisions for their 401(k) or 403(b) plans. Can Plootus help? Find out in this full review. 

What Is Plootus?

Plootus is a financial technology company (fintech) that offers free financial planning tools to help ensure that you are on track for retirement. Plootus's platform allows you to search for your employer 401(k) 403(b), 457, or TSP plan. It's AI-powered algorithm will analyze your financial data to estimate your income needs at retirement, and will make recommendations about the investment/funds you should select inside your retirement account. It also takes investment fees into account to ensure it is recommending the most cost-effective solution.

What Does It Offer?

Here's a closer look at how Plootus works to help you plan for retirement. 

1-Step Process

Plootus refers to its service as a 1-Step Process. You can use its search engine to locate your employer-sponsored retirement account. From there, Plootus will analyze the available investments and make recommendations based on your risk profile. It looks at your current spending patterns and estimates your future retirement income needs. 

401(k) Recommendations

After analyzing your employer-sponsored retirement accounts (401(k), 403(b), 457, TSP, Plootus will provide you with specific recommendations for how you should invest. It focuses on low cost, well-diversified portfolios that are rebalanced over time to stay aligned to your risk-level and investment goals. Plootus aims to provide you with a recommendation within a week of you linking your 401(k) account. However, it can sometimes take up to 30 days. 

Ongoing Support

While you can quit the platform after you receive your 401(k) recommendation, Plootus will provide ongoing monitoring of your investment performance and make recommendations if it feels changes to your asset allocation are necessary. There is no cost involved. 

Can Plootus Provide Recommendations For My 529 Or IRA Plans?

At this time, Plootus only works with employer-sponsored retirement plan accounts. However, the company is considering adding more account types in the future, such as 529s and IRAs.  

Plootus Mobile App

In addition to its web platform, Plootus has a mobile app available for iOS and Android devices. If you don't want to manage your Plootus account on your own, you can delegate access to a financial advisor. And Plootus allows makes it possible to financial advisors to access multiple Plootus accounts. 

Are There Any Fees?

At this time, Plootus is completely free to use, and there are no hidden fees. However, the company does point out that they may start charging a fee in the future, similar to a monthly subcription model used by streaming services such as Netflix or Disney+. There are no contracts to sign, and you are free to leave the platform at anytime. 

How Does Plootus Compare?

The service Plootus offers is unique in that it's limited to employer-sponsored retirement accounts. At least for the time being. If you're looking for more comprehensive financial planning tools that can help you manage all of your financial goals, you might want to consider platforms like ProjectionLab or Boldin. 

ProjectionLab helps you model your finances around your values and the type of life you want to live. It allows you full control over the inputs, including your goals, timelines, and assumptions. For example, if you're trying to decide whether it's better to rent or buy your next home, or determine the financial implications of starting a family, ProjectionLab can help. 

Boldin (formerly NewRetirement) offers both free and paid plans to help people plan for retirement. You can get a free analysis of your retirement income vs. expenses within minutes, or pay an annual fee for more detailed analysis, including multiple scenarios, detailed charting, plan monitoring, budgeting, tax modeling, and more. 

How Do I Open An Account?

You can sign up with Plootus by selecting "Get Started" on its website homepage. From there, you'll be prompted to select your employer's 401(k) and link your bank accounts, credit cards, brokerage, and retirement accounts to the Plootus app. Plootus will use this information to estimate how much money you will need during retirement. 

Is It Safe And Secure?

Plootus takes several steps to ensure that your data is kept secure. They collect very little personal information from clients, and do not ask for a Social Security number or your specific home address. When connecting your bank accounts, Plootus does not collect or store your login details, rather they use a partner aggregator that employs bank-level security, including 256-bit encryption.

Contact

Plootus does not provide support via telephone. Your only option is to contact them by email at support@plootus.com. They monitor their email account during business hours, Monday to Friday. 

Is It Worth It?

If you're enrolled in an employer-sponsored retirement plan account, but don't know if your money is invested properly or if you're on track to meet your retirement goals, Plootus may be worth trying out. There is no cost, no contracts, and setting up your 401(k) for analysis seems like a very simple process. Of course, you will have to link your accounts to get the most accurate recommendations. If you need support beyond your 401(k), then should probably skip Plootus and choose a more comprehensive financial planning tool or consider dealing with a financial advisor. 

Check out Plootus here >>

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