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Frequently Asked
Questions

Here are answers to some of the questions asked by our users.

Do you have any query regarding Plootus?

Plootus is an easy to use, a comprehensive financial planning tool that will assist you to plan for retirement. The product breaks down income and expenses in different categories and then projects total money required for retirement. The product suggests the investments/funds you should choose from the options available within your retirement plan account.

We analyze funds taking into considerations various return and risk factors before making a recommendation to you. We consider your risk profile and investment options available within your 401k, 403b, 457 or TSP plans to construct a diversified portfolio.

We calculate future expenses based on your current spending habits and adjust for likely major life changes, location, inflation and other factors.

We are currently offering our services for free. In the future, we may charge a fixed amount equivalent to what you pay for a Netflix or an Amazon Prime subscription, much lower than the industry.
We are a for-profit entity but our vision is to revive the American Dream and offer stress- free financial planning to everyone.

After signing up, you should link your bank, credit cards, brokerage, and retirement accounts to the app. We process the information gathered through these accounts to provide you a summarized view and a transaction by transaction view across all financial institutions in one place. We use your information for the purposes of estimating how much money you will need for your retirement period.

A Retirement Planner projects growth in retirement assets till retirement and usage of those assets post-retirement. The Before Retirement tab in the Plootus app estimates the amount you will accumulate based on the amount contributed, employer match and investment strategy. The After Retirement tab gives you a view into how the assets in the retirement account will be used over time and whether it will last for the expected lifetime. The Future Expenses tab provides yearly details of estimated expenses during retirement. You can edit the estimated future expenses and see the impact on a real-time basis.

No, you don’t have to move your 401k account. Your 401k account stays where it is. No changes required. You neither have to open a new 401k account with Plootus nor move your 401k account to Plootus. Plootus will provide you a recommendation free of cost, save you fees and improve your return as long as your 401k, 403b, 457 or TSP plans can be accessed online.

No. Plootus does not require any minimum balance. It does not matter whether you just got your first job and are starting with a zero 401k account balance or you have millions of dollars. Plootus will provide you 401k recommendations and help you reach your retirement goal.

Mostly, brokers do not help 401k participants in choosing investments from a 401k plan because most brokerage firms do not allow brokers (read salespeople) to offer specific advice as it would tantamount to acting as a fiduciary. These firms do not want to open themselves up to potential liabilities that may arise from advice given by their employees.

Plootus is committed to offering advice within a week of linking your 401k account. Sometimes it takes longer but usually no more than 30 days in offering specific recommendations for your 401k investments.

There are both people and robots helping with your 401k. Our Artificial intelligence tools (patent pending) use an advanced algorithm to determine how much a user needs for retirement and provides the recommendations best for you.

Plootus monitors the funds’/investments’ performance regularly and suggests changes if the allocated funds are not performing well compared to their peers within your 401k account or if you need a different allocation based on changed circumstances such as expense run rate, change of location etc. Plootus recommends adjustment your 401k when it is required.

No. None of the 401k custodians such as Fidelity Net Benefits, ADP or Prudential give you clear advice on which investment to choose and how to invest. They provide some basic calculators for 401k. They merely invest your money in investment options you chose when you opened your 401k account or as and when you make any changes.

You can quit using the service at any time. However, your 401k investments are similar to any other investments you make in life. Ideally, you do not make an investment and forget about it. You need to keep tracking and monitoring to ensure you are obtaining desirable results. Plootus helps you make changes or adjustments to your portfolio as required. As per a Vanguard study, guided rebalancing of your investment portfolio at regular intervals adds 1.40% additional return to your 401k account. So nothing stop you from your signing up and then quitting later after getting 401k recommendations.

Log into your 401k plan account (Fidelity Net Benefits, ADP, Prudential etc.) and make changes to your 401k allocation as suggested by Plootus. You should also consider how future contributions will be invested.

Once you log into the Plootus app, click Profile on the top left and change your retirement age.

Yes, anytime. Feel free to email us with any questions related to 401k and other financial planning issues. We are here to help. Please email us.

Yes, you can adjust your 401k allocations anytime. You are the owner of your account and can change 401k allocations anytime. Just log in to your 401k custodian account (Fidelity Net Benefits, ADP, Prudential etc.) or call your custodian to make changes to 401k allocation.

Plootus requests customers to connect their banks, credit cards, 401k, 529s, HSAs etc. to understand the user’s complete financial profile. Our AI algorithm analyzes and makes suggestions based on the information you provide and which is received from linked financial accounts. Although we consider the complete financial profile of the user, we are currently focused on making recommendations only for your 401k account. In the future, we expect to offer services around 529 college savings planning as well.

At this time, we only analyze and make recommendations related to employer-sponsored retirement accounts, such as 401k, 403b, 457 and TSP accounts. In future, we will offer 529s services as well.

We are available during normal business hours Monday to Friday. We try to respond to all queries within a few hours. Feel free to drop us an email.

We want to democratize financial planning for everyone and therefore our services are currently offered for free. We firmly believe it should not be a privilege available to only a certain section of society. We are here for the 99%.

Plootus does not have any hidden fees. In fact, for a short period, all our services are currently being offered free of charge. However, the investments in your 401k account have hidden expenses and fees. We choose the lowest cost and best performing investments from the options available with your 401k account.

No, you are not entering into any long term contract with Plootus. You are free to leave at any time. We will not be happy to lose you but wish you all the best for a rich and healthy retirement life.

Plootus does not time the market. Many studies that have been conducted suggest timing the market is a waste of time, especially when making a long-term investment such as that in a 401k scenario. We construct a well-diversified portfolio that optimizes return for a given level of risk and rebalances as and when required.

Plootus determines portfolio allocation between stocks, bonds and other assets based on past performance. Plootus algorithm is built on the past performance of various assets classes over decades to construct a well-diversified portfolio allocation model for various strategies such as conservative, moderate, growth and super growth. Although many factors impact your portfolio allocation. As a general rule, the farther you are from retirement, the more the equity allocation will be recommended as equity generates a better return as compared to bonds over the longer term.

Plootus first determines the user’s retirement needs and based on that creates a diversified portfolio. Therefore, we recommend using Plootus instead of investing in target-date funds.

We don’t manage in IRAs or Roth IRAs currently but plan to offer similar services in the future.

This is an interesting question. One of our Co-Founders worked with GE (General Electric) for a number of years and had an option to invest in the company stock. As you may be aware, GE’s stock has done poorly in the last few years and a lot of employees lost a significant amount of money in their 401k account. Wisdom tells us “Don’t put all your eggs in one basket”. If you work for a company, your current income (and life) is already somewhat dependent on the company’ performance. Associating your retirement income to the same employer would mean taking on additional risk. The bottom line is that it is not prudent to have exposure to your company stock. If you still want to invest (maybe because you work for a growing company with an apparently bright future), don’t allocate more than 15-20% of your total assets to the company stock.

Plootus manages 401k assets that are outside the Self Directed Brokerage because you have authorized the Self Directed Brokerage team to manage your portion of your 401k assets. In fact, you are also not allowed to make portfolio allocation changes by yourself and you need to call them if you want to make any changes to your 401k portfolio.

We improve customer’s overall return by selecting low fees and best performing funds from your 401k account. Based on the analysis we conducted, Plootus helps users save anywhere between 0.0% - 0.30% in fees in their 401k account. It can make you richer by $0- $61,200 over a period of 30 years. Re-balancing your 401k portfolio further adds 0% -1.40% in return your 401k account. It can make you richer by $0-$318,000 over a period of 30 years. Please note investments are subject to market risk and no two users will experience the same performance.

No. We don’t assist in withdrawals out of your account for a loan or any other purpose. Please reach out to your HR team to get custodian details to make a withdrawal or request a loan.

Absolutely. We can assist with your old 401k account with a previous employer(s) and a current 401k account with your current employer.

No. We provide a recommendation for how much to contribute and how to invest to reach your retirement goal. We do not make any changes to the contribution amount in your 401k account.

Your data is absolutely secure. We take information security very seriously and therefore do not ask for personal information such as Social Security Number or complete address. Our app uses bank-level security to encrypt data. Read more about security.

How can we help ?

Our team is here for you. We will get back to you in 2 business days.
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By using this website/mobile application, you understand the information being presented is provided for informational purposes only and agree to our Terms of Use and Privacy Policy. Plootus relies on information from various sources believed to be reliable, including clients and third parties, but cannot guarantee the accuracy and completeness of that information. Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security. Additionally, Plootus does not provide tax advice and investors are advised to consult with a tax professional. Plootus’s financial advisory and planning services, provided to investors who become clients pursuant to a written agreement, are designed to aid our clients in preparing for their retirement and other financial goals. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance.