Glide path – Retirement Blend
Transcript
Let’s shine a light on a key component of your retirement planning—your target date Retirement Blend investment managed by T. Rowe Price. Each is a single, professionally managed investment that evolves up to and throughout retirement.
As you are busy with day-to-day life, make sure your money is working for you, with a mix of stocks, bonds, and other investments to provide the right level of diversification in seeking to grow your savings.
The mix of these assets should evolve over time. When you choose a target date Retirement Blend investment, these changes happen for you automatically following a carefully constructed… retirement glide path. The glide path outlines the mix of stocks, bonds, and other assets that the investment manager believes is appropriate for your age today, at retirement, and beyond.
When you are in your early working years, the glide path emphasizes stocks, which offer the greatest potential to grow in value, while gradually shifting to bonds as you get older.
This single investment is designed to function as a complete, diversified portfolio. The target date is the approximate year you plan to retire, assumed to be age 65. So if you were born between 1988 and 1992, the Retirement Blend 2055 investment was developed with your age in mind. If your time horizon, risk tolerance, or financial situation calls for it, you could consider an investment with a different target retirement date.
Why is this investment called a Retirement Blend? Because it blends the potential benefits of both active AND passive investments.
Active investments allow for more diversification and higher growth potential because experienced professionals are working hard to seek better outcomes.
Passive investments are designed to simply keep pace with a specific market index. They generally allow for lower fees because they are not actively managed.
A T. Rowe Price Retirement Blend investment provides a combination of active and passive investments to help you pursue strong returns while keeping costs low.
T. Rowe Price aims to help you feel retirement certain so you can focus on what’s happening today. Because when it comes to your retirement, we believe only outstanding is good enough.
This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide recommendations concerning investments, investment strategies, or account types; it is not individualized to the needs of any specific investor and is not intended to suggest that any particular investment action is appropriate for you.
All investments are subject to market risk, including the possible loss of principal. Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives.
Diversification cannot assure a profit or protect against loss in a declining market.
The principal value of the target date investments is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the investment. If an investor plans to retire significantly earlier or later than age 65, the investments may not be an appropriate investment even if the investor is retiring on or near the target date. The investments are allocated among a broad range of underlying T. Rowe Price stock and bond portfolios. The allocations for the investments with a stated retirement date will change over time; these investments emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term postretirement withdrawal horizon. The investments are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The investments maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.
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