To make investing easier, we developed a suite of pre-assembled, age-appropriate retirement investments.
These well-built strategies can simplify the investment process for employees at any stage of the retirement planning process.
These strategies offer three key features:
Addressing fiduciary responsibilities
Generally, a plan sponsor's fiduciary responsibility is to help participants meet their retirement goals by providing a balanced investment offering and encouraging proper asset allocation. Plan sponsors face significant challenges, including employee inertia and apathy when trying to encourage plan participation and proper diversification. These retirement investment strategies offer a one-step solution to help address these issues.
The principal value of the Retirement Funds is not guaranteed at any time, including at or after the target date, which is the approximate date when investors turn age 65. The funds invest in a broad range of underlying mutual funds that include stocks, bonds, and short-term investments and are subject to the risks of different areas of the market. The funds 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 more on income and principal stability during retirement. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility.
1T. Rowe Price's target-date funds were one of four fund families receiving Morningstar's highest overall rating. The Morningstar Target-Date Series Rating is based on Morningstar's evaluation of two qualitative and three quantitative components. The maximum rating of "Top" implies that a target date series outshines its average peer for the given component. Each series is given an overall rating (Top, Above Average, Average, or Below Average) based on the five component ratings.