By adding Advisor and R class shares to the quintet of retirement funds, financial intermediaries offering T. Rowe funds have more options to provide plan sponsors with for their employee retirement plans. This may be of particular interest to participants who are looking for some investment guidance but do not want to monitor their retirement plan holdings over time, according to a news release.
Four of the funds, the T. Rowe Price Retirement 2010, 2020, 2030, and 2040, are designed for investors who expect to retire around those target dates with an asset mix that is altered over time to meet changing investment needs. For example, the funds will emphasize growth during the early phases of retirement asset accumulation and focus more on principal preservation and income as retirement draws closer. Additionally, the funds will be rebalanced periodically to maintain the appropriate asset allocation for the remaining time horizon, according to the firm.
By comparison, the fifth fund affected by T. Rowe’s announcement – the Retirement Income Fund – will maintain a conservative asset allocation strategy. This makes it more appropriate for investors after they reach retirement. All five funds are structured as “funds of funds” investing in up to nine other T. Rowe Price mutual funds.
More information on the funds,including risks, fees, and expenses is available by calling T. Rowe Price at (866) 241-1762 and requesting a prospectus.