The five new mutual funds are designed around specific years targeted for retirement. Four of the funds are named accordingly:
- T. Rowe Price 2010
- T. Rowe Price 2020
- T. Rowe Price 2030
- T. Rowe Price 2040
The fifth option, T. Rowe Price Retirement Income, maintains a conservative asset allocation and according to T. Rowe Price, is an appropriate holding during the post-retirement years.
Dubbed Retirement Funds, they are invested as “funds of funds” including up to nine different T. Rowe Price mutual funds. These funds are allocated accordingly and will modify their allocation the closer an investor comes to the targeted retirement date.