BALTIMORE, June 16 /PRNewswire-FirstCall/ -- T. Rowe Price Associates
today announced that it has added the Retirement 2045 Fund to its lineup of
target-date Retirement Funds that give investors an easy, "single choice"
approach to saving for retirement. Investors can now choose from 10 different
Retirement Funds offered by the firm.
The Retirement 2045 Fund is designed for investors who expect to retire
around that year. The fund's current targeted asset allocation is comprised
of 93% stocks and 7% bonds. The target-date retirement funds, which are
becoming increasingly popular in 401(k) plans and for IRA rollovers, recently
topped $5 billion in assets. Total assets in the funds have risen 10-fold
since the end of 2003.
"Most investors who are planning for their retirement know that asset
allocation is integral to a successful investment strategy, and the Retirement
Funds provide broad diversification," says Ned Notzon, chairman of the
Investment Advisory Committee that oversees the T. Rowe Price Retirement
Funds. "These Funds are also appealing because they simplify retirement
investing. The investor does not have to worry about managing the asset
allocation strategy over time and making tactical adjustments in response to
changing market conditions."
The T. Rowe Price Retirement Funds are structured as "funds of funds"
investing in up to 12 other T. Rowe Price mutual funds. Their asset
allocation strategies are designed for investors depending on their time
horizon to retirement. They emphasize growth during the early phases of
retirement asset accumulation and become more conservative both as the
retirement date approaches and during retirement. The funds are also
rebalanced periodically so the desired risk profiles are maintained.
"Based on proprietary asset allocation models that factor in a 30-year
period in retirement, as well as research that incorporates Monte Carlo
simulations, our asset allocations tend to emphasize equities, particularly
early in retirement," Mr. Notzon says. "This should help protect investors
from inflation risk and the likelihood of depleting their assets before the
end of retirement."
T. Rowe Price research suggests that too much emphasis on cash or short-
term investments, with little or no equity exposure, has a greater likelihood
of depleting assets prematurely, particularly for longer retirement periods.
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global
investment management firm with $235.9 billion in assets under management as
of March 31, 2005. The firm provides a broad array of mutual funds, sub-
advisory services, and separate account management for individual and
institutional investors, retirement plans, and financial intermediaries. The
company also offers a variety of sophisticated investment planning and
guidance tools. T. Rowe Price's disciplined, risk-aware investment approach
focuses on diversification, style consistency, and fundamental research. More
information is available at http://www.troweprice.com.
The performance and risks of the funds will directly correspond to the
performance and risks of the underlying funds in which they invest. By
investing in many underlying funds, the Retirement Funds have partial exposure
to the risks of many different areas of the market. The Retirement Funds are
100% no-load. Minimum initial investment is $2,500 or $1,000 for Individual
Retirement Accounts and gifts or transfers to minors (UGMA/UTMA) accounts.
Investors can also start an account with as little as $50 a month by using T.
Rowe Price's Automatic Asset Builder program.
The Retirement Funds should not be considered a complete retirement
solution. When planning for retirement, you should also think about factors
such as needed emergency cash reserves, the amount of equity in your home, and
your life and health insurance options. Before investing in one of these
funds, be sure to weigh several factors, such as your objectives, time
horizon, and risk tolerance, as well as your retirement needs and other
sources of income.
For more information about any T. Rowe Price mutual fund, call
1-800-638-5660 to request a prospectus, which includes investment objectives,
risks, fees, expenses, and other information that you should read and consider
carefully before investing.
T. Rowe Price Investment Services, Inc., distributor.
SOURCE T. Rowe Price Associates
 back to top
Related links:
http://www.troweprice.com
CONTACT:
Steve Norwitz, +1-410-345-2124, Brian
Lewbart, +1-410-345-2242, or Rajiv Vyas, +1-410-345-6559, all of
T. Rowe Price
|
