Low-Cost Advisory Offerings Address Saving for Retirement, Transitioning
into Retirement, Managing Retirement Income, and Evaluating Your Portfolio
BALTIMORE, Oct. 4 /PRNewswire-FirstCall/ -- T. Rowe Price has launched
an enhanced suite of Advisory Planning Services to assist those saving for
retirement, approaching retirement, or already retired, as well as those
just seeking a thorough evaluation of their overall investment portfolio.
As part of the services, the firm provides a complete portfolio
evaluation and a detailed personalized recommendation for a suitable
investment strategy and how much the individual should be saving to meet
retirement goals, or spending in retirement. The recommendation is based on
discussions that the investor has with a T. Rowe Price advisory counselor
and a detailed questionnaire that helps provide insight on the client's
personal financial preferences -- such as desired retirement date,
achieving a high monthly income, or leaving a legacy to heirs -- and
investment experience, risk tolerance, and current financial situation.
The services also utilize state-of-the-art financial modeling
technology that incorporates proprietary software to assess how the
recommended strategy might perform based on 1,000 hypothetical market
scenarios.
The Advisory Planning Services, which are available for a one-time fee
of $250 and include free ongoing reviews to help investors stay on track,
are designed to help meet these challenges:
- Saving for Retirement: Shows the amount you need to save and how to
invest to attempt to meet your retirement income goal. Helps answer
these questions: How much do I need to save each year to generate
adequate income from my investments to support my desired lifestyle in
retirement? What percent of my current salary could I replace at
retirement from my investments? What is an appropriate asset allocation
for my overall portfolio, given my time horizon and risk tolerance?
- Transitioning into Retirement: Recommends a realistic investment and
income withdrawal strategy for the year in which you are planning to
retire, that will support your desired lifestyle in retirement and will
achieve a high probability that your investment assets last throughout
retirement. Geared for investors within five years of the date they
expect to begin withdrawals, the service helps answer these questions:
When can I afford to retire? What is the impact of delaying my
retirement date on the amount of income I can receive annually from my
investments? What is the appropriate portfolio allocation to attempt to
reach my goal?
- Managing Retirement Income: Evaluates your retirement investment and
income withdrawal strategy and recommends the amount you should
withdraw from your investments to best sustain your purchasing power
throughout retirement without running out of money. Helps answer these
questions: How can I maximize withdrawals from my investments in
retirement? What is the likelihood of not outliving my assets if I
adopt this strategy? What can I do to try to ensure a financial legacy
for my heirs?
- Evaluating Your Portfolio: Provides an investment strategy based on
your financial goals and risk tolerance, including a detailed
comparison of your current portfolio versus our recommended portfolio,
categorized by broad asset and sub-asset classes. Helps answer these
questions: Am I properly diversified? What is an appropriate portfolio
allocation given my time horizon and risk tolerance? What steps should
I take to re-allocate or rebalance my portfolio?
In preparing the recommended strategy, T. Rowe Price takes into account
the investor's financial assets regardless of where they are held. Once
investors receive their written recommendation, they review it with their
counselor and receive assistance with implementation as needed.
"The primary financial challenge for most investors is securing a
comfortable retirement," says Christine Fahlund, a senior financial planner
at T. Rowe Price. "Yet our experience tells us that many people
underestimate how much money they need to save, and overestimate the amount
of income they will be able to withdraw when they retire. T. Rowe Price
advisory recommendations are based on sophisticated analysis, our years of
investment experience, and most importantly, the personal conversations our
counselors have with each of our investors in order to really understand
their needs and preferences. Our Advisory Planning Services aim to put
investors firmly in charge of their financial futures by giving them the
keys for making appropriate investment and retirement planning decisions
throughout their lives."
The advisory services are geared toward investors with at least
$100,000 in investment assets. The $250 fee is waived for investors with
$500,000 or more in assets with T. Rowe Price and is reimbursed for those
who transfer at least $100,000 in assets to the firm in connection with the
service.
More information on these services is available at
http://www.troweprice.com/advisoryservices or by calling 1-800-844-9424.
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (Nasdaq:
TROW) is a global investment management organization with $293.7 billion in
assets under management as of June 30, 2006. 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.
SOURCE T. Rowe Price Group, Inc.
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Related links:
http://www.troweprice.com
http://www.troweprice.com/advisoryservices
CONTACT:
Brian Lewbart, +1-410-345-2242, or Steve
Norwitz, +1-410-345-2124, both of T. Rowe Price Group, Inc.
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