The fund seeks the highest total return over time consistent with an emphasis on both capital growth and income.
To invest in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. As the fund nears its target retirement date, its allocation between T. Rowe Price stock and bond funds will become more conservative over time based on a predetermined "glide path". The glide path represents the shifting of asset classes over time and shows how the fund's asset mix becomes more conservative over time.
The fund is managed based on the specific retirement year (target date) included in its name and assumes a retirement age of 65. The target date refers to the approximate year an investor in the fund would plan to retire and likely stop making new investments in the fund.
The fund pursues an asset allocation strategy that promotes asset accumulation prior to retirement, but it is intended to also serve as a postretirement investment vehicle with allocations designed to support an income stream over a moderate postretirement withdrawal horizon. After the target date, the fund is designed to balance the need for reduced market risk and income, although it does not guarantee a particular level of income.
Individuals who anticipate retiring at or about the target date and who plan to withdraw the value of the account in the fund over a moderate time horizon in retirement. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. Appropriate for both regular and tax-deferred accounts, such as IRAs.
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This fund provides a simplified option for retirement investing, including professional management, broad-based diversification, and low-cost management fees. The principal value of the Target Retirement Funds is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. The funds' allocation among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The funds emphasize asset accumulation prior to retirement, balance the need for reduced market risk and income as retirement approaches, and focus on supporting an income stream over a moderate postretirement withdrawal horizon. The funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The funds maintain a significant allocation to equities both prior to and after the target date, which can result in greater volatility. Diversification cannot assure a profit or protect against loss in a declining market.