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  • T. Rowe Price Retirement 2040 Fund (TRRDX)
    Ticker Symbol:
    TRRDX
    Fund Status:
    Open to new Retail investors  /  Open to subsequent Retail investments
    Fund Objective
    Quick Stats
    Fiscal Year End  May
    Morningstar Category  Target Date 2036-2040
    Inception Date 09/30/2002
    Tax ID 20-0001638
    Investment Objective
    The objective is to provide the highest total return over time consistent with an emphasis on both capital growth and income.
    Strategy
    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 pre-determined “glide path”.

    The allocations shown in the glide path are referred to as “neutral” allocations because they do not reflect the tactical decisions made by T. Rowe Price to overweight or underweight a particular asset class or sector based on its market outlook. The target allocations assigned to the broad asset classes (stock and bonds), which reflect these strategic decisions resulting from market outlook, are not expected to vary from the neutral allocations set forth in the glide path by more than plus (+) or minus (-) five (5) percentage points.

    While the fund does not guarantee a level of income, it continues to serve as a post-retirement investment vehicle with allocations designed to provide an income stream through retirement.
    Investor Profile
    Individuals seeking long-term capital appreciation, who want a broadly diversified, professionally managed mutual fund portfolio. It is important to note that the retirement year of the fund you select should not necessarily represent the specific year you intend to start drawing retirement assets. It should be a guide only. You should choose the Retirement Fund with the target date closest to the year you reach age 65. Appropriate for both regular and tax-deferred accounts, such as IRAs.
    Risk/Reward Potential*
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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 Retirement Funds is not guaranteed at any time, including at or after the target date, which is the approximate date when investors turn age 65. The funds invest in a broad range of underlying mutual funds that include stocks, bonds, and short-term investments and are subject to the risks of different areas of the market. The funds emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus more on income and principal stability during retirement. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility. In general, the stock portion of the portfolio is subject to market risk, or falling share prices. The bond portion will be affected by interest rate and credit risk.
    *Funds are placed in general risk/return categories based on their past performance or, for newer funds, the performance of the types of securities in which they invest. There is no assurance past trends will continue.
    See Glossary for additional details on all data elements.