Download Report

The T. Rowe Price Retirement Active Trusts are
professionally managed, one-step portfolios
geared toward a specific retirement date
(assuming a retirement age of 65).
How to select the trust that’s right for you
When retirement is still a long way off, it makes sense to invest more
aggressively in order to take advantage of the potential for capital
appreciation. As retirement nears, it makes sense to adjust your portfolio
so that it’s more conservative.
Choose the trust with the target date that most closely matches the
year in which you will turn 65. Or use the chart below to select a trust
based on the year you were born. (Depending on your risk tolerance
and time horizon, you may consider a Retirement Active Trust with a
different target date.)
HOW YOU CHOOSE THE TRUSTS
However, knowing when and how to make these adjustments can be a
challenge. That’s why many investors prefer to choose a Retirement Active
Trust. When you invest in a Retirement Active Trust, T. Rowe Price adjusts
the investment mix of the portfolio. Each Retirement Active Trust reaches
its most conservative allocation 30 years after its target date.
WEIGHTED %
100
80
Bonds
Bonds
60
Stocks
40
20
YEARS PAST RETIREMENT
YEARS TO RETIREMENT
0
40
35
30
25
20
15
10
5
0
5
10
15
20
25
30
35
40
Re
tir
em
en
t2
05
0a
Re
nd
tir
20
em
55
en
t2
04
5
Re
tir
em
en
t2
04
0
Re
tir
em
en
t2
03
5
Re
tir
em
en
t2
03
0
Re
tir
em
en
t2
02
5
Re
tir
em
en
t2
02
0
Re
tir
em
en
t2
01
5
Re
tir
em
en
t2
01
0
Re
tir
em
en
t2
00
5
T. Rowe Price Retirement Active
Trusts: A convenient
way to invest.
Achieve balance: Trusts adjust over time
A convenient one-step investment option
If you’re like the estimated 80% of retirement plan investors who
don’t have the time or desire to select and keep track of their
investments on a regular basis, then a T. Rowe Price Retirement
Active Trust may be an appropriate investment option for
you. Each Retirement Active Trust is made up of a mixture of
investments in different asset classes: U.S. and non-U.S. stocks
and bonds. That means you get a portfolio that is professionally
diversified among hundreds, or even thousands, of investments in
large and small companies, both foreign and domestic—all in one
convenient package designed to meet your changing needs. The
performance and risks of each Retirement Active Trust will directly
correspond to the performance and risks of the underlying investments in which it invests. By having exposure to many underlying
investments, Retirement Active Trusts have exposure to the risks
and returns of many different areas of the market.
Stay on track: The benefits of investing in a
Retirement Active Trust
T. Rowe Price Retirement Active Trusts are professional investment
solutions designed for people who feel they don’t have the time or
experience to select and monitor investment portfolios. In addition, the
Retirement Active Trusts offer:
• One-step convenience, so you don’t need to mix and match them with
other options.
• Professional diversification* that may help reduce the impact of the
market’s ups and downs on your account.
• Stock exposure that can help your retirement account outpace inflation and maintain its buying power throughout retirement.
• Automatic rebalancing among stocks and bonds, which helps the
trusts’ allocations stay on track. This rebalancing continues for
30 years after the target date.
* Diversification does not assure a profit or protect against a loss in declining markets.
Focus on
Investing
If you
were born...
You might consider the following
Retirement Active Trust...
In 1988 or after
»
Retirement 2055 Active Trust
1983 – 1987
»
Retirement 2050 Active Trust
1978 – 1982
»
Retirement
Bonds 2045 Active Trust
1973 – 1977
»
Retirement
Stocks 2040 Active Trust
1968 – 1972
»
Retirement 2035 Active Trust
1963 – 1967
»
Retirement 2030 Active Trust
1958 – 1962
»
Retirement 2025 Active Trust
1953 – 1957
»
Retirement 2020 Active Trust
1948 – 1952
»
Retirement 2015 Active Trust
1943 – 1947
»
Retirement 2010 Active Trust
1938 – 1942
»
Retirement 2005 Active Trust
In 1937 or before
»
Retirement Income Active Trust
Invest today: It’s that easy!
Investing in a Retirement Active Trust is as easy as making a phone call
or going online. If you have any questions or if you’d like to invest today,
call your retirement plan’s recordkeeper or visit their website.
The principal value of the Retirement Active Trusts 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 trust. If an investor plans to retire significantly
earlier or later than age 65, the trusts may not be an appropriate investment even if the investor is retiring on or near the target date. The trusts’
allocations among a broad range of underlying T. Rowe Price stock and
bond trusts will change over time. The trusts 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 on supporting an income stream over a long-term
postretirement withdrawal horizon. The trusts are not designed for
a lump-sum redemption at the target date and do not guarantee a
particular level of income. The trusts maintain a substantial allocation to
equities both prior to and after the target date, which can result in greater
volatility over shorter time horizons.
(over, please)
Focus on Investing
The Retirement Income Active Trust does not follow the glide path and will
maintain a constant allocation of approximately 40% stock trusts and 60%
bond trusts.
The T. Rowe Price Retirement Active Trusts (the “Trusts”) are not mutual
funds. They are common trust funds established by T. Rowe Price Trust
Company under Maryland banking law, and their units are exempt from
registration under the Securities Act of 1933. Investments in the Trusts are
not deposits or obligations of, or guaranteed by, the U.S. government or
its agencies or T. Rowe Price Trust Company and are subject to investment
risks, including possible loss of principal.
Call 1-800-225-5132 to request a trust fact sheet or prospectus, which
includes investment objectives, risks, fees, expenses, and other information
that you should read and consider carefully before investing.
06283-12
139127
10/13