1Roger Young, “You are 35, 50 or 60 years old: how much should you already save for your retirement?“, T price. RoweMay 2022.
2Judith Ward, “How do you make your savings last when you retire in a bear market?», T. Rowe Price, July 2022.
3Consumer price index, seasonally adjusted.
4Sudipto Banerjee, “Decoding Retirement Spending,” T. Rowe Price, March 2021.
5Mutual funds are not insured by the FDIC (FDIC = Federal Deposit Insurance Corporation) and are subject to possible loss of capital. While money market funds generally seek to maintain a share price of $1.00, there is no guarantee that they will. Tax-exempt funds may be subject to alternative minimum tax and state and local taxes. Capital gains taxes on sales may also apply.
Investment risks:
Target Date Funds: The principal value of target date funds is not guaranteed at any time, including on or after the target date, which is the approximate year an investor expects to retire. These funds generally invest in a wide range of underlying mutual funds that include stocks, bonds and short-term investments and are subject to the risks of different market sectors. Also, the objectives of target date funds generally change over time to become more conservative.
Fixed income securities are subject to credit risk, liquidity risk, call risk and interest rate risk. When interest rates rise, bond prices generally fall.
Investments in high yield bonds involve greater risk of price volatility, illiquidity and default than higher rated debt securities.
Investments in bank loans can sometimes become difficult to value and very illiquid; they are subject to credit risks such as non-payment of principal or interest, and risks of bankruptcy and insolvency.
Inflation-protected Treasury securities: In times of zero or low inflation, other types of bonds, such as US Treasuries, may perform better than inflation-protected Treasury securities.
Growth stocks are subject to the volatility inherent in investing in common stocks and their prices may fluctuate more than those of income-oriented stocks.
Small cap stocks have generally been more volatile in price than large cap stocks.
International investments may be riskier than US investments due to adverse currency effects, differences in market structure and liquidity, and specific national, regional and economic developments. These risks are generally greater for investments in emerging markets.
Important Information
This material is provided for general and educational purposes only and is not intended to provide legal, tax or investment advice. This document does not provide recommendations regarding investments, investment strategies or account types; it is not individualized to the needs of any specific investor and is not intended to suggest that any particular investment stock is right for you, or to serve as the primary basis for making an investment decision.
The views contained in this document are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.
Please consider your own circumstances before making an investment decision. Any tax-related discussion contained herein, including any attachments/links, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding any tax penalty or (ii) promote, market or recommend to any other party any transaction or matter discussed herein. Please consult your independent legal counsel and/or tax advisor regarding any legal or tax issues raised in this document. The views contained in this document are as of the date written and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.
This information is not intended to reflect any current or past recommendation regarding investments, investment strategies or account types, advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The opinions and comments provided do not take into account the investment objectives or the financial situation of any particular investor or category of investors. Please consider your own circumstances before making an investment decision.
The information contained in this document is based on sources which we believe to be reliable; however, we do not guarantee its accuracy.
Past performance is not a reliable indicator of future performance. All investments are subject to market risk, including possible loss of principal. All charts and tables are for illustrative purposes only.
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