Asset Allocation Planning

T. Rowe Price understands that strong asset allocation planning is essential to long-term investing. It is important to have a properly allocated portfolio that adjusts over time as you approach your goal. However, diversification cannot assure a profit or protect against loss in a declining market.

Why Asset Allocation Matters

Balance Risk

Asset allocation spreads your money among different types of investments (stocks, bonds, and short-term securities) so you can manage volatility and growth potential over time.

Provides a Foundation

Your asset allocation provides the framework for your investment strategy, which you can use to further diversify your holdings.

Use Morningstar®Portfolio Manager to monitor your portfolio's performance and view its underlying holdings with the onscreen X-Ray and Stock Intersection features.

Diversify your portfolio over
time

If you're already a T. Rowe Price customer,
log in today and use our Systematic Exchange Service to exchange from money market funds into stock and bond mutual funds on a consistent basis.*

*An investment in money market funds is not insured or guaranteed by the FDIC or any other government agency. Although a money market seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

The principal value of the Retirement Funds and Target Retirement Funds (collectively the "target date 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. 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. The target date funds' allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. The Retirement 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 on supporting an income stream over a long-term retirement withdrawal horizon. The Target Retirement 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 target date funds are not designed for a lump sum redemption at the target date and do not guarantee a particular level of income. The key difference between the Retirement Funds and the Target Retirement Funds is the overall allocation to equity; although they each maintain significant allocations to equities both prior to and after the target date, the Retirement Funds maintain a higher equity allocation, which can result in greater volatility over shorter time horizons.