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Some target date funds from T. Rowe Price are now 98% stocks

edited February 15 in The Bullpen
The changing investment environment and increasing longevity risk are causing T. Rowe Price to make some changes to its target date funds formulas:
The adjustments to the so-called glide path changes the allocation for investors 30 or more years away from retirement from 90% to 98% stocks. The plans will hold the 98% constant and start the “glide path” towards lower stock exposure when an investor reaches the 30-years-to-retirement mark.

At retirement, the portfolios would have an allocation of 42.5% in stocks.

If an investor is lucky enough to live 30 years past their retirement age — potentially in their 90s — T. Rowe’s target funds would have them with 30% stocks in their portfolio, and the rest in safer investments like cash and bonds. That number in T. Rowe Price’s target-date funds now is at 20%.

The company would also add emerging markets exposure to these funds.

https://finance.yahoo.com/news/t-rowe-to-young-people-you-should-own-more-stocks-202442229.html


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