T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Investor Presentation (2023)
18 slides from T. Rowe Price's investor presentation, 2023
Slide 1: Retirement Savings Concepts
Welcome RETIREMENT SAVINGS CONCEPTS T. R O W E P R I C E 1
Slide 2: To Live Web Meeting Attendees / To Plan Sponsors and Attendees
To Live Web Meeting Attendees For security reasons, please do not speak or email any personal information during this meeting. For example, you should not give your address, Social Security number, or account information during this web meeting. To Plan Sponsors and Attendees This presentation shoul
Slide 3: Why Save For Retirement
Why Save For Retirement Reaching your retirement goal. ▪ Save for the retirement lifestyle you envision ▪ Getting an early start puts time on your side ▪ Creating a vision and a plan can help you connect your retirement goals with action – Get started – Stay on track – Get back on track T. R O W E P
Slide 4: How Retirement Savings Work
How Retirement Savings Work YOUR SAVINGS TODAY BECOMES YOUR INCOME IN RETIREMENT. ACCUMULATION DISTRIBUTION Today Retirement T. R O W E P R I C E 4
Slide 5: Compounding
Compounding Saving 15% per month Pre-Tax Account Value Years of Saving at Age 65 10 years no contributions $918,000 no contributions 35 years $861,000 45 years $1,779,000 Age 20 30 65 This chart is for illustrative purposes only and is not meant to represent the performance of any specific investmen
Slide 6: Getting Started is Simple
Getting Started is Simple Start participating! Decide how much you would like to save; try to at least get the full match and increase annually. Save consistently. Select which tax advantages you prefer, depending on your plan options. Choose your investments. Invest with growth in mind, especially
Slide 7: How Much Should I Have?
How Much Should I Have? 15% Investor's Age: Savings Benchmarks: * 30 35 half of salary saved today 1x to 1.5x salary saved today 40 1.5x to 2.5x salary saved today 45 2x to 4x salary saved today Investors should strive to SAVE AT 50 3x to 6x salary saved today LEAST 6% Consider increasing contributi
Slide 8: Annual Contribution Increases
Annual Contribution Increases $ 800,000 Contribution rate increased by 2% per year No annual increase in contribution rate 600,000 400,000 $759,014 200,000 $333,432 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 This is a hypothetical example for illustrative purp
Slide 9: One Account—Many Compartments
One Account—Many Compartments PRE-TAX ROTH AFTER-TAX EMPLOYER Will you pay taxes on your contributions before they go into your account? Will you owe tax on your original contribution when you withdraw? Will you owe tax on any earnings/growth when you withdraw? *A qualified Roth distribution is tax-
Slide 10: Roth vs Pretax
Roth vs Pretax ▪ You may prefer Roth if you expect to move into a higher tax bracket later ▪ You may prefer Pre-Tax if you expect to be in a lower tax bracket after retiring ▪ Your tax rate may change in retirement if: – Your deductions change – You continue to work or stop working – Lawmakers chang
Slide 11: Asset Allocation Matters
Asset Allocation Matters 45%-65% Stocks 80%–100% Stocks 30%-50% 40s 60s Bonds 0%–20% 90%–100% Bonds 0%-10% Stocks Money 20s & 30s Market/Stable 0%–10% Value Bonds 30%-50% Stocks 65%–85% Stocks 40%-60% 50s 70s Bonds 15%–35% Bonds 0%-20% Money Market/Stable Value Stocks Bonds Money Market/Stable Value
Slide 12: Asset Allocation Models
Asset Allocation Models Asset Allocation Models: Within Stocks: 60% U.S. Large-Cap, 25% Developed International, 10% U.S. Small-Cap, 5% Emerging Markets Within Bonds: 70% U.S. Investment Grade, 10% High Yield, 10% International, 10% Emerging Markets Within Cash: 100% Money Market Securities, Certifi
Slide 13: Dollar cost averaging
Dollar cost averaging Dollar cost averaging is the technique of investing a Amount Price # of Shares fixed dollar amount on a regular schedule regardless of the share price. $100 $7.69 13 ▪ More shares are purchased when prices are low 100 5.98 17 ▪ Fewer shares are purchased when prices are high 10
Slide 14: Closing The Gap
Closing The Gap Work your plan Your workplace retirement plan is one of the most effective and convenient ways to save for retirement. Catch up faster If you’re participating in the plan and over 50, you may be able to contribute more. These annual catch-up contributions can help make up gaps in you
Slide 15: Online Tools To Help You Plan
Online Tools To Help You Plan Your workplace retirement website ▪ Access and view your balance ▪ Find out how well prepared you are for retirement ▪ Multifactor authentication ▪ Personalized messages and information Explore the plan & learn tab ▪ Education Library full of articles, videos, podcasts
Slide 16: Actions To Consider
Actions To Consider 1 2 3 4 Visit your Review your Review Add or update account retirement your asset beneficiaries online savings progress allocation and adjust T. R O W E P R I C E 16
Slide 17: Closing Remarks
T.RowePrice’ CLOSING REMARKS.
Slide 18: rps.troweprice.com
1800-922-9945 rps.troweprice.com © 2023 T. Rowe Price. All Rights Reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/ or apart, trademarks of T. Rowe Price Group, Inc. RETIRE WITH CONFIDENCE is a trademark of T. Rowe Price Group, Inc. CCON008532 20230