T. Rowe Price

SPRING 2020 • TROWEPRICE.COM

Benefit From Roth IRAs4 Investing

InternationallyWhen to Take Social Security6 8

INVESTOR

P A G E 1 2

Spring Forward

2 T. ROWE PRICE INVESTOR SPRING 2020

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Welcome ShareholderSpring is a time of growth and renewal. Whether you are looking for a fresh perspective on your long-term financial plans or investments, we’re here to guide you. In our cover story, “Spring Forward,” we answer five key questions that can help instill

confidence as you build a strategy to achieve your retirement goals. We also provide insights on innovative companies that are driving technology forward in “A Closer Look at Linchpin Semiconductor Firms.”

Among our other stories, we discuss factors to consider before taking your Social Security benefits as well as the advantages of Roth IRAs.

Thank you for placing your trust in T. Rowe Price. We hope you enjoy this issue.

Call 1-800-401-1819 to request a prospectus or summary prospectus; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. All data included in this issue are as of 12/31/19, unless otherwise indicated. For up-to-date standardized returns, visit troweprice.com/performance.

The printing release date for the Spring 2020 issue was in late January.

PUBLISHER Natalie Widdowson EDITORS Heather Demsky, Rebeca Fernandez CONTRIBUTORS Steven Heilbronner, Judith Ward, Roger Young

FEATURES

12 Spring Forward Answers to five questions that can help your retirement plans grow and thrive.

18 A Closer Look at Linchpin Semiconductor FirmsIdentifying the most innovative semiconductor companies can help investors navigate this evolving industry.

DEPARTMENTS

3 OPENING BELL

2020 Key Financial Numbers

4 MAKING IT

Benefit From Roth IRAs

6 DIGGING DEEPER

Why You Should Invest Internationally

8 MANAGING IT

Social Security: It Could Pay to Wait

22 FOCUS ON

What to Do With a Windfall

26 CLOSING BELL

A Firm Built for You

8

IN EVERY ISSUE

11 SPOTLIGHT

T. Rowe Price Global Allocation Fund

24 UPDATES

NEW ReadyChoiceSM IRA

CONTENTS

Dee Sawyer Chair, T. Rowe Price Investment Services

6

OPENING BELL

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NEXT STEPSTo make your IRA contribution, call 1-888-428-9899 or visit troweprice.com/contribute.

$6,000Under age 50

$7,000Age 50 and over

$19,500Under age 50

$26,000Age 50 and over

Your ability to contribute to a Roth IRA depends on your modified adjusted gross income (MAGI).

RETIREMENT CONTRIBUTION

ROTH IRA ELIGIBILITY

Roth and Traditional IRA limits

401(k) limits

$124,000 $139,000

$196,000 $206,000

Phaseout begins when MAGI hits…

You cannot contribute once your MAGI hits…

Married filing jointly or qualifying widow(er)

Single or head of household

$75,000Maximum amount an individual can contribute in 2020 per beneficiary, “averaging” it for gift tax exclusion over five years and making no additional gifts to that beneficiary during that time.*

*Be sure to talk to your tax advisor, as gift taxes can be complex.

$15,000Maximum amount an individual can gift per recipient in 2020 without filing a gift tax return.

ANNUAL GIFT TAX EXCLUSION

529 PLAN FIVE-YEAR FORWARD AVERAGING

Note: There are no income limits for converting Traditional IRA assets to a Roth IRA.

April 15, 2020Deadline to make

your 2019 IRA contribution

T. ROWE PRICE INVESTOR SPRING 2020 3

Keep these figures in mind throughout the year.

2020 Key Financial Numbers

4 T. ROWE PRICE INVESTOR SPRING 2020

Established by the Taxpayer Relief Act of 1997, the first Roth IRAs were opened in 1998. Named for the legislation’s sponsor, the late Sen. William V. Roth, Jr., of Delaware,

this new type of IRA funded with after-tax dollars was intended to help Americans save for retirement while not decreasing government revenue.

From the start, Roth IRAs seemed to be a hit. According to the Investment Company Institute (ICI), contributions were $8.6 billion in 1998 with another $39.3 billion converted from Traditional IRAs. By 2019, Roth IRA assets totaled over $800 billion.

In 2006, designated Roth contributions were allowed in workplace 401(k) and 403(b) plans and in governmental 457 plans in 2010. Also in 2010, all investors—not just those with income less than $100,000—became eligible to convert Traditional IRA assets to a Roth IRA.

Advantages for younger investorsRoth IRAs have been embraced by younger workers. “As a financial planner, I find this so refreshing,” says Judith Ward, CFP®, a senior financial planner with T. Rowe Price. “My primary message has been that a Roth IRA could be a perfect retirement savings vehicle for younger investors.” While current contributions do not reduce current taxable income, younger workers are most likely in the lowest tax bracket of their career. So that tax benefit today may not be as meaningful as the payoff years later. “Imagine—decades of tax-deferred compounding and qualified withdrawals in retirement that are totally tax-free,” says Ward.

Employees making designated Roth contributions in their workplace plans tend to skew younger as well. “These statistics are remarkable considering that making Roth contributions in a 401(k) is an intentional

1. Tax-free income

■ No RMDs for the original owner; you never “have” to take money out.■ You can continue to contribute at any age (even after age 70) if you have earned income and meet eligibility requirements.

A Snapshot of Roth IRAs

■ Contributions can be

withdrawn at any time,

penalty- and tax-free.

■ Generally, earnings can be

withdrawn penalty- and tax-

free as long as you’ve held

the account at least five years

and are age 59½ or older.

■Heirs also receive tax-free

distributions.**

For over 20 years, investors have been using Roth IRAs to save for retirement.

Benefit From Roth IRAs

Tax-free incomeTax-free incomeFlexibilityFlexibility

MAKING IT

T. ROWE PRICE INVESTOR SPRING 2020 5

Age of Customers

Roth

as

a %

of I

RAs

Open

ed

Under 30 30–39 50–59 60–69 70+40–490

10

20

30

40

50

60

70

80

90%

Popularity of Roth IRAsNearly 75% of new IRAs at T. Rowe Price that are opened by investors under age 40 are Roth IRAs.

$6,000Under age 50

$7,000Age 50 and over

You have until April 15, 2020, to make your 2019 tax year contribution.

Source: T. Rowe Price customer data (January 1–December 31, 2019).

*Single or head of household: For tax year 2019, full contribution allowed if modified adjusted gross income (MAGI) is less than $122,000 ($124,000 for 2020). Partial contribution allowed if MAGI is $122,000 to $136,999 ($124,000 to $138,999 for 2020).

Married, filing jointly: For tax year 2019, full contribution allowed if MAGI is less than $193,000 ($196,000 for 2020). Partial contribution allowed if MAGI is $193,000 to $202,999 ($196,000 to $205,999 for 2020).

**The account must have been held by the owner and/or the heir for at least five years.

DeadlineDeadlineContribution limitsContribution limits

decision,” Ward says. Workers are typically automatically enrolled in the traditional pretax option in their plan, so the individual has to actively select Roth contributions.

Older investors value Roth as well Additionally, over the past couple of years, we have found that 72% of Roth conversion activity was by investors age 50 and older, representing 85% of the money converted. The converted amounts will be a source of tax-free income throughout retirement or to pass along to heirs. A conversion strategy also reduces the potential required minimum distributions (RMDs) of Traditional IRA assets. Distributions from Roth IRAs are not required for the original owner. But keep in mind that any amount converted to a Roth IRA is considered taxable income in the year of the conversion.

Is a Roth right for you?Generally, making Roth contributions can be a good choice if you’re in a lower tax bracket now and don’t expect your tax bracket to decrease in retirement. Remember, Roth IRA contributions are not tax-deductable, and you must meet the income limits.* ■

NEXT STEPSLearn more about Roth IRAs at troweprice.com/rothira or call to speak with a Retirement Specialist at 1-888-554-6446.

6 T. ROWE PRICE INVESTOR SPRING 2020

with China, continued progress would further invite opportunities. The proliferation of regional free-trade zones around the world has spurred an increase in cross-border trade between developed and emerging markets and within the emerging world.

Benefiting from cycles of outperformanceHistorically, emerging markets have been more volatile than the U.S. market. However, international markets may not be uniformly volatile at the same time. In addition, international investments go through cycles of under- and outperformance

relative to U.S. markets. (See “Higher Return Potential, Greater Volatility.”)

Rather than trying to anticipate which markets or regions will outperform, allocating a portion of a

Over the past few decades, the rise of globalization has opened up new investment opportunities as economies

worldwide have become more intertwined. Adding international stocks and bonds to portfolios allows investors to participate in some of the world’s fastest-growing economies and companies, and potentially offers significant diversification benefits, which can help smooth portfolio volatility.

Finding growth outside the U.S.Since the early 1990s, emerging economies have become key drivers of global growth. (See “Emerging Markets Drive International Growth.”) Countries such as Russia and China have privatized formerly state-run enterprises and opened their borders to direct foreign investment. While the United States has been engaged in protracted trade disputes

Foreign investments offer portfolio diversification and exposure to overseas growth opportunities.

Why YouShould InvestInternationally

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■ Advanced Economies ■ Emerging Markets and Developing Economies

GDP

Grow

th

Year

86420-2-4

10%

1995

1996

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2002

2003

2004

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2018

2019

Emerging Markets Drive International GrowthGross domestic product (GDP) growth in emerging and developing markets has outpaced that of developed economies over the past 25 years.

Source: International Monetary Fund, World Economic Outlook Database, October 2018(2019 data is an IMF forecast).

DIGGING DEEPER

T. ROWE PRICE INVESTOR SPRING 2020 7

portfolio to international assets enables investors to potentially benefit from these divergent cycles of performance around the world. Devoting some of your fixed income allocation to international bonds can offer significant opportunities for diversification because monetary policies and interest rate cycles vary significantly from one country to another.

Investors should review their portfolios to determine how much foreign investment they already have. Of course, diversification cannot assure a profit or protect against loss in a declining market.

Be mindful of investment risksWhile international investing can offer investors more growth potential, it also entails certain risks. Political instability, currency fluctuations, war, trade disputes, economic setbacks, and other disruptions can have a large impact on countries whose economies are less diverse or developed than the U.S. Such events can hurt both the prospects of a nation and the companies located there.

Gaining access to global marketsIndividual investors can have difficulty gaining access to certain international markets. They may have to pay high fees or commissions to own shares of companies that don’t trade on U.S. exchanges or to invest in non-U.S. bond issues.

International-focused mutual funds that invest in diversified holdings across sectors and countries offer a relatively easy way for investors to gain exposure to overseas opportunities. T. Rowe Price actively managed mutual funds benefit from

a globally based research team that finds local investment opportunities and has the ability to access many locally listed shares, which helps diminish transaction costs.

“Active managers have the resources to seek out global equity and fixed income opportunities by

looking for improving industries and companies that are gaining market share because of better business models,” says Chris Alderson, co-head of global equity and head

of international equity at T. Rowe Price. By relying on professional management and broad diversification, investors can manage many of the risks of global investing while gaining exposure to the rewards of investing overseas. ■

International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as specific country, regional, and economic developments. These risks are generally greater for investments in emerging markets.MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

NEXT STEPSLearn more about T. Rowe Price international mutual funds at troweprice.com/mutualfunds or call to speak with an Investment Specialist at 1-866-691-2242.

Past performance cannot guarantee future results. Source: FactSet, December 31, 2019.

Holding international equity and fixed income investments offers significant diversification benefits.

■ S&P 500 Index ■ MSCI World Index ■ MSCI Emerging Markets Index

Cum

ulat

ive R

etur

n Ov

er T

ime

Year20

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

1620

1720

1820

19

0

100150200250300350400450%

50

Higher Return Potential, Greater VolatilityWhile global developed markets tracked the U.S. market, emerging markets were more volatile.

8 T. ROWE PRICE INVESTOR SPRING 2020

MANAGING IT

A fter decades of paying into Social Security, Americans in their 60s must decide when to start receiving their benefits. According to

an analysis of Social Security Administration (SSA) data, between 50% and 60% of workers elect to receive their Social Security benefits before their full retirement age (FRA).1 (See “Your Full Retirement Age.”) While that may be the right move for some, many savers will benefit from delaying payments until their FRA, or even delaying until age 70, to maximize the size of their monthly benefit.

Age and work can affect your benefitsThe size of your benefit will vary depending on the choices you make, including when you file for benefits and whether you earn income while receiving benefits. For instance, you qualify for 100% of your benefit if you file at your FRA. But filing early—at age 62—can lead to an almost 30% reduction in benefits. By comparison, your benefit increases by 8% for every year past your FRA that you delay receiving it, until you reach age 70. For example, someone who reaches FRA of 66 in 2020 but who waits until age 70 to file would receive a 32% increase in their benefit. There is no additional benefit for filing after age 70.

Working while receiving early benefits can further reduce the size of your benefits. If you exceed the 2020 earned income limit of $18,240 per year, your benefits will be reduced by $1 for every $2 you earn above the limit. “If you are going to continue to work, you should wait to take Social Security if at all possible,” says Roger Young, CFP®, a senior financial planner with T. Rowe Price. If you work while

collecting Social Security, your benefits are recalculated in the month you reach your FRA to account for the amounts withheld. As a result, while the reduction for the excess earnings isn’t permanent, the reduction tied to filing before your FRA is.

Questions to considerSince most people rely on Social Security for at least part of their income in retirement, it’s important to make choices

It Could Pay to Wait

Your benefit increases by 8% for every year past your full retirement age that you delay receiving it, until you reach age 70.

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Your Social Security benefits are likely an important part of your retirement income plan, so choose your timing wisely.

T. ROWE PRICE INVESTOR SPRING 2020 9

CONTINUED >

that maximize the impact these benefits have on your retirement income plan. (See “Why Claim Early— or Later?” on page 10.) To that end, consider the following questions:

1Will you continue to work? Receiving early payments while continuing to work can reduce your benefits. If you do plan

on working, consider delaying your benefits at least until your FRA.

2What is your life expectancy? While this question can be difficult to address, you can use some available information to

think about it. Considering the longevity of relatives or your current health is a good place to start. Additionally, you can use an estimate from sources like the SSA Life Expectancy Calculator at ssa.gov/planners/lifeexpectancy.html. The longer a person expects to live, the more it makes sense to

delay Social Security benefits. If you have known medical issues or otherwise believe you won’t achieve the average life expectancy for someone your age, however, you may want to consider receiving your benefits early. But women and people with higher incomes, who tend to live longer than average,2 are among those who should consider delaying.

3What are your financial priorities?If you expect to have higher expenses early in retirement and aren’t worried about

outliving your assets, then receiving your benefits early can help meet those priorities. However, if you are concerned about longevity risk—namely, the risk of outliving your assets and income— then delaying would likely be a better option.

Source: SSA.gov.

Your Full Retirement AgeFRA varies depending on your birth year.

Full Retirement Age

Year

of B

irth

1960and later

1959

1958

1957

1956

1955

1943–1954 66

66 and 2 months

66 and 6 months

67

66 and 10 months

66 and 8 months

66 and 4 months

10 T. ROWE PRICE INVESTOR SPRING 2020

MANAGING IT

4What will your spouse do?Couples must also plan when each spouse should file for benefits. The higher-earning

spouse should consider delaying to receive the highest benefit possible, particularly to maximize the future survivor benefit. “The lower earner may still want to take their benefit early,” says Young. “This way, they get some income while they’re in their 60s, while the higher earner waits until age 70 to begin collecting benefits.” If both spouses claim early, the surviving spouse may be startled by the size of the benefit reduction when their partner passes away.

5Will you have other sources of income?If you expect to receive a pension or have other sources of guaranteed income, you

might choose to file for early benefits if doing so allows you to delay drawing down your savings. This strategy is most appropriate if the pension and early benefits allow you to be more aggressive with your portfolio’s asset allocation, thus positioning your investments for greater potential growth. “Social Security essentially includes an implied return of around 3% in its calculation of the benefits of delaying,” explains Young. “So, you could take Social Security early and then not draw down your assets as quickly if you think you’re going to make more than that 3%. However, remember that the 3% implied return from Social Security is essentially risk-free.”

Weigh your optionsIt may be tempting to begin receiving your Social Security benefits as soon as possible—particularly after years of paying into the program. But without carefully weighing your choices, you risk shortchanging yourself by taking reduced benefits. Delaying until FRA—or possibly even until age 70—can help you maximize your benefits. That strategy can help bolster your income plan for a retirement that could last three decades or more. ■

* A pension reduces your longevity risk, which may enable you to safely claim earlier. However, you may still want to claim later based on other factors above.

1 “Are Social Security’s Actuarial Adjustments Still Correct?” Center for Retirement Research at Boston College, November 2019.

2 “Mortality by Career-Average Earnings Level,” Social Security Administration, April 2018.

NEXT STEPSLearn more about how Social Security fits into your overall retirement plan at troweprice.com/socialsecurity.

50-60% of workers elect to receive their Social Security benefits before their full retirement age.

Why Claim Early—or Later?Multiple factors influence when you should file for your Social Security benefits.

Reasons to Consider CLAIMING EARLY

Reasons to Consider CLAIMING LATER

Stopped working and need cash flow

Still workingStill working

Short life expectancy or known medical issue

Good health or family history Good health or family history of longevityof longevity

Spending early in retirement is a high priority

Concerned about outliving Concerned about outliving your assets and incomeyour assets and income

You are the lower-earning spouse (to get extra years of benefits based on your own earnings before taking spousal benefits)

You are the higher-earning You are the higher-earning spouse (to maximize survivor spouse (to maximize survivor benefits)benefits)

Expect to receive significant pension*

Limited other guaranteed Limited other guaranteed income sourcesincome sources

Seeking more asset growth potential (with higher risk) by taking Social Security instead of drawing down investments

More risk averse (and thus More risk averse (and thus less likely to earn high returns less likely to earn high returns on investments)on investments)

T. ROWE PRICE INVESTOR SPRING 2020 11

SPOTLIGHT

T. Rowe Price Global Allocation FundA diversified fund that targets long-term capital appreciation and income.

Portfolio

The T. Rowe Price Global Allocation Fund (RPGAX) pursues long-term capital appreciation and income by investing in a broadly diversified global portfolio of U.S. and international stocks, bonds, and alternative investments—across regions, asset and sub-asset classes, market capitalizations, and currencies. Fund managers seek an active asset allocation strategy to select investments among various asset classes and market sectors based on factors including:

■U.S. and global economic and market conditions

■Interest rate movements

■Industry and issuer conditions

■Business cycles

Our team of portfolio managers, analysts, and economists will be following trade negotiations and the U.S. presidential elections, along with other developments that could affect market performance. We expect twists and turns along the way with each of these events, but we believe our approach to fundamental research around the globe will continue to add value in the year ahead.

We believe our approach to fundamental research around the globe will continue to add value in the year ahead.

As with any investment, the Global Allocation Fund is subject to risk, including the potential for loss of principal. The fund’s holdings in international equities expose it to potentially greater risk than U.S. investments. The fund’s positions in alternative investments and a hedge fund are difficult to value and monitor when compared with more traditional investments and may increase the fund’s liquidity risks. ■

NEXT STEPSLearn more about the T. Rowe Price Global Allocation Fund at troweprice.com/globalallocationfund or call one of our Investment Specialists at 1-800-599-2875.

AssetAllocation

$782.38 million Total net assets as of 12/31/2019

Foreign Stock

Domestic Stock

Domestic Bond

Foreign Bonds

Other

Cash

Preferred Stock

Convertibles

29.2%

25.3%

18.2%

14.4%

9.2%

3.0%

0.4%

0.3%

12 T. ROWE PRICE INVESTOR SPRING 2020

Answers to these five questions can help your retirement plans grow and thrive.

Spring Forward

T. ROWE PRICE INVESTOR SPRING 2020 13

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Spring Forward

2 Have I saved enough for retirement so far?Considering you may spend

a few decades in retirement, it’s important to have enough set aside so that your money will last. “A quick way to check your progress is to assess how much you’ve saved by certain ages,” says Ward. “We refer to the target levels as savings benchmarks.” (See “Benchmarking Your Progress” on page 16 or visit troweprice.com/30secondchallenge to see if you’re on track.)

These benchmarks assume you’ll be dependent primarily on personal savings and Social Security benefits in retirement. However, if you are expecting other income sources (e.g., a pension), you may not have to rely as

much on your personal savings, so your benchmark would be lower.

The midpoint benchmarks are a good starting point, but circumstances vary by person and over time.

1 How much should I save for retirement? “Exactly how much you need to save depends on several factors, including your lifestyle, how much

you earn, and your unique vision for this next stage of life,” says Judith Ward, CFP®, a senior financial planner with T. Rowe Price. “However, by aiming to save at least 15% of your income each year—including any employer match—you can give yourself a good chance to maintain your current lifestyle in retirement.”

Each extra percentage point you save will make a significant difference in your retirement savings over time. (See “Saving Regularly for Retirement.”) T. Rowe Price’s 15% guideline is based on several factors, including the potential that your retirement may last 30 years or longer. Longevity exposes you to a few risks—more years of spending to fund, a decrease in purchasing power from inflation, and higher health care costs. A 15% target can help your savings generate a robust income stream in the face of these long-term challenges. Many individuals may set their savings rate through their workplace plan, like a 401(k). Investors also can supplement these savings with an IRA or a regular, taxable account.

Saving for retirement represents an important long-term financial goal for most investors. Although your savings strategy will reflect your personal circumstances and the

type of retirement you envision, certain challenges are common to nearly everyone.

For instance, those still in the workforce frequently want to know whether they are saving enough for retirement, while retirees often wonder how much they can afford to spend. The answers to these common questions may vary from person to person, but the following recommendations can help you cultivate retirement success.

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How much of your annual income, including any employer match, you should aim to save for retirement.

15%

14 T. ROWE PRICE INVESTOR SPRING 2020

SPRING FORWARD

T. ROWE PRICE INVESTOR SPRING 2020 15

Saving Regularly for RetirementThe sooner you can start saving, the better off you’ll be in the long run. For many individuals, 15% may be a stretch for their current financial situation. If you can increase the amount you save over time, it can make a significant difference.

Key factors that affect the savings benchmarks include income and marital status. Depending on your personal circumstances, you may want to consider other targets within the ranges. As you’re nearing retirement, you’ll want to go beyond general benchmarks and think more carefully about your specific spending needs and income sources.

If it appears you’re falling below the benchmark and you’re behind on your savings goals, make sure you’re taking advantage of all the savings options available to you. Consider contributing more than 15% of your salary and taking advantage of both an IRA and a taxable account. If you’re age 50 or older, your contribution cap for your 401(k) and IRA will be higher than for those under age 50. (See “2020 Key Financial Numbers” on page 3.)

Retir

emen

t Sav

ings

25Age Saving Begins

35 40 45 50 55 60 6530

5x

7x

11x

12x

Multiple of ending salary saved at age 65

0

500,000

1,000,000

1,500,000

2,000,000

$2,500,000

10x

■ Age 25, 6% with 1% increases until 15%

■ Age 30, 15% steady contributions

■ Age 30, 6% with 2% increases until 15%

■ Age 40, 15% steady contributions

■ Age 25, 6% steady contributions

Examples beginning at age 25 assume a beginning salary of $40,000 escalated 5% a year to age 45, then 3% a year to age 65. Examples beginning at age 30 assume a beginning salary of $50,000 escalated 5% a year to age 45, then 3% a year to age 65. Example beginning at age 40 assumes a beginning salary of $80,000 escalated 5% a year to age 45, then 3% a year to age 65. Annual rate of return is 7%. All savings are assumed tax-deferred. Multiple of ending salary saved divides final ending portfolio balance by ending salary at age 65. This example is for illustrative purposes only and is not meant to represent the performance of any specific investment option. The assumptions used may not reflect actual market conditions or your specific circumstances and do not account for plan or IRS limits. Please be sure to take all of your assets, income, and investments into consideration when assessing your retirement savings adequacy.

Exactly how much you need to save depends on several factors, including your lifestyle, how much you earn, and your unique vision for this next stage of life.

16 T. ROWE PRICE INVESTOR SPRING 2020

Benchmarking Your Progress To find your savings benchmark, look for your approximate age and consider how much you’ve saved so far for retirement. Compare that amount with your current gross income or salary.

3 Should I contribute to a Roth IRA or a Traditional IRA?Setting aside funds in a Roth IRA can offer a few

distinct benefits over saving in a Traditional IRA. Withdrawals from a Roth IRA are tax-free in retirement (generally, if you are age 59½ or older and have held the account for five years). By comparison, withdrawals from Traditional IRAs generally are taxed as ordinary income. Additionally, Roth IRA contributions can be withdrawn at any time penalty- and tax-free, providing flexibility and access to these funds if needed.

Moreover, Roth IRAs aren’t subject to the required minimum distributions (RMDs) that apply to most retirement accounts starting at age 72 (age 70½ if you reached 70½ before January 1, 2020), so you can choose to let Roth assets benefit from tax-deferred growth for the rest of your life. “Roth contributions

can be a good choice if you don’t expect your tax rate to decrease in retirement or if you already have significant traditional assets and won’t need all of those funds for income,” says Roger Young, CFP®, a senior financial planner with T. Rowe Price. “Keep in mind that your best choice between a Roth IRA and a Traditional IRA may change as you revisit your investment strategy over time.” (See “Benefit From Roth IRAs” on page 4 or go to troweprice.com/ira to learn more.)

4 Which retirement account should I fund first?The order in which you contribute to your

retirement accounts could help increase future spendable income. When deciding on your approach,

make sure not to miss out on any matching contributions (if offered) from your employer’s retirement plan. Also, consider taking advantage of the benefits of a Roth account—both within your employer’s retirement plan (if available) and/or through a Roth IRA (if you meet income qualifications).*

Let’s look at an example: Suppose Roth contributions make sense for your situation and you’re eligible to contribute to a Roth IRA, but your company doesn’t offer a Roth option in its 401(k) plan. In this case, contribute enough to your Traditional 401(k) to earn any company match, then to a Roth IRA up to the contribution limit ($6,000 for those under 50 in 2019 and 2020). Then direct any supplemental savings to your Traditional 401(k) and/or a taxable account, depending on your circumstances and other financial goals. (See “Retirement Contribution Order at a Glance.”)

Benchmarks are based on a target multiple at retirement age and a savings trajectory over time consistent with that target and the savings rate needed to achieve it. Household income grows at 5% until age 45 and 3% (the assumed inflation rate) thereafter. Investment returns before retirement are 7% before taxes, and savings grow tax-deferred. The person retires at age 65 and begins withdrawing 4% of assets (a rate intended to support steady inflation-adjusted spending over a 30-year retirement). Savings benchmark ranges are based on individuals or couples with current household income of approximately between $75,000 and $250,000. Target multiples at retirement reflect estimated spending needs in retirement (including a 5% reduction from preretirement levels); Social Security benefits (using the SSA.gov Quick Calculator assuming claiming at full retirement ages and the Social Security Administration’s assumed earnings history pattern); state taxes (4% of income, excluding Social Security benefits); and federal taxes (based on rates as of January 1, 2019). While federal tax rates are scheduled to revert to pre-2018 levels after 2025, those rates are not reflected in these calculations. For the benchmarks, we assume the household starts saving 6% at age 25 and increases the savings rate by 1% annually until reaching the necessary savings rate.

Mul

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SPRING FORWARD

T. ROWE PRICE INVESTOR SPRING 2020 17

5 What should I consider when establishing an income plan for retirement?“Starting to draw down your savings can be a

challenge after years of putting money aside,” says Young. “A strategy that includes a sustainable withdrawal rate and an order for which accounts to draw from can help ensure you make the most of your savings.” (See troweprice.com/withdrawalstrategiesreport

for approaches to extend the life of your retirement portfolio.)

T. Rowe Price suggests a 4% guideline as a starting point for a withdrawal strategy. This means that in the first year of retirement, you could consider a withdrawal amount that is equal to 4% of your retirement account balance. Each year, reassess your spending needs, portfolio performance, and market environment to adjust your withdrawal amount if needed. You’ll want to assess and plan out your strategy well before you need to start taking RMDs.

Also, consider your options for Social Security. You can start taking reduced Social Security benefits at age 62, but waiting until your full retirement age (FRA) will allow you to claim full benefits. (See “It Could Pay to Wait” on page 8 for more on your FRA and Social Security benefits.) And the longer you wait (up to age 70), the higher your annual benefit will be. Consider coordinating your claiming strategy with your spouse. For instance, to maximize the benefit for a surviving spouse, the higher earner should wait as long as possible (up to age 70) before claiming benefits.

Saving for retirement is a priority for most investors. Regularly reassessing your answers to these questions and using them as a guide can help you reap the rewards later on in retirement. ■

NEXT STEPSLearn more from our thought leaders on saving and planning for retirement at troweprice.com/insights or consult with a Retirement Specialist at 1-888-554-6445.

Roth contributions can be a good choice if you don’t expect your tax bracket to decrease in retirement or if you already have significant traditional assets and won’t need all of those funds for income.

All participants are eligible to make designated Roth contributions within a 401(k) if offered by their employers, regardless of income.

You can contribute to a Roth IRA if your modified adjusted gross income (MAGI) is below the annual IRS limit for your tax filing status (e.g., single or married filing jointly).

Contribute to your Roth 401(k), then to a Roth IRA, followed by taxable accounts.

Contribute to your Roth 401(k), then consider supplementing with a taxable account or deductible Traditional IRA.

Contribute to your Traditional 401(k) (enough to earn any company match) then to a Roth IRA. Direct any remaining contributions to your Traditional 401(k), and/or a taxable account.

Contribute to your Traditional 401(k), then consider supplementing with a taxable account or deductible Traditional IRA.

Contribute to your Traditional 401(k), then consider supplementing with a taxable account or deductible Traditional IRA.

Do Roth contributions makesense for your situation?

Does your company offer a Rothoption for its 401(k) plan?

Are you eligible to contributeto a Roth IRA?

YES

YES

YES NO

NO YES NO

NO

Retirement Contribution Order at a GlanceDetermining howto prioritize your contributions can help make the most out of your savings.

* In 2019 and 2020, eligibility to make the maximum Roth IRA contribution requires a modified adjusted gross income (MAGI) of less than $122,000 and $124,000, respectively, for single filers and less than $193,000 and $196,000, respectively, for married couples filing jointly. (For partial contributions, a MAGI of less than $137,000 and $139,000, respectively, for single filers or less than $203,000 and $206,000, respectively, for married couples is required.)

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What keeps technology moving forward? And why do we take for granted that the smartphones, computers, and other

devices we rely on today will be better in five years? There are many factors at work, but the remarkable improvement in semiconductors has been central to the digital revolution over the past several decades. Further progress in chip technology will be necessary to support and grow artificial intelligence (AI), 5G mobile communications, autonomous driving, and other technologies. Nevertheless, investors often overlook the pivotal role of chipmakers in advancing technology, as well as the challenges semiconductor firms face as integrated circuits shrink and become more complex.

The T. Rowe Price Global Technology Fund (PRGTX)* focuses on a handful of what we term “linchpin” semiconductor companies involved in the most crucial steps of chip production. We believe a small number of industry leaders offer unique investment opportunities because of the vital role they play in moving technology forward. We also have select exposure to several of their customers—companies that design and sell chips targeted at especially promising markets.

A complex ecosystem with key playersThe semiconductor industry is a large, global, and complex ecosystem in which no firm functions independently. The production of an integrated circuit requires the technology of separate firms specializing in design, intellectual property, software, equipment, materials, and manufacturing.

A small number of companies serve as linchpins in the design and production process, however, including Intel, Taiwan Semiconductor Manufacturing Corporation (TSMC), and Synopsys.

■Intel This company first developed themicroprocessor nearly a half-century ago and remains the world’s dominant manufacturer of

Identifying the most innovative semiconductor companies can help investors navigate this evolving industry.

LinchpinSteady progress in semiconductors has made advancements in technologies such as personal computers, smartphones, the cloud, and AI possible.

central processing units (CPUs)—the electronic nerve center of a computer—while also being a leader in the design of many other types of chips. The company is the largest and most self-sufficient in the industry. However, challenges to both its design and manufacturing dominance have emerged, especially from firms with greater focus on individual markets.

■TSMC We see more promising opportunities in TSMC, which became the first company to cross an important manufacturing threshold. In 2017, TSMC began producing chips at the 7 nanometer (nm) process node—a measure of how finely transistors can be etched onto silicon and, thus, how many transistors can fit on a chip of a given size. Having beaten Intel in the race to the latest-generation manufacturing process, TSMC is seeing very strong demand for its new generation of 7nm chips, especially for use in smartphones and high-performance personal computers (PCs).

■Synopsys Designing the latest generation of chips requires advanced software tools. Silicon Valley’s Synopsys is another linchpin company as

the leading maker of electronic design automation (EDA) software, which helps chip designers analyze how the billions of components on a chip will work together. As semiconductors become more complex and shrinking transistors becomes more difficult, EDA software and intellectual property will become increasingly important to the semiconductor design process.

Moore’s law has slowed Perhaps the largest challenge chipmakers have faced in recent years has come from the slowdown in their ability to shrink chips and increase processor speed. According to Moore’s law, named after Intel cofounder Gordon Moore, chipmakers could be expected to double the number of transistors on a given area of a chip roughly every two years. For roughly four decades, the pattern held true. The exponential effect was extraordinary: According to the company, Intel’s 4004 processor contained 2,300 transistors when it was released in 1971; by 2010, an Intel core processor held 560 million transistors. (See “Moore’s Law in Action,” on page 20.)

LinchpinSemiconductorFirms

T. ROWE PRICE INVESTOR SPRING 2020 19

A Closer Look at

20 T. ROWE PRICE INVESTOR SPRING 2020

Sources: Intel, Apple, History of Computing Project, and T. Rowe Price estimates.

Moore’s Law in ActionDoubling a chip’s transistors roughly every two years has had a dramatic impact on processing speed. Below is a comparison of the first microprocessor developed by Intel® versus a chip produced by Apple® and TSMC™ using the latest manufacturing process.

Operations per Second

60K

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1971 2018

Apple® A12 Bionic Chip

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2,300Number of Transistors

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Feature/ Process Size

in Nanometers

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7

HOW AND WHY THERE HAS BEEN SO MUCH IMPROVEMENT

• A12 is manufactured with 1,400 times the precision• Allowing it to hold over 3 million times more transistors• Helping make it over 83 million times faster than the Intel 4004

This remarkable progress relied in large part on the development of ultraviolet (UV) lithography, which essentially allowed circuits to be “printed” (although the process is considerably more complex) onto silicon wafers. In the past few years, however, deep ultraviolet (DUV) lithography has reached the physical limits of how finely it can lay down circuitry at the leading edge—akin to trying to use a fat-tipped marker to fill out a small form.

DUV lithography’s limits partially contributed to Intel missing the two-year doubling cycle predicted by Moore’s law. Intel’s latest-generation 10nm fabrication process (roughly equivalent to TSMC’s 7nm process, but with a different naming convention) was just introduced in 2019. This is three years later than originally predicted and Intel’s first shrink since 2014—a delay that has caused some to declare the end of Moore’s law.

Recent developments suggest that Moore’s law is not dead but has just slowed, perhaps only temporarily. Another linchpin company, Netherlands-based semiconductor equipment maker, ASML Holding, has developed a solution:

extreme ultraviolet (EUV) lithography. Using laser- produced plasma fired in a vacuum to lay down chip designs at extremely high resolutions, ASML’s machines are poised to come online in significant numbers in 2020, despite their €130 million price tag.

This innovation will allow semiconductor makers to produce the latest-generation chips at volume, marking an inflection point in the industry. EUV technology should also allow Intel, TSMC, and others to make the requisite leaps to the next few generations of chips. Given the 10 years and €10 billion it took to bring EUV technology to market, ASML is likely to remain the industry leader over the next decade. In our view, ASML is at the very center of semiconductor innovation.

Owning the companies necessary to power the future A second part of our investment thesis focuses on the firms that design and market the high-performance chips made

A12

A CLOSER LOOK AT LINCHPIN SEMICONDUCTOR FIRMS

others are likely to lose ground to new application- specific designs. Nvidia has seen rapid growth in recent years, for example, thanks to the use of its graphics processing units (GPUs), which were originally developed for video gaming but have proved especially adept at handling the algorithms used in machine learning. However, companies are trying to get around Nvidia’s lock on machine learning technology. For example, Alphabet, Google’s parent company, is currently developing tensor processing units (TPUs) to power the advanced neural networks that enable machine learning and AI.

Such uncertainties are yet another reason we believe it is wise to focus on the industry’s linchpins. Regardless of whether CPUs, GPUs, or TPUs dominate the future, and whether they are sold by companies in China, the U.S., or Europe, we are confident that this small group of global companies will remain vital to production. ■

possible by the linchpin production companies. Our holdings include companies that provide the chips necessary to power AI, 5G, and more, including the so-called internet of things (IoT), or the proliferation of internet connectivity into everyday devices.

■NXP Semiconductors This Netherlands-basedcompany is a world leader in the design and manufacturing of mixed-signal semiconductors, which enable the conversion of analog signals, such as temperature and light, into digital ones. This technology is particularly important in the automotive market, where sensor-driven chips have proliferated rapidly.

■Microchip Technology Arizona-basedMicrochip Technology is a leader in microcontrollers—essentially, computers shrunk down to a single chip—as well as other types of devices used for specialized purposes. Demand for these chips should balloon as computers find their way into a growing range of devices, from toys to appliances.

Linchpins can help cut through the uncertainty Many uncertainties hang over the semiconductor industry. The PC market has generally been shrinking over the past decade as consumers turn to smartphones to access the internet and as cloud-based computing makes regular upgrades less necessary. Demand for mobile chips continues to grow, but at a slower pace. The trade conflict between the U.S. and China and the specter of a technological “cold war” add another layer of opacity.

As companies in weaker positions than the linchpins fall victim to China’s fading demand,

NEXT STEPSFor more information about the T. Rowe Price Global Technology Fund, visit troweprice.com/globaltechnologyfund.

* As of December 31, 2019, the Global Technology Fund’s top 10 holdings were as follows: Alibaba Group Holding, 11.0%; Facebook, 8.1%; Salesforce.com, 8.0%; Netflix, 4.8%; Workday, 4.5%; ServiceNow, 4.2%; Amazon.com, 4.0%; Intuit, 4.0%; Tencent Holdings, 3.8%; and Samsung Electronics, 3.6%. Among other stocks mentioned above, Microchip Technology represented 1.9%; ASML Holding, 3.0%; Alphabet, 3.2%; NXP Semiconductors, 1.9%; Taiwan Semiconductor Manufacturing, 1.4%; and Micron Technology, 1.2%. Apple, Intel, and Nvidia were not held in the portfolio.

The views contained herein are those of the authors as of January 2020 and are subject to change without notice; these views may differ from those of other T. Rowe Price associates.The fund is subject to market risk, as well as risks associated with unfavorable currency exchange rates and political economic uncertainty abroad. Investing in technology stocks entails specific risks, including the potential for wide variations in performance and usually wide price swings, up and down. Technology companies can be affected by, among other things, intense competition, government regulation, earnings disappointments, dependency on patent protection and rapid obsolescence of products and services due to technological innovations or changing consumer preferences.All charts and tables are shown for illustrative purposes only.

T. ROWE PRICE INVESTOR SPRING 2020 21

Progress in making chips even faster will likely rely on a small set of what we term “linchpin” companies.

22 T. ROWE PRICE INVESTOR SPRING 2020 22 T. ROWE PRICE INVESTOR SPRING 2020

“Receiving a windfall, such as a bonus, a tax refund, or an inheritance, can help you achieve your financial objectives— if you make the most of its potential,” says Roger Young, CFP®,

a senior financial planner with T. Rowe Price. Think about how you’d like to prioritize your short- and long-term goals, such as building an emergency fund, paying down high-interest debt, investing additional assets in your retirement accounts, and saving toward college expenses, along with funding any other goals.

3 to 6The number of months’ worth of expenses you should have in your emergency fund.

Taking a thoughtful approach to using newfound money may help maximize its value.

What to Do With a Windfall

FOCUS ON

After you have decided how much money you want to allocate to each of your objectives, your next step is to determine the appropriate investment

strategies to employ. Some accounts may allow you to invest as much as you’d like, all at once. Others, such as an IRA, have maximum annual contribution limits. The following are ideas on how you could approach your spending strategy should you encounter a windfall.

Build your emergency fundBefore you consider any of your long-term goals, it’s important to make sure you have some cash on hand to help cover any

unexpected expenses. Often, the best initial use for new money is to build or add to an emergency fund—making sure you have at least three to six months’ worth of expenses set aside to cover any unanticipated costs. Money market investments in taxable accounts that have no restrictions on withdrawing assets may be an accessible place to hold these funds.

Pay down debtBy reducing your high-interest debt, such as credit card balances, you will not only save yourself interest expenses, but you may be able to allocate more of your future income to your investments. For example, you can help free up resources that you can then use to catch up on your retirement savings.

T. ROWE PRICE INVESTOR SPRING 2020 23 T. ROWE PRICE INVESTOR SPRING 2020 23

Invest for your retirementContributing the maximum allowed to tax-advantaged retirement accounts can have a substantial impact on your future. Options for investing include:

■401(k) plan: “Although you cannot deposit a lump sum directly into an employer-sponsored retirement plan, you could use a windfall to pay current expenses, allowing you to contribute more of your salary from your regular paycheck into your employer’s plan,” says Young. Remember that if your employer plan offers Roth (after-tax) contributions, these contributions and earnings can be withdrawn tax-free in retirement.

■Traditional or Roth IRA: If you are not eligible for an employer-sponsored plan and are looking for greater account flexibility or have money available to invest after contributing to your employer’s plan, you could contribute to a Traditional or Roth IRA. (See “2020 Key Financial Numbers” on page 3 for contribution limits.)

For a windfall that’s bigger than the retirement account limits, it may be beneficial to hold retirement assets in a taxable account. (See “Spring Forward” on page 12 for information on retirement account contribution order.)

Save for college expensesAccording to the College Board, the average estimated full-time cost for a four-year in-state public college (tuition plus room and board) is around $26,590 for the 2019–2020 school year. You may wish to put some of your windfall toward family members’ future education costs by contributing to a tax-advantaged 529 savings plan. These plans provide tax-free investment growth potential and withdrawals free from federal taxes as long as the money is used to pay qualified education expenses. In addition, many states offer incentives for using their plan.

“Remember that 529 plan assets can be used to pay for your own educational expenses,” Young says. “And starting in 2020, student loan repayments will now be considered qualified expenses.”

Fund other goals“In addition to investing for retirement and college expenses, you may have other goals, such as saving for a down payment on a house or a car,” says Young.

“Depending on your financial needs, you may want to use a portion of the money for something fun like travel or making a memory with your loved ones.” For these other goals, consider contributing to a taxable account, which can provide the potential for growth of your assets and can be withdrawn without restrictions.

Often, the more money we have, the more we tend to spend and grow accustomed to. With this in mind, it’s important to have a plan in place for any influx of cash in order to stay within your means and on track with your financial objectives. ■

A 529 college savings plan’s disclosure document includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. You should review the 529 plan offered by your home state or your beneficiary’s home state and consider, before investing, any state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.

NEXT STEPSDiscover more ways to reach your financial goals at troweprice.com/insights or call 1-888-554-6448 to speak with an Investment Specialist.

Contributing the maximum allowed to tax-advantaged retirement accounts can have a substantial impact on your future.

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24 T. ROWE PRICE INVESTOR SPRING 2020

You have until April 15, 2020, to make a 2019 IRA contribution, but it’s wise to do so as soon as possible. Why? Contributing earlier helps to maximize the compound growth potential of your investments.

NEXT STEPSTo contribute to your IRA, call a Retirement Specialist at 1-866-691-2240 or visit troweprice.com/ira.

NEXT STEPSFor more information, visit troweprice.com/myreadychoiceira or speak with a Retirement Specialist at 1-888-554-6438.

Get a quick start saving for your retirement with a ReadyChoice IRA—an all-in-one investment solution for investors looking to open a new IRA. ReadyChoice IRA allows you to open a new retirement account in three easy steps:

1. Select a Roth or Traditional IRA.

2. Receive a T. Rowe Price Retirement Fundrecommendation for your IRA based on the year you turn age 65.*

3. Make a contribution to your new IRA.

*This Retirement Fund recommendation is offered throughthe Retirement Fund Recommendation Service, which is provided by T. Rowe Price Advisory Services, Inc., a registered investment adviser under the Investment Advisers Act of 1940. T. Rowe Price Advisory Services, Inc. and T. Rowe Price Investment Services, Inc. are affiliated companies.

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Make Your IRA Contribution

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UPDATES

Take Our30- SecondChallenge Discover how you compare with our retirement savings guidelines by taking the T. Rowe Price Retirement Challenge. Just enter three things—your age, your salary, and the amount you have already saved for retirement—and we’ll let you know if you’re on track.

NEXT STEPSVisit troweprice.com/30secondchallenge.

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A 529 college savings plan’s disclosure document includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. You should review the 529 plan offered by your home state or your beneficiary’s home state and consider, before investing, any state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.

T. ROWE PRICE INVESTOR SPRING 2020 25

NEXT STEPSTo learn more and to use our College Savings Planner, visit troweprice.com/college or call us at 1-800-846-6939.

Investing in Your

Saving for college, graduate school, or vocation training can be more attainable with the tax-advantaged benefits of a 529 college savings plan. Consider one of the three flexible 529 plans managed by T. Rowe Price:

■T. Rowe Price College Savings Plan

■Maryland College Investment Plan

■Alaska 529

Child’s Future

26 T. ROWE PRICE INVESTOR SPRING 2020

1919Thomas Rowe Price, Jr., is born in Glyndon, Maryland, in 1898. He goes on to earn a degree in chemistry from Swarthmore College in Pennsylvania and works as a chemist before becoming a stockbroker.

A Firm Built for YouFrom the start, T. Rowe Price has been focused on putting investors’ interests first. Our firm’s namesake, known for his prudence, resourcefulness, and integrity, believed in pursuing success in a principled, innovative way.

NEXT STEPSTo speak with an Investment Specialist, call 1-866-691-2241.

BEGINNINGS | 1937Mr. Price announces his resignation from the investment management department at Mackubin, Legg and Co. He sets out to create an organization “with a reputation for the highest character and the soundest investment philosophy.” He and four close associates run all aspects of the fledgling company’s business.

1960sTo keep up with a surge in clientele, a new cohort of research analysts and relationship managers is hired.

2020T. Rowe Price, with $1.21 trillion in assets under management at the end of 2019, has 16 international offices that serve clients in 50 countries around the world.

1940sThe firm struggles through the end of the Great Depression and the tumult of World War II. Mr. Price forgoes a salary for many years, infusing what capital he had into the company’s balance sheet.

SUCCESS | 1950Mr. Price’s growth stock method gains traction, and the firm launches its first mutual fund, the T. Rowe Price Growth Stock Fund. The company turns a profit for the first time in its 13 years of business.

LEGACY | 1971Mr. Price retires, leaving behind a firm dedicated to strategic investing, independent thinking, and rigorous research—characteristics that define T. Rowe Price to this day.

1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

Original T. Rowe Price office, Baltimore, MD

T. Rowe Price & Associates in the 1960s

T. Rowe Price Growth Stock Fund stock certificate

Isabella Craig, one of Mr. Price’s first associates

Swarthmore College

“Change is the investor’s only certainty.” — Thomas Rowe Price, Jr.

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CLOSING BELL

T. Rowe Price Funds For detailed information on T. Rowe Price mutual funds, including investment performance, call 1-800-401-1819 or visit troweprice.com/performance.

T. Rowe Price Investor magazine is published quarterly by T. Rowe Price as an exclusive, no-cost service to its customers for informational purposes only. Copyright ©2020 by T. Rowe Price Associates, Inc. All Rights Reserved. Certain information herein has been provided by independent third parties whom T. Rowe Price believes to be reliable. Although all content is carefully reviewed, it is not guaranteed for accuracy or completeness. T. Rowe Price cannot be held responsible for any direct or incidental loss incurred by applying any of the information in this publication. The trademarks shown are the property of their respective owners. Use does not imply endorsement, sponsorship, or affiliation of T. Rowe Price with any of the trademark owners. T. Rowe Price, INVEST WITH CONFIDENCE, and the Bighorn Sheep design are, collectively and/or apart, trademarks of T. Rowe Price Group, Inc. T. Rowe Price INVESTOR is a trademark of T. Rowe Price Group, Inc. Third-party websites are provided solely for your convenience. T. Rowe Price is not responsible for the information contained in any third-party website. This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide fiduciary recommendations concerning investments, nor is it intended to serve as the primary basis for investment decision-making; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it directed to any benefit plan or investor in connection with a specific investment or investment management decision. T. Rowe Price (including T. Rowe Price Group, Inc., and its affiliates) and its associates do not provide legal or tax advice. Any tax-related discussion contained in this publication, including any attachments, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this publication.

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DomesticBlue Chip GrowthCapital Appreciation1

Communications & TechnologyDiversified Mid-Cap GrowthDividend GrowthEquity IncomeEquity Index 500Extended Equity Market Index Financial Services Growth & IncomeGrowth StockHealth SciencesMid-Cap Growth1

Mid-Cap Value1

New America GrowthNew EraNew Horizons1

QM U.S. Small & Mid-Cap Core EquityQM U.S. Small-Cap Growth EquityQM U.S. Value Equity Real EstateScience & TechnologySmall-Cap Stock1

Small-Cap Value Tax-Efficient EquityTotal Equity Market IndexU.S. Equity Research2

U.S. Large-Cap CoreValueInternational/GlobalAfrica & Middle EastAsia OpportunitiesChina Evolution EquityEmerging EuropeEmerging Markets Stock1

Emerging Markets Discovery StockEuropean StockGlobal ConsumerGlobal Growth StockGlobal IndustrialsGlobal Real EstateGlobal StockGlobal Technology1

International Disciplined EquityInternational Discovery1

International Equity IndexInternational StockInternational Value EquityJapanLatin AmericaNew AsiaOverseas StockQM Global Equity

Balanced Global Allocation Multi-Strategy Total ReturnReal AssetsRetirement 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060

Retirement BalancedRetirement Income 20203

Spectrum Conservative Allocation4 Spectrum GrowthSpectrum IncomeSpectrum International

Spectrum Moderate Allocation5

Spectrum Moderate Growth Allocation6

Target 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060

TaxableCorporate IncomeCredit OpportunitiesDynamic CreditDynamic Global BondEmerging Markets BondEmerging Markets Corporate Bond Emerging Markets Local Currency Bond Floating Rate Global High Income BondGlobal Multi-Sector BondGNMA

High Yield1

Inflation Protected BondInternational Bond International Bond (USD Hedged)Limited Duration Inflation Focused BondNew IncomeShort-Term Bond Total ReturnUltra Short-Term BondU.S. Bond Enhanced IndexU.S. High YieldU.S. Treasury Intermediate

U.S. Treasury Long-TermTax-Free7

CA, GA, MD, NJ, NY, VA Tax-Free BondIntermediate Tax-Free High YieldMD Short-Term Tax-Free BondSummit Municipal Income3

Summit Municipal Intermediate3

Tax-Free High YieldTax-Free IncomeTax-Free Short-Intermediate

TaxableCash Reserves8

Government Money9

U.S. Treasury Money9

Tax-Free7

CA, MD, NY Tax-Free Money8

Summit Municipal Money Market3, 8

Tax-Exempt Money8

1 Closed to new investors except for a direct rollover from a retirement plan into a T. Rowe Price IRA invested in this fund. 2Formerly Capital Opportunity. 3$25,000 minimum. 4Formerly Personal Strategy Income. 5Formerly Personal Strategy Balanced. 6Formerly Personal Strategy Growth. 7Certain tax-free funds may not be appropriate for tax-deferred investments, including individual retirement accounts (IRAs).

8 Retail Funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

9 Government Funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

T. Rowe Price Investment Services, Inc., Distr ibutor.

T. Rowe Price Investment Services, Inc., Distr ibutor.

P R E S O R T S TA N D A R D

U . S . P O S TA G E

P A I D

T .   R o w e   P r i c e

T. Rowe Price

100 East Pratt Street

Baltimore, MD 21202

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Life evolves. Goals change.

to help.

Thinking about retirement planning, co llege savings, or choosing th e right investments for your IRA? T. Rowe Price can help you plan your strategy every step of the way.

Whether your goals are short or long term, you can benefit from our over 80 years of investment experience. Explore your options w ith our Investment Specialists, or access our complimentary online tools and insights designed to help you establish your financial priorities and meet your goals.

Call to speak with an Investment Specialist today. troweprice.com/investorplanning I 1-866-893-6735