T. Rowe Price Personal Investor - Answers to 5 of the Most Popular Retirement Savings Questions (2024)

1The SECURE 2.0 Act of 2022 changes the RMD age to 73 for individuals who turn age 72 on or after January 1, 2023. The new law also provides that the RMD age will change again to 75 in 2033.
2Learn more about Roth IRAs. In order to contribute to a Roth IRA in 2023, single filers must have a MAGI under $153,000 and married couples filing jointly must have a MAGI under $228,000. In order to contribute to a Roth IRA in 2024, single filers must have a MAGI under $161,000 and married couples filing jointly must have a MAGI under $240,000.
3Withdrawal Strategies Report (PDF).

Important Information

The views contained herein are those of the authors as of February 2024 and are subject to change without notice; these views may differ from those of other T.RowePrice associates.

This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action.

This information is not intended to reflect a current or past recommendation concerning 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 commentary provided do not take into account the investment objectives or financial situation of any particular investor or class of investor. Please consider your own circ*mstances before making an investment decision.

Information contained herein is based upon sources we consider to be reliable; we do not, however, guarantee its accuracy.

An IRA should be considered a long-term investment. IRAs generally have expenses and account fees, which may impact the value of the account. Nonqualified withdrawals may be subject to taxes and penalties. Maximum contributions are subject to eligibility requirements. For more detailed information about taxes, consult IRS Publication 590 or a tax professional regarding personal circ*mstances.

All investments are subject to market risk, including the possible loss of principal. All charts and tables are shown for illustrative purposes only.

View investment professional background on FINRA's BrokerCheck.


T. Rowe Price Personal Investor - Answers to 5 of the Most Popular Retirement Savings Questions (2024)


What is the 4% rule t-rowe price? ›

T. Rowe Price suggests the 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 4% of your retirement account balance.

What is the 5% rule for retirement? ›

The sustainable withdrawal rate is the estimated percentage of savings you're able to withdraw each year throughout retirement without running out of money. As an estimate, aim to withdraw no more than 4% to 5% of your savings in the first year of retirement, then adjust that amount every year for inflation.

What is the T Rowe Price Rule of 55? ›

Generally allows for penalty-free withdrawals if you retire the year you turn 55 or older. Otherwise, penalty-free withdrawals are available after age 59½. Waive early IRS distribution penalties if certain requirements are met, regardless of age.

Can I retire at 62 with $400,000 in 401k? ›

If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.

What is the 5 portfolio rule? ›

This rule suggests that investors should not allocate more than 5% of their portfolio in any one stock or investment. The idea behind this rule is to limit the potential risk to the overall portfolio if one investment does not perform as expected.

What is the 4 drawdown rule? ›

The 4% rule says people should withdraw 4% of their retirement funds in the first year after retiring and take that dollar amount, adjusted for inflation, every year after. The rule seeks to establish a steady and safe income stream that will meet a retiree's current and future financial needs.

How long will $400,000 last in retirement? ›

Safe Withdrawal Rate

Using our portfolio of $400,000 and the 4% withdrawal rate, you could withdraw $16,000 annually from your retirement accounts and expect your money to last for at least 30 years. If, say, your Social Security checks are $2,000 monthly, you'd have a combined annual income in retirement of $40,000.

What is the average 401k balance for a 65 year old? ›


How long will $500,000 last in retirement? ›

Yes, it is possible to retire comfortably on $500k. This amount allows for an annual withdrawal of $20,000 from the age of 60 to 85, covering 25 years. If $20,000 a year, or $1,667 a month, meets your lifestyle needs, then $500k is enough for your retirement.

Which T-Rowe Price retirement fund is best? ›

7 of the Best T. Rowe Price Funds for Retirement
T. Rowe Price FundInception DateAnnualized Return Since Inception
T. Rowe Price Emerging Markets Corporate Bond Fund (TRECX)5/24/20123.3%
T. Rowe Price Health Sciences Fund (PRHSX)12/29/199513.7%
T. Rowe Price Retirement 2035 Fund (TRRJX)2/27/20047.3%
4 more rows
May 10, 2023

Is the T-Rowe Price good for retirement? ›

Over 95% of our Retirement Funds with a 10-year track record beat their 10-year Lipper average as of 12/31/2023. 100% of our Retirement Funds have expenses below their Lipper average as of 12/31/2023.

Can I take money out of my T-Rowe Price account? ›

To withdraw assets, contact T. Rowe Price at 1-800-492-7670 or at P.O. Box 17350, Baltimore, MD 21297-17350. Please note that if you have not yet reached age 59½ and no exception applies, you may be subject to a 10% penalty.

At what age is 401k withdrawal tax free? ›

Once you reach 59½, you can take distributions from your 401(k) plan without being subject to the 10% penalty. However, that doesn't mean there are no consequences. All withdrawals from your 401(k), even those taken after age 59½, are subject to ordinary income taxes.

How many people have $1,000,000 in retirement savings? ›

However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved.

What is a good 401k balance by age? ›

By age 40, you should have three times your annual salary already saved. By age 50, you should have six times your salary in an account. By age 60, you should have eight times your salary working for you. By age 67, your total savings total goal is 10 times the amount of your current annual salary.

When investment is becoming four times the rule to apply? ›

Rule of 144 tells you how much time will it take for your amount deposited in a scheme to quadruple. Suppose you are investing in a scheme which is giving interest at the rate of 6 per cent, then 144/6 = 24, i.e., your amount will become four times in 24 years.

What is the 4 percent rule for nest egg? ›

According to this rule, by withdrawing roughly 4% per year from your tax-deferred accounts, you can achieve the golden mean of retirement: living well, yet preserving your nest egg for the duration of your lifespan.

Does the 4% rule consider taxes? ›

The rule ignores taxes. When drawdowns are made from qualified retirement accounts, including traditional individual retirement accounts and 401(k) plans, those withdrawals are considered ordinary income for tax purposes because no income tax was ever paid on the amounts invested.

How much money do you need to retire with $100,000 a year income? ›

So, if you're aiming for $100,000 a year in retirement and also receiving Social Security checks, you'd need to have this amount in your portfolio: age 62: $2.1 million. age 67: $1.9 million. age 70: $1.8 million.

Top Articles
Latest Posts
Article information

Author: Rev. Porsche Oberbrunner

Last Updated:

Views: 6536

Rating: 4.2 / 5 (53 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Rev. Porsche Oberbrunner

Birthday: 1994-06-25

Address: Suite 153 582 Lubowitz Walks, Port Alfredoborough, IN 72879-2838

Phone: +128413562823324

Job: IT Strategist

Hobby: Video gaming, Basketball, Web surfing, Book restoration, Jogging, Shooting, Fishing

Introduction: My name is Rev. Porsche Oberbrunner, I am a zany, graceful, talented, witty, determined, shiny, enchanting person who loves writing and wants to share my knowledge and understanding with you.