T. Rowe Price: what do you need to know?
Discover how T. Rowe Price pairs personalized financial planning with long-term investment strategies to provide comprehensive financial planning and advisory services.
Summary
T. Rowe Price fees are charged based on a percentage of the client's total assets under management (AUM) and depend on the type of advice you choose.
Minimum investments for T. Row Price’s retirement advisory service start at $250,000.
Private asset management requires a minimum of $5 million in assets and includes tax and estate planning services.
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T. Rowe Price: about the company
T. Rowe Price is a long-standing financial services firm founded in 1937 by Thomas Rowe Price, Jr.
Headquartered in Baltimore, Maryland, it has grown to become a leader in asset management, with over $1.61 trillion in assets under management (AUM) and a dedicated team of 550 financial advisors.
The firm focuses on delivering investment management and advisory services to individual and institutional clients, blending personalized financial planning with a deep expertise in long-term wealth building.
Find out more in our T. Rowe Price review.
What services does T. Rowe Price offer?
T. Rowe Price Advisory Services is the firm’s division focused on individual clients.
It offers financial planning solutions that help clients meet long-term goals like retirement, major purchases, or education savings.
Services range from retirement income planning and investment planning to private asset management for high-net-worth individuals and families.
For high-net-worth clients with at least $5 million in assets, T. Rowe Price offers customized private asset management, including tax management and estate planning.
Institutional clients, such as retirement plans and investment companies, also benefit from the firm’s comprehensive advisory services, though most individuals working through institutions are considered indirect clients.
What is T. Rowe Price’s investment philosophy?
At its core, T. Rowe Price’s investment philosophy revolves around the idea that long-term, goal-oriented growth is key.
The firm works closely with clients to understand their specific financial goals, risk tolerance, and time horizon. This allows advisors to create portfolios tailored to each client’s needs.
Their investment strategies utilize a mix of equities, fixed-income securities, and alternative investments.
T. Rowe Price also offers ESG-focused investments for socially-conscious clients.
Portfolios are actively managed and periodically rebalanced to align with the client’s evolving objectives.
What is T. Rowe Price’s pricing and fee structure?
According to the firm’s Form ADV disclosure to the SEC, T. Rowe Price follows a fee-only model, meaning the firm earns revenue solely from client advisory fees, not third-party commissions.
T. Rowe Price fees are charged based on a percentage of assets under management (AUM), with rates varying by account size, service type, and investment strategy.
For example, its retirement advisory service typically requires a minimum investment of $250,000 in household assets, while private asset management for high-net-worth individuals requires $5 million.
Fees for its retirement services come in at an average net advisory fee of 0.50%. However, final costs will depend on the client’s portfolio and the complexity of the services offered.
Is T. Rowe Price trustworthy?
T. Rowe Price has a strong reputation for integrity and client-focused service.
The firm is a fiduciary, meaning its advisors are legally required to act in the client’s best interest.
While T. Rowe Price has had one regulatory disclosure, it pertains to an advisory affiliate and is not directly attributed to the firm itself.
What are the pros and cons of T. Rowe Price?
Like any financial advisory service, T. Rowe Price has advantages and potential drawbacks, which are important to consider when deciding whether it’s the right fit for your investment needs.
Pros of T. Rowe Price:
Comprehensive services: The firm offers an extensive range of financial planning and investment management services.
Fiduciary duty: Advisors must act in your best interest, ensuring unbiased advice.
Long-term focus: Emphasizes strategies that help clients build wealth over the long term.
Fee-only structure: No third-party compensation, which reduces potential conflicts of interest.
Cons of T. Rowe Price:
High minimums: Private asset management requires a minimum of $5 million, which limits access for smaller investors.
Limited customization: While personalized, investment options can be more limited than boutique firms.
Complex fee structure: Fees vary across services and strategies, which might be confusing for some clients.
How do I open an account with T. Rowe Price?
Opening an account with T. Rowe Price is relatively straightforward.
You can start by visiting the firm’s website or contacting one of its offices directly. The process usually begins with a consultation where a T. Rowe Price financial advisor will assess your financial goals, risk tolerance, and needs.
Once the strategy is decided, you can fund the account. The minimum investment varies depending on the service.
After the account is opened, you’ll receive ongoing support, including annual reviews, rebalancing, and adjustments to your financial plan as needed.
Get expert financial advice
T. Rowe Price offers a wide range of financial advisory services, combining long-term investment strategies with personalized planning. While it excels in tailoring solutions for individuals and institutions, its higher minimums and complex fees can be a barrier for smaller investors.
If you’re still undecided, let Unbiased match you with a financial advisor from a firm that suits your needs and ensure you get expert financial advice tailored to your unique circumstances. Matching with an advisor is completely free.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.