Gliding into retirement.
A single SFDCP Target Date Fund is made up of a combination of stocks and bonds. This means that, whichever you choose, you get a fully diversified portfolio that invests in hundreds or thousands of securities. And one fund is all you need.
Each fund will gradually shift from stocks to bonds to provide the appropriate mix as you get older, following an investing approach called a glide path.
A glide path designed for you.
T. Rowe Price has identified, modeled, and analyzed City and County of San Francisco employee demographics, available benefits, savings rates, income needs in retirement, and more to design a fully customized and thoughtfully constructed investment glide path for the SFDCP Target Date Funds.
Allocation of stocks and bonds across the glide path
The SFDCP Target Date Funds provide a higher allocation of stocks during your working years to help grow your savings when retirement is still far off, gradually shifting to conservative bond investments as you near your retirement year to preserve your savings. After your retirement year, your allocation will continue to shift to a more conservative mix of investments, until finally reaching a static allocation 10 years into retirement.
Tactical asset allocation
In addition to managing the glide path design, T. Rowe Price also provides tactical asset allocation. Highly skilled T. Rowe Price investment professionals closely monitor market conditions and may periodically make minor allocation changes as needed, in an effort to reduce the impact of market volatility on your account.
Bond diversification
The SFDCP Target Date Funds provide a diversified bond allocation in an effort to address inflation risks and help provide stability during times of market volatility.
The chart below illustrates the glide path.
A convenient approach to investing.
Your SFDCP Target Date Funds are designed to help grow your savings in your working years, becoming increasingly more conservative over time, and now evolving for 10 years into retirement.
- More stocks in your early working years to allow more opportunity for your savings to grow when retirement is still far off.
- As retirement approaches, stock levels decrease and bond levels increase, seeking to provide the appropriate mix to grow and preserve your savings.
- The glide path will continue to evolve for 10 years into retirement shifting to a static allocation beginning at age 75. This means the underlying investments in your target date fund will automatically adjust for you into retirement.
- The SFDCP Target Date 2015 Fund and SFDCP Target Date 2020 Fund each provide a dynamic allocation into retirement to support your income needs, becoming increasingly conservative up to 10 years beyond the target date year, until reaching a static allocation.
Important note for Public Safety Employees: Sworn Fire, Sheriff, and Police Officers may choose to use an earlier retirement age if appropriate based upon their eligible retirement date. For example, if you plan on retiring at age 55, you may want to consider the SFDCP Target Date Fund for the year in which you turn 55 rather than age 65. You may choose a fund based on a retirement age earlier than 65.
The specific income needs of San Francisco retirees were closely researched and analyzed in the development of proper allocations included in the glide path. Each SFDCP Target Date Fund provides stock allocations for continued growth potential leading up to retirement, then shifting to more conservative bond allocations at age 65 to preserve your savings and your spending power. At age 75, your allocation will automatically shift to a static allocation.
The specific income needs of San Francisco retirees were closely researched and analyzed in the development of proper allocations included in the glide path. Key enhancements for retirees include:
- Each SFDCP Target Date Fund provides stock allocations for continued growth potential leading up to retirement, then shifting to more conservative bond allocations at age 65 to preserve your savings and your spending power. At age 75, your allocation will automatically shift to a static allocation.
Important note for Public Safety Employees: Sworn Fire, Sheriff, and Police Officers may choose to use an earlier retirement age if appropriate based upon their eligible retirement date. For example, if you plan on retiring at age 55, you may want to consider the SFDCP Target Date Fund for the year in which you turn 55 rather than age 65.
The specific income needs of San Francisco retirees were closely researched and analyzed in the development of proper allocations included in the glide path. Each SFDCP Target Date Fund provides stock allocations for continued growth potential leading up to retirement, then shifting to more conservative bond allocations at age 65 to preserve your savings and your spending power. At age 75, your allocation will automatically shift to a static allocation.
Explore your glide path.
Diversification designed for you.
Each SFDCP Target Date Fund is made up of a variety of other investments, well beyond what is available within the plan's core lineup.
This means that, whichever single target date fund you choose, you get a mix of stocks and bonds—in large and small companies, both foreign and domestic.
Tactical asset allocation
Highly skilled investment professionals at T. Rowe Price will also closely monitor market conditions and may periodically make minor asset allocation changes to the glide path, if needed.
A deeper dive into your new glide path.
Each investment along the glide path was carefully selected based on the unique needs of City and County of San Francisco employees and retirees. New fixed income assets are also being added to increase your diversification across both international and domestic bonds in an effort to lower your risk against inflation and market volatility.
Equity (stock) is ownership interest in a company or property.
- Infrastructure Investment in physical buildings, networks, and materials to support a community.
- Commodities Investment in basic raw goods, such as wheat, sugar, gold, and oil.
- Real Estate Investment in companies that lease, sell, manage, and develop investment real estate.
- Global Stock Investment in a combination of stocks from the United States, international markets, and emerging markets.
- Emerging Markets Stock Investment in economies that are developing, and have the potential to develop, into a more modern economy. Examples include India, Mexico, China, and Brazil.
- Developed International Markets Stock Investment in developed international markets such as Europe, Asia, and Australia.
- U.S. Small-Mid Cap Stock (SMID) Investment in smaller companies to mid-size companies in the United States.
- U.S. Large-Cap Stock Investment in the largest corporations in the United States.
Fixed income (bond) are securities that pay a fixed rate of return. This term usually refers to government, corporate, and municipal bonds, which pay a fixed interest rate until the bond matures.
- Core Plus Bond Investment in a variety of U.S. government, corporate, and asset-backed debt of both U.S. and foreign issuers.
- International Bond (USD Hedged) Investment in bond securities from developed countries outside of the U.S.
- Global Unconstrained Bond Investment in any number of bonds from anywhere in the world.
- U.S. Long Treasury Bond Investment in U.S. government bonds that mature between 10 and 30 years.
- High Yield Bond Investment in bonds that provide a higher interest rate because they have a lower credit rating.
- Emerging Markets Bond Investment in debt securities in developing economies, or economies that have the potential to develop into a more modern economy.
- Short Treasury Inflation Protected Securities (TIPS) Investment in treasury securities issued by the U.S. government intended to protect from inflation.
Continue exploring.
Resources
More information for you. We've compiled additional resources to help you along the way.
About T. Rowe Price
Retirement is at the heart of what we do. We offer financial solutions that adjust to needs and life stages—to, through, and beyond retirement.
202310-3220657
You are using an unsupported browser that might prevent you from accessing certain features on our site
We suggest clicking an icon below to download a supported browser.
