T. Rowe Price is planning to launch a hybrid robo-advice service for customers planning for retirement, with access to financial advisors for households with $250,000 or more in investable assets.
T. Rowe Price Retirement Advisory Service, as the new service is called, will offer “non-discretionary financial planning, discretionary investment management and telephone access to a financial advisor supported by a digital experience,” the company said in a filing last week, according to FA-IQ sister publication Ignites.
But while a spokesperson for the firm told the publication that the new robo could help investors at “nearly any stage of life,” they’ll need a minimum of $250,000 in aggregate investable assets to tap the robo’s financial planning services, Ignites writes, citing the filing.
The model portfolio option, meanwhile, is only available for an initial minimum investment of $250,000 per household, the filing said, according to the publication.
Those minimums mean that T. Rowe Price’s new offering is likely more appealing to mid-career professionals with a substantial nest egg, according to Bobby Blue, manager research analyst at Morningstar, according to Ignites.
The new robo will launch later this year, a spokesperson confirmed to the publication.
Retirement-focused digital offerings are proliferating, according to Ignites.
Franklin Templeton said earlier this year that it’s planning a robo that would use its proprietary goals-optimization for personalized advice and recommendations for the firm’s retirement plan clients, the publication writes. And micro-savings app Acorns and robo-advice pioneer Betterment already offer services aimed at retirement savers, according to Ignites.
Meanwhile, Merrill Lynch announced in December that it’s planning a digital offering for participants in retirement plans that rely on the company for recordkeeping, available to all plan participants whose plan sponsors offer it, regardless of the participants’ income level, according to Ignites.
In addition, zero-commission brokerage Robinhood is considering offering U.S. retirement accounts, the publication writes, citing an earlier Reuters report.
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