T. Rowe Price Advisor Review

Types of Clients T. Rowe Price Serves

T. Rowe Price serves a diverse set of clients through two entities, T. Rowe Price Associates and T. Rowe Price Advisory Services. The first serves high-net-worth individuals and institutional investors, such as investment companies, pension and profit-sharing plans, and charities. If you have an average to above-average net worth, you’ll be working with the latter.

Account minimums span a significant range for institutional and high-net-worth clients, beginning at $50 million for several products and reaching as high as $250 million for others. The barrier of entry is much lower for regular individuals. To access financial planning and discretionary portfolio management, you’ll need at least $250,000 in investable assets.

Below is a table that outlines account minimums for the company’s products geared toward individuals:

Type of Product	Minimum Investment
Point-in-time advice	$1,000 for an IRA, $2,500 for a taxable account
Discretionary management	$50,000
Financial planning	$250,000
Private asset management	$50 million

Financial Advisor Services

T. Rowe Price offers many standard advisory solutions, including discretionary and non-discretionary management, financial planning, and even an online tool to allocate your investments. For wealthier clients, it also provides private asset management on a discretionary basis.

Below is a complete breakdown of the company’s advisor products:

Point-in-Time Investment Advice

If you have an eligible IRA or taxable account (see minimums above), you’ll be able to access T. Rowe Price’s digital investment advice tool. Available through the firm’s website, the company says that you’ll have to answer a set of questions to build a profile about you as an investor (i.e., risk tolerance, circumstances, goals, etc.). Then, you’ll receive advice about asset allocation strategies and recommended mutual funds.

Discretionary Portfolio Management

One of the primary services the firm offers is discretionary asset management under its ActivePlus Portfolios program. After meeting the $50,000 minimum investment, a representative from the company will be able to make trades and select investments on your behalf. According to T. Rowe Price’s Form ADV Part 2A, your professional will consider several factors before helping your portfolio take shape. This may include the types of accounts you have, opportunities to optimize taxes, and your short- and long-term objectives.

According to the company’s website, this program comprises ten portfolio variations, with each one generally focusing on investing in varying mutual funds. To choose a portfolio that fits your needs, you’ll answer questions about your preferences and goals. The company will then match you with a corresponding investment plan. Over time, your manager will help you rebalance your investments, so they align with your strategy.

Financial Planning

After reaching the $250,000 account minimum, you’ll be able to work with an advisor to build a comprehensive financial plan. This falls under the umbrella of the firm’s Retirement Advisory Service. As is the case with its portfolio management service, you’ll answer a questionnaire that will inform your professional about your current situation, risk tolerance, and preferred overall direction.

As outlined in the company’s product brochure, you’ll receive a portfolio recommendation and will be able to work with an advisor on an ongoing basis. However, T. Rowe Price specifies that its planning service is non-discretionary by default. This means it’ll be up to you to implement any strategies your expert puts forth. If you would rather have an expert put your plan into action, the firm notes that you can enroll in its discretionary management service.

Since this is an ongoing relationship, you and your advisor will meet and discuss your progress over time, including potential adjustments and ways to rebalance. To help you maintain open communication, this product includes at least two meetings each year, as well as the opportunity to speak to them on the phone or via email.

Private Asset Management

T. Rowe Price also features a discretionary portfolio management option for high-net-worth individuals. If you have at least $50 million in investable assets, you’ll be able to work with the company’s team of professionals, who will have the ability to manage your investments on your behalf.

This service includes an initial consultation where, per the company, you’ll talk to a professional about factors such as your risk appetite, return preferences, and needs for liquidity. After your managerial team understands your goals and needs, they’ll be able to get to work on constructing your portfolio and performing regular maintenance.

Fee Structure

T. Rowe Price uses a fee structure based on a percentage of the dollar amount of assets under management (AUM) you have. However, the exact rate you pay can vary significantly by the service you’re enrolled in.

For managed accounts, the company says the average fee, including additional fees (trading costs, expense ratio, etc.), is about 1.0% AUM. Even so, the fees you see will depend on the type of portfolio you choose, as well as negotiations between you and the company.

Investment Philosophy

How a company approaches investing is an important indicator of how they’ll manage your money or put together your portfolio. This is especially true if you’re trusting the company to work in a discretionary capacity on your behalf.

In T. Rowe Price’s Form ADV brochure, the firm outlines that it uses risk management techniques such as asset allocation and diversification. This includes using a mix of asset classes, granting you exposure to different industries and geographical locations. The company also highlights that it will use your specific preferences, time horizon, and present circumstances to recommend a portfolio that best suits you.

T. Rowe Price also seems to favor actively managed mutual funds. When they recommend a portfolio variation, it will include a combination of these funds that fits you as an investor. The company says that using an active approach is an effective way to enable clients to achieve their goals.

Disclosures

T. Rowe Price Associates, Inc. and T. Rowe Price Advisory Services, Inc. are both registered with the SEC as investment advisors. This requires both organizations to report all disclosures, including criminal proceedings and administrative actions, to the public in their respective Form ADV filing.

As of this article’s writing, neither T. Rowe Price nor any of its representatives have received any disciplinary actions from the SEC or a regulatory agency.

Customer Service and Opening an Account

There are several ways to get in contact with T. Rowe Price customer service or open an account. For its advisory products, the most straightforward route is to visit the company’s “Personal Investing” contact page. This includes phone numbers and email links for all its financial advice products. You could also visit the page for your service and see if the company provides alternative instructions for signing up or contacting support.

Tips for Choosing a Financial Advisor Firm

Before landing on a financial advisor firm, you’ll have to consider many factors to ensure they’re the best fit. Depending on the services you need, this company could be a big part of your life and planning process for a long time.

Some tell-tale signs of high-quality companies are:

• Offers the services you need (e.g., planning, portfolio management, digital tools, etc.).
• Only accepts fees and not commissions.
• Has reasonable account minimums for your financial situation.
• Has an advisory team with well-known certifications such as Certified Financial Planner (CFP) and Chartered Financial Analyst (CFA).
• Has a clear and easy-to-read website, allowing you to fully understand their products.
• Minimal disclosures.

To find a firm near you, we recommend using free comparison tools, such as this one. After answering some questions about your goals and circumstances, you’ll be presented with up to three local fiduciary advisors.

Methodology

This review is based on publicly available information directly from T. Rowe Price’s website, the SEC, and FINRA. Neither the firm nor its representatives have any say on what we’ve included on this page.

Frequently Asked Questions

Is T. Rowe Price a fiduciary?

As an investment advisor registered with the SEC, T. Rowe Price and its advisory representatives must abide by a fiduciary standard. The company’s team of investment managers also have titles such as CFP and CFA. The organizations that issue these designations require title holders to uphold a strict code of ethics and duty of care to clients.

Is T. Rowe Price a reputable company?

T. Rowe Price is a large company that’s been around for a long time. Since it has no disclosures on its Form ADV, it seems that it generally stays out of trouble and provides what it says it will. Its employees appear to be happy as well. In 2021, Pensions & Investments ranked it as a top employer in the money management industry.

How much money do you need for T. Rowe Price?

In general, you’ll need at least $50,000 in investable assets before receiving extensive financial advisory services from T. Rowe Price. For private asset management, however, account minimums can climb up to $50 million or more.