Comments on: T. Rowe Price Automatic Asset Builder

By: Jacob

Jacob — Tue, 08 Apr 2008 03:12:28 +0000

T Rowe Price is truly where it’s at. I work for Wells Fargo bank with an investment branch and for the do it yourself kind of people, T Rowe is second to none. AAB is so key and allows to buy shares high and low over 10, 20 or 30 years. This is going to give any investor right around the avg return since inception on almost all funds. My only complaint would be that the online setup be updated. So dark in the background and could definitely be improved. Even making the #’s bigger would be great. Otherwise T rowe is my recommendation to all do it yourself kind of people.

By: Sun

Sun — Thu, 17 May 2007 01:32:42 +0000

Savvy Steward: As far as I know, there’s no annual account maintenance fee for regular account. The fee is only for IRA account or 519/ESA account. And I checked my account history, I was never charged with the fees. So it’s quite a good product in my opinion.

MM: Since when you owned DVN? The stock has really performed very well since 2002 (hope you got it at that time ). I have Progress Energy (PGN), but I only started since late last year through DRIP program. I am going for the dividend.

James: Thanks for answering the question for me. I also like a lot the flexibility TRP offers which makes it much easier to do business with them than with Vanguard. Vanguard is a good company with lots of great funds, but the bar is a little bit high. Not just the high initial requirement, they charge account maintenance fee as well. I just couldn’t understand why require such a high limit.

db: I’d be a little careful with PRNEX now as the fund is approaching all time high largely because the rise of energy price. But if you want to buy a small amount every month without making a big initial investment, it should be fine. Who knows where the oil price will go

By: db

db — Wed, 16 May 2007 06:59:20 +0000

I was in ICENX in my 401(k) for awhile but eventually dumped it because I didn’t like the expense ratio.

Otherwise, it’s funny you should mention this because I’m a big T.Rowe Price fan. I’m doing my Roth IRA (TRRDX) with them on the systematic investment plan, and I plan to open up a regular brokerage account with them later this month in New Era.

By: James G

James G — Tue, 15 May 2007 21:23:39 +0000

In response to comment #1, the TRP prospectuses all state: “Accounts employing automatic investing (e.g., payroll deduction, automatic purchase from a bank account, etc.)
are also exempt from the [$10 low balance] charge.”

I am a beginning investor and love TRP’s Auto Asset Builder. You can even deposit every other month, every three months, or even one month a year and still reap the benefits of their high-quality funds. For instance, I have 3 TRP funds and one month the AAB purchases for Fund 1, the next month it purchases Fund 2, 3rd month Fund 3, 4th month Fund 1 again. IMO, this is a great way to begin investing since you can manage your asset allocations easily (e.g. 33% stocks 33% bonds 33% cash would be easy to do since you’d just do 1 month for each and then repeat).

I’m not affiliated with TRP in any way, and would love the ability to purchase an all-Vanguard portfolio, but until that day comes, I’m happy with AAB.

By: Moneymonk

Moneymonk — Tue, 15 May 2007 20:55:00 +0000

I have PRNEX also and that was one of the reasons I bought it because of the low aab. The other reason was Devon Energy ( my knockout stock ) Vanguard is also a good company. But as you said the intial purchase is high