An Eaton Vance news release said that the SRA investments are made in a diversified portfolio of tax-managed equity and tax-exempt municipal income mutual funds selected by the participant, maintained and reported as a single consolidated account.
The announcement said that current program offerings include eight tax-managed equity funds, 33 long-term municipal bond funds, eight limited-term municipal bond funds and a tax-free cash reserve fund, all managed by Eaton Vance. The program offers five preset portfolio asset allocations with a different mix of fund investments and a distinct risk profile and participants may also create their own customized allocations, the announcement said.
Eaton Vance said in the announcement that many Americans face a gap between what they need to save for retirement and the maximum they can contribute to their qualified plans under the law. The newly unveiled program is designed to help bridge the retirement savings gap by facilitating regular savings and investment outside the bounds of qualified plans, the company said.
According to the news release, on enrolling in the program, each participant selects starting and ending portfolio asset allocation targets and a final target date. Between initial funding of the SRA and the specified target date, the participant’s target allocation will gradually evolve from the starting to the ending portfolio specified, according to the announcement.
When the participant begins making withdrawals, the process works the same way in reverse – positions are selected for sale that will move the asset allocation of the account toward the targeted portfolio weightings, Eaton Vance said.
An initial minimum investment of $20,000 and a commitment to make systematic investments of at least $500 per month are required to open an SRA. Each SRA is charged a one-time set-up fee of $30 and an annual maintenance fee of $30.
Enrollment is a simple, Web-based process that can be completed throughwww.supplementalretirementaccount.com.