The fund is a target date fund that includes a managed payout program to provide shareholders with a regular level of monthly income each calendar year in the form of a dividend distribution. It can also be referred to as a managed payout fund. The Retirement Income 2020 Fund seeks to provide monthly income to investors in retirement.

The minimum initial investment is $25,000 for an account.

Yes. The Retirement Income 2020 Fund is an open-ended mutual fund, so you can redeem shares anytime, however any change in share balance will impact the dollar amount of subsequent monthly dividend payouts.

Please note: The per share dividend rate will not be immediately impacted by a change in your share balance, since it’s recalibrated annually.

In most respects, the fund strategy is identical, sharing the same asset allocation, glide-path, and underlying funds. However, the Retirement Income 2020 Fund includes a managed payout structure. Managed payout funds are mutual funds designed to provide shareholders with regular monthly dividend income.

The Retirement Income 2020 Fund would be an alternative to the Retirement 2020 Fund for individuals in or entering into retirement and seeking a retirement income solution.

No. The fund is available for both tax-deferred and taxable account registrations.

In most respects, the investment strategy of Retirement Income 2020 Fund is identical to the Retirement 2020 Fund, sharing the same asset allocation, glide-path, and underlying funds. However, Retirement Income 2020 Fund includes a managed payout structure. Managed payout funds are mutual funds designed to provide shareholders with regular monthly dividend income.

The Retirement Income 2020 Fund distributes dividend payments monthly. Shareholders opening an account prior to the record date, generally the 15th of the month, will receive their first monthly payment the same month. Shareholders opening an account after the record date will receive their first monthly payment the following month.

While the Retirement Income 2020 Fund is designed for clients who are entering or in retirement, dividend payments will be made to all clients invested in the fund, regardless of age and retirement status.

Not necessarily. The monthly dividend payments from Retirement Income 2020 Fund are not specifically designed to satisfy minimum distribution requirements, so your payouts may be greater or less than your RMD amount. Investors are responsible for requesting distributions from their IRA.

The annual payout for the following calendar year is calculated September 30th of each year as 5% of the average monthly net asset value (NAV) over the previous five years. The calculation is intended to reduce the effects of market volatility on the income payments. The payout will be calculated annually and distributed equally over 12 months. This monthly distribution will vary from year to year based on the fund’s performance and the number of fund shares held in the account. The monthly distribution per share is expected to remain constant from month to month for the given calendar year. Each shareholder will receive notice of the anticipated monthly payout amounts for the upcoming calendar year generally prior to year-end.

The fund’s payout rate of 5% is designed to provide investors with greater spending flexibility early in retirement, even though the income stream may not ultimately keep pace with inflation over time. In comparison, the well-known 4% spending rule incorporates a lower initial spending rate that is increased by the rate of inflation each year. However, since many retirees actually decrease their spending as they get older, the spending strategy incorporating inflation adjustments may result in unnecessary sacrifices early in retirement.

No. Due to the nature of the payout calculation, there may be some years where the payout rate is not 5% when evaluating the current year’s net asset value (NAV) or account balances.

No. The fund’s 12 monthly dividend payments generally cannot be reinvested into the fund to buy more shares. (However, the fund reserves the right to freeze an account and reinvest dividend payments upon notification of a shareholder’s death, a dispute regarding account ownership, a legal claim against the account or if there is reason to believe a fraudulent transaction may occur.) Should any additional distributions occur outside of the 12 monthly dividend payments, those distributions will be automatically reinvested into the fund.

Yes. Although the payout per share for the fund should remain constant from month to month throughout the calendar year, it will likely fluctuate from year to year based on the fund's performance. Also, additional purchases, or redemptions from your account will change the number of shares you hold, and thus alter the amount of future payouts for the year.

No. The fund is not an annuity nor is it connected to any insurance program.

No. The managed payout design of Retirement Income 2020 Fund is based on an endowment spending approach. Using this approach, if the long-term total return of the portfolio exceeds the payout rate, the portfolio’s principal should be maintained over the long term. However, in certain years when the portfolio return is less than the payout rate, the annual payout may include a drawdown on investment principal. There is no guarantee of principal for investors and no guarantee that the fund will provide a fixed or stable level of cash distributions at any time or over any particular period of time.