Financial Professionals Get a Competitive Edge in the Art of the Rollover

Oct. 25, 2006 (Des Moines, Iowa) — With Individual Retirement Account (IRA) rollovers expected to top $221 billion this year alone - and to nearly double by 2010¹ - everyone seemingly wants to ride the rollover wave. Rollover strategies can be deceptively complex, however, and financial professionals are seeking the knowledge and tools to implement them successfully. That's why the Principal Financial Group^® is offering a comprehensive rollover program for financial professionals-giving them the competitive edge they need to help make the most of the rollover boom.

"Done right, rollovers can help individuals enjoy a more comfortable retirement while protecting their retirement funds from taxes. Done wrong, rollovers can result in huge financial losses that can significantly impact - or even delay - retirement. There's definitely an art to it, and it's critical that financial professionals have the right expertise," explains Dan McGee, vice president, The Principal^®. "Those who have specialized training will be well ahead of the game in the competition for rollover business."

The rollover program from The Principal takes financial professionals through the entire sales process, with:

Specialized training in the art of the rollover. Financial professionals can attend an all-day IRA Leadership Conference with renowned IRA expert Ed Slott. They also receive ongoing reinforcement and a more in-depth application of Mr. Slott's training through rollover experts from The Principal.
Prospecting and sales ideas. The program helps financial professionals apply what they've learned to their current rollover business and gives them tools to reach out to specific new markets so they can broaden their client-base.
Easy-to-use marketing materials. Forty percent of workers cash out their retirement savings when they switch jobs, according to The Principal Financial Well-Being IndexSM from third quarter 2006. The program's marketing materials help financial professionals educate their clients and illustrate the short- and long-term advantages of rollovers, as well as open the discussion on various rollover strategies.
Ongoing support from a dedicated IRA team. Financial professionals can easily access a dedicated team of rollover specialists via an IRA hotline, email and face-to-face meetings. The specialists can walk financial professionals through specific case questions and address complex rollover scenarios.

The program's success to date

More than 550 financial professionals have already participated in the rollover program from The Principal. Attendees of Ed Slott's conference in January 2005 say it helped them increase sales and build their business. "Over a one-year period, financial professionals who attended that conference produced impressive results with double-digit increases in sales of life and disability insurance, mutual funds and annuity products," says McGee.

Availability of the program

The Principal is currently offering the rollover program to its key distribution channels with plans to expand more broadly in 2007. This effort is part of The Principal's new focus on bringing financial professionals the tools they need to help them grow their businesses. Financial professionals interested in learning more may contact The Principal Sales Desk at 800-451-5447, options 3, 2 or email IRAresource@exchange.principal.com.

About the Principal Financial Group

The Principal Financial Group^® (The Principal^®)² is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies and national network of financial professionals. A member of the Fortune 500, the Principal Financial Group has $206 billion in assets under management³ and serves some 16.3 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

Insurance issued by Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, member SIPC and/or independent broker dealers. Securities sold by a Princor Registered Representative are offered through Princor. Bank Products offered through Principal Bank^®, member FDIC, Equal Housing Lender. Principal Life, Princor^® and Principal Bank are members of the Principal Financial Group, Des Moines IA 50392.

Insurance and securities are not insured by the FDIC; are not obligations or deposits of Principal Bank nor guaranteed by Principal Bank; and are subject to investment risks, including possible loss of the principal invested.

1) Cerulli Associates
2) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
3) As of June 30, 2006.