New Retirement Asset Allocation Service Highlights Value of Financial Advisors
The Principal offers advisors new "do-it-myself" asset allocation alternative
April 7, 2010 (Des Moines, IA) - When it comes to allocating retirement plan assets, investors range from those who say "do-it-for-me" to I'll "do-it-myself." Financial advisors who can help plan sponsors meet the range of participant needs stand out from the crowd.
A new "do-it-myself" educational asset allocation service from the Principal Financial Group® helps financial advisors do just that.
RetireViewSM empowers plan sponsors - with the help from their financial advisors - to select and monitor the investment options that can help meet the diverse needs of their retirement plan participants.
For participants, RetireView takes into account both risk tolerance and years to retirement and guides them to make investment choices that are more in tune with their individual investment goals. There are no additional fees to plan sponsors or participants.
"RetireView rounds out our suite of asset allocation products and services to be among the most comprehensive in the industry," said Tom Smith, vice president of retirement and investor services at the Principal®. "This gives financial advisors the flexibility and choice they want to bring to their clients. In a market with ever-more diverse needs, our comprehensive range of choices offers a fit for virtually every plan sponsor and participant."
How RetireView works
With help from their financial advisors, plan sponsors select investment options that populate 20 asset allocation models designed by Ibbotson Associates specifically for RetireView. The models range from conservative to aggressive and represent a broad spectrum of risk profiles, years to retirement and asset classes.
After taking an investor profile quiz, participants can select the model that best aligns with their individual risk tolerance and years to retirement. RetireView gives participants the help they want in selecting investment options while allowing them to retain control over how they allocate their contributions.
Auto features to address changing needs and market fluctuations
RetireView can include two automatic features to ensure that the plan participants' asset allocation models follow their original investment strategies despite market changes.
- Aging - automatically adjusts asset allocations to be more conservative closer to retirement.
- Rebalancing - automatically rebalances participant accounts on a quarterly basis to keep the investment mix in proportion to the desired targets.
Full range of asset allocation choices
RetireView is the latest in a series of flexible asset allocation choices available from The Principal that include:
- Two target-date options - Principal LifeTime Funds and Principal Trust Target Date Funds
- A target-risk option - Principal Strategic Asset Management Portfolios
- The Principal Managed Account ProgramSM - offers ongoing independent investment advice through Ibbotson Associates
About Principal LifeTime Funds
Principal LifeTime Funds offer an asset allocation mix that changes over time to correlate with specific target retirement dates. The portfolios generally include underlying mutual funds that are more aggressive when the target date is far away. The asset allocation gradually becomes more conservative as the target date approaches. The funds assume the target date is the date when the investor will start withdrawing money. The principal and the underlying assets of Principal LifeTime Funds are not guaranteed at any time, including at the target date. The funds bear investment risk at all times.
About the Principal Financial Group
The Principal Financial Group® (The Principal®) 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. A member of the Fortune 500, the Principal Financial Group has $284.7 billion in assets under management and serves some 18.9 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.
Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be obtained from your local representative or by contacting us at 1.800.547.7754. Please read the prospectus carefully before investing.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed income investment options are subject to interest rate risk, and their value will decline as interest rates rise.
Asset allocation does not guarantee a profit or protect against a loss.
Additionally, there is no guarantee these investment options will provide adequate income at or through retirement. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
Each Principal LifeTime portfolio is available through a Separate Account or Principal Funds, Inc. mutual fund. Principal LifeTime Separate Accounts are made available through a group annuity contract with the Principal Life Insurance Company, Des Moines, IA 50392. May not be available in all states or U.S. Commonwealths.
The individual Principal LifeTime Funds may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors of Principal Funds, Inc., determines at the time that the combination is in the best interests of Fund shareholders.
Principal LifeTime Separate Accounts invest wholly in the Institutional share class of the corresponding Principal LifeTime Fund.
An investment option's value and investment return will fluctuate so that values upon redemption may be worth more or less than original cost. For additional information visit principal.com.
Performance of the individual models may fluctuate and will be influenced by many factors.
The Principal TrustSM Target Date Funds, is a series of collective investment funds established and maintained by Delaware Charter Guarantee & Trust Company, conducting business as Principal TrustSM Company ("Principal Trust"), a member of the Principal Financial Group®. Principal Trust Target Date Funds are not mutual funds and are not registered with the Securities and Exchange Commission, the State of Delaware or any other regulatory body. Principal Trust Target Date Funds are not guaranteed by Principal Trust, any affiliate, the FDIC or any other governmental agency.
Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 1.800.547.7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor®. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392.