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Target Date Series from The Principal

Managing Risk over a Lifetime of Investing


When it comes to saving for retirement, managing risk can be critical. But many investors find it a challenge to properly diversify, let alone address specific risks as they age. You can help take some of the pressure off by considering a well-diversified, professionally managed target date series option.

We were among the first to make available a target date mutual fund series and we're currently the largest mutual fund provider of active multi-managed target date choices and the fourth largest provider of target date lifecycle funds in the United States.[1] Highly diversified, our target date series are made available as a single investment option and based on a targeted retirement date.

We offer flexibility with two choices, each with a history of solid long-term performance:

Our target date series are multi-managed – meaning we select premier investment managers in their specialty which helps avoid any management-firm bias. It also provides exposure to investment managers that may only be available to institutional investors.

Learn how our target date series can help with lifelong investing:

Videos


Meet Jeff Tyler, Portfolio Manager (2:27)

Target date glide paths (4:08)

Drivers of change to portfolios (2:05)

Features of LifeTime (2:55)

About Principal LifeTime Portfolios

The Principal LifeTime portfolios, which are target date portfolios, invest in underlying Principal Funds. Each Principal LifeTime portfolio is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. As each Principal LifeTime portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The asset allocation for each Principal LifeTime portfolio is regularly re-adjusted within a time frame that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. Principal LifeTime portfolios assume the value of the investor's account will be withdrawn gradually during retirement. Neither the principal nor the underlying assets of the Principal LifeTime portfolios are guaranteed at any time, including the target date. Investment risk remains at all times.

About Principal TrustSMTarget Date Portfolios

Principal TrustSM To Retirement Funds may invest in various types of investments including underlying Principal Funds, and each is managed toward a particular target (retirement) date, or the approximate date an investor starts withdrawing money. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Retirement Income Fund) to accommodate an investor's progression from asset accumulation years to income-generation years. It is expected that during the target year, a Fund's underlying allocation will reach its most conservative allocation, matching that of the Principal Trust Retirement Income Fund. Neither the principal nor the underlying assets of the Principal Trust To Retirement Funds are guaranteed at any time, including the target date. Investment risk remains at all times.


[1]
Based on the data from most recent Strategic Insight Lifecycle Fund Data Report, 3rd Quarter 2013. "Active multi-managed target date funds" describes the underlying assets.

Investors should carefully consider a mutual fund's investment objectives, risks, charges and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling 1.800.547.7754. Read the prospectus carefully before investing.

Before directing retirement funds to a separate account, investors should carefully consider the investment objectives, risks, charges and expenses of the separate account as well as their individual risk tolerance, time horizon and goals. For additional information contact us at 1.800.547.7754 or by visiting principal.com

Delaware Charter Guarantee & Trust Company, conducting business as Principal TrustSM Company ("Principal Trust"), a member of the Principal Financial Group®, maintains various Collective Investment Funds, as trustee, under certain plan and declaration of trust documents, which may be amended from time to time ("Trusts"). Principal Trust has discretion over the investment of the Collective Investment Funds which may only consist of assets of qualified plans. Principal Management Corporation ("PMC"), an affiliate of Principal Trust, provides nondiscretionary advisory services to Principal Trust with respect to the Collective Investment Funds. The Collective Investment Funds are not guaranteed by Principal Trust, PMC, any of their affiliates, the FDIC or any other governmental agency. Participation in Collective Investment Funds offered by Principal Trust is governed by the terms of the applicable Trust and a Participation Agreement. Visit principal.com to obtain a copy of the relevant Collective Investment Fund Summary document for addition important information.

Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost.

Asset allocation does not guarantee a profit or protect against a loss. 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. International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments. These risks are magnified in emerging markets.There is no guarantee that a target date investment will provide adequate income at or through retirement.

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. Investment options may not be available in all states or U.S. commonwealths. Separate Accounts are available through a group annuity contract with Principal Life Insurance Company. See the group annuity contract for the full name of the Separate Account. Principal Life Insurance Company reserves the right to defer payments or transfers from Principal Life Separate Accounts as permitted by the group annuity contracts providing access to the Separate Accounts or as required by applicable law. Such deferment will be based on factors that may include situations such as: unstable or disorderly financial markets; investment conditions which do not allow for orderly investment transactions; or investment, liquidity and other risks inherent in real estate (such as those associated with general and local economic conditions). If you elect to allocate funds to a Separate Account, you may not be able to immediately withdraw them. May lose value. Not a deposit. No bank or credit union guarantee. Not insured by any Federal government agency.

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Contact Us

Our Advisor Support Team can help financial professionals put our target date series to work for your clients today, 1.800.952.3343.

Individual investors can learn more by calling 1.800.986.3343.

For more information visit principal.com.

For more information visit principal.com

 

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