The Total View - (Page 30) The Professional Difference Plans Offering Lifecycle/Lifestyle Investment Options Forty-one percent of employed adults in the United States prefer to have someone manage investments for them.1 That is why the Principal Managed Account ProgramSM was introduced to plan sponsors in mid-2005. 2005 22,696 2004 12,391 By the end of 2006, use of the Principal Managed Account Program grew four times. Roughly one in four larger companies offer, or plan to offer, managed accounts by the end of 2007, according to a study conducted by Hewitt Associates.2 0% 5,000 10,000 15,000 20,000 25,000 30,000 2006 26,528 Fast Facts Lifecycle and Managed Accounts Options The average age of participants selecting the Principal Managed Account Program was 43. Participants in their 30s and 40s and those with salaries below $50,000 were more likely to select the Principal Managed Account Program. More plan sponsors in the Midwest were offering the Principal Managed Account Program as an option than in other regions. To meet the increasing demand among employees, retirement plan sponsors with services provided by The Principal have four “do-it-for-me” options that can help simplify investing for their participants: • Principal LifeTime portfolios – participant selected based on retirement age. • Principal Strategic Asset Management (SAM) Portfolios – participant selected based on risk tolerance. • Russell LifePoints® portfolios – participant selected based on risk tolerance. • Principal Managed Account ProgramSM – participant selected program that provides professional third-party investment advice. 1 2007 Second Quarter Principal Financial Group Well-Being Index 2 2007 Hewitt Associates Survey: Trend in Retirement: http://www.hewittassociates.com/Intl/NA/enUS/AboutHewitt/Newsroom/PressReleaseDetail.aspx?cid=3678 30 http://www.hewittassociates.com/Intl/NA/en
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