Last Updated on November 14, 2023 by Ben
Principal Financial Retirement
What are your Principal Financial Retirement goals? Do you want to retire early or enjoy a more traditional retirement? Principal Financial is here to help! Principal Financial offers many different options for retirement. Our blog provides information on various topics of interest related to retirement, including Social Security benefits and 401(k) plans.
Principal Financial Group
Principal Financial Group is a company that offers financial products and services for businesses, individuals, and institutional clients. It has a lot of different products to help you with your retirement and insurance. You can also get advice from many different people in the company. It has six different parts to it.
They are Retirement and Income Solutions, the Principal Global Investors, the Principal International, U.S. Insurance Solutions, and Corporate. The Retirement and Income Solutions part provides retirement and related financial products and services to businesses, their employees, and other individuals.
The Principal Global Investors segment is a part of the company that provides asset management services to different types of people. They do this through managing assets, insurance operations, and corporate segments. Third-party clients also use them for their mutual fund business.
The Principal International segment offers products for pension accumulation, mutual funds, asset management, income annuities, and life insurance.
The U.S. Insurance Solutions part operates through two divisions: Pension & Mutual Funds and Asset Management Services. The specialty benefits insurance division consists of category dental and vision insurance, individual and group disability insurance, group life insurance, and non-medical fee-for-service asserts administration.
Individual life insurance division provides solutions for small & medium-sized businesses. The Corporate segment manages the assets of a company that has not been allocated to any other part. The company was established by Edward A. Temple in 1879 and is headquartered in Des Moines, IA.
Defined Contribution Solutions
Feel more confident with your retirement plan
You are provided a retirement plan, then that is a good thing. But you should know that it also has questions. There are things like plan compliance and participant engagement to be aware of too. They assist you with your 401(k) and 403(b) plans. These are options for your retirement plan. They help you follow the rules and have a lot of people participate in the plan while also making it easy to run.
Get retirement plans and services that can work for your business
We offer different types of plans for businesses. The plans depend on your business needs and how many people work there, but they can help you save money for retirement.
- 401(k), 403(b), 401(a), ESOP, KSOP, and further retirement plan kinds Plan bespoke to for-profit, tax-exempt, governmental, and union organizations
- Full-service or third-party administrator (TPA) utility arrangements
- Flexible combination with payroll providers
- An administrative amenity that limits your involvement in participant negotiation
- Fiduciary support that helps you stay compliant
- Personalized member education and engagement that may drive better outcomes
- If they don’t provide quality service, then they will fix the problem. If they can’t do that, then you don’t have to pay for it.
Get top-tier investment options
All retirement plans have access to investment management. They can expect:
- This company can invest in things. It is as good as the largest retirement and pension plans in the world.
- 86 sub-advised, retirement-focused investment options2
- A multi-manager approach with 42 institutional-quality managers
- Access to more than 5,000 surface mutual funds
- A service provider with asset allotment investment options
- Registered and non-registered investment products
Give your employees more retirement security
It is a good thing to do something nice for your employees. You can give them a defined benefit pension plan, nonqualified plan, or ESOP with their defined contribution plan.
The Principal Total Retirement SuiteSM is a good package for people who have multiple retirement plans. It is a lot of work to add more benefits packages, but the offers are worth the trouble.
Consider your options
We have been providing financial services for more than 135 years. They work closely with sponsors, financial professionals, and TPAs. Together they discuss your goals and develop solutions to help you meet your needs. They coordinate the many aspects of your retirement program.
Defined Benefit (DB) Employer Pension Plans
Having a pension plan has been a great help for people. It is a reward for being loyal to you. If your plan is active, they have resources that will help you. If it isn’t active, then they have resources to help with taking care of this problem.
- The patent-pending process will help meet your unique needs.
We have services that can help you with a DB pension plan. This is a type of plan where the company pays for all or most of an employee’s retirement benefits. They can help you manage this type of plan so that it is best for your company and also your employees.
Principal® is a company that has expertise in many areas. They are not just an investment company. They have administrative, actuarial, investment management, trust and custody, and pension risk transfer services.
- Manage the cost of your plan
Help make your bottom line better.
- Manage volatility and funded status risk
Market swings in 2020 might make you rethink your investment strategy. You can do this with the risk management dashboard. And, you should also track the essential financial statistics.
- Navigate regulations and the impact on your plan
We will help you find out what the rules are for your business. We’ll tell you what to do so that you follow the rules and stay in compliance.
- Develop a strategy to terminate your plan
Reduce the amount of volatility and limit the possibility that you will lose money. It is possible to do this with a formal termination strategy.
- Pension risk transfer reduces your liability.
We will labor with your company to find a way to fix your pension risk.
Pension Risk Transfer
How does a pension risk transfer work?
You want to fulfill your pension plan duty to employees in retirement. But it can be a challenge when you have unpredictable interest rates, growing fees, and other “what ifs” that can stand up to risk.
We know there are other things that might make you come to this workshop. Things like:
- Regulatory issues
- Pension Benefit Guaranty Corporation (PBGC) premium increases
- Administrative and actuarial expenses
- Investment performance
The good announcement is that you are in the right place. They will work with your company to find a way to help manage their pension risk.
Essentially, you give up your old plan and get a new one called a single-premium group annuity. This helps to protect your business so that your employees will always receive their benefits.
We provide services to help you take care of your employees when they retire. They ensure that you fulfill your responsibility to them.
Nonqualified Deferred Compensation Plans for Employees
Extra savings beyond qualified plan limits
Nonqualified deferred compensation plans are a way for people to save more money. The person who is saving the money can contribute up to 100% of their pay, depending on how the plan is designed. Nonqualified deferred compensation plans are also good for employers because they can make contributions, too.
Mutual funds are a way to make money. They can help people save for retirement. Studies show that 85% of the people who use mutual funds think they are important for saving money and reaching their goals.
Talk with your financial professional about whether or not they can help you to add a deferred comp plan to your benefits program.
Help employees close the gap
Some people get a lot of money from their jobs. But they do not save enough for retirement because they can only put in so much each year. Nonqualified deferred comp plans let them save more and get closer to the goal.
Is a nonqualified deferred compensation plan right for your organization?
To provide a nonqualified plan, your business needs to meet some criteria:
- In a public corporation, the shareholders own the corporation. In a private one, the people running it also own it. In a pass-through entity, all of the profits go to an owner. Sometimes non-governmental tax-exempt companies use this type of entity.
- The business will have money to pay for everything if something bad happens.
- People with a retirement gap because they can’t contribute to their qualified plans.
Make the most of your current deferred compensation plan
Enhancing your current deferred compensation plan can help you stay competitive and attract more talent. You can see that it’s a better benefits package for those who are good at the job.
- Simplified government reporting and disclosure rules
- You can put money in an account to make it grow. You don’t need the money now.
- Plans can have certain tax advantages. If you want this for your plan, you need to decide the structure.
A principal can look at your current plan and provide you with a better solution. They can help you combine all of your retirement plans into one tailored solution with the Principal Total Retirement Suite.
Stock Plan Solutions
Principal Equity Compensation Solutions
One simple experience
Principal Equity Compensation Solutions is a service that helps you get money. It is connected to other services, and it includes these features:
- You can use the Princoipal.com website to log in and see your retirement plan and your equity compensation plan.
- Participants call a number to learn about their retirement and equity compensation plans.
- Single Relationship- Employers only have one point of contact to talk about their retirement and equity compensation plans. The Principal Total Retirement Solutions service team will include a client service manager for the equity compensation plans. The relationship manager is supported by the client service manager.
One participant experience
People who are in the plan can see all of their holdings and activity on one site.
Task checklist prompts participants to take necessary actions plan account:
- Account set up
- Online grant acceptance
- Pre-vest tax elections
Intuitive modeling calculators help you estimate taxes, exercise costs, and net proceeds.
You will be able to contact customer service by calling the Principal participant contact center.
Automated, real-time, exportable statements from the participants.
One administrative experience
The employer website has a lot of information about equity compensation. It also has a portal that can be updated with employees’ information all the time. If employers make updates, then the self-service reporting will be able to meet requirements for internal and external reports.
Business Intelligence (BI) Reporting tool
- Innovate client-facing tool is a standout in the industry
- An employer can choose what they want to show on the dashboard.
- Robust ad-hoc reporting capabilities
- Provides charts, graphs, and data for regular reporting and board presentations.
- You can get money from the government. It will track your taxes and give you reports.
- The BI Reporting tool has all the industry-standard reports in addition to the BI Reporting tool.
Employee Stock Ownership Plans
What makes an ESOP different?
An ESOP is a type of retirement benefit. It is different than a 401(k) or pension plan.
- It’s an exclusive option for C- and S-corporations.
- Assets are primarily invested in company stock.
- It is a way to sell your business. You can sell all or just some of it.
For business owners, an ESOP can be a valuable piece of a succession plan. It can help to transfer ownership over time. This way, you will leave something behind when you are done working or when you leave the company. You get to choose when you leave your home. You do not have to leave it for someone else.
ESOPs are different from other methods of owning a company. They offer tax advantages, and they make employees happy.
Trust and Custody Solutions
We now have a new business. It is called “Wells Fargo Institutional Retirement & Trust’s (IRT) Trust and Custody Business,” and it has been added to the company. This will help us serve people better because they now have more things for them to do with the company. They are getting a new team that is experienced and knows how to take care of people. They like this team because they fit into the culture, which is about taking care of people. They also know how to use technology for good.
Bonus plans let your business reward and keep key employees. You can take a bonus and put it into a life insurance policy that belongs to the person who receives the bonus. It is tax-deductible for your company (subject to certain restrictions).
- Sometimes you can make money from your taxes.
- If you are an employee, your company might give you money when you die. It’s not taxed. The company might do this for your family.
Principal® Bonus is a plan that helps you keep the people who work for your company. It can help them save money, and it also helps you keep them at your company for the long term.
With the right plan, it’s possible to make your retirement dreams a reality. Principal Financial Retirement is one way you can be sure that you are saving enough for when the time comes. They have several different investment options and tools to help with financial planning so that you can reach your goals in life—whatever they may be!