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The Principal Debuts New Variable Annuity: Principal Pivot Series

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Financial professionals have a new option for helping clients feel financially confident with a unique variable annuity introduced this month by the Principal Financial Group(R). Principal Pivot Series Variable Annuity (Principal Pivot Series) gives clients the “power to pivot” as their needs change and life moves them in different directions. Principal Pivot Series brings together the flexibility of investments, tax deferral, death benefit protection and the opportunity to seamlessly transfer from accumulation to income.

With a broad assortment of traditional and nontraditional investment options, including alternative investments, real assets and managed volatility funds, Principal Pivot Series has the potential to appeal to many investors. Clients can take advantage of tax deferral for non-qualified assets, which can allow the value of an annuity to potentially grow faster than that of a comparable taxable investment.

“At The Principal, we are passionate about helping people transition into retirement in a way that is unique and customized to fit their personal goals,” said Jerry Patterson, senior vice president of retirement and investor services at The Principal(R). “We also understand that client needs are ever-changing, so we designed this product to help them feel financially confident when life shifts and changes. Principal Pivot Series is unique in its flexibility to help clients grow savings during working years, protect their assets by purchasing deferred guaranteed income and receive access to their money when they need it.1 The optional death benefits available give clients the opportunity to provide additional protection for beneficiaries in the event of death.”

In addition to a diverse investment platform, Principal Pivot Series offers clients three investment approaches: 1) personalized strategy for clients who prefer to create a fully-customizable investment portfolio based on their investment objectives; 2) guided strategy for those who want guidance on which investments to choose that meet their risk profile and investment objectives; and 3) asset allocation strategy for those who want a managed approach to investing and diversification that includes a mix of stocks, bonds and other investment options.

Principal Pivot Series provides an innovative option for clients to transfer portions of their account value over time to establish a guaranteed income stream available at a future date, for no additional cost.2

“When clients are ready to move from saving to taking income, they’ll have the ability to transfer their money into the Deferred Income Rider,” said Patterson. “This rider acts as a personal pension plan and allows clients to seamlessly transfer all or a portion of their money into a guaranteed stream of income. It can be a powerful way to prepare for the moment when the paycheck goes away and the need for predictable, stable retirement income becomes critical.”

For clients wanting more flexibility in regard to accessing their accumulated value, this new variable annuity offers an optional liquidity feature, available for an additional cost, that provides access to 100% of their money at any time without surrender charges.

“We are excited to offer this new, versatile product for financial professionals to help their clients plan for life’s expected-and unexpected-events,” Patterson said. “Principal Pivot Series is a strong addition to our suite of retirement income solutions. The launch of this product demonstrates our commitment to the Retirement Income space and provides financial professionals another tool for their diverse client needs.”

For more research, analysis and insights from The Principal(R), visit The Principal Knowledge Center and connect with us on Twitter.

About the Principal Financial Group
The Principal Financial Group(R) (The Principal(R))3 is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500(R), the Principal Financial Group has $513.5 billion in assets under management4 and serves some 19.5 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.

1 Withdrawals taxed as ordinary income and if taken before age 59 1/2 , also subject to 10% IRS penalty.

2 Guarantees are subject to the claims paying ability of Principal Life Insurance Company.

3 “The Principal Financial Group” and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

4 As of Sept. 30, 2014.

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