PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES

Transcription

1 PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES FOR GROWTH OR INCOME INVESTORS ASSET ALLOCATION

2 PRINCIPAL ASSET ALLOCATION FOR GROWTH OR INCOME INVESTORS Many ingredients go into the making of an effective investment portfolio. When developing an investment program, you need to consider your financial goals and ask yourself these important questions:? How much risk should I take? What asset classes should I choose? How should I spread my money among the different categories? CHOOSE YOUR INVESTMENT STRATEGY The answers to these questions can be different from investor to investor. It all depends on your investment objectives and what stage of life you are in. INVESTING FOR GROWTH This strategy is for those seeking long-term growth. Ideally, money should remain invested for at least five years. (Complete the Principal Growth Asset Allocation Questionnaire on pages 3 6.) INVESTING FOR INCOME This strategy balances income and growth, so it typically appeals to those nearing or in retirement. (Complete the Principal Asset Allocation Questionnaire on pages 9 12.) Each questionnaire is designed to assist you in structuring a portfolio that reflects your personal needs. The questionnaires help address your investment objectives, time horizon, and tolerance for financial risk. Points are assigned to each response and tabulated to suggest an investment strategy consistent with your personal financial goals. If any of this information changes in the future, your financial professional can help you assess the impact such changes might have on your portfolio allocations. A separate Principal Growth Asset Allocation Questionnaire or Principal Asset Allocation Questionnaire should be completed for each of your financial objectives. MAY LOSE VALUE NOT A DEPOSIT NO BANK OR CREDIT UNION GUARANTEE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY 1

3 DETERMINE YOUR INVESTMENT PROFILE A STEP-BY-STEP GUIDE TO GETTING STARTED STEP 1 Complete the investment questionnaire. STEP 2 Add up the point totals for each question and match your time horizon and risk tolerance scores to determine your personal investment profile. STEP 3 Take advantage of the expertise of your financial professional to help you tailor an investment strategy that aligns your goals and objectives. GENERAL INFORMATION NAME SPOUSE'S NAME ADDRESS CITY STATE ZIP BIRTHDATE (MONTH/DAY/YEAR) NO. OF DEPENDENTS BUSINESS PHONE HOME PHONE OCCUPATION SELF-EMPLOYED o YES o NO EMPLOYER The information provided in this brochure is not intended to be investment advice and does not constitute a recommendation to buy, hold or sell securities. 2

4 INVESTING FOR GROWTH PRINCIPAL GROWTH ASSET ALLOCATION QUESTIONNAIRE FOR INVESTORS SEEKING LONG-TERM GROWTH Please keep in mind that this information is just a guideline for educational purposes only; it isn't intended to tell you how to invest. Be sure to complete the Investor Profile Quiz periodically to make sure that the investment options you elected continue to match your risk profile. INVESTMENT TIME HORIZON TIME HORIZON Q1 In how many years will you begin taking withdrawals from your portfolio? 1 PT A Less than 1 year B 1 2 years 3 PTS C 3 5 years 1 E years 15 PTS 5 PTS D 6 9 years 15 PTS F years G More than 25 years Q2 Once you begin making withdrawals, how many years will you be withdrawing your money from the account? 1 PT A Lump sum or fully withdraw over a period of less than 1 year B Over a period of 1 2 years C Over a period of 3 5 years 3 PTS 5 PTS D Over a period of 6 9 years E Over a period of years F Over a period of years G More than 25 years Q3 TIME HORIZON TOTAL (Sum of questions Q1 Q2) RISK TOLERANCE RISK/RETURN TRADEOFF Investment decisions are generally determined by a risk/return tradeoff. Risk is any possibility of loss to the value of your portfolio. Return is the amount earned or profit on an investment. How would you respond to the following statement? Protecting my portfolio from loss is more important to me than achieving high returns. A Strongly agree 5 PTS C Risk and return are 1 2 PTS B Agree equally important D Disagree E Strongly disagree Q4 4 PTS Riskier investments have the potential to experience higher long-term capital appreciation. Likewise, less risky investments have less potential for high long-term capital appreciation. With this in mind, which of the following statements is most consistent with your investment attitude? A I am willing to endure losses to maximize the chance of experiencing high long-term capital appreciation. B I am equally concerned with avoiding losses and experiencing long-term capital appreciation. C Avoiding losses is more important to me than experiencing long-term capital appreciation. 3

5 RISK/RETURN TRADEOFF (continued) Q5 Historically, investors who have received higher long-term returns have also experienced major changes in the value of their investments. Higher long-term returns come with a greater chance of loss. Conservative Investments Lower Risk/Lower Returns Higher Risk/Higher Returns Risky Investments Which of the following statements best describes your investment philosophy? 3 PTS 7 PTS 1 A I feel most comfortable with stable investments that generate consistent, but lower returns year-to-year. I prefer to assume as little risk as possible. B I am willing to withstand some fluctuations in the value of my portfolio, but I prefer to be invested in less risky investments that reduce the likelihood of large losses. C I seek substantial investment returns and am willing to accept occasional short-term declines associated with this strategy. D I seek potentially high investment returns and am willing to accept the higher risk of potential losses associated with this strategy. RANGE OF RETURNS Q6 3 PTS 6 PTS 9 PTS The following table shows the ending values of $50,000 invested in four hypothetical portfolios over a three-year period. The returns for these portfolios may fall anywhere within these ranges. Which of the four hypothetical portfolios would you feel most comfortable accepting? Portfolio D VALUE OF $50,000 AFTER THREE YEARS Worst case value Likely value Best case value $45,000 $61,000 $74,000 $42,000 $63,000 $81,000 $39,000 $65,000 $89,000 Portfolio D $36,000 $66,000 $98,000 VOLATILITY Q7 1 4 PTS This graph depicts the value of three hypothetical investments over a four-year period. Riskier portfolios experience more frequent and significant changes in value. Higher levels of risk go along with potentially higher levels of long-term returns. In which of the portfolios would you feel most comfortable investing? Dollars $ PORTFOLIO GROWTH OVER A 4-YEAR PERIOD Year 1 Year 2 Year 3 Year 4 The hypothetical example is for illustrative purposes only and does not represent the performance of any specific investment. Results will fluctuate and cannot be guaranteed. 4

6 VOLATILITY (continued) Q8 4 PTS Over the course of twenty years, a portfolio will experience a variety of returns. The following question details the range of results for three hypothetical investments. In which portfolio would you feel most comfortable investing? An average return of 6% with one negative year and where the majority of returns ranged from 5% to 10% each year. An average return of 8% with four negative years and where the majority of returns ranged from 5% to 15% each year. An average return of 10% with increased volatility, five negative years, and several years above 20%. 40% (0-5) (5-10) (10-15) (15-20) (20-25) POTENTIAL HIGHER RETURNS MAY COME WITH INCREASED VOLATILITY Each dot represents a single year of hypothetical market performance. INFLATION Q9 2 PTS 6 PTS Over time, inflation can have a significantly negative impact on what your money can buy. By keeping pace with inflation, investors can maintain their buying power over time. Which of the following choices best reflects your attitude toward inflation and risk? A Although I may only keep pace with inflation, my main goal is to avoid loss. B While accepting a low level of risk, my main goal is to earn slightly more than inflation. C My main goal is to increase the value of my portfolio. Therefore, I am willing to accept short-term losses associated with more aggressive investment options. D I am willing to endure large fluctuations in the value of my portfolio for the chance of obtaining a higher return and beating inflation. LOSS AVERSION Q10 1 The table below shows risk and return characteristics of three hypothetical portfolios. With higher prospective annual returns, possible losses also increase. In which portfolio would you want to invest? Most likely annual return Possible annual loss Gain of 11% Loss of 26% Gain of 9% Loss of 18% 5 PTS Gain of 6% Loss of 10% Q11 I am comfortable with investments that may frequently experience large declines in value if there is a potential for higher returns. These frequent and large declines may be experienced at an in opportune time, such as at the end of the investment horizon. A Strongly disagree 7 PTS 3 PTS B Disagree 1 C Agree D Strongly agree 5

7 LOSS AVERSION (continued) Q12 4 PTS In some cases, aggressive investments not only have negative returns, but they also experience sustained periods where the value of the investment significantly declines and takes several years to rebuild wealth. The table below shows the historical performance of three hypothetical portfolios over a 20-year period. Which portfolio would you be most comfortable with? Compounded annual return Number of years necessary to recoup worst loss of the period 8% 0 10% 4 12% 6 ABILITY TO STAY THE COURSE Q13 Most investments fluctuate over the short term. Suppose you invested $30,000 in a mutual fund this year with the intention of holding it for ten years. If this investment lost value during the first year, at what value of your initial $30,000 investment would you sell and move to a more stable investment? A $28,500 4 PTS C $25,500 9 PTS 2 PTS B $27,000 6 PTS D $24,000 or less E I would not sell RISK TOLERANCE TOTAL (Sum of questions Q3 Q13) YOUR PERSONAL INVESTMENT PROFILE Now that you have completed the investment questionnaire, record your Time Horizon total (from page 3) and your Risk Tolerance total (from page 6). TIME HORIZON TOTAL RISK TOLERANCE TOTAL Your calculated scores above provide the foundation from which to build the investment solution that maybe right for you. Using the table below, match the Time Horizon total with the Risk Tolerance total to find the investment profile that best matches your investment personality. Then match your profile with the investment choices on the following page this profile, along with the expertise of your financial professional, can help determine the appropriate strategy to help you meet your goals. Risk Tolerance Score TIME HORIZON SCORE Model I Model I Model I Model I Model I Model I Model II Model II Model II Model II Model I Model II Model III Model III Model III Model I Model II Model III Model IV Model IV Model I Model II Model III Model IV Model V 6

8 INVESTING FOR GROWTH WHICH TYPE OF GROWTH INVESTOR ARE YOU? Few investors have the time or knowledge to allocate investment assets effectively. The Principal Financial Group (The Principal ) offers asset allocation services which feature models designed by a recognized industry expert Morningstar Investment Management LLC (Morningstar Investment Management). Morningstar Investment Management employs modern portfolio theory to create appropriate asset allocation models that help you balance the potential for return with the right level of risk for your particular solution. n n n n U.S. n Model I Model II Model III U.S. 10% id ity 45% 32% 11% 5% 21% 18% 35% Model II 28% U.S. 5% U.S. 18% U.S. 11% Model III 19% U.S. 17% U.S. 10% 11% 9% U.S. 11% Model III 19% 21% 18% U.S. 17% 11% Model IV 32% 24% U.S. 24% 9% 19% Model I Is designed for the more cautious investor, one with sensitivity to short-term losses and/or a shorter time 28% horizon. It is targeted toward the investor seeking investment stability from his or 21% her investable 32% assets, but still expecting to beat inflation over the long term. The main objective U.S. of the Model I investor is to preserve capital while providing income 18% potential. Investors may expect fluctuations in 18% the values of this portfolio to be smaller and less frequent. U.S. 17% 11% Model II Is appropriate for the investor who seeks both modest capital appreciation and income potential from his or her portfolio. This investor will have either a moderate time horizon or a slightly higher risk tolerance than the more conservative investor in the previous model. While Model II is still designed to preserve 24% capital, fluctuations in the values of this portfolio may occur from year to year. Model IV U.S. 24% Model V U.S. 31% Model III Will best suit the investor who seeks relatively stable growth with a lower level of income potential. An investor in the moderate risk range will have a higher tolerance for risk and/or a longer time horizon than either of the previous investors. The main objective of a Model III investor is to achieve steady growth while 39% limiting fluctuation to less than that of the overall stock markets. 32% 30% Incom May not reflect current allocations. All investment products involve risk. The investment, when redeemed, may be worth more or less than the original investment. Incom 7 Asset Allocati

9 . 7% 24% 13% Model IV U.S. 24% Model V 32% Model V Model IV Is designed for investors with a relatively high tolerance U.S. for risk and a longer 31% time horizon. These investors have little need for current income and seek above-average growth from their Investable assets. The U.S. main objective of Model IV is capital appreciation, and its investors should be able to tolerate moderate fluctuations in their 39% portfolio values. 30% 39% U.S. 31% 30% Model V Is appropriate for investors who have both a high tolerance for risk and a long investment time horizon. The main objective of Model V is to provide high growth without providing current income. Their portfolios may have larger and more frequent fluctuations from year to year, making Model V unsuitable for investors who do not have an extended investment horizon. 445 *May not reflect current allocations. d 445 d The Principal Growth Asset Allocation Questionnaire is meant to offer suggestions you may wish to consider. The final decision is yours, based on your individual situation. At a minimum, you should review your allocation Asset decisions Allocation on an annual basis. 145 This review should take into account your changing needs,existing and any additional goals, and your current financial status. I/we understand the suggested investment strategy is based on the information that I/we have provided and that subsequent changes in my/our financial situation may cause these suggestions to change. 294 SIGNATURE Allocation 145 U.S % DATE SIGNATURE.S DATE.S % Real Estate 1225 Other % 8

10 INVESTING FOR INCOME PRINCIPAL INCOME ASSET ALLOCATION QUESTIONNAIRE FOR INVESTORS SEEKING A BALANCE OF INCOME AND GROWTH Please keep in mind that this information is just a guideline for educational purposes only; it isn't intended to tell you how to invest. Be sure to complete the Investor Profile Quiz periodically to make sure that the investment options you elected continue to match your risk profile. INVESTMENT TIME HORIZON TIME HORIZON Q1 To what age group do you belong? 1 PT A Under 60 3 PTS C PTS 2 PTS B PTS D E 76 and older TIME HORIZON TOTAL RISK TOLERANCE RISK/RETURN TRADEOFF Q2 Sometimes investment losses are permanent, sometimes they are prolonged, and sometimes they are short-lived. How might you respond when you experience investment losses? 6 PTS 11 PTS 17 PTS A I would sell my risky investments immediately if they suffered substantial declines. B Although declines in investment value make me uncomfortable, I would wait at least three months before adjusting my portfolio. C I can endure significant declines in the value of my investment and would wait at least one year before adjusting my portfolio. D Even if my investment suffered a significant decline over several years, I would continue to follow my long-term investment strategy and not adjust my portfolio. 9

11 RISK/RETURN TRADEOFF (continued) Q3 Over time, inflation can have a significant negative impact on how much your money can buy. By keeping pace with inflation, investors can maintain the buying power of their money over time. This means that your money will be able to purchase the same basket of goods year after year, even while prices have increased. Inflation also eats away the real returns of your investments. For instance, if you could have invested $1 in an investment similar to the S&P 500 Stock Index in December 1974, the dollar would have grown to $57.00 by the end of the year However, after you take into account inflation, the real return on that dollar investment would only be $ Index Values (USD) Dec 1976 Dec 1978 Dec 1980 Dec 1982 Dec 1984 Dec 1974 Dec 1986 Dec 1988 Dec 1990 Dec 1992 Dec 1994 S&P 500 TR USD INDEX LINE GRAPH Dec 1996 Dec 1998 Dec 2000 Dec 2002 TIME Frequency: Annually Dec 2004 Dec 2006 Dec 2008 Dec 2010 S&P 500 TR USD REAL Dec 2011 Dec 2012 Dec 2013 $87.87 $19.56 Source: Morningstar Investment Management. The S&P 500 Composite Total Return is an unmanaged, market capitalization-weighted price index composed of 500 widely held common stock listed on the New York Stock Exchange, American Stock Exchange, and Over-The-Counter market. The index includes dividends reinvestments. The value of the index varies with the aggregate value of the common equity of each of the 500 companies. The S&P 500 (Inflation Adjusted) REAL is an unmanaged index that is adjusted for inflation. Indices are unmanaged and not available for direct investment. This is for illustrative purposes only and not indicative of any investment option. Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data shown. Generally, higher returns can only be achieved by accepting greater risk. Which of the following choices best reflects your attitude toward inflation and risk? 6 PTS 1 16 PTS A My main goal is to avoid loss, although I may only keep pace with inflation. B My main goal is to earn slightly more than inflation, while taking on a low level of risk. C My main goal is to increase my portfolio s value. Therefore, I am willing to accept shorter losses, but I am not comfortable with extreme performance shifts that may be experienced in the most aggressive investment options. D My main goal is to maximize my portfolio value and I am willing to take on extreme levels of risk and performance shifts in my portfolio to do so. 10

12 ABILITY TO STAY THE COURSE Q4 All investments have some amount of risk, or price fluctuation, associated with them. Downside risk, when your portfolio value declines, means your income stream from your portfolio will also decline. If you have an initial $1,000 monthly income stream from your portfolio, at what point in time in the first year would you consider changing the makeup of your portfolio in favor of a more stable investment? 4 PTS 12 PTS 17 PTS A When my portfolio income stream declines to $970 (3% decline). B When my portfolio income stream declines to $940 (6% decline). C When my portfolio income stream declines to $900 (10% decline). D When my portfolio income stream declines to $820 (18% decline). E I would not sell, choosing to maintain my long-term portfolio. Monthly $1,000 $950 $900 $850 $800 $750 $700 $970 $940 $900 $820 A B C D Q5 If the U.S. stock portion of my portfolio were to lose 10% of its value over a one month period, consistent with the overall market, I would prefer to cut my losses and shift into a more conservative investment strategy. How do you feel about the previous statement? A Strongly Agree 6 PTS B Agree 16 PTS C Disagree D Strongly Disagree LOSS AVERSION Q6 4 PTS 14 PTS 17 PTS Portfolios with the highest average returns also tend to have the highest chance of short-term losses. Short-term losses are a concern in the disbursement phase due to the short time horizon an investor has to make up any losses. The table below provides the average dollar return of five hypothetical portfolios of $50,000 and the possibility of losing money over a one-year holding period. Please select the portfolio with which you are most comfortable. Portfolio D Portfolio E Portfolio PROBABILITIES AFTER ONE YEAR Possible Average Value at the End of One Year Chance of Losing Money at the End of One Year $51,750 19% $52,250 22% $52,750 Portfolio D $53,250 27% Portfolio E $53,750 29% 11

13 INFLATION Q7 The graph below shows the range of possible gains and losses for five hypothetical $50,000 portfolios. The bars show the potential gain or loss of the portfolio above or below that of inflation after five years. POSSIBLE FIVE-YEAR PERFORMANCE: $50,000 INVESTMENT ($3,523.70) $15, Range of Gains and Losses Above and Below Inflation 4 PTS ($5,701.03) $23, ($8,434.14) $32, PTS Portfolio D 17 PTS Portfolio E Portfolio D ($10,363.53) $40, Portfolio E ($12,494.01) $48, $(30,000) $(20,000) $(10,000) $- $10,000 $20,000 $30,000 $40,000 $50,000 RISK TOLERANCE TOTAL (Sum of questions Q2 Q7) YOUR PERSONAL INVESTMENT PROFILE Now that you have completed the investment questionnaire, record your Time Horizon total (from page 9) and your Risk Tolerance total (from page 12). TIME HORIZON TOTAL RISK TOLERANCE TOTAL Your calculated scores above provide the foundation from which to build the investment solution that maybe right for you. Using the table below, match the Time Horizon total with the Risk Tolerance total to find the investment profile that best matches your investment personality. Then match your profile with the investment choices on the following page this profile, along with the expertise of your financial professional, can help determine the appropriate strategy to help you meet your goals. Risk Tolerance Score TIME HORIZON SCORE Model I Model I Model I Model I Model I Model II Model II Model II Model II Model I Model III Model III Model III Model II Model I Model IV Model IV Model III Model II Model I Model V Model IV Model III Model II Model I 12

14 INVESTING FOR INCOME WHICH TYPE OF INCOME INVESTOR ARE YOU? Few investors have the time or knowledge to allocate investment assets effectively. The Principal offers asset allocation services which feature models designed by a recognized industry expert Morningstar Investment Management. Morningstar Investment Management employs modern portfolio theory to create appropriate asset allocation models that help you balance the potential for return with the right level of risk for your particular solution. n n n n U.S. n Model I Model II Model III 49% 41% U.S. 6% U.S. 2% Model 2% II Model I Is for the most conservative investor who seeks greater protection from risk. While not immune from downturns, the portfolio 28% 35% is oriented toward fixed-income investments with some exposure to equity markets for return enhancement and risk diversification. This 32% model is 40% most appropriate for someone who feels that protection from potential downside risk 13% is much more important than potential upside return, and feels uncomfortable with greater equity investing. 6% Model III U.S. 6% 10% 22% U.S. 8% Model IV 40% 35% 13% Model II Is for the conservative income-seeking investor who seeks protection from risk with the goal of slightly outpacing inflation over the long term. The 28% model is dominated by fixed-income investments and has limited exposure to equity markets to potentially enhance long-term returns. Investors may expect fluctuations in the values of 32% this portfolio to be smaller and less frequent. 22% U.S.. 6% 6% Model III U.S. 6% 10% U.S. 8% Model IV 13% Model V U.S. 12%. ll/mid % 32% 10% 28% 22% U.S. 8% Model III Best suits long-term investors who seek income stability but also desire some growth in their investments. The portfolio 20% does have risks that could affect short-term performance and is appropriate for investors comfortable with a chance of seeing 20% account values decline in a given year. 13% U.S. U.S. 12% 17% U.S. 27% 16% Incom May not reflect current allocations. All investment products involve risk. The investment, when redeemed, may be worth more or less than the original investment. Incom 13 Asset Allocati

15 Model IV Model V 13% Model V U.S. U.S. 12% 20% Model IV Is appropriate for longer-term investors who want a more balanced approach to risk and return in their investments. This portfolio is for those who seek U.S. reasonable but relatively stable growth over the 20% long term. The investor should feel more comfortable with 27% swings in annual returns and a chance of seeing account values decline in a given year. 17% U.S. 16% 20% 17% 20% U.S. 27% % Model V Will work for long-term moderate investors familiar with equity investing and the risk it involves. The portfolio still seeks relatively stable investment growth, but has slightly higher risk associated with it. The portfolio is appropriate for investors comfortable with swings in annual returns, accepting of the possibility of account value declines in any given year and who consider potential return as being slightly more important than balancing risk. y *May not reflect current allocations. d The Principal Asset Allocation Questionnaire is meant to offer suggestions you may wish to consider for your asset allocation needs. The final decision is yours, based on your individual situation. At a minimum, you Asset should Allocation review your allocation 145 decisions on an annual basis. This review should take into account your changing needs, existing and additional goals, and your current financial status. I/we understand the suggested investment strategy is based on the information that I/we have provided and that subsequent changes in my/our financial situation may cause these suggestions to change. 294 d 5483 U.S. SIGNATURE % DATE Allocation 145 SIGNATURE 173 DATE.S. 294 Real Estate 1225.S % Other % 14

16 Before investing in mutual funds or variable annuities, investors should carefully consider the investment objectives,risks, charges and expenses of the funds or contract and the underlying investment options. This and other information is contained in the free prospectus, and, if available the summary prospectus which can be obtained from your local representative. Please read the prospectus and, if available the summary prospectus carefully before investing. A mutual fund s share price or a variable annuity's unit value and investment return will vary with market conditions and the principal value of an investment when you sell may be more or less than the original cost. Asset allocation/diversification does not guarantee a profit or protect against a loss. Small-cap and mid-cap investment options are subject to more fluctuation in value and may have additional risks than other investment options with stocks of larger, more stable companies. 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. investment options involve greater risk, including heightened volatility, than fixed-income investment options. -income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principals of bond investment options nor their yields are guaranteed by the U.S. government. -income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. Following an asset allocation model does not assure a profit or guarantee that an individual will not incur a loss. Performance of the individual models may fluctuate and will be influenced by many factors. In applying particular asset allocation models to their individual situations, individuals should consider their other assets, income and investments (e.g., equity in a home, IRA investments, savings accounts and interests in other qualified and nonqualified plans) in addition to their interests in a retirement plan Morningstar Investment Management LLC (Morningstar Investment Management). All rights reserved. Morningstar Investment Management is a registered investment adviser. The Morningstar Investment Management name and logo are either trademarks or service marks of Morningstar Investment Management. This questionnaire is provided as education and guidance only. As an investor, you should consult with your financial professional about your responses to this questionnaire and other relevant factors that you should consider before making an allocation decision. The questionnaire is made available through a license agreement with the Principal Financial Group, and use by an investor in no way establishes a relationship (including advisory relationship) between the individual and Morningstar Investment Management. Past performance does not guarantee future results. Morningstar Investment Management is not an affiliate of any company of the Principal Financial Group. WE LL GIVE YOU AN EDGE Insurance issued by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities and advisory products offered through Principal Securities, Inc., 800/ , member SIPC. Principal Life, Principal Funds Distributor, and Principal Securities, Inc. are members of the Principal Financial Group, Des Moines, IA MM /2016 t yg 2016 Principal Financial Services, Inc.