1. YOUR PATH TO FINANCIAL SECURITY Name, title, designation(s) The Principal Financial Group  Date

2. YOUR PATH TO FINANCIAL SECURITY While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of the Principal Financial Group ® are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. plan administrative services offered by Principal Life. Securities offered through Princor Financial Services Corp., 800-247-1737, Member SIPC and/or independent broker/dealers. Principal National, Principal Life, and Princor ® are members of the Principal Financial Group ®, Des Moines, IA 50392. No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from the Principal Financial Group ®. Copyright © 2014 Principal Financial Services, Inc. BB11147-01 I 04/2014 |t140226027b

3. YOUR PATH TO FINANCIAL SECURITY While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of the Principal Financial Group ® nor the representatives presenting this material are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance issued by many fine carriers. Securities offered through Princor Financial Services Corp., 800-247-1737, Member SIPC and/or independent broker/dealers. Princor ® is a member of the Principal Financial Group ®, Des Moines, IA 50392. is not an affiliate of any member company of the Principal Financial Group ®. No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from the Principal Financial Group ®. Copyright © 2014 Principal Financial Services, Inc. BB11147-01 I 04/2014 |t140226027b

4.  Discuss the foundation of financial security  Discover why people don’t become financially successful  Identify steps to help you reach financial security OBJECTIVES YOUR PATH TO FINANCIAL SECURITY

5. FOUNDATION OF FINANCIAL SECURITY Financial security can be achieved when built on a solid foundation. YOUR PATH TO FINANCIAL SECURITY

6. FOUNDATION OF FINANCIAL SECURITY Four types of foundational assets YOUR PATH TO FINANCIAL SECURITY Personal and business assets Government programs Insurance plans Employee benefits

7. INSTANT POLL NO. 1 How solid is your foundation of financial security? YOUR PATH TO FINANCIAL SECURITY Personal and business assets Government programs Insurance plans Employee benefits

8. WHERE WILL YOU BE AT AGE 65? Source: Social Security Administration, the Office of Policy, Income of the Population 55 or older, Table 3.A1, Total Money Income, 2010, March 2012. Annual income levels:  About half make less than $25,000  About 1 in 5 make between $25,000 and $40,000  17% make between $40,000 and $70,000  Only 15% will have an annual income over $70,000 $40-70K > $70K $25-40K $25K

9. INSTANT POLL NO. 2 YOUR PATH TO FINANCIAL SECURITY What roadblocks keep people from being more financially secure?

10.  Inflation  Taxes  Investments  Disability  Saving to spend  Procrastination COMMON BARRIERS TO SUCCESS YOUR PATH TO FINANCIAL SECURITY

11. * 11 Managing your money effectively is essential to your financial security. YOUR PATH TO FINANCIAL SECURITY

12. PAY YOURSELF FIRST YOUR PATH TO FINANCIAL SECURITY Save then spend………….or spend then save?

13. PAY YOURSELF FIRST YOUR PATH TO FINANCIAL SECURITY People who save first are more likely to have money when they want it and money when they need it. Education funds Retirement income Other important goals

14. QUALIFIED VS. NONQUALIFIED Qualified plans  A tax-deferred* way to save for retirement  Most common examples would be 401(k) plan or Individual Retirement Account (IRA)  IRS limits annual contributions Nonqualified investments  Offer wide variety of features and benefits  Examples include company stocks and mutual funds  Choices determine how you contribute, tax treatment of growth and access to your money * Ordinary income tax rates apply when money is withdrawn.

15. THE ADVANTAGE OF TAX-DEFERRED SAVINGS Assumptions: 8% interest, 30% combined tax bracket, saving $1,000/year Hypothetical example used for illustrative purposes only. Actual results will vary. End of yearTaxable totalTax-deferred total 1$1,056$1,080 10$13,660$15,645 20$37,216$49,423 25$54,776$78,954 30$77,836$122,346

16. THE ADVANTAGE OF TAX-DEDUCTIBLE SAVINGS Assumptions: 8% interest, 30% combined tax bracket, saving $1,000/year End of year Non-deductible and taxable total Tax-deductible and tax-deferred total 1$739$1,080 10$9,562$15,645 20$26,051$49,423 25$38,343$78,954 30$54,485$122,346

17. THE 401(K) ADVANTAGE Assumptions: 8% interest, 30% combined tax bracket, saving $1,000/year, 50% employer match End of yearTaxable totalTax-deferred total 1$739$1,620 10$9,562$23,468 20$26,051$74,134 25$38,343$118,432 30$54,485$183,519

18. * 18 What are some steps to financial security? YOUR PATH TO FINANCIAL SECURITY

19. 4 STEPS TO FINANCIAL SECURITY YOUR PATH TO FINANCIAL SECURITY 1. Set and Prioritize Goals. 2. Create an Action Plan. 3. Implement Your Plan. 4. Monitor Your Progress. FINANCIAL SECURITY Personal AssetsPersonal Assets Employment BenefitsEmployment Benefits Insurance PlansInsurance Plans Government ProgramsGovernment Programs

20.  Save time and effort  Find some peace of mind  Create a formal record  Get results  Change your plans  Develop a long-term relationship BENEFITS OF FINANCIAL STRATEGIES YOUR PATH TO FINANCIAL SECURITY

21. * 21 Develop your financial strategy. YOUR PATH TO FINANCIAL SECURITY

22. Q&A Questions? YOUR PATH TO FINANCIAL SECURITY

23. THANK YOU Presenter name Contact info - phone Contact info – email Contact info - website BB11147-01 I 04/2014 |t140226027b