The Principal Financial Group ® Debt Reduction Seminar

Americans Are in Debt $11.68 Trillion 1 48% of workers ages 45+ have total savings and investments of less than $25, % of workers have less than $1,000 saved for retirement 1 NerdWallet Finance as of April 2014; 2 EBRI Greenwald Retirement Confidence Survey (March 2014) 3 Does not include value of primary residence or defined benefit plans EBRI Greenwald Retirement Confidence Survey 2

Most have debt at some point Maintain a level that can easily be paid off A comfortable lifestyle — now and in retirement Managing Debt

Living paycheck to paycheck Balances on several credit cards Can only pay the minimum amount on credit card payments Debt load exceeds 36% of gross monthly income 4 4 Practical Money Skills for Life TM, July 2014: practicalmoneyskills.com/personalfinance/creditdebt/debt/load.php Recognizing the Debt Danger Zone

$13, Total payments to credit card company: $10,000 in credit card debt Know the ‘Real’ Cost of Your Debt 5 with an interest rate of 12.5% = Monthly payments of $224.98, for 5 years 5

Pay down your debt Consolidate your debt Increase monthly mortgage payments Investigate student loan options Consider credit counseling Take Control of Your Debt

Tap into your home equity Refinance your mortgage Use Your Home to Your Advantage

Enhance Your Savings for Retirement Pay yourself first Saving money is just as important as paying down debt Be sure you’re saving enough for retirement

CONTRIBUTION REDUCTION IN TAKE-HOME PAY PER WEEK 6 PROJECTED SAVINGS AT RETIREMENT 7 1%$5.05$49,782 2%$10.10$99,565 3%$15.15$149,347 5%$25.25$248,911 6 Reduction in pay assumes a 25% tax bracket, which includes local, state, and federal taxes; amounts shown reflect what a person might receive if not deferred. Reduced take-home pay is accurate for the initial year and would change based on participant's annual pay. Individual taxpayer circumstances may vary. 7 The savings at retirement assumes $35,000 in annual income, a 3.5% annual pay increase and a 7% annual rate of return over 30 years. The assumed rates of return in this chart are hypothetical and does not guarantee any future returns nor represent the returns of any particular investment. Amounts shown do not reflect the impact of taxes on pre-tax distributions. This is for illustrative purposes only. A Small Increase Can Make a Big Difference Assume $35,000 in annual income, 30 years to retirement, an annual 7% rate of return.

Put the Money You Save to Good Use Start an emergency fund 3 to 6 months of regular net income

Copyright © 2014 Principal Financial Services, Inc. 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 ®. Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost. It is possible for an investment option to lose value. 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 The Principal is not 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 and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group ® “The Principal ®”, Des Moines, IA PD I t pv | 07/2014 Questions?