Products August 7, 2008

Principal Releases Retirement Income White Paper

A new white paper from the Principal Financial Group helps financial professionals guide their clients to a personalized retirement income strategy, the company said.
Reported by

The Principal said the white paper will give advisers an easy way to see the trade-offs and advantages of different retirement income methods to determine the best fit for a client. Sustaining Income through Retirement: Four Strategies for Retiring Clients compares and contrasts four key methods of turning retirement savings into an income stream:

  • mutual funds with automated income payments
  • variable annuities with guaranteed minimum withdrawal benefits (GMWB)
  • income annuities
  • combinations of mutual funds and income annuities

“Our analysis makes it clear there is no one-size-fits-all solution for creating and managing an income stream for life,’ said Drew Denning, vice president, Income Solutions at The Principal, in a press release. “Many financial professionals don’t have the time or tools to objectively and simply compare the myriad of income producing options. This white paper helps them determine which options—or combinations of options—best meet the unique needs of each of their clients.’

The white paper evaluates each strategy against factors that impact income in retirement:

  • access to the account balance
  • potential for growth
  • inflation risk
  • market risk
  • guarantees (or lack thereof)
  • income predictability

The report is available at www.principal.com/research.

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