Financial Strategies

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					         Conference Title and Date

Your Path to Financial Security
           Speaker Name, Title
    Financial Strategies


  Your Path to
Financial Security
This presentation/publication is believed to provide accurate and authoritative information in
regard to the subject matter covered. The accuracy of the content is not guaranteed, and it
is provided with the understanding that Principal Life Insurance Company is not rendering
legal, accounting, tax, or other professional advice. If legal advice or other expert
assistance is required, the services of a competent professional should be sought.
             Objectives

• Discuss the foundation of financial security
• Look at a study of a group of people
• Discover why people don’t become
  financially successful
• Identify the steps to financial security
Foundation of Financial Security

Financial security can
  only be achieved
   if built on a solid
     foundation.
    Foundation of Financial Security

Foundation often consists of four types of assets:
  • Personal & business assets
  • Employment benefits
  • Insurance plans
  • Government programs
Foundation of Financial Security

How solid is your
  foundation of
financial security?
                             Where will you be?

    For every 100 people starting their careers…




Source: Social Security Administration, Office of Research and Statistics, SSA Publication No. 13-11871, April 2000
 For every 100 people starting their careers...

At age 65:
• 16 are dead
• 66 have annual                                                   66 people                                             13 people
                                                                                                                          13.0%
  incomes under $30,000                                             66.0%



• 13 have annual
  incomes between
  $30,000-60,000                                                                                                         5 people
                                                                                                                           5.0%
• Only 5 have annual
  incomes over $60,000                                                                                       16 people
                                                                                                              16.0%




Source: Social Security Administration, Office of Research and Statistics, SSA Publication No. 13-11871, April 2000
        Barriers to Success

There are barriers
that can keep us
from achieving
our financial goals...
          Barriers to Success
• Inflation
• Taxes
• Bad Investments
• Disability
• Saving to Spend
• Procrastination
         Financial Security

I assume all of you want
  to be among those few
   who achieve financial
         security…
        Financial Security


Managing your money
effectively is essential to
  your financial security
                   Pay Yourself First
Most people spend first, and         A few people save first,
 try to save what little is left.    and spend the balance.
      SPEND                         SAVE




                                    SPEND
     SAVE
 People who save first have:

• Money when they want it
• Money when they need it
  – Education funds
  – Retirement income
  – Other important goals
                    The Advantage of
                  Tax-Deferred Savings
                  End of              Taxable                    Tax-Deferred
                  Year                Total                      Total
                  1                   $ 1,056                    $ 1,080
                  10                  $13,660                    $ 15,656
                  20                  $37,216                    $ 49,423
                  25                  $54,776                    $ 78,954
                  30                  $77,836                    $122,346


Assumptions: 8% interest, 30% combined tax bracket, saving $1,000/year
Hypothetical example used for illustrative purposes only. Actual results will vary.
               The Advantage of
             Tax-Deductible Savings
              End              Non-Deductible           Tax-Deductible
              of                 and Taxable              and Tax-Deferred
              Year                    Total                  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


Assumptions: 8% interest, 30% combined tax bracket, saving $1,000/year
                  The 401(k) Advantage
                 End of                Taxable          Tax-Deferred
                 Year                   Total               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



Assumptions: 8% interest, 30% combined tax bracket, saving $1,000/year,
50% employer match
           Financial Security
What are
   the steps
      to
       financial
           security?
 Four Steps to Financial Security

1. Set & Prioritize Your
   Financial Goals
2. Create an Action Plan
3. Implement Your Plan
4. Monitor Your Progress
Benefits of Financial Strategies

• Save time and effort
• Find peace of mind
• Create a formal record
• Get results
• Change your plans
• Develop a long-term relationship
           The Foundation of
           Financial Security

               Monitor Your Progress
               Implement Your Plan       FINANCIAL
PLANNING
               Create an Action Plan     SECURITY
              Set and Prioritize Goals




   NO                                     FINANCIAL
PLANNING                                 UNCERTAINTY
    Financial Strategies


 Ask Us About
   Helping You
  Develop Your
Financial Strategy
                                Thank You!
                                     Speaker Name, Title




Principal National Life Insurance Company and Principal Life Insurance Company Des Moines, Iowa 50392-0001
                                             www.principal.com

  Insurance products from the Principal Financial Group® (The Principal®) are issued by Principal National Life
Insurance Company (except in New York) and Principal Life Insurance Company. Securities are offered through
   Princor Financial Services Corporation, 800-247-1737, member SIPC, and/or independent broker/dealers.
Securities sold by a Princor Registered Representative are offered through Princor®. Principal National, Principal
        Life and Princor are members of Principal Financial Group, Des Moines, IA 50392. #7863082010

				
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posted:7/19/2012
language:English
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