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					    Legent Clearing’s partnership with

Principal Trust Company
         This presentation focuses on

• Baby Boomers
• Legent and Principal Trust Company Partnership
• Products and Services
                                         Baby Boomers

                                Demographic Profile

       • Born 1946 – 1964
               – Youngest 43
               – Oldest 61
       • Population > 76 million
               –    25% of the total population
               –    45% of the total workforce
               –    In 2011 begin reaching age 65
               –    In 2030, their age level will be 66-84 and 20% of the
                    population




Source: US Census
                                  Baby Boomers

                            Cultural Influence



     “Boomers were dissected, analyzed, and pitched to
       by modern marketers, who reinforced a sense of
       generational distinctiveness”
                        Steve Gillon, author of Boomer Nation.




Source: Boomer Nation
                                                       Baby Boomers

                                 Older vs. Younger Boomers

        • Older Boomers
                – Born 1946 to 1955
                – 21.9 million households
                – Spending power $1 trillion
                – Empty-Nest
                – They are more concerned about their future
                – Spend 20% more on life insurance




Source: Demographic Profile, Mature Market Institute
                                                           Baby Boomers

                                Older vs. Younger Boomers

       • Younger Boomers
               – Born 1956 to 1964
               – 23.9 million households
               – Spending Power $1.1 trillion
               – Average 1.3 individuals under 18 in the household
               – Homeowners vs. renters
               – Life insurance not a priority
               – “Worried about Retirement” doubled 2001-2005




Source: US Census & The MetLife Survey of American Attitudes Toward Retirement Oct 2005
                                                                Baby Boomers

                                                     Life Expectancy




Source: Centers for Disease Control and Prevention, National Center for Health Statistics, National Vital Statistics System.
                                                                Baby Boomers

                                                     Life Expectancy
                                                    Baby Boomer
                                                       Group




Source: Centers for Disease Control and Prevention, National Center for Health Statistics, National Vital Statistics System.
                                                                Baby Boomers

                                                     Life Expectancy




Source: Centers for Disease Control and Prevention, National Center for Health Statistics, National Vital Statistics System.
                                                             Baby Boomers

                                                             Diversity




Source: U.S. Census Bureau, Population Estimates and Projections, 2004
                                                             Baby Boomers

                                                             Diversity




Source: U.S. Census Bureau, Population Estimates and Projections, 2004
                                                             Baby Boomers

                                                             Diversity

                               2003 White Only < 2050 Minorities




Source: U.S. Census Bureau, Population Estimates and Projections, 2004
                                                           Baby Boomers

                                                 Online Attitudes

      • Use the web as a research tool and for shopping
              – 75% go online monthly
              – 44% have broadband access
      • 65% “somewhat” & “very” confident online




Source: The Generation of Financial Services Consumers; 2006 Forrester Research & National Survey on Consumer
Preparedness and E-Commerce: A Survey of Computer Users Age 45 and Older, AARP, 2000
                                                   Baby Boomers

                                           Retirement Attitudes

                                  Top 3 Delusion of Baby Boomers


                                      1. I’ll keep working until I turn 70
                                      2. I’ll have a pension
                                      3. I’ll be able to cut my spending




Source: 2007 Financial Planning and Source Media
                                                           Baby Boomers

                                          Retirement Attitudes

      • Why work past retirement?
              – Need the money
              – Enjoy work and remain active
              – Maintain lifestyle




Source: The Generation of Financial Services Consumers; 2006 Forrester Research & The MetLife Survey of American
Attitudes Toward Retirement Oct 2005
                                                        Baby Boomers

                                             Financial Attitudes



     “..retirees will need up to at least 80% of their annual
         salary from the last year they worked full time to live
         comfortably”




Source: Article “Retirement Planning” by Don Alderman
                                                             Baby Boomers

                                              Financial Attitudes


      • IRA penetration ranges from 25% to 44% across the
        Boomer ages.
      • Average balances in 2004 of rollover only IRAs
        increase as age increases.
              – 35-44 $59k
              – 45-54 $135k
              – 55-64 $151k




Source: Employee Benefit Research Institute estimates of the 2004 Survey of Consumer Finances, 2006 Forrester Research
                                                          Baby Boomers

                                             Financial Attitudes

      • Becoming more reliant on Social Security as a source
        of income
      • Primary Consideration for Satisfaction in Later Life,
        2001 to 2005
              – Being Healthy 42% to 38%
              – Financial Independence 13% to 34%
      • Greatest Financial Concern
              – Outliving Income 18% to 24%



Source: The MetLife Survey of American Attitudes Toward Retirement, Oct 2005
                                                            Baby Boomers

                                              Financial Attitudes

      • Advisors are ignoring 2/3 of boomers because they
        do not know how to service them profitably
              – Target two main groups
                      • > $1 Million assets (3%)
                      • Between $100,000 and $1 Million assets (30%)
      • Not as loyal as their parents toward financial
        institutions



Source: 2007 Financial Planning and Source Media. & The Generation of Financial Services Consumers; 2006 Forrester
Research
      Baby Boomer

So where do you fall?
                  Principal Trust Company

                   Who We Are

• Principal Trust Company is a
  trade name of Delaware Charter
  Guarantee & Trust Company.
• Chartered in 1899, we are the
  oldest non-deposit trust company
  in Delaware.
• We serve as trustee to more than
  280,000 tax-advantaged accounts
  and boast assets in excess of $50
  billion.
               Legent and Principal Trust Partnership

                    Platinum Service

Principal Trust Staff
– Expert
  We provide you with behind-the-scenes technical support.
  Our experienced staff is here to share their knowledge.
– Dedicated
  Average tenure is over 14 years for our customer service
  staff.
– Accessible
  We assign our Platinum Partners a dedicated toll-free
  number and a senior service representative to ensure
  accessibility.
              Legent and Principal Trust Partnership

         Platinum Partner Commitment

We give our Partners the edge to grow their business.
  Our Platinum Service Package includes:
      – Priority processing (same day or within 24 hours for most
        transactions)
      – Availability of a dedicated service representative for day-
        to-day issues and questions
      – Compliance questions answered within 24 hours
      – Dedicated 800#
      – Dedicated Relationship Manager
      – Marketing support
      – Customized marketing materials
      – Priority printing of customer communications
              Legent and Principal Trust Partnership

       Expertise – Full Service Package

Comprehensive fiduciary, reporting and
  recordkeeping services:
   – Directed trustee services
   – IRS approved documents and compliance services
   – Annual reporting of IRS Forms 5498, 1099, and 5500
   – Annual RMD notifications and calculations
   – Remittance and reporting of tax withholdings
     and related distributions
   – Internet access for our Partners to view their
     customers’ account information 24/7
                    Principal Trust Company

               Technology Solutions

– Accurate Data
  We deliver accurate and on-time data, via the internet. This
  is the key to delivering our promise of helping you do
  business more efficiently.
– Investment in Technology
  We are constantly enhancing our systems’ architecture.
  Our talented and experienced computer engineers deliver
  high value results.
– Robust Infrastructure
  Our systems allow for daily transmittal of information
  and provide an automated interface between
  Principal Trust and Legent.
                       Principal Trust Company

    Technology – Account Access System

Easy.      Online.        24/7.       Account Access.
Provides your operational staff easy, online access
  to data on your clients’ accounts.
   – View Account Holder Information
     Including recent contributions and distributions,
     and beneficiary information

   – Run Detailed Reports
     Including Account Details,
     Open/Closed Accounts,
     Required Minimum Distributions (RMD),
     Tax Withholdings, 1099-Rs, and 5498s

   – Print Tax Forms
               Principal Trust Company & Legent Clearing

                             Training

We provide IRA expertise in support of national training efforts.


                                    Webinar and onsite presentation
                                    topics include:

                                    – Technical aspects of regulations
                                    – Tax reporting and withholding
                                    – Income averaging
                      Principal Trust Company

            Training – Seminar Topics

These are among a few of the seminars that are offered:
– Individual 401(k)                 – Coverdell Education
                                      Accounts
– Pension Protection Act
                                    – Stretch IRA
– Overview of Qualified
  Plans                             – Roth IRA
– Health Savings                    – 403(b)(7) Arrangement
  Accounts
– Money Purchase plans
  and Profit Sharing
  plans vs. Individual
  401(k) plans
          Principal Trust Company & Legent Clearing

                 Marketing Tools

Online Resources:                  Marketing Resources:
– Forms                            – Flyers
– Calculators                      – Brochures
– Legislative News Updates         – Plan Charts
– Monthly Newsletters              – Guides
– Trust Documents and              – Campaigns
  Applications
          Principal Trust Company & Legent Clearing

             Our Trust Solutions

– Traditional IRA       – Individual 401(k)
– Rollover IRA          – Coverdell Education Savings
– Roth IRA              – Profit Sharing Plan
– SIMPLE IRA            – Money Purchase Pension Plan
– SEP IRA               – 403(b)(7) Savings Plan
– Stretch IRA           – Health Savings Account

				
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