Buffer investment accounts now available

in Principal® Variable Annuities

Offer clients a degree of downside protection with uncapped market participation

The PVC U.S. LargeCap Buffer Series offers four defined outcome investment options available exclusively through Principal variable annuities. These funds track the S&P 500 Price Return Index.

Similar to other defined outcome investments, our buffer accounts help protect against market volatility with a downside buffer. But we also provide full participation up to 10% and partial participation after 10%, meaning your client continues to benefit from investment gains during strong markets.

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Principal buffer investments

  • Are fully liquid. Clients can move money in and out of the accounts at any time.*
  • Reset buffer and participation rates annually.
  • Work in combination with both equity and fixed income holdings to align investment goals and risk tolerance.
*Investing after the start date or moving money out before the end date will affect the expected outcome.

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These investments are designed to offer:

Downside buffer

1 year defined outcome period

Downside buffer

Investments automatically roll over into new outcome period at year anniversary.

Full market participation

10% downside buffer

Full market participation

Protects clients from first 10 percent of any market losses.

No hard cap

Uncapped market participation

No hard cap

Client gets first 10% of market gains, and partial participation in the market above that 10%.

Downside buffers help protect clients from volatile markets

The chart below shows the gains needed to recover from a down market both with and without a buffer. The buffer greatly reduces the amount your clients will need to regain after market losses.

Gains needed to recoup loss

With buffer
Without buffer
-10% loss
0%
11.1%
-20% loss
11.1%
25%
-30% loss
25%
42.86%

-10% loss

0%

11.1%

-20% loss

11.1%

25%

-30% loss

25%

42.86%

Use as part of a retirement savings plan

Principal PVC U.S. LargeCap Buffer Series can work in combination with both equity and fixed income holdings to align with your clients’ investment goals and tolerance for risk. They are available with our Principal® Pivot Series and Principal® Lifetime Income Solutions II variable annuities, as well as most previously issued Principal variable annuities.

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Learn more about our variable annuities.

For financial professional use only. Not for distribution to the public.

 

Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administration, investment option fees. An annuity's value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 591/2, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.

 

Buffer and participation rates apply if investment is held from the beginning of the outcome period until the end of the outcome period. Investments can happen at any time during the outcome period; but results will vary. The buffer and participation rate will reset annually.

 

Annuity products and services are offered through Principal Life Insurance Company. Principal Variable Contracts Funds are distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Principal Life, Principal Funds Distributor, and Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392, principal.com.

 

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The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
 

Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, IA 50392.
 

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