2018 Beginner PASS

Retirement Plan Investment Options & Fees Jeopardy

Asset class roles

Investment vehicles

Retirement plan fees

Plan pricing

$100

Savvy investment decisions follow three key principles. Name one.

  1. Invest according to your risk comfort level
  2. Start early/plan long term
  3. Diversify

$100

Name two major types of investment vehicles that are important to understand when working with retirement plans.

Mutual funds and separate accounts

$100

Name one of the ways to collect fees explicitly from participants.

Deducted or asset based collection

$100

What is a basis point?

One hundredth of a percentage point (0.01%)

$300

Name the most conservative asset class that typically exhibits lower risk and return potential.

Short-term fixed income

(Examples include:  guaranteed accounts, stable value and money market investment options)

$300

What does CIT stand for?

Collective Investment Trust

$300

This allows a plan sponsor to cover plan fees (or a portion of them) implicitly through the plan’s investment options.

Revenue sharing

$300

Principal® offers two primary pricing approaches to retirement plans. What are they?

Scaled-based pricing & custom pricing

$500

This is the term used to describe the size of the company as measured by the number of shares outstanding multiplied by the share price.

Market capitalization

$500

This type of investment strategy seeks to outperform the benchmark/index.

Active management

$500

Name the primary benefit of fee levelization.

Fees are allocated equally among participants

$500

Principal® Flex and Principal® Flex-Open give you flexible, yet simple plan packages for which plans?

Plans with less than $1 million in assets under management

This information is intended to be educational in nature and is not intended to be taken as a recommendation.
Asset allocation and diversification do not ensure a profit or protect against a loss.
Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options and contract riders may not be available in all states or U.S. commonwealths.
© 2018 Principal Financial Services, Inc.  |  529479-062018