2019 Principal Advisor Service Staff Training

Retirement plan investment options and fees Jeopardy

Asset class roles

Investment vehicles

Retirement plan fees

Plan pricing


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


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

Mutual funds and separate accounts


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

Deducted or asset based collection


What is a basis point?

One hundredth of a percentage point (0.01%)


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)


What does CIT stand for?

Collective Investment Trust


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

Revenue sharing


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

Scaled-based pricing & custom pricing


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


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

Active management


Name the primary benefit of fee levelization.

Fees are allocated equally among participants


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.
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