1. GET FRANK WITH YOUR MONEY Five Keys to Developing Wealth Management Strategies Name, title(s), designation(s) The Principal Financial Group  Date

2. GET FRANK WITH YOUR MONEY BB11213-01 I07/2016| t16060703to Before investing, carefully consider the investment option objectives, risks, charges, and expenses. Contact a financial professional or visit principal.com for a prospectus or, if available, a summary prospectus containing this and other information. Please read it carefully before investing. The subject matter in this communication is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements Insurance products issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co.; Des Moines, IA 50392 Securities are offered through Principal Securities, Inc., 800- 247-1737, member SIPC, and/or independent broker/dealers. Principal Life and Principal Securities are members of the Principal Financial Group ®, Des Moines, IA 50392.

3. GET FRANK WITH YOUR MONEY BB11213 I 04/2014 | t140219022y Before investing, carefully consider the investment option objectives, risks, charges, and expenses. Contact a financial professional or visit principal.com for a prospectus or, if available, a summary prospectus containing this and other information. Please read it carefully before investing. is not an affiliate of any member company of the Principal Financial Group ®. The subject matter in this communication is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products from the Principal Financial Group ® (The Principal ® ) are issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co.; Des Moines, IA 50392 Securities are offered through Principal Securities, Inc., 800-247-1737, member SIPC, and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities Principal Life and Principal Securities are members of the Principal Financial Group ®, Des Moines, IA 50392.

4. GET FRANK WITH YOUR MONEY F oundation R ebalance A sset Allocation N ervous Decisions K now the Rules

5. * 5 Your foundation helps determine your stability.

6. In the financial world, your foundation is built with:  Cash flow  Savings  Health insurance  Life insurance  Disability insurance FOUNDATION

7. If you really did have a goose that laid golden eggs, would you insure the eggs or the goose? FOUNDATION

8. * 8 YOU ARE THE GOOSE! Insure the goose.

9. Determine that your financial house will stand when storms come. Imagine the worst – how would you (or your loved ones) survive? Take an inventory of your insurance amounts and type. FOUNDATION

10. What roadblocks keep people from building a strong foundation? TEMPTATIONS

11. Temptation: Immediate gratification FOUNDATION

12. Rebalancing your portfolio on a systematic basis helps keep your risk exposure in line with your strategy. How do you land a jet on an aircraft carrier? By trusting your instruments! Investing involves risk, including possible loss of principal. REBALANCE

13.  Our goal is to buy low – sell high.  Rebalancing your portfolio helps you do this automatically.  Rebalancing helps us fight the natural tendency to chase after returns. REBALANCE

14.  Your portfolio will change and without you doing anything. o Investments in your portfolio will change in value at different rates. o Investments that have done well will begin to take up more of your portfolio; those that haven't will take up less of your portfolio.  This naturally shifts your portfolio out of the original mix and out of line with your original investment strategy. REBALANCE

15. Rebalancing is the process of restoring your portfolio to its original mix.

16. What factors keep people from regularly rebalancing? TEMPTATIONS

17. REBALANCE Temptation: Getting greedy

18. You are the pilot! Trust your instruments, and put your portfolio balancing on autopilot. Establish quarterly or semi-annual rebalancing schedule to help keep you on track. REBALANCE

19.  Risk is an inevitable part of investing.  However, there are strategies to help manage that risk and help ensure it is in line with your investment strategy.  Asset allocation is one method of balancing your comfort for risk with your investment goals. No strategy such as asset allocation can guarantee a profit, nor can it protect against loss in times of declining value. ASSET ALLOCATION

20. What is asset allocation? It’s the process of combining stocks, bonds and cash in an investment portfolio. Doing so creates a mixture of assets, each of which reacts differently to changes in the economy and financial markets.

21. ASSET ALLOCATION  Stocks (aka equities): Historically, best opportunity for long-term growth but expose investors to more potential risk, volatility and a wider range of results. VolatilityRisk Potential return StocksHigh BondsModerate CashLow  Bonds (aka fixed-income): Historical returns in much narrower range, indicating less volatility than stocks but still subject to interest rate and other risks. Historical returns generally lower than equities.  Cash: Least risk but also the least growth potential. Still susceptible to inflation risk.

22. What explains a portfolio's performance over time?  Decisions on individual assets to own and when to buy or sell them?  Overall asset allocation policy is responsible for more than 90 percent of a portfolio's performance variability over time.*  Historically, choice of securities, timing of purchases and sales have had a low impact on performance variability for long-term portfolios.  This makes the asset allocation decision one of the most important decisions you can make as an investor. ASSET ALLOCATION * Source: Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, "Determinants of Portfolio Performance,” Financial Analysts Journal, January/February 1995.

23. ASSET ALLOCATION * Source: Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, "Determinants of Portfolio Performance,” Financial Analysts Journal, January/February 1995. Factors affecting performance variability in a portfolio over time Asset Allocation Policy 93.6% Security Selection, Market Timing and Other 6.4%

24. ASSET ALLOCATION Determine your investor profile:  Investor Profile Quiz will help you determine what type of investor your are.  Formula is based on your age, years to retirement and risk tolerance, which varies from person to person.

25. Combining all three types of assets in a portfolio can help manage risk by:  Reducing exposure to a single asset class and its related risks.  Giving the portfolio the potential for gains when each type of asset is in favor. ASSET ALLOCATION

26. What factors keep people from diversifying their asset allocation? TEMPTATIONS

27. ASSET ALLOCATION Temptation: Putting all your eggs in one basket

28. Take a look at your portfolio and make a list of the type of assets you hold. Categorize them by type of holdings and size. Schedule a review with your financial professional. ASSET ALLOCATION

29. Nervous decisions aren’t always the best decisions. NERVOUS DECISIONS

30. The story of Frank and his wood-burning stove:  Situation could have been handled much better with a little calm and strategic thinking.  The solution was right in front of Frank if he had not panicked. NERVOUS DECISIONS

31. “ “ 31 When people get greedy…I get nervous. When people get nervous…I get greedy. - Warren Buffet

32. What factors drive people to make nervous decisions? TEMPTATIONS

33. NERVOUS DECISIONS Temptation: Acting out of fear

34. Determine your risk tolerance ahead of time. Use dollar cost averaging. Establish a strategy and stay disciplined. NERVOUS DECISIONS Dollar cost averaging does not guarantee a profit nor protect you from loss during a declining market. You should consider your overall investment objectives and your ability to continue investing throughout various market cycles before beginning this or any investment program.

35. NERVOUS DECISIONS Dollar cost averaging does not guarantee a profit nor protect you from loss during a declining market. You should consider your overall investment objectives and your ability to continue investing throughout various market cycles before beginning this or any investment program.

36. KNOW THE RULES

37. Knowledge is king. Not knowing the rules has the potential to significantly cost you and your family. Don’t operate on yourself. KNOW THE RULES

38. * 38 Plan for variables, including IRS and legislative changes.

39. What are some difficulties people face keeping up and knowing all the rules? TEMPTATIONS

40. Temptation: Going it alone. KNOW THE RULES

41. LET’S GET FRANK GET FRANK WITH YOUR MONEY  It’s impossible for anyone to know everything.  No time to go it alone, but professional help is available.  Schedule an appointment today.

42. Q&A GET FRANK WITH YOUR MONEY Questions?

43. THANK YOU BB11213-01 I 07/2016| t16060703to Presenter name Contact info - phone Contact info – email Contact info - website