Principal Financial Group Inc · NASDAQ:PFG
Principal Financial — Investor Presentation (2026)
21 slides from Principal Financial's investor presentation, 2026
Slide 1: Introduction to 529 Plans
INTRODUCTION TO 529 PLANS Introduction to 529 Plans
Slide 2: Contents
CONTENTS What is a 529 plan 03 Features of a 529 plan 05 Changing education expenses 07 Education savings options 10 Student loans and financial aid 14 Questions 20 Introduction to 529 Plans 2
Slide 3: What is a 529 plan
WHAT IS A 529 PLAN A 529 plan is a tax-advantaged investment vehicle within the United States designed to save for future higher education expenses for a specified beneficiary. Introduction to 529 Plans 3
Slide 4: Challenges for education savers
CHALLENGES FOR EDUCATION SAVERS INVESTMENTS RISK VERSUS RETURN • Need to outperform college inflation • Need an investment return that • Can be a limited time horizon equals or exceeds increases in the depending upon withdrawal timeline Higher Education Price Index (HEPI) • Cost set by educational i
Slide 5: A truly flexible savings vehicle
A TRULY FLEXIBLE SAVINGS VEHICLE Features of a 529 plan Tax benefits Gifting and Withdrawals Availability Earnings grow tax- estate planning Proceeds can be used Anyone can open, deferred and qualified Contribute up to $19,000 at eligible institutions regardless of income withdrawals are tax-free pe
Slide 6: Why is it important to save for higher education?
WHY IS IT IMPORTANT TO SAVE FOR HIGHER EDUCATION? Studies show that the higher the level of education achieved, the higher the average salary earned and lower the unemployment rate Earnings and unemployment rates by educational attainment Median usual annual earnings ($) Unemployment rate (%) Doctor
Slide 7: A rising bar: education costs continue to increase
A RISING BAR: EDUCATION COSTS CONTINUE TO INCREASE Average annual undergraduate college cost*1 (past 10 years): public vs. private $60,000 $55,126 $50,000 $40,000 $30,000 $24,148 $20,000 $10,000 $0 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Public (bottom line) Private (top line) So
Slide 8: An impact to your wallet
AN IMPACT TO YOUR WALLET Education costs compared to inflation Higher Education Price Index (HEPI) vs. U.S. inflation 8.0% 8.0% 7.0% 6.0% 5.2% 5.0% 4.7% 4.0% 4.1% 4.0% 3.6% 3.4% 3.0% 3.0% 2.9% 3.0% 2.6% 2.7% 2.6% 2.1% 2.4% 2.0% 1.8% 1.9% 2.0% 1.5% 1.3% 1.2% 1.0% 0.1% 0.0% 2015 2016 2017 2018 2019 20
Slide 9: Getting the most out of your state benefit
GETTING THE MOST OUT OF YOUR STATE BENEFIT TAX PARITY These states offer tax deductions for contributions to any 529 plan regardless of state. TAX NEUTRAL These states do not offer tax deductions for 529 contributions or have no state income tax. IN-STATE TAX BENEFIT These states offer tax deduction
Slide 10: Comparing education savings plans
COMPARING EDUCATION SAVINGS PLANS COVERDELL EDUCATION SAVINGS TAXABLE RULES 529 PLANS ACCOUNT (CESA) UGMA/UTMA SAVINGS ACCOUNT Federal income tax Contributions made with Contributions made with Earnings and capital gains are Earnings taxable at account owner’s after-tax dollars. Earnings after-tax d
Slide 11: Comparing education savings plans (continued)
COMPARING EDUCATION SAVINGS PLANS (CONTINUED) COVERDELL EDUCATION SAVINGS RULES AS IT RELATES TO 529 PLANS ACCOUNT (CESA) UGMA/UTMA TAXABLE SAVINGS ACCOUNT Qualified expenses Tuition, fees, books, computers and Tuition, fees, books, equipment, No restrictions No limit related equipment, supplies, su
Slide 12: How people are saving
HOW PEOPLE ARE SAVING Over half of families are saving for college, but with variety of savings vehicles Over half of families have Proportion of college funds held in a plan to pay for college*1 each account type*2 59% in 2025 Other, 9% Checking account, 8% Prepaid state plan, 8% 59% in 2024 53% in
Slide 13: Compounding savings over time
COMPOUNDING SAVINGS OVER TIME Taxable savings account vs. 529 savings Example: Two families who invested differently, Family A and Family B. Both families opened their savings accounts and opted for monthly contributions of $150. Both families earned a 7.00% annual average rate of return on their in
Slide 14: Student loan debt over the past decade
STUDENT LOAN DEBT OVER THE PAST DECADE Student loan debt remains high Higher Education Price Index (HEPI) vs. U.S. inflation $1.80 $1.60 $1.61 $1.57 $1.60 $1.51 $1.52 $1.47 $1.41 $1.33 $1.40 $1.28 $1.17 $1.20 $1.13 $1.06 In trillions $1.00 $0.94 $0.80 $0.60 $0.40 $0.20 $0.00 2013 2014 2015 2016 2017
Slide 15: Student loans
STUDENT LOANS A college education costs, on average, just under $104,000 for a four-year, in state school for tuition and fees, room and board, books and supplies, as well as transportation. 50% through a 529 100% through a 529 plan 100% student loans 50% through student loans*1 Monthly Investment:
Slide 16: Financial aid
FINANCIAL AID The FAFSA Simplification Act has changed federal college financial aid. This information is for the 2024-25 award year. A SIMPLIFIED FAFSA FORM CHANGE FROM EFC TO SAI SAI AND SIBLINGS GRANDPARENT-OWNED WORK-SPONSORED CUSTODIAL PARENT The FAFSA form is easier to A new measure, the SAI,
Slide 17: A closer look at applying for financial aid
A CLOSER LOOK AT APPLYING FOR FINANCIAL AID Key dates and considerations Free Application for Federal Student Financial Aid (FAFSA®) needs to be applied for every year in college. FAFSA forms must be submitted annually YEAR YEAR YEAR YEAR Each state also has its 1 2 3 4 own deadline. College: For mo
Slide 18: Saving now means borrowing less later
SAVING NOW MEANS BORROWING LESS LATER Savings-focused strategy Loan-focused strategy Loans Financial aid Sophie’s family: Savings-focused 20% education funding strategy. 25% 40% Financial aid Assume Sophie’s education costs 75% are $100,000 and her family Loans saved a portion of that in a 529 colle
Slide 19: Saving now means borrowing less later
SAVING NOW MEANS BORROWING LESS LATER Beyond education savings, 529 plans can help families leave a legacy When considering whether to use a 529 plan in your estate plan, keep in mind the following key points CONTRIBUTIONS ACCELERATED TAX PLANNING TAX-FREE CONTROL GIFTING WITHDRAWALS An individual m
Slide 20: Questions?
QUESTIONS? FOR ADDITIONAL RESOURCES, VISIT: SCHOLARSEDGE529.COM Introduction to 529 Plans 20
Slide 21: Disclosures
DISCLOSURES Scholar's Edge® (“Scholar’s Edge” or the “Plan”) is operated as a qualified tuition program offered and sponsored by The Education Trust Board of New Mexico (the “Board”) and is available to all U.S. residents. Ascensus College Savings Recordkeeping Services, LLC is the Program Manager f
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