Principal Trust Company. Legent Clearing's partnership with

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Principal Trust Company
Legent Clearings partnership with
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This presentation focuses on

• Baby Boomers
• Legent and Principal Trust Company Partnership
• Products and Services

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Demographic Profile
Baby Boomers

• Born 1946 1964
• Youngest 43
• Oldest 61
• Population gt 76 million
• 25 of the total population
• 45 of the total workforce
• In 2011 begin reaching age 65
• In 2030, their age level will be 66-84 and 20 of
  the population

Source US Census
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Cultural Influence
Baby Boomers

• Boomers were dissected, analyzed, and pitched to
  by modern marketers, who reinforced a sense of
  generational distinctiveness
• Steve Gillon, author of Boomer Nation.

Source Boomer Nation
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Older vs. Younger Boomers
Baby Boomers

• Older Boomers
• Born 1946 to 1955
• 21.9 million households
• Spending power 1 trillion
• Empty-Nest
• They are more concerned about their future
• Spend 20 more on life insurance

Source Demographic Profile, Mature Market
Institute
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Older vs. Younger Boomers
Baby Boomers

• Younger Boomers
• Born 1956 to 1964
• 23.9 million households
• Spending Power 1.1 trillion
• Average 1.3 individuals under 18 in the household
• Homeowners vs. renters
• Life insurance not a priority
• Worried about Retirement doubled 2001-2005

Source US Census The MetLife Survey of
American Attitudes Toward Retirement Oct 2005
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Life Expectancy
Baby Boomers
Source Centers for Disease Control and
Prevention, National Center for Health
Statistics, National Vital Statistics System.
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Life Expectancy
Baby Boomers
Baby Boomer Group
Source Centers for Disease Control and
Prevention, National Center for Health
Statistics, National Vital Statistics System.
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Life Expectancy
Baby Boomers
Source Centers for Disease Control and
Prevention, National Center for Health
Statistics, National Vital Statistics System.
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Diversity
Baby Boomers
Source U.S. Census Bureau, Population Estimates
and Projections, 2004
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Diversity
Baby Boomers
Source U.S. Census Bureau, Population Estimates
and Projections, 2004
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Diversity
Baby Boomers
2003 White Only lt 2050 Minorities
Source U.S. Census Bureau, Population Estimates
and Projections, 2004
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Online Attitudes
Baby Boomers

• Use the web as a research tool and for shopping
• 75 go online monthly
• 44 have broadband access
• 65 somewhat very confident online

Source The Generation of Financial Services
Consumers 2006 Forrester Research National
Survey on Consumer Preparedness and E-Commerce A
Survey of Computer Users Age 45 and Older, AARP,
2000
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Retirement Attitudes
Baby Boomers

• Top 3 Delusion of Baby Boomers
• Ill keep working until I turn 70
• Ill have a pension
• Ill be able to cut my spending

Source 2007 Financial Planning and Source Media
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Retirement Attitudes
Baby Boomers

• Why work past retirement?
• Need the money
• Enjoy work and remain active
• Maintain lifestyle

Source The Generation of Financial Services
Consumers 2006 Forrester Research The MetLife
Survey of American Attitudes Toward Retirement
Oct 2005
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Financial Attitudes
Baby Boomers

• ..retirees will need up to at least 80 of their
  annual salary from the last year they worked full
  time to live comfortably

Source Article Retirement Planning by Don
Alderman
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Financial Attitudes
Baby Boomers

• IRA penetration ranges from 25 to 44 across the
  Boomer ages.
• Average balances in 2004 of rollover only IRAs
  increase as age increases.
• 35-44 59k
• 45-54 135k
• 55-64 151k

Source Employee Benefit Research Institute
estimates of the 2004 Survey of Consumer
Finances, 2006 Forrester Research
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Financial Attitudes
Baby Boomers

• Becoming more reliant on Social Security as a
  source of income
• Primary Consideration for Satisfaction in Later
  Life, 2001 to 2005
• Being Healthy 42 to 38
• Financial Independence 13 to 34
• Greatest Financial Concern
• Outliving Income 18 to 24

Source The MetLife Survey of American Attitudes
Toward Retirement, Oct 2005
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Financial Attitudes
Baby Boomers

• Advisors are ignoring 2/3 of boomers because they
  do not know how to service them profitably
• Target two main groups
• gt 1 Million assets (3)
• Between 100,000 and 1 Million assets (30)
• Not as loyal as their parents toward financial
  institutions

Source 2007 Financial Planning and Source Media.
The Generation of Financial Services Consumers
2006 Forrester Research
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So where do you fall?
Baby Boomer
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Who We Are
Principal Trust Company

• Principal Trust Company is a trade name of
  Delaware Charter Guarantee Trust Company.
• Chartered in 1899, we are the oldest non-deposit
  trust company in Delaware.
• We serve as trustee to more than 280,000
  tax-advantaged accounts and boast assets in
  excess of 50 billion.

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Platinum Service
Legent and Principal Trust Partnership

• Principal Trust Staff
• Expert
• We provide you with behind-the-scenes technical
  support. Our experienced staff is here to share
  their knowledge.
• Dedicated
• Average tenure is over 14 years for our customer
  service staff.
• Accessible
• We assign our Platinum Partners a dedicated
  toll-free number and a senior service
  representative to ensure accessibility.

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Platinum Partner Commitment
Legent and Principal Trust Partnership

• We give our Partners the edge to grow their
  business.
• Our Platinum Service Package includes
• Priority processing (same day or within 24 hours
  for most transactions)
• Availability of a dedicated service
  representative for day-to-day issues and
  questions
• Compliance questions answered within 24 hours
• Dedicated 800
• Dedicated Relationship Manager
• Marketing support
• Customized marketing materials
• Priority printing of customer communications

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Expertise Full Service Package
Legent and Principal Trust Partnership

• Comprehensive fiduciary, reporting and
  recordkeeping services
• Directed trustee services
• IRS approved documents and compliance services
• Annual reporting of IRS Forms 5498, 1099, and
  5500
• Annual RMD notifications and calculations
• Remittance and reporting of tax withholdings
  and related distributions
• Internet access for our Partners to view their
  customers account information 24/7

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Technology Solutions
Principal Trust Company

• Accurate Data
• We deliver accurate and on-time data, via the
  internet. This is the key to delivering our
  promise of helping you do business more
  efficiently.
• Investment in Technology
• We are constantly enhancing our systems
  architecture. Our talented and experienced
  computer engineers deliver high value results.
• Robust Infrastructure
• Our systems allow for daily transmittal of
  information and provide an automated
  interface between Principal
  Trust and Legent.

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Technology Account Access System
Principal Trust Company

• Easy. Online. 24/7. Account
  Access.
• Provides your operational staff easy, online
  access to data on your clients
  accounts.
• View Account Holder InformationIncluding recent
  contributions and distributions, and beneficiary
  information
• Run Detailed ReportsIncluding Account Details,
  Open/Closed
  Accounts, Required Minimum Distributions (RMD),
  Tax Withholdings, 1099-Rs, and 5498s
• Print Tax Forms

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Training
Principal Trust Company Legent Clearing
We provide IRA expertise in support of national
training efforts.

• Webinar and onsite presentation topics include
• Technical aspects of regulations
• Tax reporting and withholding
• Income averaging

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Training Seminar Topics
Principal Trust Company
These are among a few of the seminars that are
offered

• Individual 401(k)
• Pension Protection Act
• Overview of Qualified Plans
• Health Savings Accounts
• Money Purchase plans and Profit Sharing plans vs.
  Individual 401(k) plans

• Coverdell Education Accounts
• Stretch IRA
• Roth IRA
• 403(b)(7) Arrangement

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Marketing Tools
Principal Trust Company Legent Clearing

• Online Resources
• Forms
• Calculators
• Legislative News Updates
• Monthly Newsletters
• Trust Documents and Applications

• Marketing Resources
• Flyers
• Brochures
• Plan Charts
• Guides
• Campaigns

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Our Trust Solutions
Principal Trust Company Legent Clearing

• Traditional IRA
• Rollover IRA
• Roth IRA
• SIMPLE IRA
• SEP IRA
• Stretch IRA

• Individual 401(k)
• Coverdell Education Savings
• Profit Sharing Plan
• Money Purchase Pension Plan
• 403(b)(7) Savings Plan
• Health Savings Account