1 00:00:00,000 --> 00:00:03,140 [MUSIC PLAYING] 2 00:00:03,140 --> 00:00:05,750 Did you know right now, you can create 3 00:00:05,750 --> 00:00:08,450 an account for your organization's retirement plan? 4 00:00:08,450 --> 00:00:10,920 Today is a great day to sign up. 5 00:00:10,920 --> 00:00:13,310 The sooner you start saving, the more time 6 00:00:13,310 --> 00:00:15,300 you give your account to potentially grow, 7 00:00:15,300 --> 00:00:17,910 all while making progress toward your retirement. 8 00:00:17,910 --> 00:00:19,580 We understand it's important to find 9 00:00:19,580 --> 00:00:21,980 a balance between managing your daily finances 10 00:00:21,980 --> 00:00:23,790 and saving for your future. 11 00:00:23,790 --> 00:00:27,120 One key thing to remember is to simply get started. 12 00:00:27,120 --> 00:00:29,250 Once you sign up for your retirement plan, 13 00:00:29,250 --> 00:00:33,230 you'll find tools, resources, and support from Principal 14 00:00:33,230 --> 00:00:36,060 no matter where you are on your road to retirement. 15 00:00:36,060 --> 00:00:37,970 These tools and resources can help 16 00:00:37,970 --> 00:00:41,100 you get a complete picture of your progress toward retirement. 17 00:00:41,100 --> 00:00:44,870 We're with you every step of the way. 18 00:00:44,870 --> 00:00:47,790 Let's walk through the three-step enrollment process. 19 00:00:47,790 --> 00:00:51,770 Step one, visit principal.com/welcome 20 00:00:51,770 --> 00:00:55,490 or download the Principal app to set up your online account. 21 00:00:55,490 --> 00:00:58,760 By taking a minute or to add your contact information 22 00:00:58,760 --> 00:01:01,270 to your account you'll get the latest updates 23 00:01:01,270 --> 00:01:03,130 about your retirement savings. 24 00:01:03,130 --> 00:01:06,010 While setting up your account, follow the simple steps 25 00:01:06,010 --> 00:01:08,620 to enable two-factor authentication. 26 00:01:08,620 --> 00:01:11,290 This helps ensure your lifetime of savings 27 00:01:11,290 --> 00:01:14,260 are more secure from identity theft. 28 00:01:14,260 --> 00:01:16,810 Step two, think about how much you'll 29 00:01:16,810 --> 00:01:19,310 need to save to have the retirement you've dreamed about. 30 00:01:19,310 --> 00:01:21,230 Start by considering your goals. 31 00:01:21,230 --> 00:01:22,520 Will you travel? 32 00:01:22,520 --> 00:01:25,490 Would you like to pay for your grandchildren's education? 33 00:01:25,490 --> 00:01:28,430 Your goals may determine how much you may want to save, 34 00:01:28,430 --> 00:01:32,080 but one key thing to remember is to consider starting now. 35 00:01:32,080 --> 00:01:36,200 Principal research suggests saving 15% of your pay, 36 00:01:36,200 --> 00:01:38,210 including employer contributions, 37 00:01:38,210 --> 00:01:40,010 to have enough when you retire. 38 00:01:40,010 --> 00:01:43,690 Keep in mind Social Security may only cover about 40% 39 00:01:43,690 --> 00:01:47,080 of your pre-retirement income, so it's 40 00:01:47,080 --> 00:01:50,110 important to have additional income streams you can count on 41 00:01:50,110 --> 00:01:51,760 throughout retirement. 42 00:01:51,760 --> 00:01:54,550 But any amount you can save now has the potential 43 00:01:54,550 --> 00:01:57,670 to add up after a few years and make a difference 44 00:01:57,670 --> 00:01:59,460 for your retirement. 45 00:01:59,460 --> 00:02:02,490 Let's look at an example that shows why saving early 46 00:02:02,490 --> 00:02:04,650 for retirement is important. 47 00:02:04,650 --> 00:02:07,140 John and Jane contribute the same amount 48 00:02:07,140 --> 00:02:09,460 to their organization's retirement plan. 49 00:02:09,460 --> 00:02:12,540 But Jane starts 10 years earlier than John. 50 00:02:12,540 --> 00:02:16,690 Over their earning years, Jane's money had more time to grow, 51 00:02:16,690 --> 00:02:20,400 so her account value is greater when she and John reached 52 00:02:20,400 --> 00:02:21,840 retirement age. 53 00:02:21,840 --> 00:02:24,600 A big motivator to start saving for retirement 54 00:02:24,600 --> 00:02:26,470 is getting the organization match. 55 00:02:26,470 --> 00:02:28,540 If your organization offers a match, 56 00:02:28,540 --> 00:02:31,800 you may want to consider saving enough to get the full match. 57 00:02:31,800 --> 00:02:34,210 It's like free money for your retirement. 58 00:02:34,210 --> 00:02:36,960 Some organizations contribute or match 59 00:02:36,960 --> 00:02:39,430 a percentage that employees save. 60 00:02:39,430 --> 00:02:44,460 For example, an organization may match 50% of the first 6% 61 00:02:44,460 --> 00:02:46,660 that you contribute to your account. 62 00:02:46,660 --> 00:02:50,890 And 6% from each paycheck may not be as much as you thought. 63 00:02:50,890 --> 00:02:56,040 Let's say you make $65,000 and contribute 6% to your retirement 64 00:02:56,040 --> 00:02:56,900 plan. 65 00:02:56,900 --> 00:03:00,360 That's only about $150 per paycheck, 66 00:03:00,360 --> 00:03:01,890 which can be manageable. 67 00:03:01,890 --> 00:03:06,030 Plus, if you contribute the 6%, in this scenario, 68 00:03:06,030 --> 00:03:08,930 your organization will match $75, which 69 00:03:08,930 --> 00:03:11,840 is 50% of your contribution. 70 00:03:11,840 --> 00:03:14,640 Finally, when deciding how much to save, 71 00:03:14,640 --> 00:03:18,530 remember that it's OK to start small and work your way up. 72 00:03:18,530 --> 00:03:23,610 Contributing just 2% or 3% can be a great way to get started. 73 00:03:23,610 --> 00:03:27,050 And many people find it easy to step up their savings a percent 74 00:03:27,050 --> 00:03:30,150 or two each year as their salary increases. 75 00:03:30,150 --> 00:03:34,970 For example, adding just $25 more a month could add up 76 00:03:34,970 --> 00:03:39,410 to almost $25,000 for retirement after 30 years. 77 00:03:39,410 --> 00:03:42,780 Step three, choose where to invest your money. 78 00:03:42,780 --> 00:03:46,230 You can do it yourself and pick your own investment options. 79 00:03:46,230 --> 00:03:48,680 Choose a prebuilt portfolio based 80 00:03:48,680 --> 00:03:52,340 on when you plan to retire, and how aggressive or conservative 81 00:03:52,340 --> 00:03:54,390 you'd like to be with your investments. 82 00:03:54,390 --> 00:03:57,010 Or you can choose to default into the option chosen 83 00:03:57,010 --> 00:03:59,690 by your organization if available in your plan. 84 00:03:59,690 --> 00:04:01,720 This is typically a target date fund 85 00:04:01,720 --> 00:04:04,520 based on your age and the plan's normal retirement date. 86 00:04:04,520 --> 00:04:07,000 Some plans may also offer a managed account 87 00:04:07,000 --> 00:04:10,010 service for an additional fee to help you along the way. 88 00:04:10,010 --> 00:04:11,650 Whether you choose your investments 89 00:04:11,650 --> 00:04:14,500 or use the default option, it's a good idea 90 00:04:14,500 --> 00:04:17,410 to check your account regularly to make sure your investments 91 00:04:17,410 --> 00:04:19,329 align with your goals. 92 00:04:19,329 --> 00:04:20,860 Pro tip. 93 00:04:20,860 --> 00:04:24,110 If you have retirement savings from a previous job, 94 00:04:24,110 --> 00:04:26,890 you may be able to roll over those funds into your account 95 00:04:26,890 --> 00:04:29,290 at Principal to consolidate your savings. 96 00:04:29,290 --> 00:04:31,450 That means fewer statements and accounts 97 00:04:31,450 --> 00:04:33,400 to keep track of, and potentially 98 00:04:33,400 --> 00:04:35,770 a more complete picture of your retirement future 99 00:04:35,770 --> 00:04:37,870 with our tools and resources. 100 00:04:37,870 --> 00:04:39,220 Congratulations. 101 00:04:39,220 --> 00:04:40,780 You're now armed with information 102 00:04:40,780 --> 00:04:42,850 to start saving for retirement. 103 00:04:42,850 --> 00:04:46,150 We strive to help simplify the complexity of retirement 104 00:04:46,150 --> 00:04:48,530 so you can focus on the things you love. 105 00:04:48,530 --> 00:04:50,830 It's secure and easy to create your account 106 00:04:50,830 --> 00:04:53,420 at principal.com/welcome. 107 00:04:53,420 --> 00:04:57,240 See your balances, statements, and enjoy financial education 108 00:04:57,240 --> 00:04:58,360 resources. 109 00:04:58,360 --> 00:04:59,970 Following these steps means you're 110 00:04:59,970 --> 00:05:02,760 ready to start your retirement savings journey. 111 00:05:02,760 --> 00:05:06,110 [MUSIC PLAYING] 112 00:05:06,110 --> 00:05:54,000