Called the Principal Managed Account Program, the program will give investors recommendations every quarter on how they should rebalance their portfolios, and once a year, a full review of their investment holdings. Investors will be able to meet with licensed counselors in person at the enrollment meeting, and, subsequently, by telephone and online.
"Nearly a quarter century of 401(k) experience demonstrates that many plan participants are still uneasy about making investment elections, and once doing so, a majority seldom, if ever, change asset allocation to keep pace with changing life stages and circumstances," said Larry Zimpleman, president of retirement and investor services at Principal. "With the addition of the Principal Managed Account Program, employers will have the full array of leading-edge participant education and advice tools."
Principal plans to unveil the new program by the end of this year or early 2005.