RetireView® asset allocation
RetireView® asset allocation
Asset allocation educational service providing flexibility and control.

With RetireView, you can help provide participants with the personalization and control they may seek. While most asset allocation options may only take years-to-retirement into consideration, RetireView also factors in risk tolerance. It helps educate participants on their personal tolerance for risk and then offers choices of asset allocation models—providing participants with choices that can be more in tune with their individual goals.

Provide the choice and personalization participants seek.

The top two most important factors participants use when selecting investments are:

  • 43% long-term investment performance
  • 34% matches my risk tolerance
How RetireView works

Morningstar Investment Management LLC develops the RetireView asset allocation models that take into account:

  • Participant risk tolerance, with a range from conservative to aggressive
  • Years-to-retirement with five age bands
  • Twelve asset classes per model

From the plan’s lineup, the plan sponsor populates the models by selecting up to four investment options to fill each of the asset categories used in RetireView (limit of 24 investment options total). If more than one investment option is chosen for an asset class, the plan sponsor can set the percentage split of each within that asset category.

Investor risk profiles

An investor profile quiz helps the participant learn their risk-tolerance level. And then they can use that information to help choose a RetireView model based on risk and time left to retirement.
RetireView asset allocation benefits
Plan sponsor

  • Choice — Allows plan sponsors to select investments already on the plan’s lineup for RetireView asset allocation models.
  •  Third party expertise — An independent third party creates the asset allocation models and provides periodic updates to allocation percentages based on the economy and markets.
  •  Flexibility — There are choices when mapping from a closing investment or transitioning the plan to Principal®.

Participant
  • Professional diversification — There are 25 asset allocation models to choose from—all professionally designed and managed by a third party.
  •  Personalization — Participants can personalize RetireView for rebalancing frequency and automatic age adjustment.
  •  Automatic aging — If elected, automatic adjustments can be made to more conservative allocation with age.

Learn more

To get started, contact your local Principal® representative or support team:

Call us at  800-952-3343

Email our Advisor Support Team

Footnotes

Principal ®  Retirement Security Survey - Investments, July 2022.

Important information
RetireView conservative, moderate conservative, moderate, or moderate aggressive asset allocation models meet the definition of a QDIA when plan fiduciaries use the RetireView model(s) along with a prudent process of selecting and monitoring the investments that fit within the appropriate investment category identified within the model under the following conditions:

  • The models and investments used to populate models are selected and monitored by the plan fiduciary or registered investment advisor.
  • A third party 3(21) or 3(38) fiduciary is used.
  • Investment options used to populate RetireView asset categories align with Morningstar’s categorization.

Morningstar Investment Management LLC is not an affiliate of any company of the Principal Financial Group.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. Small and mid-cap stocks may have additional risks including greater price volatility. International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments. Asset allocation does not ensure a profit or protect against a loss. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. Review the RetireView Terms and Conditions for a full discussion of the features of this service, including rebalancing and automatic age adjustment of the populated models. Investing involves risk, including possible loss of principal.

RetireView® is an educational service designed to help retirement plan participants determine an appropriate investment mix for their retirement account. Principal retained Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., to create asset class-level model portfolios (“Models”) for RetireView. In no way should Morningstar Investment Management’s creation of the Models be viewed as advice or establishing any kind of advisory relationship with Morningstar Investment Management. Morningstar Investment Management does not endorse and/or recommend any specific financial product that may be used in conjunction with the Models.  Morningstar Investment Management LLC is not an affiliate of any company of the Principal Financial Group.

Models are created by Morningstar Investment Management LLC. Morningstar Investment Management begins by analyzing asset classes and constructs long-term expected returns, standard deviations, and correlation coefficients. These form the inputs for the mean-variance optimization, a statistical technique. Because forecasting is a critical and pivotal step in the asset allocation process, Morningstar Investment Management develops proprietary capital market forecasts for each asset class using a combination of historical data, current market information and additional analysis. Each forecast becomes an input in portfolio creation. The Models are intended to be used as an additional information source for retirement plan participants making investment allocation decisions. Pursuant to the Department of Labor’s Definition of Investment Education, such models (taken alone or in conjunction with this document) do not constitute investment advice for purposes of the Employee Retirement Income Security Act (ERISA), and there is no agreement or understanding between Morningstar Investment Management and us or any plan or plan fiduciary, or any participant who uses this service, under which the latter receives information, recommendations or advice concerning investments that are to be used for any investment decisions relating to the plan. Accordingly, neither we nor Morningstar Investment Management are a fiduciary with respect to your plan sponsor’s plan for purposes of this service, including the features of rebalancing and aging. Following an asset allocation Model does not ensure a profit or protect against a loss. Performance of the individual Models may fluctuate and will be influenced by many factors. In applying particular asset allocation Models to their individual situations, participants or beneficiaries should consider their other assets, income and investments (e.g., equity in a home, Social Security benefits, IRA investments, savings accounts and interests in other quailed and nonqualified plans) in addition to their interests in the plan.

Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker-dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.