No: Principal is paid through brokerage commissions and sales charges, sales of its own life insurance, annuities and funds, and payments from fund companies, as well as advisory fees. Its main advice firm, Principal Securities, Inc. (CRD 1137), is registered with the SEC as both a broker-dealer and an investment adviser. A second firm, Principal Advised Services, LLC (CRD 297324), charges only fees, including a flat 0.85% a year in its SimpleInvest IRA program, but invests only in Principal’s own funds and is part of the same group.
So neither firm is fee-only under the CFP Board’s definition. Here’s what their filings say.
How Principal is paid
Principal Financial Group’s investment advice runs through two firms.
Principal Securities (PSI) is the firm for Principal’s financial professionals. Its Form CRS, dated March 30, 2026, says it offers mutual funds, variable annuities, variable life insurance, stocks, bonds and other investments, “issued, sponsored or managed by other member companies of Principal Financial Group, as well as products of non-affiliated companies.” On brokerage, you pay a commission or markup on trades and commissions or sales charges on funds, annuities and variable insurance, and PSI doesn’t monitor those accounts. On advisory accounts, you pay a percentage of assets in its Managed Account Solutions wrap fee programs, or a fee in a third-party manager program. Advisors also offer hourly and flat-fee planning. Its Form ADV Part 1, filed March 30, 2026, reports a percentage of assets, hourly charges and fixed fees, and a broker-dealer business.
Principal Advised Services (PAS) is an adviser only. Its Form CRS, dated January 1, 2026, describes SimpleInvest, a managed IRA program; Target My Retirement, a managed account service for participants in plans Principal recordkeeps; one-on-one advice on what to do with a retirement plan when you leave a job; and a planning subscription. Its Form ADV Part 1, filed July 10, 2026, reports a percentage of assets and fixed fees.
The CFP Board’s standards allow “fee-only” only when neither the advisor nor a related party receives sales-related compensation. Principal Securities earns commissions directly. PAS earns only fees, but its Form CRS says affiliates “make money from the sale of banking products and brokerage products that a financial professional sells as an employee of Principal Bank and a registered representative of Principal Securities.” That is related-party sales pay, so PAS doesn’t meet the test either.
What else the filings disclose
Statutory employees. PSI’s Form CRS says some of its advisors “are statutory employees of our affiliates who receive benefits and insurance.” It adds: “To be a statutory employee, a financial professional must spend most of their time marketing our affiliates’ life insurance and annuity products.”
Its own products. PSI’s Form CRS says that when its advisors sell products issued or managed by Principal companies, “our affiliates receive compensation,” which creates an incentive to recommend them. In SimpleInvest, PAS “invests only in investments that are issued, sponsored, or managed by our affiliates,” mainly Principal mutual funds and ETFs, and uses Principal Global Investors for portfolio management.
Payments from others. PSI receives 12b-1 fees, marketing support, distribution and stockholder servicing fees, and credits from its clearing firm, which it calls revenue sharing and third-party payments.
How advisors are paid. PSI advisors receive “a significant portion” of the commissions or advisory fees you pay, and can earn incentive trips based on yearly sales. PAS staff receive a salary and benefits, with bonuses tied to factors including “the number of new managed accounts opened” and referrals to other parts of Principal.
Rollovers. PAS advises people leaving a job on their four options for a retirement plan, including a rollover to a SimpleInvest IRA. Its Form CRS describes the affiliate revenue involved as a conflict. See 401(k) rollover when changing jobs.
Disciplinary history. PSI’s Form CRS answers “Yes” for the firm and some of its professionals. PAS’s Form CRS says some of its professionals have history but PAS itself doesn’t. Details are on BrokerCheck.
What Principal costs
SimpleInvest (PAS). The brochure dated March 30, 2026 sets one level fee: “a level annualized fee equal to 0.85 percent of the Client Account balance.” That covers advice, management and the expenses of the Principal funds inside the account, plus most trading and custody. Custodian IRA fees, wire fees and closing fees are extra. The minimum is $5,000.
- $500,000: $4,250 a year, fund expenses included
- $1 million: $8,500 a year, fund expenses included
Target My Retirement (PAS). Up to 0.50% a year of your plan account, set at the plan level, plus plan and fund costs.
Planning (PAS). A subscription of $385 a year or $35 a month, sometimes offered at promotional rates or free.
Managed Account Solutions (PSI). Fees are negotiated with your advisor. The brochure dated March 30, 2026 says the fee “will generally not exceed” 2.00% a year for Managed Portfolio and Strategy Select, 2.00% for Advisory Select Wrap, 1.50% for Advisory Select with separate trading charges, and 3.00% for separate, unified and multi-manager accounts. Fund expenses are on top. Minimums start at $5,000 and reach $500,000 or more in some programs. Because these are maximums, ask for your actual rate in writing.
Planning (PSI). Its planning brochure says each advisor sets an hourly or flat rate, and an ongoing consulting subscription generally costs at least $600 a year. Its March 2026 update removed a published $15,000 maximum.
For comparison, fee-only firms that publish a percentage fee charge a median 1% of assets, or $5,000 on $500,000 and $10,000 on $1 million at that rate, with fund expenses on top. Fee-only planners who charge a flat fee for ongoing planning charge a median $4,500 a year (middle half $2,400 to $7,200), and a one-time plan has a median of $2,000. SimpleInvest is an IRA-only program limited to Principal funds, so compare the scope of advice as well as the price.
Who Principal may suit
Principal may suit someone whose workplace plan Principal recordkeeps and who wants simple, low-minimum help: advice on what to do with a plan when changing jobs, a managed IRA with one all-in fee, or a planning subscription at $385 a year. Someone who wants one advisor to plan insurance, annuities and investments together can work with a Principal Securities advisor.
Someone who wants advice from a firm paid only by them, investments beyond one company’s funds, or an independent review of a Principal annuity or life policy may want to compare a fee-only planner first. Our guides to workplace 401(k) advice vs an independent advisor, insurance agent vs financial advisor and ria vs broker-dealer go further. For a similar workplace-focused firm, see Nationwide.
How to check it yourself
- Read the Form CRS for each firm, Principal Securities and Principal Advised Services, from their SEC records. See what a Form CRS tells you.
- Ask which firm, and which role, your contact is acting in: PAS adviser, PSI broker, PSI adviser or Principal Bank employee.
- Ask whether your advisor is a statutory employee, and what they earn on any annuity or policy recommended.
- Ask for your fee in dollars, including fund expenses outside SimpleInvest.
- Look up your advisor on BrokerCheck.
Our guide to telling whether an advisor is fee-only walks through each check, and questions to ask a financial advisor gives you the rest.
Compare similar firms
Other insurance companies we’ve checked against the fee-only definition: Northwestern Mutual, MassMutual, New York Life, Prudential, Thrivent, State Farm, Primerica, Lincoln Financial, Equitable, Nationwide, Ameriprise. See all 50 firms.