SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ------------------



                                    FORM 8-K

                                 CURRENT REPORT



                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                        Date of Report: DECEMBER 22, 2003
                        (Date of earliest event reported)





                         PRINCIPAL FINANCIAL GROUP, INC.
             (Exact name of registrant as specified in its charter)


       DELAWARE                     1-16725                    42-1520346
 State or other jurisdiction    Commission file number       (I.R.S. Employer
   of incorporation)                                      Identification Number)


                     711 HIGH STREET, DES MOINES, IOWA 50392
                    (Address of principal executive offices)


                                 (515) 247-5111
              (Registrant's telephone number, including area code)

                               ------------------





<PAGE>


                                                                   2
ITEM 7.  EXHIBITS

99     Principal Blueprint Investment Alert dated December 22, 2003.

ITEM 9.  REGULATION FD DISCLOSURE.

On December 22, 2003,  Principal Life Insurance Company and Principal Management
Corporation,  wholly-owned  subsidiaries  of Principal  Financial  Group,  Inc.,
issued a  Principal  Blueprint  Investment  Alert to plan  sponsors  who  choose
Principal  Financial  Group  for their  401(k)  plans.  A copy of the  Principal
Blueprint Investment Alert is attached hereto as Exhibit 99.









                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                   PRINCIPAL FINANCIAL GROUP, INC.


                                   By:       /S/ LARRY D. ZIMPLEMAN
                                      -----------------------------------------
                                   Name:   Larry D. Zimpleman
                                   Title:  President-Retirement and Investment
                                             Services



Date:  December 22, 2003



<PAGE>


                   Principal Blueprint Investment Alert             Exhibit 99

THIS  COMMUNICATION  WAS PREPARED  THROUGH THE JOINT  EFFORTS OF THE  INVESTMENT
SERVICES DEPARTMENT OF PRINCIPAL LIFE INSURANCE COMPANY AND PRINCIPAL MANAGEMENT
CORPORATION AS PART OF THEIR DUE DILIGENCE PROCESS.


Additional Update on Market Timing and Late Trading Issues

In our  Investment  Alert dated October 31, 2003, we told you that The Principal
was  conducting  an  extensive  voluntary  review  of its  practices,  including
employees'  individual trading records.  This review dated back to October 1996.
The Principal took its review beyond mutual funds,  broadening it to include its
entire block of 401(k) separate accounts.

We have now completed the review and found the following:

o The Principal  has not  permitted  any late  trading.
o The Principal has not entered into any special  arrangements  to permit select
investors to engage in market timing.
o The  Principal  has not engaged in any  "portfolio  peeking",  the practice of
allowing some investors access to portfolio  information not generally available
to the investing public.
o Beginning  in late  2000 The  Principal  imposed  progressively  more  robust
standards and  protections to further  prevent  improper  market  timing.  These
standards and practices have been applied  consistently  to customers as well as
The Principal's own employees in The Principal 401(k) Plan.
o Some employees engaged in market timing trades within their personal accounts,
predominantly in our  international  401(k) separate  accounts.  The majority of
these  employees  are no longer  with the firm.  Included  in this group are two
portfolio  managers  who  engaged in this  activity in their  personal  accounts
within  the  funds  they  managed.  They are no longer  with the firm.  The vast
majority of this  activity  took place  between 1998 and 2000.  No market timing
activity by portfolio managers has occurred since 2000.
o  Investment  gains by  employees  related  to mutual  funds  were  $4,600.  In
addition,  investment gains by employees related to our 401(k) separate accounts
were  $175,000.  Restitution  will  be  made to all  impacted  funds.  Repayment
methodology will be determined with the assistance of an independent advisor.

The Principal will further enhance its practices by:

o Implementing an additional  valuation service for global equities in the first
quarter of 2004. This service will further reduce the arbitrage  opportunity for
market timers.
o Increasing education of employees of The Principal about market timing.
o Implementing  other tools, such as increased  redemption fees on mutual funds,
as needed.

J. Barry Griswell, chairman, president and CEO of the Principal Financial Group,
made the following comment with regard to the review:

"WE TAKE OUR RESPONSIBILITY FOR INVESTMENT  STEWARDSHIP EXTREMELY SERIOUSLY.  WE
DO NOT PERMIT OR CONDONE ANY BEHAVIOR THAT IS IN ANY WAY INCONSISTENT  WITH THAT
RESPONSIBILITY.  OUR  VOLUNTARY  REVIEW  AND  ON-GOING  ACTIONS  UNDERSCORE  OUR
COMMITMENT."

We  continue  to  monitor  all  firms  currently  residing  on our  Watch  List:
AllianceBernstein,  Invesco, Putnam Investments,  Janus and Federated Investors.
In our effort to support you in your fiduciary role, we will continue to apprise
you of any important developments.

THE PRINCIPAL DUE DILIGENCE PROGRAMSM

We use our due diligence  program to identify,  select,  and monitor  investment
management firms. A key component of this program is the continuous  qualitative
and  quantitative  review of the  investment  managers  we have  selected.  This
rigorous  monitoring  helps  us to  quickly  identify  any  adverse  changes  to
underlying  investment  management firms or investment processes that may affect
long-term  performance  results.  Our due diligence  program plays a key role in
helping you meet your  fiduciary  responsibilities  and providing a high quality
investment program for your participants.


  FOR ADDITIONAL ASSISTANCE, CONTACT YOUR CORPORATE CENTER CONTACT.

For more information about Principal Investors Fund, Inc.,  including investment
objectives,  risks,  charges and expenses,  contact your local representative of
The Principal for a free prospectus, go to WWW.PRINCIPAL.COM to download a copy,
or call 1-800-547-7754. Please read the prospectus carefully before investing or
sending money.

Separate  Accounts  offered through a group annuity  contract with the Principal
Life Insurance  Company,  Des Moines,  IA 50392-0001.  Principal  Investors Fund
distributed  by  Princor  Financial   Services   Corporation,   Des  Moines,  IA
50392-2080,  1-800-247-4123, member SIPC. Principal Life and Princor are members
of the Principal Financial Group.

The term  "investment  manager" used here may refer to an investment  advisor or
sub-advisor of a Separate Account, or an investment advisor or sub-advisor of an
underlying mutual fund.
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SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ------------------

                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        Date of Report: DECEMBER 22, 2003
                        (Date of earliest event reported)

                         PRINCIPAL FINANCIAL GROUP, INC.
             (Exact name of registrant as specified in its charter)

       DELAWARE                     1-16725                    42-1520346
 State or other jurisdiction    Commission file number       (I.R.S. Employer
   of incorporation)                                      Identification Number)

                     711 HIGH STREET, DES MOINES, IOWA 50392
                    (Address of principal executive offices)

                                 (515) 247-5111
              (Registrant's telephone number, including area code)

                               ------------------
2
ITEM 7.  EXHIBITS

99     Principal Blueprint Investment Alert dated December 22, 2003.

ITEM 9.  REGULATION FD DISCLOSURE.

On December 22, 2003,  Principal Life Insurance Company and Principal Management
Corporation,  wholly-owned  subsidiaries  of Principal  Financial  Group,  Inc.,
issued a  Principal  Blueprint  Investment  Alert to plan  sponsors  who  choose
Principal  Financial  Group  for their  401(k)  plans.  A copy of the  Principal
Blueprint Investment Alert is attached hereto as Exhibit 99.

                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                   PRINCIPAL FINANCIAL GROUP, INC.

                                   By:       /S/ LARRY D. ZIMPLEMAN
                                      -----------------------------------------
                                   Name:   Larry D. Zimpleman
                                   Title:  President-Retirement and Investment
                                             Services

Date:  December 22, 2003
Principal Blueprint Investment Alert             Exhibit 99

THIS  COMMUNICATION  WAS PREPARED  THROUGH THE JOINT  EFFORTS OF THE  INVESTMENT
SERVICES DEPARTMENT OF PRINCIPAL LIFE INSURANCE COMPANY AND PRINCIPAL MANAGEMENT
CORPORATION AS PART OF THEIR DUE DILIGENCE PROCESS.

Additional Update on Market Timing and Late Trading Issues

In our  Investment  Alert dated October 31, 2003, we told you that The Principal
was  conducting  an  extensive  voluntary  review  of its  practices,  including
employees'  individual trading records.  This review dated back to October 1996.
The Principal took its review beyond mutual funds,  broadening it to include its
entire block of 401(k) separate accounts.

We have now completed the review and found the following:

o The Principal  has not  permitted  any late  trading.
o The Principal has not entered into any special  arrangements  to permit select
investors to engage in market timing.
o The  Principal  has not engaged in any  "portfolio  peeking",  the practice of
allowing some investors access to portfolio  information not generally available
to the investing public.
o Beginning  in late  2000 The  Principal  imposed  progressively  more  robust
standards and  protections to further  prevent  improper  market  timing.  These
standards and practices have been applied  consistently  to customers as well as
The Principal's own employees in The Principal 401(k) Plan.
o Some employees engaged in market timing trades within their personal accounts,
predominantly in our  international  401(k) separate  accounts.  The majority of
these  employees  are no longer  with the firm.  Included  in this group are two
portfolio  managers  who  engaged in this  activity in their  personal  accounts
within  the  funds  they  managed.  They are no longer  with the firm.  The vast
majority of this  activity  took place  between 1998 and 2000.  No market timing
activity by portfolio managers has occurred since 2000.
o  Investment  gains by  employees  related  to mutual  funds  were  $4,600.  In
addition,  investment gains by employees related to our 401(k) separate accounts
were  $175,000.  Restitution  will  be  made to all  impacted  funds.  Repayment
methodology will be determined with the assistance of an independent advisor.

The Principal will further enhance its practices by:

o Implementing an additional  valuation service for global equities in the first
quarter of 2004. This service will further reduce the arbitrage  opportunity for
market timers.
o Increasing education of employees of The Principal about market timing.
o Implementing  other tools, such as increased  redemption fees on mutual funds,
as needed.

J. Barry Griswell, chairman, president and CEO of the Principal Financial Group,
made the following comment with regard to the review:

"WE TAKE OUR RESPONSIBILITY FOR INVESTMENT  STEWARDSHIP EXTREMELY SERIOUSLY.  WE
DO NOT PERMIT OR CONDONE ANY BEHAVIOR THAT IS IN ANY WAY INCONSISTENT  WITH THAT
RESPONSIBILITY.  OUR  VOLUNTARY  REVIEW  AND  ON-GOING  ACTIONS  UNDERSCORE  OUR
COMMITMENT."

We  continue  to  monitor  all  firms  currently  residing  on our  Watch  List:
AllianceBernstein,  Invesco, Putnam Investments,  Janus and Federated Investors.
In our effort to support you in your fiduciary role, we will continue to apprise
you of any important developments.

THE PRINCIPAL DUE DILIGENCE PROGRAMSM

We use our due diligence  program to identify,  select,  and monitor  investment
management firms. A key component of this program is the continuous  qualitative
and  quantitative  review of the  investment  managers  we have  selected.  This
rigorous  monitoring  helps  us to  quickly  identify  any  adverse  changes  to
underlying  investment  management firms or investment processes that may affect
long-term  performance  results.  Our due diligence  program plays a key role in
helping you meet your  fiduciary  responsibilities  and providing a high quality
investment program for your participants.

  FOR ADDITIONAL ASSISTANCE, CONTACT YOUR CORPORATE CENTER CONTACT.

For more information about Principal Investors Fund, Inc.,  including investment
objectives,  risks,  charges and expenses,  contact your local representative of
The Principal for a free prospectus, go to WWW.PRINCIPAL.COM to download a copy,
or call 1-800-547-7754. Please read the prospectus carefully before investing or
sending money.

Separate  Accounts  offered through a group annuity  contract with the Principal
Life Insurance  Company,  Des Moines,  IA 50392-0001.  Principal  Investors Fund
distributed  by  Princor  Financial   Services   Corporation,   Des  Moines,  IA
50392-2080,  1-800-247-4123, member SIPC. Principal Life and Princor are members
of the Principal Financial Group.

The term  "investment  manager" used here may refer to an investment  advisor or
sub-advisor of a Separate Account, or an investment advisor or sub-advisor of an
underlying mutual fund.