Build A Plan

Now that you know the number, create a plan to reach it. Read through the product comparisons below to determine the option that best meets your needs. Remember to be realistic with your savings based on your current budget, knowing the plan can be adjusted over time.

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How Others Are Planning

Not sure which products might be right for you? Read other's stories below and see how they are planning their futures.

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Research for Yourself

Take time to review each of the product options below. The link at the bottom of each column will direct you to more information about each specific plan. Once you're ready to select a plan, download the plan's form and fill in your information online.

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Highlights
A tax advantaged trust or custodial account for any child under 18 years of age.
  • Save up to $2,000 each year for:
    • Elementary education
    • Secondary education
    • Post-secondary education (i.e. four-year university, community college, etc.)
A tax advantaged college savings plan open to any individual who has a valid Social Security number.
  • There are no state residency requirements or income restrictions.
  • Investors from any state can invest in the State Farm College Savings Plan (529) – sponsored by the state of Nebraska
  • If the beneficiary decides not to pursue post-secondary education, an individual may:
    • transfer the balance to an account for another beneficiary who is a qualified member of the family, or
    • withdraw the principal and investment earnings in a non-qualified withdrawal.
A custodial account allowing gifts or transfers of property to a child under a certain age2 without setting up a trust.
  • Funds are not required to be used for education expenses.
  • Transfers are considered an irrevocable transfer to the named minor.
  • Establish an account for a child under either* the:
    • Uniform Gift to Minors Act (UGMA)
    • Uniform Transfer to Minors Act (UTMA)
  • No income restrictions exist, and anyone can make gifts to the account.
*Depending on which law applies in the relevant jurisdiction.
A tax-advantaged trust or custodial account for any child under 18 years of age.
  • Save up to $2,000 each year for:
    • Elementary education
    • Secondary education
    • Post-secondary education (e.g. four-year university, community college, etc.)
A tax advantaged college savings plan open to any individual who has a valid Social Security number.
  • There are no state residency requirements or income restrictions.
  • Investors from any state can invest in the State Farm College Savings Plan (529) – sponsored by the state of Nebraska
  • If the beneficiary decides not to pursue post-secondary education, an individual may:
    • transfer the balance to an account for another beneficiary who is a qualified member of the family, or
    • withdraw the principal and investment earnings in a non-qualified withdrawal.
A custodial account allowing gifts or transfers of property to a child under a certain age2 without setting up a trust.
  • Funds are not required to be used for education expenses.
  • Transfers are considered an irrevocable transfer to the named minor.
  • Establish an account for a child under either* the:
    • Uniform Gift to Minors Act (UGMA)
    • Uniform Transfer to Minors Act (UTMA)
*Depending on which law applies in the relevant jurisdiction.
Contribution Limit
Up to $2,000 per child (under 18 yrs. old)
  • Up to $2,000 each year for contributors with a modified adjusted gross income (MAGI)1 less than $190,000, if filing jointly, or $95,000 for single filers.
  • The maximum contribution amount is reduced and gradually phased out for contributors with a modified adjusted gross income between $190,000 and $220,000 (joint filers), or between $95,000 and $110,000 (single filers).
Individual contributions of up to $65,000 ($130,000 for married couples) per beneficiary are allowed in a single year with no federal gift tax.
  • The total amount of all contributions to all accounts maintained within the Nebraska Educational Savings Plan Trust for the same beneficiary may not exceed $360,000.
  • No additional contributions may be made for a single beneficiary when the fair market value of all accounts maintained within the Nebraska Educational Savings Plan Trust for that beneficiary plus any current contribution exceed $360,000.
None
  • Each donor may generally make gifts of $13,000 per year, per child without federal gift-tax consequences. (Consult your tax advisor regarding your individual circumstances.)
Up to $2,000 per child (under 18 yrs. old)
  • Up to $2,000 each year for contributors with a modified adjusted gross income (MAGI)1 less than $190,000, if filing jointly, or $95,000 for single filers.
  • The maximum contribution amount is reduced and gradually phased out for contributors with a modified adjusted gross income between $190,000 and $220,000 (joint filers), or between $95,000 and $110,000 (single filers).
Individual contributions of up to $65,000 ($130,000 for married couples) per beneficiary are allowed in a single year with no federal gift tax.
  • The total amount of all contributions to all accounts maintained within the Nebraska Educational Savings Plan Trust for the same beneficiary may not exceed $360,000.
  • No additional contributions may be made for a single beneficiary when the fair market value of all accounts maintained within the Nebraska Educational Savings Plan Trust for that beneficiary plus any current contribution exceed $360,000.
None
  • Each donor may generally make gifts of $13,000 per year, per child without federal gift-tax consequences. (Consult your tax advisor regarding your individual circumstances.)
Financial Aid Impact
Assets held within an ESA may affect your child's access to financial aid.
  • If the account is owned by the parent, it is considered an asset of the account owner (parent), not the beneficiary (child). This may have a lower impact on financial aid eligibility.
  • If the account owner is the student, this may have a high impact on financial aid eligibility.
Assets held within a 529 Plan may affect your child's access to financial aid.
  • If the account is owned by the parent, it is considered an asset of the participant (parent), not the beneficiary (child). This may have a lower impact on financial aid eligibility.
  • If the account owner is the student, this may have a high impact on financial aid eligibility.
Assets held within an UGMA/UTMA may affect your child's access to financial aid.
  • Accounts are considered assets of the child (minor), and may have a high impact on financial aid eligibility.
Assets held within an ESA may affect your child's access to financial aid.
  • If the account is owned by the parent, it is considered an asset of the account owner (parent), not the beneficiary (child). This may have a lower impact on financial aid eligibility.
  • If the account owner is the student, this may have a high impact on financial aid eligibility.
Assets held within a 529 Plan may affect your child's access to financial aid.
  • If the account is owned by the parent, it is considered an asset of the participant (parent), not the beneficiary (child). This may have a lower impact on financial aid eligibility.
  • If the account owner is the student, this may have a high impact on financial aid eligibility.
Assets held within an UGMA/UTMA may affect your child's access to financial aid.
  • Accounts are considered assets of the child (minor), and may have a high impact on financial aid eligibility.
Tax Treatment
Contributions are not tax deductible, but earnings grow tax free.
  • Earnings can be withdrawn tax free if used for eligible education expenses, including: room and board, tuition, books, supplies and equipment, academic tutoring, and special needs services.
Contributions are not tax deductible, but earnings grow tax free.
  • Withdrawals are federal-income-tax-free if used for qualified higher education expenses.
All earnings are reported to the IRS under the child's social security number.
  • The first $900 of a child's investment income is tax free.
  • The next $900 is taxed at the child's own rate.
  • Any unearned income in excess of $1,800 is taxed at the parent's presumably higher tax rate.
Contributions are not tax deductible, but earnings grow tax free.
  • Earnings can be withdrawn tax free if used for eligible education expenses, including: room and board, tuition, books, supplies and equipment, academic tutoring, and special needs services.
Contributions are not tax deductible, but earnings grow tax free.
  • Withdrawals are federal-income-tax-free if used for qualified higher education expenses.
All earnings are reported to the IRS under the child's social security number.
  • The first $900 of a child's investment income is tax free.
  • The next $900 is taxed at the child's own rate.
  • Any unearned income in excess of $1,800 is taxed at the parent's presumably higher tax rate.
Other
Account assets must be used by a beneficiary prior to becoming 30 years old and are subject to taxes and penalties 30 days after the beneficiary turns 30.
There is no age limit on the use of 529 Plan assets.
Once the child gains control of the account, the funds in the account can be used for any purpose and the minor is not limited in using the funds.
Account assets must be used by a beneficiary prior to becoming 30 years old and are subject to taxes and penalties 30 days after the beneficiary turns 30.
There is no age limit on the use of 529 Plan assets.
Once the child gains control of the account, the funds in the account can be used for any purpose and the minor is not limited in using the funds.
 
Coverdell ESA
State Farm College Savings Plan (529)
UGMA/UTMA
Coverdell ESA
State Farm College Savings Plan (529)
UGMA/UTMA
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Savings Options
Coverdell ESA State Farm College Savings Plan (529) UGMA/UTMA
Highlights A tax advantaged trust or custodial account for any child under 18 years of age.
  • Save up to $2,000 each year for:
    • Elementary education
    • Secondary education
    • Post-secondary education (i.e. four-year university, community college, etc.)
 A tax advantaged college savings plan open to any individual who has a valid Social Security number.
  • There are no state residency requirements or income restrictions.
  • Investors from any state can invest in the State Farm College Savings Plan (529) – sponsored by the state of Nebraska
  • If the beneficiary decides not to pursue post-secondary education, an individual may:
    • transfer the balance to an account for another beneficiary who is a qualified member of the family, or
    • withdraw the principal and investment earnings in a non-qualified withdrawal.
 A custodial account allowing gifts or transfers of property to a child under a certain age2 without setting up a trust.
  • Funds are not required to be used for education expenses.
  • Transfers are considered an irrevocable transfer to the named minor.
  • Establish an account for a child under either* the:
    • Uniform Gift to Minors Act (UGMA)
    • Uniform Transfer to Minors Act (UTMA)
*Depending on which law applies in the relevant jurisdiction.
Contribution Limit Up to $2,000 per child (under 18 yrs. old)
  • Up to $2,000 each year for contributors with a modified adjusted gross income (MAGI)1 less than $190,000, if filing jointly, or $95,000 for single filers.
  • The maximum contribution amount is reduced and gradually phased out for contributors with a modified adjusted gross income between $190,000 and $220,000 (joint filers), or between $95,000 and $110,000 (single filers).
 Individual contributions of up to $65,000 ($130,000 for married couples) per beneficiary are allowed in a single year with no federal gift tax.
  • The total amount of all contributions to all accounts maintained within the Nebraska Educational Savings Plan Trust for the same beneficiary may not exceed $360,000.
  • No additional contributions may be made for a single beneficiary when the fair market value of all accounts maintained within the Nebraska Educational Savings Plan Trust for that beneficiary plus any current contribution exceed $360,000.
 None
  • Each donor may generally make gifts of $13,000 per year, per child without federal gift-tax consequences. (Consult your tax advisor regarding your individual circumstances.)
Financial Aid Impact Assets held within an ESA may affect your child's access to financial aid.
  • If the account is owned by the parent, it is considered an asset of the account owner (parent), not the beneficiary (child). This may have a lower impact on financial aid eligibility.
  • If the account owner is the student, this may have a high impact on financial aid eligibility.
 Assets held within a 529 Plan may affect your child's access to financial aid.
  • If the account is owned by the parent, it is considered an asset of the participant (parent), not the beneficiary (child). This may have a lower impact on financial aid eligibility.
  • If the account owner is the student, this may have a high impact on financial aid eligibility.
 Assets held within an UGMA/UTMA may affect your child's access to financial aid.
  • Accounts are considered assets of the child (minor), and may have a high impact on financial aid eligibility.
Tax Treatment Contributions are not tax deductible, but earnings grow tax free.
  • Earnings can be withdrawn tax free if used for eligible education expenses, including: room and board, tuition, books, supplies and equipment, academic tutoring, and special needs services.
 Contributions are not tax deductible, but earnings grow tax free.
  • Withdrawals are federal-income-tax-free if used for qualified higher education expenses.
 All earnings are reported to the IRS under the child's social security number.
  • The first $900 of a child's investment income is tax free.
  • The next $900 is taxed at the child's own rate.
  • Any unearned income in excess of $1,800 is taxed at the parent's presumably higher tax rate.
Other Account assets must be used by a beneficiary prior to becoming 30 years old and are subject to taxes and penalties 30 days after the beneficiary turns 30. There is no age limit on the use of 529 Plan assets. Once the child gains control of the account, the funds in the account can be used for any purpose and the minor is not limited in using the funds.
Coverdell ESA State Farm College Savings Plan (529) UGMA/UTMA






Life Insurance Options
Term Life Whole Life Universal Life
Highlights A plan designed to provide simple, affordable coverage for a period of time. A plan designed to provide lifetime coverage with access to cash value. A plan designed to provide flexible coverage and flexible premiums for the insured's lifetime.
Typical Uses Appropriate for short-term coverage needs, it helps provide for a family's loss of income.
  • Covers short term debts and needs.
  • Provides additional insurance protection during the child raising years.
  • Provides longer term protection to help pay off a mortgage, or to help pay for a college education.
 Life insurance for life-long needs.
  • Whole life policies also provide for the accumulation of cash value on a tax-deferred basis which can be used when you need it.
 Provides for a family's loss of income, mortgage costs, and educational needs.
  • Gives access to cash value.
Benefits and Features Guaranteed death benefit provided if premiums are paid as required.
  • Cash-value available only for Return of Premium Term policies.
 Level premiums to age 100 and tax-deferred growth of cash value.
  • Death benefits generally pass on income tax-free to your beneficiaries.
  • Cash values can be accessed during the insured's lifetime.
  • Eligible to earn dividends, however, dividends are not guaranteed.
 Flexibility - you decide the amount of insurance and premium payments (subject to policy minimums).
  • Cash Value can be accessed to help with education expenses.
  • The growth in cash value is tax-deferred under current federal income tax law.
Product Types Select Term 10, 20, 30
Return of Premium 20, 30
Mortgage Life 15, 30
5 Year Term 		Whole Life
Limited Pay Life 10, 15, 20
Single Premium Life 		Universal Life
Survivorship Universal Life
Joint Universal Life
Term Life Whole Life Universal Life












Health Insurance Options
Disability Income Insurance Mortgage Disability Income Insurance Individual Credit Disability Insurance
Highlights A plan designed to help protect your paycheck and keep you financially stable during difficult times by paying a monthly income, directly to you, should you become unable to work due to illness or injury.

It is ideal as a primary income replacement plan, and helps protect against the risk of depleting your savings, education, or retirement funds.

 A plan designed to help protect your home should you become unable to work due to illness or injury by providing funds to help you meet your mortgage loan responsibilities. A plan designed to provide coverage on the monthly payments of a loan if you become unable to work due to illness or injury.
Protection It provides 24-hour protection both on and off the job. It provides 24-hour protection both on and off the job. It provides 24-hour protection both on and off the job.
Coverage Pays a specific monthly income amount directly to you when you are unable to work because of a covered disability. Provides funds to help with your mortgage payments for up to three years. Provides funds to help meet your loan obligations, such as an auto loan or other loans with equal monthly installments.
Use With Other Disability Insurance Can be used in combination with disability insurance through your employer or other sources. Can be obtained in addition to other disability income coverage. Can be obtained in addition to other disability income coverage.
Other Can insure both wage earners of a two-income household. Policy benefits are typically paid directly to your financing institution(s).

Helps protect your credit rating.
Disability Income Insurance Mortgage Disability Income Insurance Individual Credit Disability Insurance

Choose Options
Highlights
A plan designed to provide simple, affordable coverage for a period of time.
A plan designed to provide lifetime coverage with access to cash value.
A plan designed to provide flexible coverage and flexible premiums for the insured's lifetime.
A plan designed to provide simple, affordable coverage for a period of time.
A plan designed to provide lifetime coverage with access to cash value.
A plan designed to provide flexible coverage and flexible premiums for the insured's lifetime.
Typical Uses
Appropriate for short-term coverage needs, it helps provide for a family's loss of income.
  • Covers short term debts and needs.
  • Provides additional insurance protection during the child raising years.
  • Provides longer term protection to help pay off a mortgage, or to help pay for a college education.
Life insurance for life-long needs.
  • Whole life policies also provide for the accumulation of cash value on a tax-deferred basis which can be used when you need it.
Provides for a family's loss of income, mortgage costs, and educational needs.
  • Gives access to cash value.
Appropriate for short-term coverage needs, it helps provide for a family's loss of income.
  • Covers short term debts and needs.
  • Provides additional insurance protection during the child raising years.
  • Provides longer term protection to help pay off a mortgage, or to help pay for a college education.
Life insurance for life-long needs.
  • Whole life policies also provide for the accumulation of cash value on a tax-deferred basis which can be used when you need it.
Provides for a family's loss of income, mortgage costs, and educational needs.
  • Gives access to cash value.
Benefits and Features
Guaranteed death benefit provided if premiums are paid as required.
  • Cash-value available only for Return of Premium Term policies.
Level premiums to age 100 and tax-deferred growth of cash value.
  • Death benefits generally pass on income tax-free to your beneficiaries.
  • Cash values can be accessed during the insured's lifetime.
  • Eligible to earn dividends, however, dividends are not guaranteed.
Flexibility - you decide the amount of insurance and premium payments (subject to policy minimums).
  • Cash Value can be accessed to help with education expenses.
  • The growth in cash value is tax-deferred under current federal income tax law.
Guaranteed death benefit provided if premiums are paid as required.
  • Cash-value available only for Return of Premium Term policies.
Level premiums to age 100 and tax-deferred growth of cash value.
  • Death benefits generally pass on income tax-free to your beneficiaries.
  • Cash values can be accessed during the insured's lifetime.
  • Eligible to earn dividends, however, dividends are not guaranteed.
Flexibility - you decide the amount of insurance and premium payments (subject to policy minimums).
  • Cash Value can be accessed to help with education expenses.
  • The growth in cash value is tax-deferred under current federal income tax law.
Product Types
Select Term 10, 20, 30
Return of Premium 20, 30
Mortgage Life 15, 30
5 Year Term
Whole Life
Limited Pay Life 10, 15, 20
Single Premium Life
Universal Life
Survivorship Universal Life
Joint Universal Life
Select Term 10, 20, 30
Return of Premium 20, 30
Mortgage Life 15, 30
5 Year Term
Whole Life
Limited Pay Life 10, 15, 20
Single Premium Life
Universal Life
Survivorship Universal Life
Joint Universal Life
 
Term Life
Whole Life
Universal Life
Term Life
Whole Life
Universal Life
More Information

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Highlights
A plan designed to help protect your paycheck and keep you financially stable during difficult times by paying a monthly income, directly to you, should you become unable to work due to illness or injury.

It is ideal as a primary income replacement plan, and helps protect against the risk of depleting your savings, education, or retirement funds.

A plan designed to help protect your home should you become unable to work due to illness or injury by providing funds to help you meet your mortgage loan responsibilities.
A plan designed to provide coverage on the monthly payments of a loan if you become unable to work due to illness or injury.
A plan designed to help protect your paycheck and keep you financially stable during difficult times by paying a monthly income, directly to you, should you become unable to work due to illness or injury.

It is ideal as a primary income replacement plan, and helps protect against the risk of depleting your savings, education, or retirement funds.

A plan designed to help protect your home should you become unable to work due to illness or injury by providing funds to help you meet your mortgage loan responsibilities.
A plan designed to provide coverage on the monthly payments of a loan if you become unable to work due to illness or injury.
Protection
It provides 24-hour protection both on and off the job.
It provides 24-hour protection both on and off the job.
It provides 24-hour protection both on and off the job.
It provides 24-hour protection both on and off the job.
It provides 24-hour protection both on and off the job.
It provides 24-hour protection both on and off the job.
Coverage
Pays a specific monthly income amount directly to you when you are unable to work because of a covered disability.
Provides funds to help with your mortgage payments for up to three years.
Provides funds to help meet your loan obligations, such as an auto loan or other loans with equal monthly installments.
Pays a specific monthly income amount directly to you when you are unable to work because of a covered disability.
Provides funds to help with your mortgage payments for up to three years.
Provides funds to help meet your loan obligations, such as an auto loan or other loans with equal monthly installments.
Use With Other Disability Insurance
Can be used in combination with disability insurance through your employer or other sources.
Can be obtained in addition to other disability income coverage.
Can be obtained in addition to other disability income coverage.
Can be used in combination with disability insurance through your employer or other sources.
Can be obtained in addition to other disability income coverage.
Can be obtained in addition to other disability income coverage.
Other
Can insure both wage earners of a two-income household.
Policy benefits are typically paid directly to your financing institution(s).

Helps protect your credit rating.
Can insure both wage earners of a two-income household.
Policy benefits are typically paid directly to your financing institution(s).

Helps protect your credit rating.
 
Disability Income Insurance
Mortgage Disability Income Insurance
Individual Credit Disability Insurance
Disability Income Insurance
Mortgage Disability Income Insurance
Individual Credit Disability Insurance
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1Modified Adjusted Gross Income (or MAGI) is calculated by adding certain items back to an individual's adjusted gross income. Items added include, but are not limited to student loan deductions, deductions for higher-education expenses, IRA-contribution deductions, and foreign income.

2Usually 18 or 21 years, but in some states, it's 25.

Disability insurance products are not available in MA, NJ, and RI.

Note:
This is a Marketing tool intended for use in the sale of insurance. Completion of an application for a State Farm insurance policy will require contact with a State Farm insurance agent.
The information provides a brief, general description of the coverage provided by these policies. It is not a contract and certain exclusions and limitations apply. A complete statement of the coverage provided is found only in the policy itself. Policy coverages, exclusions and limitations may vary in some states.


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Risk Disclosures

Before investing, consider the investment objectives, risks, fees and expenses of the funds. Contact State Farm VP Management Corp. (1-800-447-4930) for a mutual funds prospectus or summary prospectus or The State Farm College Savings Enrollment Handbook and Participation Agreement containing this and other information. Read it carefully.

An investor should consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

Investing involves risk, including potential for loss.

View Additional Disclosures

Mutual Funds Disclosures

Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (1-800-447-4930) for a prospectus or summary prospectus containing this and other information. Read it carefully.

General

Automatic investment plans do not assure a profit or protect against loss.

Neither State Farm nor its agents provide investment, tax, or legal advice.

It is not possible to invest directly in an index.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.

As of June 2nd, 2010, additional fees may apply to certain accounts with balances less than $5000.

Each State Farm LifePath Fund invests all of its assets in a corresponding LifePath Master Portfolio under a master/feeder structure. BlackRock Fund Advisors (“BFA”) is the investment advisor to the LifePath Master Portfolios. State Farm Investment Management Corp. (SFIMC) is the investment advisor to the State Farm LifePath Funds. State Farm VP Management Corp. (SFVPMC) is the distributor of the State Farm LifePath Funds. Neither SFIMC or SFVPMC, or their affiliates, are affiliated with BFA or its affiliates.

BlackRock Investors Services (BIS) provides marketing support to the LifePath Master Portfolios. BFA and BIS are wholly owned subsidiaries of BlackRock Institutional Trust Company, N.A. (“BTC”). Neither BTC or its affiliates are affiliated with State Farm. BTC is located at 400 Howard Street, San Francisco, CA 94105.

BlackRock Fund Advisors (“BFA”) is the investment sub-advisor to the S&P 500 Index Fund.

Ascensus provides recordkeeping and administrative services for retail 401(k) retirement plans offered by State Farm Investment Management Corp.

Net Asset Value (NAV) is calculated by adding all of the assets of a Fund, subtracting the Fund's liabilities, then dividing by the number of outstanding shares.

Indices

The Russell 2000 Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000 Index.

The Russell 2500 Index tracks the 2,500 smallest companies in the Russell 3000 Index.

The Russell 1000 Index is a stock market index that represents the highest-ranking 1,000 stocks in the Russell 3000 Index.

The Russell Midcap Index measures the performance of the mid-cap segment of the US equity market and is a subset of the Russell 1000 Index.

The Dow Jones Industrial Average is an unmanaged average of 30 actively traded stocks.

The NASDAQ Composite is an unmanaged market capitalization weighted index that is designed to represent the performance of the National Market System.

The S&P 500® Index tracks the common stock performance of 500 large U.S. companies.

The S&P 1500 Index is a stock market index of U.S. stock that includes all stocks in the large cap S&P 500 Index, the mid cap S&P 400 Index, and the small cap S&P 600 Index.

The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE® Free) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East.

The Morgan Stanley Capital International Europe Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe.

The Barclays 1-5 Year U.S. Treasury Index measures the performance of short-term U.S. Treasury Securities maturing within one to five years.

The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate bond market.

The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.

The Barclays High Yield Index includes all fixed income securities having a maximum quality rating from Moody's Investor Service of Ba1, a minimum amount outstanding of $100 million, and at least one year to maturity.

The Barclays TIPS Index measures the performance of the US Treasury Inflation-Protected Securities (TIPS) market.

The Citigroup 3 Month T-Bill Index is an average of the last 3-month Treasury bill issues (excluding the current month-end bill).

The FTSE EPRA/NAREIT Developed REIT and Non-Reit Index is a subset of the Developed Index, which is designed to track the performance of listed real estate companies and REITS worldwide.

The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

The Nikkei 225 Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.

The Credit Suisse High Yield Index is designed to mirror the investible universe of the $U.S. – Denominated high yield debt market.

The Blended Benchmark for the Equity and Bond Fund is a combination of 60% of the S&P 500 Index and 40% of the Barclays U.S. Aggregate Bond Index, rebalanced monthly.

The Blended Benchmark for the LifePath Funds is a combination of the holdings in the Barclays U.S Aggregate Bond Index, Russell 1000 Index, MSCI ACWI ex-U.S. Index, FTSE EPRA/NAREIT Developed Real Estate Index and Barclays TIPS Index. The weightings of the indices are adjusted quarterly to reflect the funds' changing asset allocations over time.

State Farm College Savings Plan (529)

Earnings must be used to pay for qualified higher education expenses to be federally tax free. The earnings portion of a non qualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10% penalty. State Farm does not provide tax advice. Please consult your tax advisor for specific information about your tax situation, including any state tax consequences of an investment. The availability of such tax or other benefits may be conditioned on meeting certain requirements.

A $70,000 gift is viewed as an accelerated gift over five years. Any other gifts to the same beneficiary by the contributor in that tax year or in any of the succeeding four years may result in a federal gift-tax liability. If the contributor dies within the five-year period, a prorated portion of the contribution may be included in his or her taxable estate.

Contributions can be made until the value or total amount of contributions across all Nebraska program accounts for the beneficiary reaches $360,000. Accounts in excess of this limit can continue to grow through investment earnings realized by the plan, but no additional contributions can be accepted above that limit. This limit is set by the Nebraska State Treasurer and is subject to change.

The plan is intended to operate as a qualified tuition program, pursuant to section 529 of the U.S. Internal Revenue Code.

Participation in the plan does not guarantee that contributions and the investment earnings, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution.

This material is not an offer to sell or a solicitation of an offer to buy any securities. Any offer to sell shares within the plan may only be made by the Enrollment Handbook and Participation Agreement relating to the plan.

Neither the State of Nebraska, the Trust, the Nebraska State Treasurer, the Nebraska Investment Council, First National Bank of Omaha, Oppenheimer nor State Farm, nor any of their respective affiliates, directors, officers or agents shall have any debt or obligation to any contributor, any beneficiary or any other person as a result of the establishment of the plan, nor will these entities assume any risk or liability for mutual funds in which the plan invests.

The State Farm College Savings Plan is subject to enrollment, maintenance, administrative and management fees and expenses.

Investors in the plan do not hold shares of the underlying funds directly, but rather shares in a portfolio of the plan.

The State Farm College Savings Plan (the “plan”) is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The plan is established in cooperation with State Farm VP Management Corp. (“State Farm”), the State of Nebraska, and OFI Private Investments Inc. (OFIPI), a subsidiary of OppenheimerFunds, Inc, pursuant to which State Farm offers classes of shares in a series of accounts within the Nebraska Educational Savings Plan Trust (the “Trust” and plan issuer) that are distributed by OppenheimerFunds Distributor, Inc. (OFDI and together with OFIPI, “Oppenheimer”). The Trust offers other accounts that are not affiliated with the plan.

The Nebraska State Treasurer serves as trustee of the plan; OFIPI serves as the investment manager, with the oversight of the Nebraska Investment Council; and servicing agent: OFDI serves as the distributor: First National Bank of Omaha serves as the program manager.

The State Farm College Savings Plan is not insured or guaranteed by State Farm, Oppenheimer, First National Bank of Omaha, the Trust, the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, any of their respective affiliates, directors, officers or agents or any other entity.

Customized Portfolio Performance Benchmarks

The benchmarks for the Portfolios represent customized composites of market indices for the available Underlying Investments weighted by the relative target asset allocation for such portfolio.

Oppenheimer Capital Appreciation Fund Benchmark: The Russell 1000® Growth Index

The Russell 1000® Growth Index is a market-capitalization weighted index of those firms in the Russell 1000® Index with higher price-to-book ratios and higher forecasted growth values.

Oppenheimer Value Fund Benchmark: The Russell 1000® Value Index

The Russell 1000® Value Index is a market-capitalization weighted index of those firms in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values.

Oppenheimer Main Street Small- & Mid-Cap Fund® Benchmark: The Russell 2500® Index

The Russell 2500® Index tracks the common stock performance of the 2,500 smallest U.S. companies in the Russell 3000® Index, which represents approximately 17% of the total capitalization of the Russell 3000 Index.

Oppenheimer International Growth Fund: MSCI EAFE Index

The Morgan Stanley Capital International Europe, Australasia and Far East (EAFE®) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East and takes into account local market restrictions on share ownership by foreigners.

State Farm Bond Fund and Oppenheimer Global Strategic Income Fund Benchmark: The Barclays US Aggregate Bond Index

The Barclays US Aggregate Bond Index is a benchmark index composed of US securities in Treasury, Government-Related, Corporate, and Securitized sectors. It includes securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $250 million.

Federated US Government Securities Fund 1-3 yrs Benchmark: The Merrill Lynch U.S. Treasuries 1-3 Year Index:

The Merrill Lynch 1-3 Year US Treasury & Agency Index is a subset of The Bank of America Merrill Lynch US Treasury & Agency Index, an unmanaged fixed income index that includes U.S.Treasury fixed income securities (direct sovereign debt of the U.S. Government) in the maturity range equal to one year and less than three years.

Oppenheimer Institutional Money Market Fund Benchmark: iMoney Net First Tier Institutional Index:

The iMoneyNet First Tier Institutional Index (Also known as the MFR First Tier Institutional Index) is a subset of the Money Fund Reports (MFR) All-Taxable universe consisting of funds managed to a “first-tier” standard and which are offered to institutions only. Portfolio Holdings of first-tier funds include U.S. Treasury, U.S. Other, Repos, Time Deposits, Domestic Bank Obligations, Foreign Bank Obligations, First Tier CP, Floating Rate Notes, and AssetBacked Commercial Paper. The Money Fund Report AveragesTM are published by iMoneyNet, Inc. (formerly IBC Financial Data), and reflect yields net of fees and expenses.

Oppenheimer Developing Markets Fund: MSCI Emerging Markets Index:

The MSCI Emerging Markets Index is a capitalization-weighted index of stocks from 26 emerging markets that only includes issues that may be traded by foreign investors.

Investors cannot directly invest either in individual benchmark indices or combinations thereof.

AP2012/06/0772

Not FDIC Insured
  • No Bank Guarantee
  • May Lose Value

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