Investing is a Lifelong Pursuit

Maybe you believe investing is something you do only when retirement is many years away. Or perhaps you think once you retire, there is no reason to continue investing. The reality is that although your financial objectives might change, investing should be a lifetime pursuit.

To help address your changing investment needs, State Farm Mutual Funds® has 16 different mutual funds in its product line. Each fund has unique investment objectives to help shareowners reach their unique financial goals.

If you are a retiree or individual approaching retirement, you may still need some long-term investments in your portfolio that have the potential to out-pace inflation. However, your primary concern may shift to supplementing current income with only a moderate risk of loss. You may also wish to reduce taxes on retirement income.

There are two bond funds available from State Farm Mutual Funds for persons seeking income from their investments. The State Farm Bond Fund invests its assets primarily in investment-grade bonds issued by U.S. companies, US government and agency obligations and mortgage backed securities. Assets of the State Farm Tax Advantaged Bond Fund are placed in a diversified selection of municipal bonds such as general obligation bonds issued by a state or bonds financing a specific project. Dividends from the Tax Advantaged Bond Fund are generally exempt from Federal income tax.*

For more diversification, the State Farm Equity and Bond Fund invests in both the State Farm Bond Fund and the State Farm Equity Fund. Normally, the fund invests approximately 60% of its assets in the Equity Fund but may invest as much as 75%, depending on market conditions.

Bond Fund and Tax Advantaged Bond Fund dividends are declared daily and paid on the last business day of the month. Any capital gains are paid annually. All declared dividends and capital gains are automatically reinvested in shares of that fund, but may be distributed in cash upon request.

Depending on your time horizon and risk tolerance, State Farm LifePath® Funds continually adjust as your need for the money gets closer. You decide when you need the money and how you feel about risk and then consider a Fund that is tailored to help meet your needs.

It is important to note all bonds are subject to interest rate risk, including those issued by the U.S. Government.  There is risk that the bonds a fund holds may decline in value due to an increase in interest rates.

It is important to note that there is market risk involved when investing in mutual funds, including possible loss of principal.

State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook.

AP2008/12/1759