for the period ending December 31, 2013

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1 State Farm 401(k) Savings Plan 2050 portfolio Fact Sheet for the period ending December 31, 2013 Asset Class: Lifestyle/Pre-mix (Target Date) Closing price: $43.59 Investment Objective The 2050 (the ) seeks to provide capital appreciation and current income that are consistent with its current asset allocation. The construction is described in the Holdings section and the Composition section of this Fact Sheet. Investment Strategy Asset allocation strategy is designed for participants who are planning to retire between 2048 and Asset allocation will automatically become more conservative over time. Approximately seven years after the target date, the s asset allocation is expected to resemble that of the Income. The s underlying funds are listed in the HOLDINGS section. The s indirect stock holdings consist substantially of large-cap U.S. stocks and, to a lesser extent, mid-cap and small-cap U.S. stocks, and international stocks. The s indirect bond holdings are a diversified mix of investment-grade taxable U.S. government, U.S. agency, and corporate bonds, as well as mortgagebacked securities, all with maturities of more than one year. Who may want to invest? Participants seeking long-term growth of capital and income. Participants seeking a simple way to achieve a broadly diversified holding of stocks and bonds that will gradually become more conservative in its allocation. Participants seeking to retire in years closer to 2050 (e.g., between 2048 and 2052). Who may not want to invest? Participants unwilling to accept significant fluctuations in share price. Participants seeking significant current income. Participants expecting a guaranteed sum or level of income upon retirement. For Additional Information about investment options in the plan, call the State Farm Benefits Center toll free at or view the Summary Plan Description (SPD). Overall risk level* (please also see RISK STATEMENT below) Conservative Moderate Aggressive *determined by The Vanguard Group, Inc. Investment management provided by The Vanguard Group, Inc. Holdings 1 % of Composition Asset class % of STOCKS Vanguard Total Stock Market Index Fund Institutional (VITSX) 63.5% Stocks Fixed Income 90.1% 9.9% Va nguard Total International Stock Index Fund Institutional Plus (VTPSX) 26.6% FIXED INCOME Vanguard Total Bond Market II Index Fund Institutional (VTBNX) 8.0% Vanguard Total International Bond Index Fund Institutional (VTIFX) 1.9% Vanguard Short-Term Inflation-Protected Securities 0.0% Fund Institutional (VTSPX) TOTAL HOLDINGS 100.0% Average Annual Total Returns 2 Period ending 12/31/2013 Rate of return 1 year 24.54% 5 year n/a 10 year n/a Since inception (8/15/2011) 17.01% Total 100.0% Stocks Fixed Income 90.1% 9.9% turnover rate as of 3/31/2013 = 3.35% IMPORTANT NOTE: All information is provided for informational purposes only and should not be viewed as recommendations to buy or sell the investment described. Consider seeking the advice of tax or investment counsel before making tax or investment decisions. PLEASE SEE RISK STATEMENT AT TOP OF PAGE 2. 1 For information about complete holdings of this investment option, please contact the State Farm Benefits Center toll free at The performance data shown represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so units, when sold, may be worth more or less than their original cost. Future performance may be lower or higher than the performance data cited. All figures represent average annual returns. Performance figures include reinvestment of all income and capital gains and are net of the investment manager fee. On April 29, 2013, the State Farm 401(k) Savings Plan converted the Target Date s from the Trust 1 series to the Trust Plus series, resulting in a reduction in investment management fees paid by participants (see section labeled Additional Fees and Expenses Information on page 2 of this Fact Sheet). Average Annual Total Returns shown above are for the Trust Plus series of Target Date s. For additional performance information on the Target Date s, see the list of s in the section labeled Target Retirement Trust Plus (net returns) of THIS PAGE on the Vanguard website.

2 RISK STATEMENT An investment in this is not guaranteed and you may experience losses, including losses near, at, or after retirement. The is subject to several stock and bond market risks, any of which could cause a participant to lose money. This invests in common stocks, based on its glide path shown below. Common stock investments represent an equity interest (ownership) in a business and are subject to several risks. Stock prices may fluctuate widely over short or extended periods in response to company, market, or economic news. While there is an opportunity for higher return, there is also greater risk of loss. The s allocation to fixed income investments is not risk free. Since mid-december 2008, the Federal Reserve has maintained its target Fed Funds rate (a short-term interest rate) in a range of 0% 0.25%, its lowest level ever. Significant declines in interest rates have been the primary driver behind the positive returns for high quality fixed income in the marketplace as well as within the fixed income portion of the over the last several years. If interest rates rise, values of fixed income investments (one component of the ) will decline, possibly more than the interest income the fixed income investments earn. Credit risk is the risk that an issuer of a bond may become unable to meet its obligation to pay interest on the bond, or repay principal. The credit risk within the is mitigated by investing in investment grade bonds. Inflation risk is the risk that the value of assets or income from an investment will be worth less in the future as inflation decreases the value of money. s with higher allocations to common stocks may move up or down more frequently and with wider variance than other investment options in the 401(k) Savings Plan which have a lower allocation to common stocks. Over time, as the s allocation between underlying funds gradually changes, the s overall level of variability should decline. In addition to the risks inherent in the asset classes of the underlying funds, the also is subject to asset allocation risk, which is the chance that the selection of underlying funds and the allocation of assets will cause the to underperform other s with a similar investment objective. Additional Fees and Expenses Information There are two primary categories of expenses associated with a 401(k) Plan: investment management and administration. Asset operation expenses can include expenses of investment management and asset custody. For investment management, the expense ratio is an investment account operating expense expressed as a percentage of average net assets. The expense ratio includes management and operations fees. It directly reduces the rate of return to participants. Reasonable asset operation expenses can be charged to participants. Each participant who places some or all of their account balance in the will pay an expense ratio equal to 0.07% of the participant s account balance invested in the. For example, for every $10,000 invested in the, the annual cost is $7.00. Previously, the expense ratio was % annually (August 15, 2011 April 28, 2013) which was down from an expense ratio of 0.09% annually (September 2, 2008 August 14, 2011). Currently, State Farm pays all other asset operation expenses, if any. Plan operation expenses relate to the daily operation of the Plan, such as record keeping, Web access, participant services, and disbursements. Reasonable plan operation expenses can be charged to participants although, currently, State Farm pays all of these costs. Please note that loan origination costs are paid by participants who request loans from their 401(k) account. Overall plan management expenses relate to managing and overseeing the plan and its service providers as a whole, such as accounting, audit, legal, regulatory compliance, and fiduciary support. Reasonable overall plan management expenses can be charged to participants although, currently, State Farm pays all of these costs. Investor Education Target date investing Each target date invests in a mixture of Vanguard index mutual funds. The target date s are offered in 5-year increments so that the participant would typically choose the target date closest to his/her retirement year. For example, if you plan to retire in 2048 or later, you might be a candidate for the The Fact Sheet for each target date lists the Vanguard index funds in which the invests and the percentage of the s assets invested in each index fund. This information is also included below. One significant feature of target date s is automatic re-balancing. Each target date is managed in order to automatically decrease the amount of equity investments over time while simultaneously increasing the amount of bonds and cash. The changing mix of equities, bonds, and cash over time is called the glide path. The graphic on page 3, shows how stock exposure is greatest for the longest target date (i.e., 2050 ) and least for the shortest target date (i.e., Income ). As examples, a typical participant who chooses the 2050 is in his/her early career, while a typical participant who chooses the 2010 is later in his/her career. Those participants who choose to invest in a target date typically choose only one target date (but are not limited to one) and then allow the to adjust automatically over time. Another characteristic of the glide path is that it glides down to 50% equities at the target date and then continues downward for seven more years until it reaches its landing point. For all of our target date s, the landing point is 30% equities. Once a target date (that has a date in its name) reaches its landing point, its investments should mirror the investments of the Income. About that time, the dated target date will be merged into the Income.

3 100% TOTAL 100% % Notches represent 10% increments % If you are this age you may want to consider choosing this target date investment option < > Income Total Stock Market Index Fund Total Int l Stock Index Fund Total Bond Market II Index Fund Total International Bond Index Fund Short-Term Inflation- Protected Securities Fund Stocks Fixed Income International Investing The Vanguard Total International Stock Index Fund ( VTPSX ) and the Vanguard Total International Bond Index Fund ( VTIFX ) are two of five underlying index funds in which this Target Date may invest. VTPSX invests in stock and VTIFX invests in bonds of companies located in many countries around the world, other than the United States. The section (above) titled Risk Statement describes the common risks of investing in Target Date s. There are additional risks associated with international investing that could affect Target Date s performance. Currency risk is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. VTPSX is subject to currency risk. Currency hedging risk is the risk that the currency hedging transactions entered into by VTIFX may not perfectly offset VTIFX s foreign currency exposures. VTIFX seeks to mimic the performance of foreign bonds without regard to currency exchange rate fluctuations. To accomplish this goal, VTIFX attempts to offset, or hedge, its foreign currency exposures by entering into currency hedging transactions. However, it generally is not possible to perfectly hedge VTIFX s foreign currency exposures. VTIFX will decline in value if it under-hedges a currency that has weakened, or over-hedges a currency that has strengthened relative to the U.S. dollar. In addition, VTIFX will incur expenses to hedge its foreign currency exposures. Currency hedging risk for VTIFX is low. Investments in international stock and international bonds are also subject to country/regional risk. Country/regional risk is the chance that world events such as political upheaval, financial troubles, or natural disasters will adversely affect the value of securities issued by companies in foreign countries or regions. When VTPSX or VTIFX invests a portion of its assets in securities of companies located in any one country or region, performance may be hurt disproportionately by the poor performance of its investments in that country or region. Country/regional risk is especially high in emerging markets. The amount of exposure a Target Date has to a specific country is a product of the weight given to VTPSX or VTIFX in the Target Date and the weight given to companies in that country by VTPSX or VTIFX. For example, if VTPSX represents 10% of the entire Target Date and VTPSX has 15% of its holdings in Country X, this means that 1.5% (= 10% x 15%) of the Target Date is exposed to Country X.

4 The weight given to VTPSX and VTIFX in a Target Date is shown on page 1 of each s Fact Sheet in the Holdings section. The weight given to each country by VTPSX and VTIFX depends on the country. Total country/regional risk for a given country can be approximated by adding the calculated exposure in VTPSX to the calculated exposure in VTIFX. To assist with the calculation, as of the date of this Fact Sheet, the five most heavily weighted countries in VTPSX and VTIFX were as follows: VTPSX (international stocks) VTIFX (international bonds) United Kingdom 16.0% Japan 22.4% Japan 15.6% France 11.6% Canada 7.1% Germany 11.2% France 6.4% United Kingdom 8.4% Germany 6.4% Italy 8.1% For additional information about VTPSX, please visit the following page of the Vanguard website: For additional information about VTIFX, please visit the following page of the Vanguard website:

5 State Farm 401(k) Savings Plan Understanding your Allocation Decisions Allocating your 401(k) account to specific investments can be daunting and confusing. However, with a little effort, it can be understandable and rewarding. The principles to keep in mind when allocating your 401(k) account are: Historical performance is not a guarantee of future investment performance. The more you learn and understand about investing, the better you will understand the ultimate outcome. The allocation decisions of your neighbor might not be best for you. A well-thought-out allocation increases the likelihood of success but doesn t guarantee it. No one can provide guarantees about future investment performance. Key factors you may want to consider in making your investment allocation decisions are: Do-it-Yourself or use one of the pre-mixed target date options If you prefer a do-it-yourself option, you may want to look more closely at the Equities Account, Balanced Account, and/or Fixed Income Account. If you prefer a single solution option, you may want to consider a target date. Time horizon (How long before you start taking money out of your account?) If you have 40 years until retirement, you are in a better position to ride out the natural fluctuations in the market, compared to someone who will retire in 5 years. Estimating the number of years until you retire is an important factor. OTHER SOURCES OF RETIREMENT INCOME and RETIREMENT GOALS (Do you have other expected sources of retirement income such as a pension or Social Security and how are they invested? Also, do you have a goal to delay taking money out of your 401(k) account until months or years after your retirement date?) Retirement income sources like State Farm s retirement ( pension ) plan and Social Security that pay out as an annuity (i.e., a fixed monthly income amount) don t allow you to allocate their underlying investments. In your overall retirement income picture, some financial planners would treat these types of retirement income sources like fixed income when considering asset allocation strategies. Because of this, some participants may choose to invest in more aggressive investment options (i.e., more exposure to stocks), as long as their time horizon, risk tolerance, and willingness to monitor their investments don t prevent it. In addition, some participants decide to delay taking money out of their 401(k) account until months or years after their retirement date. For these participants, they may want to consider 401(k) allocations today that have a longer time horizon than their expected retirement date. Risk tolerance (Are you a risk taker or are you very cautious?) The higher the expected return on an investment, the higher the risk. Participants who take more risk expect to be compensated with a higher return. The risk we are referring to is also called investment volatility. Volatility refers to the possibility that an investment can gain or lose value. Most people view stocks as a riskier investment and, thus, expect a higher return from stocks than from other investments. Expected or required rate of return (What earnings rate do you expect or need from your account in order to meet your goals?) Different investments have different expected rates of return. Historically, the average annual long-term return on investments in cash is fairly modest. The average annual long-term return on investments in fixed income securities is higher than cash. The average annual long-term return on investments in equity securities is higher than cash and higher than fixed income securities. The importance of your required rate of return is to start you thinking about what is possible for each class of investments. If you determine that you need more return than cash or fixed income have historically provided, you might want to look more closely at an investment option that is more heavily weighted to stocks. Willingness to monitor (Do you have the time and willingness to monitor your 401(k) investment allocations on a regular basis?) Some 401(k) participants prefer to keep a watchful eye on their account and make adjustments when appropriate. Your interest in monitoring your account and the time you have available to do so are important factors in your allocation decision. Other 401(k) participants would prefer to make one investment decision and have their account automatically adjust over time. This is why target date investment options were developed and they may be a viable option for this type of participant. FREQUENT TRADING POLICY The State Farm 401(k) Savings Plan is designed as a long-term retirement savings vehicle. As such, the investment options are not designed to be appropriate for investors who desire to trade the investments frequently in anticipation of, or in reaction to, short-term market price movements. Frequent trading of investment-option shares may lead to less efficient management of the investment option s portfolio, causing the value of the shares to be diluted for the other plan participants. Therefore, to protect the interests of plan participants, the State Farm 401(k) Savings Plan Administrator has approved a Frequent Trading Policy, which consists of two components: 1. Effective January 1, 2013, you may not transfer or reallocate money into either the 2055 or the However, contributions made to the (s), including rollovers into the Plan, are still permitted, and 2. Effective May 1, 2009, if you transfer or reallocate $5,000 or more from any of the Plan s investment options (excluding the 2055 or 2060 s mentioned above), you will not be able to transfer or reallocate any money back into that option for 60 calendar days from the transaction date.