TARGET RETIREMENT INCOME ACCOUNT

Following is a summary of information about the Target Retirement Income Account. Investors are advised to learn key data about an investment prior to making any investment decision.

Objective

The objective of this account is to seek current income and capital appreciation. It is invested solely in the Vanguard® Target Retirement Income Fund.

Investor Profile

The Target Retirement Income Account may be suitable for investors who are approaching or are in retirement, and seeking a high level of income and a simple way to achieve a diversified holding of stocks and fixed-income securities. Individuals must be willing and able to accept low to moderate fluctuations in unit price and have an intermediate investment horizon (more than three years).

Investment Strategy

Vanguard Target Retirement Income Fund invests in other Vanguard mutual funds using an asset allocation strategy designed for investors currently in retirement. The Vanguard Target Retirement Income Fund is a “fund of funds,” a term used to describe a mutual fund that pursues its objective by investing in other mutual funds, rather than in individual stocks and bonds.

Investment Considerations

The Target Retirement Income Account is subject to several stock and bond market risks, any of which could cause an investor to lose money. However, given approximately 80 percent of assets are in the less volatile asset classes of bonds and money market instruments, the fund’s overall risk level should be relatively low.

PORTFOLIO DATA

Asset Allocation (as of 09-30-2008)     Bonds 64.97% Stocks 29.84% Short-term Reserves 5.19%   Allocation to Underlying Funds (as of 09-30-2008)     Range   Vanguard Total Bond Market Index Fund 45.10 %     Vanguard Total Stock Market Index Fund 24.20 %     Vanguard Inflation-Protected Securities Fund 19.90 %     Vanguard Prime Money Market Fund 5.20 %     Vanguard European Stock Index Fund 3.10 %     Vanguard Pacific Stock Index Fund 1.40 %     Vanguard Emerging Markets Stock Index Fund 1.10 %     Total 100.00 %     Vanguard Target Retirement Income Fund* Average Annual Returns Annual Total Returns (as of 09-30-2008) (as of 12-31)           1 Month (4.30)%     3 Months (4.21)%     YTD (5.77)%     1 year (4.23)%     3 years 3.01%     5 years N/A     10 years N/A                                     2004       6.82%     2005       3.33%     2006       6.38%     2007       8.17%