for institutional investor use only – not for use with the public tomorrows scholar ® start...

FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC

tomorrow’s scholar®

Start Investing for Tomorrow…

Today!


Disclosure statementsDisclosure statements

tomorrow’s scholar portfolios involve risks, including the possible loss of principal. Consult a program description for additional information on risks.

An investment in the Ultra-Conservative Portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Ultra-Conservative Portfolio seeks to preserve the value of your investment at $10.00 per share, it is possible to lose money by investing in it.

An investor’s or a designated beneficiary’s home state may offer state tax or other benefits that are only available for investments in that state’s qualified tuition program. Please consider this before investing.

Carefully consider the investment objectives, risks, charges, and expenses of tomorrow’s scholar before investing. For a current program description, containing this and other information, call 1-866-677-6933 or visit tomorrowsscholar.com. Read it carefully before investing.

tomorrow’s scholar is a state-sponsored 529 college savings plan administered by the State of Wisconsin. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment management and administrative services to the tomorrow’s scholar plan. Shares in the program are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company. 206860 01-12

NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE


AgendaAgenda

The importance of planning ahead

Different college investing options

What are 529s all about?

tomorrow’s scholar

Investment options within tomorrow’s scholar

The multi-manager strategy

SAGE Scholars Tuition Rewards® Program

Expenses and sales charges for tomorrow’s scholar


“Increased earnings are by no means the only

positive outcome of higher education. The

knowledge, fulfillment, self-awareness, and

broadening of horizons associated with

education transform the lives of students

and of those with whom they live and work.”

- The College Board, “Education Pays,” 2010


Costs based on 2011-2012 estimate of average tuition, fees, and room and board in current dollars for 4-year public and private universities according to the 2011 Trends in College Pricing published by the College Board. Projected pricing assumes a 6% annual increase in college costs.

The rising costs of a four-year college Tuition, books, room & board add up quickly

The need for effective college planningThe need for effective college planning

$0

$100,000

$200,000

$300,000

$400,000

$500,000

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

$454,439

$210,873Public University

Private University


Invest now or borrow later:To cover $25,000 in college expenses, investing for 10 years before college is a lot cheaper than paying back loans for 10 years after college.*

The power of planning aheadThe power of planning ahead

$135.75

$301.31

$0

$50

$100

$150

$200

$250

$300

$350

Monthly Investment Monthly Loan Payment

Advantage of Investing vs. Student Loans$165.56/month

*Assumptions: Total cost of college $25,000; 8% annual return on investments and 8% loan interest rate, compounded monthly; 10-year investing period and 10-year loan payback period. Annual return does not represent the performance of any specific investment.


A program of regular investment cannot assure a profit or protect against a loss in a declining market.This hypothetical illustration assumes an average annual return of 8%. Annual return does not represent the performance of any specific investment.

Regular contributions of any amount can really add up over time.

This chart shows an account with monthly contributions over a 10-year period.

$125 per month

$250per month

$500 per month

Putting time on your sidePutting time on your side

$23,021

$92,083

$46,041

$0

$20,000

$40,000

$60,000

$80,000

$100,000


College investing optionsCollege investing options

UGMA/UTMAs

Coverdell Education Savings Accounts

Roth IRAs

Savings Bonds

529 College Savings Plans


Flexibility for your clients

Control of the account

Tax advantages

Estate planning

Building your business with 529 plansBuilding your business with 529 plans


Flexibility for your clientsFlexibility for your clients

High contribution limits

Anyone can contribute – no income level restrictions or age limitations

Use at schools nationwide and many abroad for a wide range of expenses

Money can be used for qualified expenses, including tuition, fees, books, supplies, room and board (student must be enrolled at least half-time), and required equipment

Note: Individual states impose their own restrictions and rules on 529 College Savings Plans.


Control of the accountControl of the account

Control of assets remains with the person who establishes the account

Successor

Distribution

Beneficiary


The power of tax-deferred growthThe power of tax-deferred growth

This hypothetical illustration shows the growth of an annual investment of $5,000 made at the beginning of each year. It assumes a 28% tax bracket and an annual return of 8%, compounded monthly with a tax rate of 15% for dividends and long-term gains and 28% for short-term gains. The chart is for illustration only and does not predict or guarantee the performance of any tomorrow's scholar portfolio. Investors should consider their personal investment horizon, as well as their current and anticipated income tax brackets when making an investment decision.

$29,989

$71,405

$172,744

$30,819

$76,736

$201,369

$0

$50,000

$100,000

$150,000

$200,000

$250,000

5 Years 10 Years 18 Years

Taxable Investment Federal Tax-Deferred 529 Plan Investment

Compare the growth potential of a taxable investment vs. a tax-deferred 529 account


Estate planning benefitsEstate planning benefits

Ability to capture larger dollars than traditional college investing plans

Contributions to the plan qualify for the annual gift tax exclusion ($13K single / $26K married couple)

Can gift up to $65K ($130K married couple) per beneficiary in one year without incurring gift and generation-skipping transfer taxes, provided no other gifts are made to the same beneficiary in the 5-year period

Contributions are considered removed from the donor’s estate*

*If donor contributes more than $13,000 in one year, and elects to apply the gift tax exclusion ratably over 5 years, but dies before the close of the 5-year period, the portion allocable to calendar years beginning after the date of death is included in the decedent's estate.


Grandparents can get involved tooGrandparents can get involved too

Grandparents$520,000

Grandchild 1$130,000




Decreasing a taxable estate while paying for college

The gift tax exclusion can be very powerful. In this example, a grandfather and grandmother each provide 4 one-time gifts of $65,000 to 4 grandchildren. The $65,000 gifts are prorated over five years and a total of $520,000 is removed from the couple’s taxable estate.


Additional Additional tomorrow’s scholar tomorrow’s scholar plan detailsplan details

Wells Fargo and the State of Wisconsin have teamed up to offer the tomorrow’s scholar college savings plan.

The program is managed by Wells Fargo Funds Management, LLC.


The flexibility of multiple investment optionsThe flexibility of multiple investment options

Seven fixed allocation options

Offering a range of investments, from more aggressive to very conservative

Three enrollment-based tracks

Offering portfolios that are based on the number of years until college enrollment

These “target date”-type options automatically get more conservative as the years go by

Wide range of options to meet your needs


Fixed allocation portfoliosFixed allocation portfolios

GrowthPortfolio

AggressiveGrowth Portfolio

64%

25%11%

Domestic Stock Funds

Bond FundsInternational Stock Funds

50% 43%51%

40%

9%

BalancedPortfolio

ModerateGrowth Portfolio

80%

17%

65%

30%

IncomePortfolio

Conservative Portfolio

Ultra-ConservativePortfolio

100%

Money Market Funds

13%10%

77%

7%

5% 3%


Aggressive Growth Track Portfolios

Moderate Growth Track Portfolios

Conservative Growth Track Portfolios

100%

80%

60%

20%

0%

40%

100%

80%

60%

20%

0%

40%

100%

80%

60%

20%

0%

40%

10 or more

7 to 9 4 to 6 1 to 3 In College

10 or more


10 or more


Years to College

Domestic Stock Funds Bond FundsInternational Stock Funds Money Market Funds

Enrollment-based portfoliosEnrollment-based portfolios


The portfolios include investments from the following fund families: Wells Fargo Advantage Funds®

Wells Fargo Advantage Capital Growth Fund Wells Fargo Advantage Diversified Small Cap Fund Wells Fargo Advantage Growth Fund Wells Fargo Advantage Heritage Money Market Fund Wells Fargo Advantage Income Plus Fund

Harbor Funds Harbor International Fund

Columbia Funds Columbia Marsico Growth Fund Columbia Diversified Equity Income Fund

ING Funds ING Intermediate Bond Fund

The strength of a multi-manager strategyThe strength of a multi-manager strategy

Wells Fargo Advantage Large Company Value Fund Wells Fargo Advantage Opportunity Fund Wells Fargo Advantage Special Mid Cap Value Fund Wells Fargo Advantage Total Return Bond Fund


SAGE Scholars Tuition Rewards tomorrows’s scholar account owners receive discounts at

private colleges No fee to join Over 265 member schools Tuition points are earned based on account balances

Up to 10% annually Earn up to 25% off of a four-year undergraduate tuition

Clients can register online at tomorrowsscholar.com/sagescholars

As an advisor, you can also enroll clients and keep track of accounts online at tuitionrewards.com

The Tuition Rewards program is offered and administered by SAGE Scholars, Inc., a private for-profit corporation. SAGE Scholars is not sponsored by or affiliated with Wells Fargo or the tomorrow’s scholar college savings plan.

Value-added programValue-added program


*For accounts opened on or after September 10, 2005

1 Growth and Balanced Portfolios include the Aggressive Growth (90% equity), Growth (75% equity), Moderate Growth (60% equity), and Balanced (50% equity) Portfolios

2 Fixed-Income Portfolios include the Conservative (35% equity) and Income (20% equity) Portfolios

Class A load schedule*Class A load schedule*

BreakpointsGrowth and

Balanced Portfolios1

Fixed-Income Portfolios2

Ultra-Conservative Portfolio

$0 - $49,999 5.75% 4.50% 0.00%

$50,000 - $99,999 4.50% 4.00% 0.00%

$100,000 - $249,999 3.50% 3.50% 0.00%

$250,000 - $499,999 2.50% 2.50% 0.00%

$500,000 - $999,999 2.00% 2.00% 0.00%

$1,000,000+ 0.00% 0.00% 0.00%


Portfolio expensesPortfolio expenses

Fund Expenses

Admin FeesPortfolio

Expenses

Aggressive Growth (90% Equity) 0.87% 0.30% 1.17%

Growth (75% Equity) 0.81% 0.30% 1.11%

Moderate Growth (60% Equity) 0.74% 0.30% 1.04%

Balanced (50% Equity) 0.70% 0.30% 1.00%

Conservative (35% Equity) 0.62% 0.30% 0.92%

Income (20% Equity) 0.56% 0.30% 0.86%

Ultra-Conservative (100% Money Market) 0.20% 0.25% 0.45%

Fund expenses are based on a weighted average of each underlying investment and the Fund’s expense ratio, as of July 8, 2011. These figures do not include the trailing commissions, which are 0.25% for Class A shares and Class C shares of the Ultra-Conservative Portfolio and 1.00% for all other Class C shares.


Tax advantages

Flexibility and competitive pricing

Estate planning and gifting benefits

Multiple investment options

Multi-manager investment approach

SAGE Scholars Tuition Rewards Program

A recap of A recap of tomorrow’s scholar tomorrow’s scholar benefitsbenefits


Product brochure for clients

One-page program reference sheet

SAGE Scholars enrollment instructions and school listing

Program description

Available Available tomorrow’s scholartomorrow’s scholar materials materials


Investing for Tomorrow… Today!

for institutional investor use only – not for use with the public tomorrows scholar ® start...

Documents

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institutional investor

college board

tomorrows scholar slide

college expenses

college costs

college pricing

expenses of tomorrows