tomorrow’s scholartomorrow’s scholar®®

Start Investing for Tomorrow…Today!

Disclosure statementsDisclosure statements

tomorrow’s scholar portfolios may invest in stock and bond investments. Stock investment values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond investment values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond investment values fall and investors may lose principal value. Consult a program description for additional information on these and other risks. There is no guarantee that an account will grow enough to cover higher education expenses.

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 Wisconsin Office of the State Treasurer. 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. 206862 01-12

NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE

AgendaAgenda

Why invest for college

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

Why investing for college is importantWhy investing for college is important

Why is investing for college important?

College can help a child or grandchild have a brighter future

Reduces reliance on student loans

Uses time and the power of compounding to your advantage

Keeps your options open by planning ahead

Will you have enough for college?Will you have enough for college?

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

$0

$100,000

$200,000

$300,000

$400,000

$500,000

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

$210,873

$454,439

Public University

Private University

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 tomorrow’s scholar portfolio.

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.*

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

$23,021

$92,083

$46,041

$0

$20,000

$40,000

$60,000

$80,000

$100,000

Putting time on your sidePutting time on your side

UGMA/UTMAs

Coverdell Education Savings Accounts

Roth IRAs

Savings Bonds

529 College Savings Plans

College investing optionsCollege investing options

529s vs. other investing vehicles529s vs. other investing vehicles

YES YES

$2,000 per beneficiary, up

to age 18

$5,000 annually for Series EE

and I Bonds for each series

YES YES

YES YES

Federal Tax Deferral

Maximum Contribution

Income Limits

Time/Age Restrictions

Coverdell Education Savings Account

Savings Bonds

YES

$5,000 in 2012; adjusted for

inflation thereafter

YES

YES

Roth IRA

YES YES

YES

Established by program; many

in excess of $300,000

NO

NO

529s

YES

YES

NO

NONE

NO

YES

UGMA/UTMA

YES

YES YES NO

Estate Planning

Gift Planning

YES

NO

While not all investors may be able to take advantage of all the tax and other benefits of tomorrow’s scholar, here are four key features that may benefit you.

Flexibility

Control of the account

Tax advantages

Estate planning

The benefits of investing in 529sThe benefits of investing in 529s

High contribution limits

Anyone can contribute – no income 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 (the 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.

Flexibility of 529sFlexibility of 529s

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

$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

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.

One size does not fit allOne size does not fit all

In-state vs. out-of-state plans

State tax treatment of 529 plans varies from state to state and can be a factor in deciding which plan to select

Some states offer a 529 tax deduction for state residents; others might offer a tax credit for 529 contributions

Understand the value of your state's tax deduction

In some cases, the tax deduction benefit may be offset by performance, contribution limits, and other plan features that are important to you

Estate planning benefitsEstate planning benefits

Can gift up to $65K ($130K married couple) per child

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

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$520,000

Grandchild 1$130,000

Grandchild 2$130,000

Grandchild 3$130,000

Grandchild 4$130,000

Decrease your taxable estate while paying for college

Grandparents can get involved tooGrandparents can get involved too

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.

tomorrow’s scholartomorrow’s scholar

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 optionsThe flexibility of multiple options

Wide range of options to meet your needs

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 options automatically get more conservative as the years go by

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

7 to 9 4 to 6 1 to 3 In College

10 or more

7 to 9 4 to 6 1 to 3 In College

Years to College

Domestic Stock Funds Bond FundsInternational Stock Funds Money Market Funds

Enrollment-based portfoliosEnrollment-based portfolios

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

The portfolios include investments from the following fund families:

Wells Fargo Advantage Funds®

Harbor Funds

Columbia Funds

ING Funds

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.

Allows tomorrow’s scholar account owners to receive discounts for undergraduate school tuition at participating private schools throughout the country

Awards tuition points based on your account balances – up to 10% annually

Each reward point equals $1 in guaranteed tuition discounts at participating private colleges and universities

Over 265 member schools

No fee to join

Enroll online at tomorrowsscholar.com/sagescholars

SAGE Scholars Tuition RewardsSAGE Scholars Tuition Rewards

Although not all investors may be able to take advantage of all the tax and other benefits of tomorrow’s scholar, here is a recap of the key benefits.

Tax advantages

Flexibility

Estate planning and gifting benefits

Multiple investment options

Multi-manager investment approach

SAGE Scholars Tuition Rewards Program

Why Why tomorrow’s scholartomorrow’s scholar??

Start investing for tomorrow…todayStart investing for tomorrow…today

Don’t wait to plan your scholar’s future.

Contact your investment professional today to find out how to get started or visit www.tomorrowsscholar.com.