tomorrow’s scholar®
Start Investing for Tomorrow…
Today!
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Disclosure 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
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Agenda
 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
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
“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
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
The need for effective college planning
The rising costs of a four-year college
 Tuition, books, room & board add up quickly
$500,000
$400,000
$454,439
$300,000
Private University
$200,000
$100,000
$0
2012
Public University
2014
2016
2018
2020
2022
2024
2026
2028
$210,873
2030
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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
The power of planning ahead
$350
$300
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.*
Advantage of Investing
vs. Student Loans
$165.56/month
$301.31
$250
$200
$150
$135.75
$100
$50
$0
Monthly Investment
Monthly Loan Payment
*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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Putting time on your side
Regular contributions of any amount can really add up
over time.
$100,000
$92,083
$80,000
This chart shows an
account with monthly
contributions over a
10-year period.
$60,000
$46,041
$40,000
$23,021
$20,000
$0
$125
per month
$250
per month
$500
per month
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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
College investing options
 UGMA/UTMAs
 Coverdell Education Savings Accounts
 Roth IRAs
 Savings Bonds
 529 College Savings Plans
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Building your business with 529 plans
 Flexibility for your clients
 Control of the account
 Tax advantages
 Estate planning
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Flexibility 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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Control of the account
 Control of assets remains with the person who
establishes the account
 Successor
 Distribution
 Beneficiary
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
The power of tax-deferred growth
Compare the growth potential of a taxable investment vs. a tax-deferred 529 account
$250,000
$201,369
$200,000
$172,744
$150,000
$100,000
$71,405
$76,736
$50,000
$29,989
$30,819
$0
5 Years
Taxable Investment
10 Years
18 Years
Federal Tax-Deferred 529 Plan Investment
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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Estate 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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Grandparents can get involved too
Decreasing a taxable estate while paying for college
Grandparents
$520,000
Grandchild 1
$130,000
Grandchild 2
$130,000
Grandchild 3
$130,000
Grandchild 4
$130,000
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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Additional tomorrow’s scholar plan 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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
The flexibility of multiple investment 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 “target date”-type options automatically get
more conservative as the years go by
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Fixed allocation portfolios
Aggressive
Growth Portfolio
Moderate
Growth Portfolio
Growth
Portfolio
10% 13%
25%
Balanced
Portfolio
9%
11%
7%
40%
77%
64%
Conservative
Portfolio
Income
Portfolio
Ultra-Conservative
Portfolio
3%
17%
5%
30%
65%
50%
51%
80%
100%
International Stock Funds
Bond Funds
Domestic Stock Funds
Money Market Funds
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
43%
Enrollment-based portfolios
Aggressive Growth
Track Portfolios
Moderate Growth
Track Portfolios
Conservative Growth
Track Portfolios
100%
100%
100%
80%
80%
80%
60%
60%
60%
40%
40%
40%
20%
20%
20%
0%
0%
0%
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
International Stock Funds
Domestic Stock Funds
Bond Funds
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Money Market Funds
The strength of a multi-manager strategy
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




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
 Harbor Funds

Harbor International Fund
 Columbia Funds


Columbia Marsico Growth Fund
Columbia Diversified Equity Income Fund
 ING Funds

ING Intermediate Bond Fund
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Value-added program
 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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Class A load schedule*
Growth 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%
Breakpoints
*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
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Portfolio expenses
Fund
Expenses
Admin Fees
Portfolio
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.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
A recap of tomorrow’s scholar benefits
 Tax advantages
 Flexibility and competitive pricing
 Estate planning and gifting benefits
 Multiple investment options
 Multi-manager investment approach
 SAGE Scholars Tuition Rewards Program
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Available tomorrow’s scholar materials
 Product brochure for clients
 One-page program reference sheet
 SAGE Scholars enrollment instructions and school listing
 Program description
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC
Investing for Tomorrow…
Today!
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC