FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE RETAIL PUBLIC 1 Make the Most of Your...

FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE RETAIL PUBLIC1

Make the Most of Your Investments for College

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

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Disclosure statementsDisclosure statements

EdVest 529 portfolio investments involve risks, including the possible loss of principal. Consult a program description for additional information on risks.

An investment in the Wells Fargo Money Market Portfolio or the Bank CD Portfolio is not insured or guaranteed by the FDIC or any other government agency. Although these Portfolios seek to preserve the value of your investment at $10.00 per share, it is possible to lose money by investing in these Portfolios. Bank CD Portfolio account owners do not have an ownership interest or any other rights as an owner of CDs in which the Bank CD Portfolio invests. Consult the program description for additional information on these and other risks.

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 EdVest before investing. For a current program description, containing this and other information, call 1-888-338-3739 or visit EdVest.com. Read it carefully before investing.

EdVest 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 for the EdVest plan. Shares in the program are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company. 206859 01-12


AgendaAgenda

The importance of planning ahead

Different college investing options

What are 529s all about? The EdVest Plan

Benefits of EdVest SAGE Scholars Tuition Rewards® Program Investment options Expenses and sales charges


“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 degree Tuition, books, room & board add up quickly

Private University

Public University

The need for effective college planningThe need for effective college planning

Private University

Public University

Private University

Public University$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

Private University

Public University


*Assumptions: Total cost of college $25,000; 8% annual return on savings 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.

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.*

$135.75

$301.31

$0

$50

$100

$150

$200

$250

$300

$350

Monthly investment Monthly loan repayment

Advantage of investing vs. student loans$165.56/month

The power of planning aheadThe power of planning ahead


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.

$301.31

Putting time on your sidePutting time on your side

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


Comparing a 529 to other investmentsComparing a 529 to other investments

EdVest UGMA/UTMA

Coverdell Education Savings Account1

Savings Bonds Roth IRA

How Much Can You Contribute?

Up to $330,000

Unlimited contributions $2,000 maximum annual contribution per child, up to age 18

$5,000 annually for each series per SSN for Series EE and Series I bonds

Up to $5,000 annually in 2012, adjusted for inflation thereafter

Who Controls the Account?

Account owner Custodian, until the student reaches the age at which the custodianship ends (varies by state)

Parent or other “responsible individual”

Bond owner Account owner

Tax Treatments Federal and Wisconsin state tax-free growth when used for qualified withdrawals

Up to a $3,000 deduction from taxable Wisconsin income per eligible family members, per year

Some investment earnings may be exempt from federal income tax; others may be taxed at the child’s or parents’ tax rate

Tax-free growth when used for qualified expenses

Tax-free interest if used for education expenses and certain qualifying factors are met; Benefits phase out for AGI above specific limits as outlined by the IRS

Withdrawals of contributions are tax- and penalty-free

Withdrawals of earnings after five years and age 59 ½ are tax-and penalty-free

Withdrawals of earnings for education expenses are always penalty-free

Restrictions on Using the Money

Withdrawals are tax-free when used for qualified education expenses

Must be used for the benefit of the student

Withdrawals are tax-free when used for qualified education expenses

Must use money by age 30

None Withdrawals of earnings before age 59½ are penalized, unless used for a qualifying event, e.g. first-home purchases or education expenses

1Certain federal tax attributes for Coverdell Education Savings Accounts will expire on December 31, 2012. Unless extended or modified by future legislation, the maximum annual contribution limit will be reduced from $2000 to $500 and withdrawals for K–12 education expenses will no longer be tax-free.2Up to the amount of the scholarship.

(Cont’d)


Comparing other investments (cont’d)Comparing other investments (cont’d)

EdVest UGMA/UTMA Coverdell Education

Savings Account1 Savings Bonds Roth IRA

Financial Aid Considerations

Considered the account owner's assets, which may be weighted less than the student’s for aid purposes

Penalty-free withdrawals if student receives scholarship2

Excluded from Wisconsin state financial aid

Considered the student’s assets, which are weighted more than the parents’ for aid purposes

Considered the responsible individual's assets, which may be weighted less than student’s for aid purposes

Considered bond owner’s assets

Considered account owner’s assets

Advantages Account can be transferred to another family member

Account owner retains control of how the money is used and there’s no age restriction for use

Contributions can be made by anyone, and there are no family income restrictions

Contributions can be made by anyone

No family income restrictions

May use for elementary and secondary school expenses

Account can be transferred to another student

Contributions can be made by anyone

Guaranteed minimum return

No family income restrictions

Account owner retains control of assets

Can use money for any eligible student

Disadvantages 10% additional tax on earnings for nonqualified withdrawals

Can only change investment options up to annual investment change limit per IRS regulations, or whenever there is a change in beneficiaries

Student gains complete control of money at age in which the custodianship ends

Limited tax-advantaged growth

Not available to high-income families ($220,000 joint – MAGI, $110,000 single – MAGI)

Can only contribute until student reaches age 18

10% additional tax on earnings for non-qualified withdrawals

Low contribution limit

Limited return potential


Student must have earned income to open an account in their name

Withdrawals from a Roth IRA reduce retirement investments


1Certain federal tax attributes for Coverdell Education Savings Accounts will expire on December 31, 2012. Unless extended or modified by future legislation, the maximum annual contribution limit will be reduced from $2000 to $500 and withdrawals for K–12 education expenses will no longer be tax-free.2Up to the amount of the scholarship.


A state-sponsored ‘Section 529’ College Savings Program

Administered by the State of Wisconsin

Managed by Wells Fargo Funds Management, LLC

Oversight by the Wisconsin College Savings Program Board

EdVestEdVest 529 college savings plan 529 college savings plan


EdVest EdVest benefits: taxesbenefits: taxes

Wisconsin state tax deduction

Up to $3,000 annually from taxable state income per beneficiary

Available for parents, grandparents, great-grandparents, aunts and uncles

Also available for individuals who open accounts for themselves

If withdrawals are made for qualified expenses:

Earnings are federal tax-free

Earnings are Wisconsin state tax-free

Earnings are potentially state-tax free in other states


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.

EdVestEdVest benefits: gift and estate taxes benefits: gift and estate taxes

Gift and estate tax benefits:

Contributions are considered a completed gift and are eligible for the annual $13,000 ($26,000 for married couples) gift tax and generation-skipping exemptions

For larger contributions, up to a $65,000 ($130,000 for married couples) one-time gift may be prorated over five years

IRS Form 709 should be filed to report this contribution

All contributions are removed from the contributor’s taxable estate

(Cont’d)


= $390,000removed from the couple’s

taxable estate

$195,000

+

$195,000

EdVest EdVest benefits: gift and estate taxes benefits: gift and estate taxes

The gift tax exclusion can be very powerful. In this example, a grandfather and grandmother each provide 3 one-time gifts of $65,000 to 3 grandchildren. The gifts are prorated over five years and a total of $390,000 is removed from the couple’s taxable estate.

Gifts $65,000 per grandchild

Gifts $65,000 for same grandchildren

Gift and estate tax benefits (cont’d):

Grandfather Smith

Grandmother Smith


*The earnings portion of a distribution on account of a qualified scholarship is subject to applicable federal and state income tax, but free from the additional 10% federal tax.

Using Using EdVestEdVest investments investments

Funds can be used at any eligible school of higher education

Includes public and private colleges, vocational schools, post-secondary schools, graduate schools, and some schools abroad

Eligible schools can be determined by searching for a school code at fafsa.ed.gov or EdVest.com/schools

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

If the student receives scholarships, you can withdraw the amount equal to the scholarships penalty-free*


Additional benefitsAdditional benefits

Transfers between investment options and beneficiaries are allowed

Investment changes are allowed once per calendar year without a change in the designated beneficiary

Beneficiary changes are allowed between family members

Includes siblings, children, parents, aunts/uncles, first-cousins, among others

Flexible contribution options

Clients can invest as little as $250 or $15 per month with an Automatic Investment Plan (AIP) or as much as $330,000 per beneficiary

A program of regular investment cannot assure a profit or protect against a loss in a declining market.


Value-added programValue-added program

SAGE Scholars Tuition Rewards

EdVest 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 EdVest.com/sage

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 EdVest college savings plan.


Investment optionsInvestment options

Choice of investments ranging from aggressive to conservative

Professionally managed portfolios with underlying investments from Wells Fargo Advantage Funds and Vanguard

14 investment choices:

11 fixed allocation options

3 enrollment-based options


Aggressive Portfolios

Vanguard Small Cap Index Portfolio

Vanguard Stock Index Portfolio

Wells Fargo Aggressive Portfolio

Invests entirely in the Vanguard Institutional

Index Fund.

Invests entirely in the Vanguard Small-Cap

Index Fund.

Invests primarily in Wells Fargo Advantage U.S. stock

and international funds.

International Stock Funds Domestic Stock Funds Bond Funds

100%100%

17%10%

73%

100%100%

More Aggressive Less Aggressive

Fixed allocation portfoliosFixed allocation portfolios

Vanguard International

Index Portfolio

Invests entirely in the Vanguard Total International

Stock Index Fund.

100%100%


Wells Fargo Moderate Portfolio

Invests entirely in the Vanguard WellingtonTM Fund.

Invests in both Wells Fargo Advantage

stock and bond funds.

Invests primarily in Wells Fargo Advantage U.S.

stock funds.

Vanguard Balanced Portfolio

Wells Fargo Balanced Portfolio

100%

Moderate/Balanced Portfolios

30%-40%

60-70%

8%

30%

13%

57%

60%-70%

30%-40%

41%

9%

50%

More Aggressive Less Aggressive

30%

International Stock Funds Domestic Stock Funds Bond Funds



Wells Fargo Money Market

PortfolioVanguard Bond Index Portfolio

Wells Fargo Bond Portfolio

Invests entirely in the Vanguard Total Bond Market Index Fund.

Invests entirely in the Wells Fargo Advantage Heritage

Money Market FundSM

Invests only in Wells Fargo Advantage

bond funds.

Conservative Portfolios

100%

100% 100%

Less Conservative More Conservative

Invests primarily in Wells Fargo Advantage

bond funds.

70%

5%

25%

International Stock Funds

Domestic Stock Funds

Bond Funds

Money Market Funds

Wells Fargo Conservative

Portfolio



Single-fund portfoliosSingle-fund portfolios

Six single-fund portfolios include the following mutual fund options:

Vanguard Institutional Index Fund

Vanguard Small-Cap Index Fund

Vanguard Total Bond Market Index Fund

Vanguard Total International Stock Index Fund

Vanguard Wellington Fund

Wells Fargo Advantage Heritage Money Market Fund


Wells Fargo multi-fund portfoliosWells Fargo multi-fund portfolios

Five multi-fund portfolios include a combination of the following mutual funds: Wells Fargo Advantage Capital Growth Fund Wells Fargo Advantage Diversified International Fund Wells Fargo Advantage Diversified Small Cap Fund Wells Fargo Advantage Emerging Markets Equity Fund Wells Fargo Advantage Equity Value Fund Wells Fargo Advantage Government Securities Fund Wells Fargo Advantage Growth Fund Wells Fargo Advantage Large Company Value Fund Wells Fargo Advantage Opportunity Fund Wells Fargo Advantage Short-Term Bond Fund Wells Fargo Advantage Special Mid Cap Value Fund Wells Fargo Advantage Total Return Bond Fund


10+ Years to College

7-9 Years to College



Aggressive Growth Moderate Growth Conservative Growth

In College

International Stock Funds

Domestic Stock Funds

Bond Funds

Money Market Funds

Enrollment-based portfoliosEnrollment-based portfolios


No enrollment fee No annual maintenance fee for Wisconsin residents

Non-resident fee of $20 may be waived for accounts with any of the following:

Account balance is over $25,000 Active monthly automatic investment plan for previous 12

months or since inception on the account Active monthly payroll direct deposit for previous 12 months or

must have been started within 6 weeks of opening the account Annual asset-based fees ranging from 0.33% to 1.06% as of

July 8, 2011 Ten portfolios with an expense ratio less than 1.00% Excludes the trailing commissions, which are 0.25% for Class A

shares and the Money Market Portfolio Class C shares and 1.00% for all other Class C shares

A program of regular investment cannot assure a profit or protect against a loss in a declining market.

EdVestEdVest: A low cost plan: A low cost plan


Growth and Balanced Portfolios1

Fixed-Income2 and Conservative

Portfolios

Money Market Portfolio

Breakpoints Sales Charge Sales Charge Sales Charge

$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%

1 Growth and Balanced Portfolios include the Vanguard Balanced, Vanguard International Index, Vanguard Small Cap Index, Vanguard Stock Index, Wells Fargo Aggressive, Wells Fargo Balanced, and Wells Fargo Moderate.

2 Fixed-Income Portfolios include the Vanguard Bond Index and Wells Fargo Bond Portfolios.

Class A load scheduleClass A load schedule


EdVestEdVest materials materials

Product brochure for clients

One-page program reference sheet

SAGE Scholars enrollment instructions and school listing

Program description


Thank you

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