Make the Most Of Your Investments for College

EdVest SM 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 investment in the Wells Fargo Money Market Portfolio is not insured or guaranteed by the FDIC or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $10.00 per share, it is possible to lose money by investing in it. 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 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 NOT FDIC INSURED  NO BANK GUARANTEE  MAY LOSE VALUE Disclosure statements

Today’s topics  Why invest for college?  Investing in a 529 plan  The benefits of EdVest  EdVest investment options  Getting started  Questions & answers

 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 Why invest for college?

Costs based on estimate of average tuition and room and board in current dollars for four-year public and private universities according to the 2011Trends in College Pricing, published by the College Board. Projected pricing assumes a 6 percent annual increase in college costs. The rising costs of a four-year college  Tuition, books, room & board add up quickly Will you have enough for college? Private University Public University Private University Public University $210,873 $454,439 Private University Public University

*Assumptions: Total cost of college $25,000; 8% annual return on investment 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.* $ $ $0 $50 $100 $150 $200 $250 $300 $350 Monthly InvestmentMonthly Loan Repayment Advantage of Investing vs. Student Loans $165.56/month The 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. $ 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 $250 per month $500 per month Putting time on your side

Investing in a 529 plan

 A flexible, tax-advantaged investing program  A state-sponsored “Section 529” College Savings Program  Administered by the State of Wisconsin  Managed by Wells Fargo Funds Management, LLC  An easy, effective way to invest for higher education regardless of income level EdVest – A Wisconsin 529 plan

While not all investors may be able to take advantage of all the tax and other benefits of EdVest, here are four key features that may benefit you.  Tax advantages  Wisconsin state tax deductions  Income tax benefits  Gift and estate tax benefits  Flexibility  Control of the account  Eligibility The benefits of EdVest

 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  Contribute by December 31 of the current tax year Tax advantages

 100% Federal and Wisconsin state income tax-free qualified withdrawals  Qualified education expenses include:  Tuition  Room and board  Books  Certain special needs services Tax advantages 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 a hypothetical annual return of 8%, compounded monthly. This chart is for illustration only and does not predict or guarantee the performance of any investment. Investors should consider their personal investment horizon and their current and anticipated income tax brackets when making an investment decision.

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.  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 Gift and estate tax benefits

= $390,000 removed from the couple’s taxable estate $195,000 + $195,000 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 Grandfather Smith Grandmother Smith Gift and estate tax benefits

 Funds can be used at thousands of colleges, universities, technical schools, graduate schools, and trade schools nationwide, and many abroad  Money can be used for tuition, room and board (the student must be enrolled at least half-time), books, and other expenses  High contribution limit  Can use an automatic investment plan or payroll deduction A program of regular investment cannot assure a profit or protect against a loss in a declining market. Flexibility

 Control remains with the person who establishes the account  There is no obligation to distribute the funds  If the child doesn’t go to college, the owner can change the beneficiary or withdraw the funds*  The owner can:  Make an investment change for existing assets once per calendar year, or at any time with a change in beneficiary  Choose a successor owner  Make distribution decisions concerning the assets *The earnings portion of non-qualified withdrawals is treated as income and is subject to applicable federal and state income tax as well as an additional 10% federal tax. Control of assets

 Everyone is eligible!  Anyone of legal age can open an account for anyone else  There are no age limits on beneficiaries  Anyone can contribute to an existing account  You can even open an account for yourself  No income limits for contributors  Transfers allowed tax-free and penalty-free to eligible family members Eligibility

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.  Allows EdVest 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 EdVest.com/sage SAGE Scholars Tuition Rewards ®

EdVest investment options

 Wide range of investment options to meet your needs  Eleven fixed allocation options  Offering a range of investments, from more aggressive to very conservative  Three enrollment-based options  Offering portfolios that are based on the number of years until college enrollment  These options automatically become more conservative as the years go by EdVest investment 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 FundsBond Funds 100% 17%10% 73% 100% More AggressiveLess Aggressive Fixed allocation portfolios Vanguard International Index Portfolio Invests entirely in the Vanguard Total International Stock Index Fund. 100%

Wells Fargo Moderate Portfolio Invests entirely in the Vanguard Wellington TM 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 AggressiveLess Aggressive 30% International Stock FundsDomestic Stock FundsBond Funds Fixed allocation portfolios

Wells Fargo Money Market Portfolio Vanguard 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 Fund SM Invests only in Wells Fargo Advantage bond funds. Conservative Portfolios 100% Less ConservativeMore 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 Fixed allocation portfolios

10+ Years to College 7-9 Years to College 4-6 Years to College 1-3 Years to College Aggressive GrowthModerate GrowthConservative Growth In College International Stock Funds Domestic Stock Funds Bond Funds Money Market Funds Enrollment-based portfolios

Although not all investors may be able to take advantage of all the tax and other benefits of EdVest, here is a recap of the key benefits.  Tax advantages  Flexibility  Control of the account  Eligibility  SAGE Scholars Tuition Rewards Program  Multiple investment options Why EdVest? A review

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