Info Graphs

Taxable vs Tax-deferred Investing Over an 18-year Timeframe

$2,500 initial contribution and $100 monthly contribution for 18 years.

Taxable Account (taxed annually)	Tax-Deferred Account*(after taxes)
$41,126 with initial contribution of $2,500	$50,677 with initial contribution of $2,500. This is $9,551 more than a Taxable Account

*529 funds may be tax-free if used for qualified higher education expenses. Please consult your tax advisor._back

The above table is for illustration purposes only. The chart is based on a $2,500 initial contribution and $100 monthly contribution for 18 years. The tax-deferred numbers reflect a 7% earnings rate and no taxes deducted. The taxable numbers reflect a 7% earnings rate less an assumed 22% federal tax rate and 4.95% State of Illinois rate.

Assumed Annual Return at 5%^*

Monthly Amount	5 Year Invested	10 Year Invested	15 Year Invested	18 Year Invested
$50	$6,623	$11,914	$18,704	$23,670
$100	$10,037	$19,710	$32,125	$41,203
$250	$20,281	$43,100	$72,385	$93,802
$500	$37,353	$82,082	$139,486	$181,466

*This hypothetical example illustrates the accumulation potential with a $2,500 initial investment and a monthly contribution plan at 5% projected average annual return. The above example is based on projections and does not reflect your actual investment in the Bright Start Direct-Sold College Savings Program. If fees were included, the returns would be lower. Your actual results may be more or less._back

Average Weekly Earnings

High School Graduate	Some College or Associate Degree	Bachelor’s Degree	Advanced Degree
$768	$880	$1,263	$1,604

Source: Bureau of Labor Statistics, U.S. Department of Labor, News Release (1st Quarter 2020 Averages – April 15, 2020)