|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.
|Monthly Amount||5 Year Invested||10 Year Invested||15 Year Invested||18 Year Invested|
*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
|High School Graduate||Some College or Associate Degree||Bachelor’s Degree||Advanced Degree|
Source: Bureau of Labor Statistics, U.S. Department of Labor, News Release (1st Quarter 2020 Averages – April 15, 2020)