Calculate what your estimated savings could be worth when your child starts college, and compare a hypothetical tax-free account (such as a state 529 plan) to a hypothetical taxable account.
After years, you'll have accumulated $0, or $0 more in a tax-free account than in a taxable account. This is because a taxable return rate of % shrinks to 0% after taxes, based on your federal tax rate of %.
Consider the following as you view your results:
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The Texas Tuition Promise Fund® is established and maintained by the Texas Prepaid Higher Education Tuition Board and distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. NorthStar Financial Services Group, LLC, the parent company of Northern Lights Distributors, LLC, is the Plan manager and administrator of the Plan.
Some states offer favorable tax treatment to their residents only if they invest in the state’s own 529 plan. Purchasers who are non-residents of Texas should consider whether their home state offers its residents a 529 plan with alternative tax advantages and should consult their tax advisor.
Contracts in the Plan are not deposits or other obligations of any depository institution. Neither a contract nor any return paid with a refund is insured or guaranteed by the FDIC, the state of Texas, the Texas Prepaid Higher Education Tuition Board, any other state or federal governmental agency or NorthStar or its affiliates. The contracts have not been registered with the U.S. Securities and Exchange Commission or with any state.
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