|
What Capital Homesteading Would Mean to the Average American: Projected Wealth and Income Accumulation Under Capital Homesteading |
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| . |
Assumptions
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| . |
Accumulation Beginning at Age:
|
Birth
|
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| . |
Annual Capital Credit Allocation:
|
$ 3,000.00
|
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| . |
Credit/Risk Charges on Acquisition Loans:
|
3.00%
|
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| . |
"Pre-Tax" Rate of Return on "Full-Payout" Shares:
|
15.00%
|
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| . |
Term of Acquisition Loan in Years:
|
9
|
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|
.Accumulations
|
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|
Age
|
Homestead
Accumulation |
Annual
Earnings |
Acquisition
Debt Balance |
Repayment
of Principal |
Credit/Risk
Charges |
Total Debt
Service |
Homestead
Dividends |
| Birth |
$ 3,000.00
|
$ 450.00
|
$ 2,666.67
|
$ 333.33
|
$ 90.00
|
$ 423.33
|
$ 26.67
|
| 1 |
6,000.00
|
900.00
|
5,000.00
|
666.67
|
170.00
|
836.67
|
63.33
|
| 2 |
9,000.00
|
1,350.00
|
7,000.00
|
1,000.00
|
240.00
|
1,240.00
|
110.00
|
| 3 |
12,000.00
|
1,800.00
|
8,666.67
|
1,333.33
|
300.00
|
1,633.33
|
166.67
|
| 4 |
15,000.00
|
2,250.00
|
10,000.00
|
1,666.67
|
350.00
|
2,016.67
|
233.33
|
| 5 |
18,000.00
|
2,700.00
|
11,000.00
|
2,000.00
|
390.00
|
2,390.00
|
310.00
|
| 6 |
21,000.00
|
3,150.00
|
11,666.67
|
2,333.33
|
420.00
|
2,753.33
|
396.67
|
| 7 |
24,000.00
|
3,600.00
|
12,000.00
|
2,666.67
|
440.00
|
3,106.67
|
493.33
|
| 8 |
27,000.00
|
4,050.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
600.00
|
| 9 |
30,000.00
|
4,500.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
1,050.00
|
| 10 |
33,000.00
|
4,950.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
1,500.00
|
| 11 |
36,000.00
|
5,400.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
1,950.00
|
| 12 |
39,000.00
|
5,850.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
2,400.00
|
| 13 |
42,000.00
|
6,300.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
2,850.00
|
| 14 |
45,000.00
|
6,750.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
3,300.00
|
| 15 |
48,000.00
|
7,200.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
3,750.00
|
| 16 |
51,000.00
|
7,650.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
4,200.00
|
| 17 |
54,000.00
|
8,100.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
4,650.00
|
| 18 |
57,000.00
|
8,550.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
5,100.00
|
| 19 |
60,000.00
|
9,000.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
5,550.00
|
| 20 |
63,000.00
|
9,450.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
6,000.00
|
| 21 |
66,000.00
|
9,900.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
6,450.00
|
| 22 |
69,000.00
|
10,350.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
6,900.00
|
| 23 |
72,000.00
|
10,800.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
7,350.00
|
| 24 |
75,000.00
|
11,250.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
7,800.00
|
| 25 |
78,000.00
|
11,700.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
8,250.00
|
| 26 |
81,000.00
|
12,150.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
8,700.00
|
| 27 |
84,000.00
|
12,600.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
9,150.00
|
| 28 |
87,000.00
|
13,050.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
9,600.00
|
| 29 |
90,000.00
|
13,500.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
10,050.00
|
| 30 |
93,000.00
|
13,950.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
10,500.00
|
| 31 |
96,000.00
|
14,400.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
10,950.00
|
| 32 |
99,000.00
|
14,850.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
11,400.00
|
| 33 |
102,000.00
|
15,300.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
11,850.00
|
| 34 |
105,000.00
|
15,750.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
12,300.00
|
| 35 |
108,000.00
|
16,200.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
12,750.00
|
| 36 |
111,000.00
|
16,650.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
13,200.00
|
| 37 |
114,000.00
|
17,100.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
13,650.00
|
| 38 |
117,000.00
|
17,550.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
14,100.00
|
| 39 |
120,000.00
|
18,000.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
14,550.00
|
| 40 |
123,000.00
|
18,450.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
15,000.00
|
| 41 |
126,000.00
|
18,900.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
15,450.00
|
| 42 |
129,000.00
|
19,350.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
15,900.00
|
| 43 |
132,000.00
|
19,800.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
16,350.00
|
| 44 |
135,000.00
|
20,250.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
16,800.00
|
| 45 |
138,000.00
|
20,700.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
17,250.00
|
| 46 |
141,000.00
|
21,150.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
17,700.00
|
| 47 |
144,000.00
|
21,600.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
18,150.00
|
| 48 |
147,000.00
|
22,050.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
18,600.00
|
| 49 |
150,000.00
|
22,500.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
19,050.00
|
| 50 |
153,000.00
|
22,950.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
19,500.00
|
| 51 |
156,000.00
|
23,400.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
19,950.00
|
| 52 |
159,000.00
|
23,850.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
20,400.00
|
| 53 |
162,000.00
|
24,300.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
20,850.00
|
| 54 |
165,000.00
|
24,750.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
21,300.00
|
| 55 |
168,000.00
|
25,200.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
21,750.00
|
| 56 |
171,000.00
|
25,650.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
22,200.00
|
| 57 |
174,000.00
|
26,100.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
22,650.00
|
| 58 |
177,000.00
|
26,550.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
23,100.00
|
| 59 |
180,000.00
|
27,000.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
23,550.00
|
| 60 |
183,000.00
|
27,450.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
24,000.00
|
| 61 |
186,000.00
|
27,900.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
24,450.00
|
| 62 |
189,000.00
|
28,350.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
24,900.00
|
| 63 |
192,000.00
|
28,800.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
25,350.00
|
| 64 |
195,000.00
|
29,250.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
25,800.00
|
| 65 |
198,000.00
|
29,700.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
26,250.00
|
|
"RESIDUAL" RECEIVED BY HOMESTEADER DURING PERIOD OF ACCUMULATION: $ 780,450.00
|
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|
Gross Benefits to Homesteader by Age 65 (Homestead Accumulation plus "Residual to Homesteader"):
$ 978,450.00 |
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|
Cost to Government or Other Taxpayers (Taxes avoided on "tax free" Homestead Accumulation (28%)):
$ 55,440.00 |
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|
Taxes on Dividend Income (28% marginal rate, all Homestead Income assumed marginal):
$ 218,526.00 |
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|
Net Tax Benefit to Government due to Homestead Program:
$ 163,086.00 |
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|
Net Benefits to Homesteader by Age 65:
$ 759,924.00 |
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|
Continuing Accumulation Post "Retirement":
|
|||||||
| Age |
Homestead
Accumulation |
Annual
Earnings |
Acquisition
Debt Balance |
Repayment of
Principal |
Credit/Risk
Charges |
Total Debt
Service |
Homestead
Dividends |
| 66 |
201,000.00
|
30,150.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
26,700.00
|
| 67 |
204,000.00
|
30,600.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
27,150.00
|
| 68 |
207,000.00
|
31,050.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
27,600.00
|
| 69 |
210,000.00
|
31,500.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
28,050.00
|
| 70 |
213,000.00
|
31,950.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
28,500.00
|
| 71 |
216,000.00
|
32,400.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
28,950.00
|
| 72 |
219,000.00
|
32,850.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
29,400.00
|
| 73 |
222,000.00
|
33,300.00
|
12,000.00
|
3,000.00
|
450.00
|
3,450.00
|
29,850.00
|
| 74 |
225,000.00
|
33,750.00
|
12,000.00
|
3,000.00
|
450.00
|
3,4 | |