What Capital Homesteading Would Mean to the Average American:
Projected Wealth and Income Accumulation
Under Capital Homesteading
.
Assumptions
.
.
Accumulation Beginning at Age:
Birth
.
Annual Capital Credit Allocation:
$ 3,000.00
.
Credit/Risk Charges on Acquisition Loans:
3.00%
.
"Pre-Tax" Rate of Return on "Full-Payout" Shares:
15.00%
.
Term of Acquisition Loan in Years:
9
.Accumulations
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
Gross Benefits to Homesteader by Age 65 (Homestead Accumulation plus "Residual to Homesteader"):
$ 978,450.00
Cost to Government or Other Taxpayers (Taxes avoided on "tax free" Homestead Accumulation (28%)):
$ 55,440.00
Taxes on Dividend Income (28% marginal rate, all Homestead Income assumed marginal):
$ 218,526.00
Net Tax Benefit to Government due to Homestead Program:
$ 163,086.00
Net Benefits to Homesteader by Age 65:
$ 759,924.00
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