Model Shows $2.69M STRC Portfolio, 11.5% Yield Tapering to 6% by Retirement
Ella Hough’s calculator models redirecting 6.2% payroll tax into MicroStrategy’s STRC preferred stock yielding 11.5% (tapering to 6%), projecting a $2.69 million balance and $13,405 monthly dividends by age 67 versus $2,074 from Social Security. It warns STRC dividends aren’t guaranteed, no Bitcoin collateral exists and tax redirection needs Congress approval.
1. Calculator Mechanics
Ella Hough’s interactive tool assumes a 22-year-old earning $100,000 annually redirects their 6.2% payroll tax into MicroStrategy’s STRC preferred stock. It applies an 11.5% annual dividend tapering linearly to 6% by retirement, projecting a $2.69 million portfolio and $13,405 in monthly dividends by age 67.
2. Risks and Collateral
STRC dividends are set monthly at the board’s discretion and aren’t guaranteed, exposing holders to cut scenarios. The preferred shares lack direct collateral against MicroStrategy’s Bitcoin treasury, increasing exposure to corporate financial decisions.
3. Legislative and Market Considerations
Redirecting federal payroll tax contributions to a private security would require congressional legislation, making practical adoption unlikely. Critics highlight inflation-adjusted returns, potential dividend cuts, and argue direct Bitcoin or common stock exposure may yield superior outcomes.