Redirecting 6.2% Payroll Tax into STRC Could Yield $2.69M by Age 67
A calculator projects redirecting a 22-year-old’s 6.2% payroll tax into MicroStrategy STRC shares, paying 11.5% annual dividends tapering to 6% by retirement, could generate $2.69m by age 67. Yields $13,405 in monthly dividends versus $2,074 average Social Security, but dividends are adjustable by the board and lack direct Bitcoin collateral.
1. STRC Retirement Model
A calculator models redirecting a 6.2% payroll tax from a 22-year-old earning $100,000 into MicroStrategy’s STRC Variable Rate Series A Perpetual Stretch Preferred shares. It assumes an initial 11.5% annual dividend yield trading near $100 par with monthly reinvestment, tapering linearly to 6% by age 67.
2. Projected Growth and Income
Under these assumptions, the portfolio reaches approximately $2.69 million by retirement, generating $13,405 in monthly dividends. By comparison, average monthly Social Security benefits are around $2,074, highlighting a significant potential income gap for future retirees.
3. Risks and Political Hurdles
STRC dividends can be adjusted monthly by the board and are not directly collateralized by the company’s 762,099 Bitcoin treasury. Redirecting FICA payroll taxes would require congressional approval, and critics cite inflation risk, potential dividend cuts and suggest direct Bitcoin or common stock exposure might outperform this preferred share model.