Entering a Community
A NewVistas participant is defined as any individual who is recruited and approved by a village presidency, agrees to the community bylaws, passes the credit standards of the community banks, and invests $20,000 in the community’s capital bank, for which he or she receives a redeemable deed and 12% annual dividend.
In a NewVistas community, every able-bodied, able-minded participant age 12 and up owns and operates a business of some kind, whether as an individual contractor or a VistaBiz.
Participants also include children and retired or disabled people, whose $20,000 investments can be made by family members or other sponsors, as explained below. For a strong economy, at least half of a community’s 75,000–100,000 participants need to be active contractors or business owners.
Participants build up net worth in the community by accumulating funds in their community bank account and investing surplus funds into the capital bank in $20,000 increments.
All participants pay a 10% welfare tax on the investment dividends they receive, which is used exclusively to help the poor and needy of that community. The community does not tax business income; participants use their income to repay business loans and cover their housing, food, recreation, education, health services, and so forth.
In the NewVistas system, consumer and personal debts are unproductive and thus not part of the community econosystem; participants use debit cards and other ways of paying vendors and others directly from their bank accounts, but they don’t have mortgages, car loans, student loans, or credit cards.
Beyond reasonable needs and wants, people invest their money back into the community, which keeps the economy growing and prospering.
The NewVistas cost of living is low because all household apartments are a standard high-density size and people don’t own vehicles or other big-ticket assets, though they can easily rent such things for occasional use. If desired, new participants can transition into the community by leasing living space inside the community while keeping their outside home.
However, most participants will eventually be enticed to divest themselves of their outside homes and invest the capital into the community for the 12% dividend.
Most participants will learn over time to prefer the community’s lower cost of living and the availability within walking distance of all amenities in the “world’s largest mansions.”
With no traditional employment or wage slavery, NewVistas views all participants as independent business owners, including participants who work solo as individual contractors.
Community agencies train participants how to optimize their businesses, find more clients, seek new opportunities, and otherwise flourish. With the low cost of living and the community’s financial umbrella, NewVistas participants face fewer barriers to entry and less financial risk than contractors and entrepreneurs do in today’s society.
NewVistas participants enjoy more flexibility to try different lines of work and diversify their careers without worrying about financial upheaval and losing the traditional benefits large companies commonly use to retain employees.
With a $20,000 investment required of each community participant, a community of 100,000 participants thus has a $1 billion capital base. Over time, the most successful communities could leverage their $1 billion of capital by a hundredfold to $100 billion.
Participant Investment Options
Individuals can raise their initial $20,000 community investment in several ways, listed below in preferred order. Individuals must first be accepted by the community and agree to its bylaws before they can make their investment and become a participant.
- Ideally, individuals and families invest their own $20,000 per person (including dependents) to enter the community, with funds from savings, proceeds from the sale of a home, and other personal sources. When an able-bodied child turns 12, he or she starts buying out the $20,000 investment made by his or her parents, so the child can earn the 12% dividend. This process trains teens to work, save, and invest.
- The next best scenario is for several VistaBizzes that need an individual’s part-time contracted services to recruit and sponsor the individual as a community participant, along with his or her family if applicable, by investing $20,000 per person as a sponsorship loan. The participant repays the sponsorship at a minimum rate of 10% of his or her weekly revenue, and the sponsor receives the 12% community dividend until the loan is repaid in full. If needed, just one VistaBiz can invest the full $20,000 for an individual, but it is better for participants to work part-time with several VistaBizzes, in case one VistaBiz no longer needs the participant’s services.
- If not recruited by a VistaBiz, a prospective participant can take the initiative to market himself or herself to one or more VistaBizzes, in hopes of convincing one or more VistaBizzes to sponsor him or her.
- Prospective participants can ask friends and family members inside or outside the community to loan them $20,000 for their NewVistas investment and to receive the 12% dividend until the participant repays the sponsorship loan.
- Prospective participants who have exhausted the above options can seek sponsorship through an outside foundation or institution. NewVistas incentivizes outside sponsors by paying them the 12% dividend. However, a community’s economy is stronger when the 12% dividends circulate within the community rather than being paid to outside investors, so sponsorships are loans that sponsored participants must repay at a minimum rate of 10% of their weekly revenue, at which point they take over receiving the 12% dividend.
After participants repay their sponsorship loan, they can keep saving 10% of their revenue, investing in the community in $20,000 increments, and receiving the 12% dividend, which helps them learn the value of investing as they build their net worth.
If they want to move beyond being an individual contractor and launch a business that requires startup funds, they use a portion of their own net worth to begin and then, if the business proves viable, get community loans to help expand it.
All along the way, the 24 community agencies help guide and train participants on how to maximize their skills, plan and build their businesses, and otherwise flourish in the community econosystem.
- Outside organizations will see sponsorship not only as a solid investment but also as a worthy endeavor, helping needy people enter a green NewVistas community. Such organizations cannot provide sponsorships as gifts, only as loans that participants must pay off. An app will enable individuals and organizations to connect for possible sponsorship, streamline the application process, and facilitate pass-through of community dividends to the sponsor. This system allows outside sponsors to process their sponsorship investments quickly and at high volume. Their main risk is that participants might buy out their sponsorships more quickly than the sponsor desires, so the sponsor has to keep sponsoring new participants in order to achieve the desired profit. Beyond receiving the 12% dividend, outside sponsors do not own any share or have any rights in or claims on a NewVistas community. No more than 30% of a community’s total participants can be sponsored by outside investors, and no single investor can sponsor more than 5% of a community’s total participants. If these maximums are reached, outside investors can continue to profit from the NewVistas system by sponsoring participants in newer communities where need is greater during the startup stage.