It’s hard to believe we launched our Found Money Project almost two years ago! You can find the background story HERE.
In a nutshell, the idea for this project came from my high school Latin teacher Sister Olivia who would find amazing amounts of money on her daily walks between the high school and the convent. She often told us “You kids don’t pay attention to your money so God gives it to me!”
The original plan was to figure out a way to put the money to good use near the end of each year, but then I started to think… could this money do more good if allowed to grow over a long period?
Then… I decided to THINK BIG!
I’d like to introduce the 100 Year Found Money Project.
With a little luck (and a lot of patience) the goal is to take money found by an average family and grow it to $10 million in 100 years. Kinda crazy, right… or is it?
None of us will be around to see the results, but how much fun is it to think about what this project could achieve?
In December, 2014 I deposited the accumulated balance from our found money jar ($75.61) into a Sharebuilder account and purchased 7.8948 shares of Prospect Capital Corp. (PSEC) stock. I chose this stock because it has paid a monthly cash dividend since 2010. (The current monthly cash dividend is .08333 cents per share for a current yield of 11.6%).
As a result, the 7.8948 shares will generate a monthly dividend of .6578 cents that will be re-invested to purchase additional shares of PSEC… and the growth will begin!
In addition, over the past 23 months we have found an average of $3.42 per month. This money will also be deposited into the Sharebuilder account and be used to purchase additional shares of PSEC… more growth!
Our plan as entered into the Bankrate.com Simple Savings Calculator assumes the following…
Initial Investment – $70.00 (initial PSEC stock purchase)
Monthly Deposit – $3.42
Annual Interest Compounded Monthly – 10%
Number of Years – 100
The resulting balance after 100 years is $10,151,601.57.
Obviously there are a multitude of factors that will affect this plan over the long haul (taxes, inflation, rate of return, etc.). However… how close can this plan come to hitting the goal? Can we literally start with NOTHING and generate a huge amount of money that could change thousands of lives for the better?
Let’s find out!