The Annual vs. Monthly IRA Contribution Timing Experiment December 2015 Update.
Annual Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 634.03 | 17.78 | 11,479.89 | 11,273.07 | -206.82 |
Account Summary:
- 12/28/2015 – Reinvested $237.05 Dividend
- 12/28/2015 – Reinvested $11.67 Short-Term Capital Gain Distribution
- 12/28/2015 – Reinvested $110.54 Long-Term Capital Gain Distribution
Monthly Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 619.07 | 17.78 | 11,467.12 | 11,006.98 | -460.14 |
Account Summary:
- 12/01/2015 – Contributed $458.37
- 12/01/2015 – Purchased mutual fund (VTIVX)
- 12/28/2015 – Reinvested $231.45 Dividend
- 12/28/2015 – Reinvested $11.39 Short-Term Capital Gain Distribution
- 12/28/2015 – Reinvested $107.93 Long-Term Capital Gain Distribution
Annual vs. Monthly IRA Account Comparison
| Account | % Monthly Return | Total % Gain/Loss |
|---|---|---|
| Annual | -1.89 | -1.80 |
| Monthly | -1.89 | -4.01 |
Analysis:
- This is a late update without any economic/market analysis.
- The year ended down, but as you can see from the numbers, the Annual Contribution Roth IRA fared better than the Monthly Contribution Roth IRA.
- Fluctuating prices had a larger effect on the losses experienced in the Monthly Contribution account, more than double than that of the Annual Contribution account.
Talk to me, Goose.