The Monthly vs. Yearly IRA contribution timing experiment October 2012 update.
Yearly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 103.70 | 35.21 | 3,297.80 | 3,651.41 | 353.61 | 10.72 |
| VGTSX | 94.62 | 14.31 | 1,272.34 | 1353.95 | 81.61 | 6.41 |
| VBMFX | 46.58 | 11.19 | 511.58 | 521.24 | 9.66 | 1.89 |
| Totals: | 5,081.72 | 5,526.60 | 444.88 | 8.75 |
Account Summary :
- 10/31/2012 – Reinvested $1.05 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 83.96 | 35.21 | 2,773.77 | 2,956.13 | 182.36 | 6.57 |
| VGTSX | 76.01 | 14.31 | 1,057.86 | 1,087.73 | 29.87 | 2.82 |
| VBMFX | 34.27 | 11.19 | 379.87 | 383.44 | 3.57 | 0.94 |
| Totals: | 4,211.50 | 4,427.30 | 215.80 | 5.12 |
Account Summary :
- 10/01/2012 – Contributed $416.66
- 10/01/2012 – Purchased mutual funds
- 10/31/2012 – Reinvested $0.77 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Yearly IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Yearly | 8.75 | -1.02 |
| Monthly | 5.12 | -1.06 |
Analysis :
- Markets moved lower this month due to concern over corporate earnings and worries over the elections and the “fiscal cliff.”
- Economic worries in the euro zone also weighed heavily on the market worldwide.
- The IRA accounts still have a healthy gain for the year. Lower prices will give the Monthly Contribution IRA a chance to decrease portfolio average cost.
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