The Monthly vs. Yearly IRA contribution timing experiment December 2012 update.
Yearly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 104.44 | 35.64 | 3,324.24 | 3,772.31 | 398.07 | 11.97 |
| VGTSX | 95.87 | 14.98 | 1,290.98 | 1,436.08 | 145.10 | 11.24 |
| VBMFX | 47.00 | 11.09 | 516.20 | 521.19 | 4.99 | 0.97 |
| Totals: | 5,131.42 | 5,679.58 | 548.16 | 10.68 |
Account Summary :
- 12/18/2012 – Reinvested $26.44 dividend for Vanguard Total Stock Market Index Fund
- 12/18/2012 – Reinvested $18.64 dividend for Vanguard Total International Stock Market Index
- 12/20/2012 – Reinvested $1.03 short-term capital gain for Vanguard Total Bond Market Index Fund
- 12/20/2012 – Reinvested $1.59 long-term capital gain for Vanguard Total Bond Market Index Fund
- 12/31/2012 – Reinvested $1.00 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 99.90 | 35.64 | 3,340.78 | 3,560.55 | 219.77 | 6.58 |
| VGTSX | 91.56 | 14.98 | 1,284.02 | 1,371.66 | 87.64 | 6.83 |
| VBMFX | 42.08 | 11.09 | 467.26 | 466.70 | -0.56 | -0.12 |
| Totals: | 5,092.06 | 5,398.91 | 306.85 | 6.03 |
Account Summary :
- 12/01/2012 – Contributed $416.74
- 12/01/2012 – Purchased mutual funds
- 12/18/2012 – Reinvested $25.30 dividend for Vanguard Total Stock Market Index Fund
- 12/18/2012 – Reinvested $17.80 dividend for Vanguard Total International Stock Market Index
- 12/20/2012 – Reinvested $0.92 short-term capital gain for Vanguard Total Bond Market Index Fund
- 12/20/2012 – Reinvested $1.42 long-term capital gain for Vanguard Total Bond Market Index Fund
- 12/31/2012 – Reinvested $0.90 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Yearly IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Yearly | 10.68 | +1.80 |
| Monthly | 6.03 | +1.81 |
Analysis :
- The market went on a wild ride in December as talks about the “fiscal cliff” worried emotional investors.
- During this past year, holding on to an investment strategy paid off as both the annual contribution and monthly contribution IRA accounts recorded earnings.
- In 2012, the Yearly IRA did 4.65% better than the Monthly IRA. The Yearly IRA did this by investing the lump-sum on the first trading day of 2012, which happened to be the lowest close of the year for the S&P 500.
Talk to me, Goose.