The Monthly vs. Annual lump-sum IRA contribution timing experiment February 2013 update.
Annual Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 200.94 | 38.08 | 6,852.18 | 7,651.77 | 799.59 | 11.67 |
| VGTSX | 185.04 | 15.29 | 2,652.61 | 2,829.22 | 176.61 | 6.66 |
| VBMFX | 102.56 | 11.03 | 1,130.78 | 1,131.30 | 0.52 | 0.05 |
| Totals: | 10,635.57 | 11,612.29 | 976.72 | 9.18 |
Account Summary :
- 02/28/2013 – Reinvested $2.01 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 114.06 | 38.08 | 3,869.62 | 4,343.61 | 473.99 | 12.25 |
| VGTSX | 105.16 | 15.29 | 1,494.00 | 1,607.94 | 113.94 | 7.63 |
| VBMFX | 58.40 | 11.03 | 647.37 | 644.15 | -3.22 | -0.50 |
| Totals: | 6,010.99 | 6,595.70 | 584.71 | 9.73 |
Account Summary :
- 02/01/2013 – Contributed $458.33
- 02/01/2013 – Purchased mutual funds
- 02/28/2013 – Reinvested $1.14 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Annual IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Annual | 9.18 | 0.58 |
| Monthly | 9.73 | 0.53 |
Analysis :
- The market change in February was essentially flat.
- A sellers market in housing and the boost in stock prices are helping investors regain confidence in the market.
- Money is flowing back into stock funds, showing how finicky and emotional people really are. No matter how often financial experts tell people to hold on tight and keep investing through regular contributions, they still sell low and buy high.
- There is still a lot of talk about the bond market collapsing if interest rates move upward. Probably another reason why so much money is moving back into stocks.
- Finally, investors are worried what automatic budget cuts, known as “sequester,” will do to the market.
Talk to me, Goose.