Monthly vs. Annual IRA Contribution Experiment - May 2013 Update

The Monthly vs. Annual lump-sum IRA contribution timing experiment May 2013 update.

Annual Contribution Roth IRA

Fund	Shares	Price	Cost Basis	Market Value	Gain/Loss	Gain/Loss %
VTSMX	201.80	40.99	6,885.54	8,271.73	1,386.19	20.13
VGTSX	185.48	15.45	2,659.46	2,865.74	206.28	7.76
VBMFX	103.32	10.87	1,139.03	1,123.05	-15.98	-1.40
	Totals:		10,684.03	12,260.52	1,576.49	14.76

Account Summary :

05/31/2013 – Reinvested $2.14 dividend for Vanguard Total Bond Market Index Fund

Fund	Shares	Price	Cost Basis	Market Value	Gain/Loss	Gain/Loss %
VTSMX	137.52	40.99	4,783.61	5,636.90	853.29	17.84
VGTSX	127.68	15.45	1,841.91	1,972.60	130.69	7.10
VBMFX	71.32	10.87	790.14	775.26	-14.88	-1.88
	Totals:		7,415.66	8,384.76	969.10	13.07

Account Summary :

05/01/2013 – Contributed $458.33
05/01/2013 – Purchased mutual funds
05/31/2013 – Reinvested $1.47 dividend for Vanguard Total Bond Market Index Fund

Account	Gain/Loss %	% Change From Prior Month
Annual	14.76	0.66
Monthly	13.07	0.70

Analysis :

The markets reacted in when the Federal Reserve talked about slowing down stimulus efforts.
10 year Treasury bond rates rose slightly, instigating more fear in bond investors.
Economic indicators were weak, except for real estate. Corporate investors are thought to be driving metropolitan markets that took big hits during the crash.
It’s the first big dip in the market since the beginning of the year. Still, the simulated portfolios are doing quite well. As of the end of May, the Annual Contribution IRA is edging out the Monthly IRA by 1.69%.