The Monthly vs. Annual lump-sum IRA contribution timing experiment June 2013 update.
Annual Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 202.69 | 40.29 | 6,921.06 | 8,166.38 | 1,245.32 | 17.99 |
| VGTSX | 187.90 | 14.68 | 2,694.52 | 2,758.38 | 63.86 | 2.37 |
| VBMFX | 103.51 | 10.67 | 1,141.12 | 1,104.48 | -36.64 | -3.21 |
| Totals: | 10,756.70 | 12,029.24 | 1,272.54 | 11.83 |
Account Summary :
- 06/21/2013 – Reinvested $35.52 dividend for Vanguard Total Stock Market Index Fund
- 06/21/2013 – Reinvested $35.06 dividend for Vanguard Total International Stock Market Index
- 06/28/2013 – Reinvested $2.09 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 145.39 | 40.29 | 5,107.01 | 5,857.80 | 750.79 | 14.70 |
| VGTSX | 136.81 | 14.68 | 1,982.02 | 2,008.42 | 26.40 | 1.33 |
| VBMFX | 75.68 | 10.67 | 837.50 | 807.51 | -29.99 | -3.58 |
| Totals: | 7,926.53 | 8,673.73 | 747.20 | 9.43 |
Account Summary :
- 06/01/2013 – Contributed $458.33
- 06/03/2013 – Purchased mutual funds
- 06/21/2013 – Reinvested $25.48 dividend for Vanguard Total Stock Market Index Fund
- 06/21/2013 – Reinvested $25.53 dividend for Vanguard Total International Stock Market Index
- 06/28/2013 – Reinvested $1.53 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Annual IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Annual | 11.83 | -1.88 |
| Monthly | 9.43 | -1.91 |
Analysis :
- The stock market went on it’s first month-long dip since last October after the Federal Reserve announced that they may scale back stimulus efforts later this year.
- Rising yields continue to affect bond prices. Traders seeking yield are further compounding bond price fluctuations.
- The Commerce Department revised 1st Quarter GDP from 2.4% to 1.8% reflecting a weaker growth in the economy than expected.
- In China, credit liquidity sparked fears of a crisis and dragged down international stocks.
- Even with a one month decline, the experimental IRA’s are holding up quite well. It’s still early, but I think it’s safe to say that buy and hold remains a solid strategy. Trading on emotions and media coverage is the exact wrong thing to do – it will only make you poorer.
Talk to me, Goose.