The Monthly vs. Annual lump-sum IRA contribution timing experiment December 2013 update.
Annual Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 204.62 | 46.67 | 7,007.07 | 9,549.80 | 2,542.79 | 36.29 |
| VGTSX | 190.38 | 16.75 | 2,734.84 | 3,188.88 | 454.04 | 16.60 |
| VBMFX | 104.89 | 10.56 | 1,155.76 | 1,107.63 | -48.13 | -4.16 |
| Totals: | 10,897.61 | 13,846.31 | 2,947.70 | 27.06 |
Account Summary :
- 12/19/2013 – Reinvested $46.22 dividend for Vanguard Total Stock Market Index Fund
- 12/19/2013 – Reinvested $27.17 dividend for Vanguard Total International Stock Market Index
- 12/23/2013 – Reinvested $0.84 long term capital gain for Vanguard Total Bond Market Index Fund
- 12/31/2013 – Reinvested $2.41 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 188.72 | 46.67 | 6,969.89 | 8,807.39 | 1,837.50 | 26.36 |
| VGTSX | 182.70 | 16.75 | 2,706.76 | 3,060.22 | 353.46 | 13.06 |
| VBMFX | 102.74 | 10.56 | 1,125.45 | 1,084.94 | -40.51 | -3.60 |
| Totals: | 10,802.10 | 12,952.55 | 2,150.45 | 19.91 |
Account Summary :
- 12/01/2013 – Contributed $458.37
- 12/02/2013 – Purchased mutual funds
- 12/19/2013 – Reinvested $42.63 dividend for Vanguard Total Stock Market Index Fund
- 12/19/2013 – Reinvested $26.08 dividend for Vanguard Total International Stock Market Index
- 12/23/2013 – Reinvested $0.82 long term capital gain for Vanguard Total Bond Market Index Fund
- 12/31/2013 – Reinvested $2.36 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Annual IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Annual | 27.06 | 2.04 |
| Monthly | 19.91 | 2.03 |
Analysis :
- The S&P 500 ended the year at an all time high.
- Economic numbers have been showing great improvement, increasing the risk that the Federal Reserve may being to taper off stimulus efforts.
- Two years into the IRA Contribution Experiment, and we’re starting to see big differences between the accounts. So far, in a bull market, a lump-sum contribution at the beginning of the year seems to be the way to go. It’ll be interesting to see how the returns compare in a bear market.
Talk to me, Goose.