The Annual vs. Monthly IRA Contribution Timing Experiment August 2014 Update.
Annual Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 312.50 | 19.14 | 5,500.00 | 5,981.25 | 481.25 |
Account Summary:
- No account transactions to report.
Monthly Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 214.72 | 19.14 | 3,863.00 | 4,109.65 | 246.65 |
Account Summary:
- 08/01/2014 – Contributed $409.00
- 08/01/2014 – Purchased mutual fund (VTIVX)
Annual vs. Monthly IRA Account Comparison
| Account | % Monthly Return | Total % Gain/Loss |
|---|---|---|
| Annual | 3.07 | 8.75 |
| Monthly | 3.10 | 6.38 |
Analysis:
- The S&P 500 rose to, and surpassed, the record 2000 mark. What does that mean to an index investor? Not much. If you’re getting the “feeling” that the market is going to take a tumble any time soon because it’s at a record high, it’s just the temptation to time the market. Stay calm, hold steady, and keep investing. As they say, stay true to the course.
- The market rally in August pushed gains back up for both experimental accounts. The returns aren’t looking too shabby for only eight months of investing.
Talk to me, Goose.