The Annual vs. Monthly IRA Contribution Timing Experiment October 2014 Update.
Annual Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 312.50 | 18.93 | 5,500.00 | 5,915.62 | 415.62 |
Account Summary:
- No account transactions to report.
Monthly Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 236.08 | 18.93 | 4,681.00 | 4,889.86 | 208.86 |
Account Summary:
- 10/01/2014 – Contributed $409.00
- 10/01/2014 – Purchased mutual fund (VTIVX)
Annual vs. Monthly IRA Account Comparison
| Account | % Monthly Return | Total % Gain/Loss |
|---|---|---|
| Annual | 1.72 | 7.56 |
| Monthly | 1.82 | 4.46 |
Analysis:
- A strengthening dollar and the weak international economy is worrying investors on the aspect of trade balance.
- Mixed news on the economy at home made for a choppy market during the first half of the month. The market rallied after hearing news that inflation is holding below the 2% target rate, bumping gains back up.
- We’re in the last quarter of the year, and even though the experiment started late into the bull market, the gains for both types of contribution accounts are quite respectable.
Talk to me, Goose.