The Annual vs. Monthly IRA Contribution Timing Experiment February 2014 Update.
Annual Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 312.50 | 17.98 | 5,500.00 | 5,618.75 | 118.75 |
Account Summary:
- No account transactions to report.
Monthly Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 81.05 | 17.98 | 1,409.00 | 1,457.24 | 48.24 |
Account Summary:
- 02/01/2014 – Contributed $409.00
- 02/03/2014 – Purchased mutual fund (VTIVX)
Annual vs. Monthly IRA Account Comparison
| Account | % Monthly Return | Total % Gain/Loss |
|---|---|---|
| Annual | 4.47 | 2.16 |
| Monthly | 5.08 | 3.42 |
Analysis:
- The market bounced back at the end of February. The change in conditions brought both accounts back into positive territory.
- The Monthly IRA is currently leading by just over 1% due to being able to purchase additional shares at a lower price.
- Severe weather in most parts of the country has hampered real estate and economic activity.
- The Federal Reserve is still intent on scaling back economic stimulus efforts by reducing monthly bond purchases.
Talk to me, Goose.