The Annual vs. Monthly IRA Contribution Timing Experiment July 2014 Update.
Annual Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 312.50 | 18.57 | 5,500.00 | 5,803.13 | 303.13 |
Account Summary:
- No account transactions to report.
Monthly Contribution Roth IRA
| Shares | Price | Total Cost | Market Value | $ Gain/Loss |
|---|---|---|---|---|
| 192.63 | 18.57 | 3,454.00 | 3,577.16 | 123.16 |
Account Summary:
- 07/01/2014 – Contributed $409.00
- 07/01/2014 – Purchased mutual fund (VTIVX)
Annual vs. Monthly IRA Account Comparison
| Account | % Monthly Return | Total % Gain/Loss |
|---|---|---|
| Annual | -1.69 | 5.51 |
| Monthly | -1.76 | 3.57 |
Analysis:
- World events, announcements about ending stimulus efforts, and news of rising prices made it a choppy month for investors.
- Both simulated accounts gave back gains from last month, but are still recording an overall gain for the year so far.
- A falling stock market could signal that it might be better to employ dollar cost averaging.
Talk to me, Goose.