The Monthly vs. Annual lump-sum IRA contribution timing experiment August 2013 update.
Annual Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 202.69 | 41.30 | 6,921.06 | 8,371.09 | 1,450.03 | 20.95 |
| VGTSX | 187.90 | 15.10 | 2,694.52 | 2,837.30 | 142.78 | 5.30 |
| VBMFX | 103.93 | 10.58 | 1,145.53 | 1,099.56 | -45.97 | -4.01 |
| Totals: | 10,761.11 | 12,307.95 | 1,546.84 | 14.37 |
Account Summary :
- 08/30/2013 – Reinvested $2.24 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 159.65 | 41.30 | 5,702.85 | 6,593.59 | 890.74 | 15.62 |
| VGTSX | 151.94 | 15.10 | 2,211.18 | 2,294.26 | 83.08 | 3.76 |
| VBMFX | 84.62 | 10.58 | 932.67 | 895.26 | -37.41 | -4.01 |
| Totals: | 8,846.70 | 9,783.11 | 936.41 | 10.58 |
Account Summary :
- 08/01/2013 – Contributed $458.33
- 08/01/2013 – Purchased mutual funds
- 08/30/2013 – Reinvested $1.83 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Annual IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Annual | 14.37 | -2.36 |
| Monthly | 10.58 | -2.40 |
Analysis :
- The markets were rocky in August, taking a ride up and then back down; ending up where it pretty much started.
- Earnings reports from major companies were weaker than expected and housing sales fell. I’m not sure if people are just starting to realize that the pace of real estate was going too fast, or they got spooked by rising interest rates.
- The IRA accounts in the experiment lost almost 2.5% from last month, but are still doing well. Don’t get spooked – put your blinders on and hold on for the ride. 10.58% and 14.37% is nothing to complain about.
Talk to me, Goose.