The Monthly vs. Yearly IRA contribution timing experiment February 2012 update.
Yearly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 102.33 | 34.28 | 3,250.00 | 3,507.87 | 257.87 | 7.93 |
| VGTSX | 93.07 | 14.73 | 1,250.00 | 1,371.00 | 121.00 | 9.68 |
| VBMFX | 45.75 | 11.04 | 502.33 | 505.05 | 2.72 | .54 |
| Totals: | 5,002.33 | 5,383.92 | 381.59 | 7.63 |
Account Summary :
- 02/29/2012 – Reinvested $1.14 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 16.67 | 34.28 | 541.66 | 571.62 | 29.96 | 5.53 |
| VGTSX | 15.08 | 14.73 | 208.34 | 222.08 | 13.74 | 6.59 |
| VBMFX | 7.59 | 11.04 | 83.61 | 83.77 | .16 | 0.19 |
| Totals: | 833.61 | 877.47 | 43.86 | 5.26 |
Account Summary :
- 02/01/2012 – Contributed $416.66
- 02/01/2012 – Purchased mutual funds
- 02/29/2012 – Reinvested $0.19 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Yearly IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Yearly | 7.63 | +4.06 |
| Monthly | 5.26 | +3.50 |
Analysis :
- The market has been climbing steadily since the beginning of the year.
- So far, Dollar Cost Averaging is not working to the Monthly IRA’s advantage. Mutual fund shares were purchased at a higher price this month, increasing the average cost of shares held.
- The Yearly IRA is benefiting from market gains by being fully invested from the start.
- Being fully invested in the Yearly IRA is making it possible to buy more shares of VBMFX when reinvesting due to a larger dividend amount.
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