The Monthly vs. Annual lump-sum IRA contribution timing experiment January 2013 update.
Annual Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 200.94 | 37.60 | 6,852.18 | 7,555.31 | 703.13 | 10.26 |
| VGTSX | 185.04 | 15.48 | 2,652.61 | 2,864.38 | 211.77 | 7.98 |
| VBMFX | 102.38 | 10.99 | 1,128.77 | 1,125.19 | -3.58 | -0.32 |
| Totals: | 10,633.56 | 11,544.88 | 911.32 | 8.57 |
Account Summary :
- 01/01/2013 – Contributed $5,500.00
- 01/02/2013 – Purchased mutual funds and rebalanced holdings to match asset allocation
- 01/31/2013 – Reinvested $2.14 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 106.22 | 37.60 | 3,571.70 | 3,993.85 | 422.15 | 11.82 |
| VGTSX | 97.81 | 15.48 | 1,379.42 | 1,514.15 | 134.73 | 9.77 |
| VBMFX | 54.12 | 10.99 | 600.40 | 594.80 | -5.60 | -0.93 |
| Totals: | 5,551.52 | 6,102.80 | 551.28 | 9.93 |
Account Summary :
- 01/01/2013 – Contributed $458.33
- 01/02/2013 – Purchased mutual funds and rebalanced holdings to match asset allocation
- 01/31/2013 – Reinvested $1.13 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Annual IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Annual | 8.57 | +3.27 |
| Monthly | 9.93 | +4.19 |
Analysis :
- In December, investors retreated from the market due to worries that the “fiscal cliff” would not be resolved.
- In January, investors began to fear that an increase in interest rates would pummel bond prices. They jumped back into stocks, sending shares soaring.
- The Monthly account is slightly ahead at the close of this month. This is most likely due to the cost basis of the Yearly account rising sharply due to the lump-sum contribution.
Talk to me, Goose.