The Monthly vs. Yearly IRA contribution timing experiment March 2012 update.
Yearly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 102.74 | 35.19 | 3,264.33 | 3,615.43 | 351.10 | 10.76 |
| VGTSX | 93.07 | 14.62 | 1,250.00 | 1,360.76 | 110.76 | 8.86 |
| VBMFX | 45.90 | 10.94 | 503.96 | 502.11 | -1.85 | -0.37 |
| Totals: | 5,018.29 | 5,478.30 | 460.01 | 9.17 |
Account Summary :
- 03/23/2012 – Reinvested $14.33 dividend for Vanguard Total Stock Market Index Fund
- 03/30/2012 – Reinvested $1.17 dividend for Vanguard Total Bond Market Index Fund
- 03/30/2012 – Reinvested $0.23 short term capital gain for Vanguard Total Bond Market Index Fund
- 03/30/2012 – Reinvested $0.23 long term capital gain for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 24.67 | 35.19 | 815.93 | 868.28 | 52.35 | 6.42 |
| VGTSX | 22.15 | 14.62 | 312.50 | 323.81 | 11.31 | 3.62 |
| VBMFX | 11.40 | 10.94 | 125.69 | 124.71 | -0.98 | -0.78 |
| Totals: | 1,254.12 | 1,316.80 | 62.68 | 5.00 |
Account Summary :
- 03/01/2012 – Contributed $416.66
- 03/01/2012 – Purchased mutual funds
- 03/23/2012 – Reinvested $3.44 dividend for Vanguard Total Stock Market Index Fund
- 03/30/2012 – Reinvested $0.29 dividend for Vanguard Total Bond Market Index Fund
- 03/30/2012 – Reinvested $0.06 short term capital gain for Vanguard Total Bond Market Index Fund
- 03/30/2012 – Reinvested $0.06 long term capital gain for Vanguard Total Bond Market Index Fund
Monthly vs. Yearly IRA Account Comparison
| Account | Gain/Loss % | % Change From Prior Month |
|---|---|---|
| Yearly | 9.17 | +1.75 |
| Monthly | 5.00 | +1.75 |
Analysis :
- The market continued to move upward in March.
- Once again, the dollar cost averaging technique is pulling down returns in the Monthly IRA.
- The Yearly Contribution IRA is benefiting greatly from the returns of VTSMX.
- Declines in the international markets affected both portfolios.
- The price change of the Bond Fund is directly associated with the dividend and capital gain payout.
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