The Monthly vs. Annual lump-sum IRA contribution timing experiment October 2013 update.
Annual Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 203.61 | 44.52 | 6,960.79 | 9,064.72 | 2,103.93 | 30.23 |
| VGTSX | 188.71 | 16.59 | 2,707.67 | 3,130.70 | 423.03 | 15.62 |
| VBMFX | 104.36 | 10.69 | 1,150.16 | 1,115.62 | -34.54 | -3.00 |
| Totals: | 10,818.62 | 13,311.04 | 2,492.42 | 23.04 |
Account Summary :
- 10/31/2013 – Reinvested $2.38 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
| Fund | Shares | Price | Cost Basis | Market Value | Gain/Loss | Gain/Loss % |
|---|---|---|---|---|---|---|
| VTSMX | 174.55 | 44.42 | 6,331.40 | 7,753.45 | 1,422.05 | 22.46 |
| VGTSX | 167.28 | 16.67 | 2,451.51 | 2,788.59 | 337.08 | 13.75 |
| VBMFX | 93.63 | 10.72 | 1,028.39 | 1,003.75 | -24.64 | -2.40 |
| Totals: | 9,811.30 | 11,545.79 | 1,734.49 | 17.68 |
Account Summary :
- 10/01/2013 – Contributed $458.33
- 10/01/2013 – Purchased mutual funds
- 10/31/2013 – Reinvested $2.13 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Annual IRA Account Comparison
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AccountGain/Loss %% Change From Prior MonthAnnual23.043.73Monthly17.683.69
Analysis :
- The Federal Reserve is continuing with its bond purchasing program. That decision was rejoiced by investors.
- Housing sales have weakened, and mortgage rates have fallen slightly with demand.
- Corporate earnings have slowed, but stock earnings exploded in October. Indexes kept peaking at new highs, only to settle on the last trading day.
- Tech IPO’s continue to rock the market. I can only say, don’t get involved in the hype. Let indexing work for you.
- The Annual Contribution IRA has benefited from recent market performance, pushing its gain percentage ahead of the Monthly Contribution IRA. However, as evidenced by the Total Bond Market Index Fund, monthly purchases seem to help mitigate losses.
Talk to me, Goose.