Monthly vs. Yearly IRA Contribution Experiment – June 2012 Update
The Monthly vs. Yearly IRA contribution timing experiment June 2012 update.
Yearly Contribution Roth IRA
|
Fund
|
Shares
|
Price
|
Cost Basis
|
Market Value
|
Gain/Loss
|
Gain/Loss %
|
|---|---|---|---|---|---|---|
|
VTSMX
|
103.23
|
33.90
|
3,280.56
|
3,499.48
|
218.92
|
6.67
|
|
VGTSX
|
93.07
|
13.53
|
1,250.00
|
1,259.31
|
9.31
|
0.74
|
|
VBMFX
|
46.20
|
11.10
|
507.33
|
512.83
|
5.49
|
1.08
|
|
Totals:
|
5,037.89
|
5,271.62
|
233.72
|
4.64
|
Account Summary :
- 06/22/2012 – Reinvested $16.23 dividend for Vanguard Total Stock Market Index Fund
- 06/29/2012 – Reinvested $1.11 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
|
Fund
|
Shares
|
Price
|
Cost Basis
|
Market Value
|
Gain/Loss
|
Gain/Loss %
|
|---|---|---|---|---|---|---|
|
VTSMX
|
48.73
|
33.90
|
1,636.08
|
1652.08
|
16.00
|
0.98
|
|
VGTSX
|
44.78
|
13.53
|
624.98
|
605.86
|
-19.12
|
-3.06
|
|
VBMFX
|
22.84
|
11.10
|
252.09
|
253.53
|
1.44
|
0.57
|
|
Totals:
|
2,513.15
|
2,511.47
|
-1.68
|
-0.07
|
Account Summary :
- 06/01/2012 – Contributed $416.66
- 06/01/2012 – Purchased mutual funds
- 06/22/2012 – Reinvested $7.66 dividend for Vanguard Total Stock Market Index Fund
- 06/29/2012 – Reinvested $0.55 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Yearly IRA Account Comparison
|
Account
|
Gain/Loss %
|
% Change From Prior Month
|
|---|---|---|
|
Yearly
|
4.64
|
+4.00
|
|
Monthly
|
-0.07
|
+4.39
|
Analysis :
- The market gave up the year’s gains at the beginning of the month, only to rebound by the end of the month.
- News broke that banks in Spain will be bailed out. They are set to receive up to 100 billion euros over the course of the next 18 months.
- Manufacturing reports revealed that domestic production slowed, translating to fears that demand is decreasing. Combined with another disappointing jobs report, investors feared the economy was on the decline again.
- Market lows at the beginning of June helped the Monthly IRA acquire shares at a lower price. This boosted performance to bring the account back to cost basis.
Posted by Long