Monthly vs. Yearly IRA Contribution Experiment – May 2012 Update
The Monthly vs. Yearly IRA contribution timing experiment May 2012 update.
Yearly Contribution Roth IRA
|
Fund
|
Shares
|
Price
|
Cost Basis
|
Market Value
|
Gain/Loss
|
Gain/Loss %
|
|---|---|---|---|---|---|---|
|
VTSMX
|
102.74
|
32.78
|
3,264.33
|
3,367.82
|
103.49
|
3.17
|
|
VGTSX
|
93.07
|
12.77
|
1,250.00
|
1,188.57
|
-61.43
|
-4.91
|
|
VBMFX
|
46.10
|
11.12
|
506.22
|
512.64
|
6.42
|
1.27
|
|
Totals:
|
5,020.55
|
5,069.03
|
48.48
|
0.97
|
Account Summary :
- 05/31/2012 – Reinvested $1.13 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
|
Fund
|
Shares
|
Price
|
Cost Basis
|
Market Value
|
Gain/Loss
|
Gain/Loss %
|
|---|---|---|---|---|---|---|
|
VTSMX
|
40.02
|
32.78
|
1,357.59
|
1,311.89
|
-45.70
|
-3.37
|
|
VGTSX
|
36.44
|
12.77
|
520.82
|
465.33
|
-55.49
|
-10.65
|
|
VBMFX
|
19.06
|
11.12
|
209.87
|
211.92
|
2.05
|
0.98
|
|
Totals:
|
2,088.28
|
1,989.14
|
-99.14
|
-4.75
|
Account Summary :
- 05/01/2012 – Contributed $416.66
- 05/01/2012 – Purchased mutual funds
- 05/31/2012 – Reinvested $0.47 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Yearly IRA Account Comparison
|
Account
|
Gain/Loss %
|
% Change From Prior Month
|
|---|---|---|
|
Yearly
|
0.97
|
-6.75
|
|
Monthly
|
-4.75
|
-6.78
|
Analysis :
- There was a huge market sell-off in May. “Sell in May and go away” really sounds like good advice when looking back at last month’s performance.
- Fears of Greece possibly exiting the euro zone and news of Spain bailing out a major bank drove markets around the world lower.
- The jobs report for May was disappointing for investors on the last trading day of the month. Confidence of a recovering economy faltered when the unemployment rate increased to 8.2%.
Posted by Long