Monthly vs. Yearly IRA Contribution Experiment – September 2012 Update
The Monthly vs. Yearly IRA contribution timing experiment September 2012 update.
Yearly Contribution Roth IRA
|
Fund
|
Shares
|
Price
|
Cost Basis
|
Market Value
|
Gain/Loss
|
Gain/Loss %
|
|---|---|---|---|---|---|---|
|
VTSMX
|
103.70
|
35.84
|
3,297.80
|
3,716.75
|
418.95
|
12.70
|
|
VGTSX
|
94.62
|
14.23
|
1,272.34
|
1,346.38
|
74.04
|
5.82
|
|
VBMFX
|
46.49
|
11.20
|
510.53
|
520.66
|
10.13
|
1.98
|
|
Totals:
|
5,080.67
|
5,583.79
|
503.12
|
9.90
|
Account Summary :
- 09/21/2012 – Reinvested $17.24 dividend for Vanguard Total Stock Market Index Fund
- 09/21/2012 – Reinvested $22.34 dividend for Vanguard International Stock Index Fund
- 09/28/2012 – Reinvested $1.02 dividend for Vanguard Total Bond Market Index Fund
Monthly Contribution Roth IRA
|
Fund
|
Shares
|
Price
|
Cost Basis
|
Market Value
|
Gain/Loss
|
Gain/Loss %
|
|---|---|---|---|---|---|---|
|
VTSMX
|
76.41
|
35.84
|
2,502.94
|
2,738.69
|
235.75
|
9.42
|
|
VGTSX
|
68.74
|
14.23
|
953.70
|
978.14
|
24.44
|
2.56
|
|
VBMFX
|
30.48
|
11.20
|
337.43
|
341.39
|
3.96
|
1.17
|
|
Totals:
|
3,794.07
|
4,058.33
|
264.26
|
6.97
|
Account Summary :
- 09/01/2012 – Contributed $416.66
- 09/01/2012 – Purchased mutual funds
- 09/21/2012 – Reinvested $12.70 dividend for Vanguard Total Stock Market Index Fund
- 09/21/2012 – Reinvested $16.23 dividend for Vanguard International Stock Index Fund
- 09/28/2012 – Reinvested $0.67 dividend for Vanguard Total Bond Market Index Fund
Monthly vs. Yearly IRA Account Comparison
|
Account
|
Gain/Loss %
|
% Change From Prior Month
|
|---|---|---|
|
Yearly
|
9.90
|
+2.59
|
|
Monthly
|
6.97
|
+4.98
|
Analysis :
- Vanguard is changing the benchmark index for 22 of their funds. 2 of the funds used for the IRA experiment are affected.
- VTSMX changes from MSCI US Broad Market Index to CRSP US Total Market Index.
- VGTSX changes from MSCI ACWI ex USA IMI Index to FTSE Global All Cap ex US Index.
- The Fed initiated a plan to buy mortgaged backed securities in order to boost the economy. Growth is slowing worldwide and job growth was not as strong as expected.
- Both IRAs are in positive territory for the year. The Yearly IRA is nearly 3 percentage points ahead of the Monthly – a benefit of buying low at the beginning of the year.
Posted by Long