Annual vs. Monthly IRA Contribution Experiment – June 2014 Update

The Annual vs. Monthly IRA Contribution Timing Experiment June 2014 Update.

Annual Contribution Roth IRA

Shares Price Total Cost Market Value $ Gain/Loss
312.50 18.89 5,500.00 5,903.13 403.13

Account Summary:

  • No account transactions to report.

Monthly Contribution Roth IRA

Shares Price Total Cost Market Value $ Gain/Loss
171.12 18.89 3,045.00 3,232.39 187.39

Account Summary:

  • 06/01/2014 – Contributed $409.00
  • 06/02/2014 – Purchased mutual fund (VTIVX)

Annual vs. Monthly IRA Account Comparison

Account % Monthly Return Total % Gain/Loss
Annual 2.11 7.33
Monthly 2.09 6.15

Analysis:

  • The economy has been showing improvement since the winter season. Employment, housing, and other key economic figures were all up.
  • Interest rates for Treasuries have begun to creep upwards, while bonds have rallied – wiping away most losses from earlier in the year.
  • The bull market is still raging. The S&P and Dow indices seem to be ignoring any bad news, and continue to climb.
  • The Annual Contribution account is well over a percent higher than the Monthly account for the month of June.

IRA Contribution Timing Experiment

Annual vs. Monthly IRA Contribution Experiment – May 2014 Update

The Annual vs. Monthly IRA Contribution Timing Experiment May 2014 Update.

Annual Contribution Roth IRA

Shares Price Total Cost Market Value $ Gain/Loss
312.50 18.50 5,500.00 5,781.25 281.25

Account Summary:

  • No account transactions to report.

Monthly Contribution Roth IRA

Shares Price Total Cost Market Value $ Gain/Loss
149.03 18.50 2,636.00 2,757.09 121.09

Account Summary:

  • 05/01/2014 – Contributed $409.00
  • 05/01/2014 – Purchased mutual fund (VTIVX)

Annual vs. Monthly IRA Account Comparison

Account % Monthly Return Total % Gain/Loss
Annual 1.93 5.11
Monthly 1.92 4.59

Analysis:

  • I haven’t been following the stock market and related news lately, but it looks like investments bumped back up – causing the Annual Roth IRA to pull back in the lead.

IRA Contribution Timing Experiment

Annual vs. Monthly IRA Contribution Experiment – April 2014 Update

The Annual vs. Monthly IRA Contribution Timing Experiment April 2014 Update.

Annual Contribution Roth IRA

Shares Price Total Cost Market Value $ Gain/Loss
312.50 18.15 5,500.00 5,671.87 171.87

Account Summary:

  • No account transactions to report.

Monthly Contribution Roth IRA

Shares Price Total Cost Market Value $ Gain/Loss
126.51 18.15 2,227.00 2,296.16 69.16

Account Summary:

  • 04/01/2014 – Contributed $409.00
  • 04/01/2014 – Purchased mutual fund (VTIVX)

Annual vs. Monthly IRA Account Comparison

Account % Monthly Return Total % Gain/Loss
Annual 0.50 3.12
Monthly 0.38 3.11

Analysis:

  • The markets reacted wildly throughout the month, but ended fairly flat again in the month of April.
  • A lot of poor corporate earnings from the first quarter were blamed on the harsh winter in the Northeast region.
  • Hiring, and the overall economy seem to be growing slowly.
  • Both experimental accounts’ performance are back in line.

IRA Contribution Timing Experiment

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