The Annual vs. Monthly IRA Contribution Timing Experiment December 2015 Update.
Annual Contribution Roth IRA
Shares
Price
Total Cost
Market Value
$ Gain/Loss
634.03
17.78
11,479.89
11,273.07
-206.82
Account Summary:
12/28/2015 – Reinvested $237.05 Dividend
12/28/2015 – Reinvested $11.67 Short-Term Capital Gain Distribution
12/28/2015 – Reinvested $110.54 Long-Term Capital Gain Distribution
Monthly Contribution Roth IRA
Shares
Price
Total Cost
Market Value
$ Gain/Loss
619.07
17.78
11,467.12
11,006.98
-460.14
Account Summary:
12/01/2015 – Contributed $458.37
12/01/2015 – Purchased mutual fund (VTIVX)
12/28/2015 – Reinvested $231.45 Dividend
12/28/2015 – Reinvested $11.39 Short-Term Capital Gain Distribution
12/28/2015 – Reinvested $107.93 Long-Term Capital Gain Distribution
Annual vs. Monthly IRA Account Comparison
Account
% Monthly Return
Total % Gain/Loss
Annual
-1.89
-1.80
Monthly
-1.89
-4.01
Analysis:
This is a late update without any economic/market analysis.
The year ended down, but as you can see from the numbers, the Annual Contribution Roth IRA fared better than the Monthly Contribution Roth IRA.
Fluctuating prices had a larger effect on the losses experienced in the Monthly Contribution account, more than double than that of the Annual Contribution account.
IRA Contribution Timing Experiment Updates
Annual vs. Monthly IRA Contribution Experiment – December 2015 Update, was written by Long Pham on Phamily Man.