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Mutual funds being treated as cash balance accounts?

Unknown
Unknown Member
edited December 2019 in Investing (Windows)
I have used Quicken for many years at "low intensity."  I'm tracking an IRA account at T Rowe Price.  Quicken treats it as a cash balance account rather than a single mutual fund (which it actually is), apparently because Price charges an annual management fee and accounts for this in some way that Quicken is forced to treat it as a cash balance account.  I can live with that, but two questions:  1) how do I find the share balance?  (other than, of course, logging on to TRowePrice.com!) and 2) how do I enter a share transaction without messing up the cash balance?  I tried to enter a transaction to correct the share balance, but Quicken simply added it to the cash balance instead.  If, of course, there's a way to make Quicken recharacterize this as a single mutual fund, that would be even better.  Thanks for any help.

Comments

  • Unknown
    Unknown Member
    edited February 2017
    1 To see your share balance, IRA value and "oodles" of other financial info, go to INVESTING  PORTFOLIO.There, you should see your TRP account._ Click on the folder next to your Quicken account name, and Quicken will list the mutual funds in that account._ Since you only have one fund, you will see only one name there.If you click on the "+" sign next to the fund, you can drill down and see the individual lots (purchases) for that fund.Notice that there are multiple views under the "Show" heading._ Play around with those a little and see the different info available from each view._ You can also create customized views to include the columns YOU want to see by using the "Customize View" button.2 You enter transactions in the TRP investment account register (just like the checking register you use for your checking account)._ In that TRP investment register, click on "Enter transactions" and fill in the blanks._ Use the drop down list to display the transaction types available._ I find that the three most used transaction types are Buy, Sell and Reinvest Dividends.The Buy transaction types requires cash to purchase those new shares._ You either use the cash balance you have from your current investment account, or you can use another Quicken account to transfer funds to TRP and buy shares.The Sell transaction type has the opposite effect._ It will reduce the number of shares you own and add cash to the cash balance in your account, or transfer cash to another account.The Reinvest Dividends transaction type accounts for dividends and long and/or short term capital gains that are REINVESTED into your mutual fund by purchasing more shares._ It does not add or subtract from your cash balance, because the proceeds from those dividends/capital gains are reinvested to purchase more shares.3 I would not use ANY investment account in Quicken as a single mutual fund type._ It is way too restrictive and if you EVER want to purchase shares of a different fund in your IRA, you can NOT do so._ Stick with what you have...just learn how to use it.If you have more questions, post back.
  • Unknown
    Unknown Member
    edited August 2016
    Quote:" Mutual funds being treated as cash balance accounts?: 1 To see your share balance, IRA value and "oodles" of other..."I agree totally re not using single mutual fund option. I spent many hours reworking my data to eliminate the single mutual fund accounts and moving the transactions to investment accounts - why Quicken even offers that option anymore is a puzzle - it may be a holdover when mutual fund companies would set up a separate account for you for each fund - but the 80's are over.  I believe the best practice is to have your investment accounts in Quicken mirror the way your mutual fund or brokerage company groups your investments - this makes reconciling much easier.
  • Unknown
    Unknown Member
    edited July 2016
    Quote:" Mutual funds being treated as cash balance accounts?: 1 To see your share balance, IRA value and "oodles" of other..."Wow, thanks for all the advice.  Having looked at it, I agree that the cash balance approach gives a lot more useful information.  I need to play around with it some more.  As I said, I'm a long duration but low intensity user.
  • Unknown
    Unknown Member
    edited July 2016
    I also am having problems when it comes to reconciling TRP IRA accounts. Each quarter when I reconcile my accounts to my qtr. statement, some accounts ask for share balance and some ask for cash balance (which is always or should always be 0). The ones asking for cash balance are always a problem in reconcile because I always end up with a cash balance in Quicken when actual balance is 0. I have my contributions set up to automatically deduct from my checking account each month and it appears the transfers are being made ok. Any idea what's going on here and how to resolve. I also would like to know why some accounts ask for cash balance and some for share balance when reconciling. The ones asking for share balances are never a problem to reconcile.
  • Unknown
    Unknown Member
    edited July 2016
    Quote:" Mutual funds being treated as cash balance accounts?: I also am having problems when it comes to reconciling TRP IRA..."Well that's the rub with using investment accounts vs single mutual fund accounts. The investment account will always reconcile tothe "cash balance" which for a mutual fund is always zero. A single mutual fund type account reconciles to the share balance. This I think is much more useful if you own the fund direct through the fund rather than a brokerage account - which I do. Why have the middleman in your biz if he don't do anything other than send you a statement? lolDon't understand whay anyone would want to model a mutual fund as a "investment account" in Quicken. What good is it? What's the point of even doing a reconcile on it?
  • Unknown
    Unknown Member
    edited July 2016
    Quote:" Mutual funds being treated as cash balance accounts?: Well that's the rub with using investment accounts vs single mutual fund..."looking for advice ... having moved $ in an out of the mkt from stk funds to bond funds now averaging back in ... somewhere/somehow I have Q completely out of whack and have decided to create a new account.  That said, should I set up the IRA funds as IRA funds or tax deferred SMF's or IRA accounts?Thx
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    Quote:" Mutual funds being treated as cash balance accounts?: looking for advice ... having moved $ in an out of the..."The only (absolutely ONLY) time I recommend SMF accounts in Quicken is when it is_definitive requirement from the associated Financial Institution._ That leaves the options you outliined as IRA funds or IRA accounts._ I don't understand the difference you are suggesting._ IMO, you should set up the account(s) to model your real-world account(s)._ Typically that would be one IRA account for each individual IRA account that you might have at independent brokerages or fund families._ Each IRA account might hold 1 or_several mutual fund securities._ HTH
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