How do I enter an annuity that pays monthly cash so the networth report shows a value

dw

I cant figure out how to enter an annuity i own so it shows a value and also is reflected in the networth stmt. It's a lifetime annuity not fixed period but I'll take what i can get

jr7107

Create a security that reflects the proper description.
"Buy" the security in your account for the value you paid.
Generate income transactions when the security pays.

That is the most simple solution, if you want to track more just add some details.

NotACPA

How would you determine the current value of the Annuity?  Does the FI provide that?

Otherwise, I'd just show it as an income item.

BTW, I also have an Annuity, that was provided by a former employer.  But the Life Insurance company that manages it provided me with a table showing the value at various ages.  So, I set the Annuity account up in Q as an "Other Asset" type account and annually bumped up the value (using that previously provided info).

Now that I'm retired, I transfer the Annuity $ each month from the Annuity account to my checking account.  When the Annuity account runs dry, I'll switch to using an Income category for the payments received after that.

Lastly, when I refinanced my mortgage a few years back, my bank said that having both the income stream info, and the current value were quite helpful in securing my mortgage.

dw

I want Quicken to track the gross amt for networth not have to enter income every month, the amt is always the same

NotACPA

dw said:

I want Quicken to track the gross amt for networth not have to enter income every month, the amt is always the same

But again, HOW will you determine that amount?

And, my 3rd paragraph tell you how do to so.

volvogirl

But you do need to enter the income each month into your checking account or wherever.  Or how will you balance your checking account?

And you need to track the income as it might be taxable.  You can set up a reminder or scheduled transaction to enter it each month.

dw

This Annuity has a minimum payout amount or I could use the estimated life expectancy from the IRS table. your solution would work as a workaround till quicken adds some options, i'm new to Q but i dont even see where i can track loans due to me, only loans i owe.

volvogirl

Loans?  Are you taking a loan from the annuity?  That is a totally different thing and discussion.  

dw

The 'loan' was just ranting on a separate subject sorry for the confusion

Unknown

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Jim_Harman

With a simple annuity, once you give the money to the insurance company there is no way to get it back. You have traded your principal for a guaranteed income stream. Because of this, most people treat an annuity that is paying out to them not as an asset but as an income stream, like a pension or Social Security.

If your annuity has a lump sum payout if you die within X years or something, you might do as @NotACPA suggests and put the lump sum in an Asset account in Quicken and transfer the monthly payment from that account to your checking account.

In either case, you can set up a Reminder for the payment from the annuity that automatically enters the income or transfer each month so you do not have to record it manually.

NotACPA

In my case, the annuity was created (funded) by a former employer when they switched from a Defined Benefit (Pension) Plan to a Defined Contribution  (401k) Plan. 

They had so much extra money in the Pension Plan that they bought everyone an annuity (the amount varied with your salary and length of employment).

MetLife,  the administrator, provided me with a statement showing the value of the annuity at various periods until I turned 65 and could begin to draw it down.  That same table also showed the Death Benefit should I have died before age 65.

SO, truly, it was an Asset until  I turned 65, a diminishing asset as I  draw it down,  and then an Income category if/when  I deplete the  Asset.