Portfolio Rebalancer Window (Asset allocation) (QMac)

ricvieira
ricvieira Member
edited February 19 in Investments (Mac)
Please include the Portfolio Rebalancer window in Quicken for Mac. It has been available in Quicken for Windows for a long time. In my opinion, it is one of the main Quicken differentiators from the competition.
6
6 votes

New · Last Updated

Comments

  • Quicken Anja
    Quicken Anja Moderator mod

    Hello All,

    This idea seems to have fallen stagnant and due to the age of the request and lack of user votes/comments, will be archived within the next 7 business days.

    If you would like to see this idea kept alive and considered for possible future implementation in Quicken, be sure to add your vote and a comment explaining how this idea would be beneficial for you.

    More information, including steps to vote and how to submit your own ideas for future product features/improvements, is also available here.

    Thank you,

    Quicken Community Support Team

    -Quicken Anja
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited February 19
    Quicken Mac in the past 6 months has made steps towards providing asset allocation data which downloads the makeup of mutual funds to properly classify a mix of asset classes. This is currently available in the Dashboard. It has not yet been fully implemented in the Portfolio view, which is a sorely needed next step. After that, the next logical step is and asset allocation report which can compare actual asset class allocation to user-entered goal asset class allocation. I haven't used Quicken Windows, but I assume this is what the Rebalancer Window described in this feature request accomplishes.

    I think this is definitely a desirable feature and this Idea post should be kept open.

    EDIT: I did a Google search and found this example of the Quicken Windows Rebalancer window, for any user who, like me, aren't familiar with it:



    This confirms my thought above that something like this would be a useful addition to Quicken Mac. 
    Quicken Mac Subscription • Quicken user since 1993
  • Jon
    Jon SuperUser, Mac Beta Beta
    edited February 20
    I don't see how that's particularly useful in & of itself if it doesn't go on to the next logical step and make specific buy & sell recommendations. I can easily see for myself that 26.841 is a bit more than 3% below 30, I don't really need Quicken to tell me that. But knowing I need to move 3.159% out of Domestic Bonds - well, how many shares of which fund is that? That's where I have to bust out the calculator, so that's where Quicken can really start to make things easier for me.

    And it gets even more useful in cases where I have mutual funds that cross boundaries. If all my Domestic Bond holdings are part of a 60/40 Moderate Growth Fund, for instance, buying more bonds means buying some combination of stocks too, but I'm already over-invested in stocks; given my portfolio, what are my options to compensate for that?

    Those are the kind of questions I'd like a portfolio rebalancer to assist in answering.
    Quicken Mac subscription. Quicken user since 1990.
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    @Jon I think expecting Quicken to recommend buying or selling certain securities goes way above this application's pay grade! I'm confident there are legal reasons as well as practical ones why Quicken won't ever do that. (Can you imagine if someone loses money when the markets move in some direction, and the user sues Quicken because it recommended they buy an investment which didn't do well! ;) )

    I don't want Quicken to start picking stocks or mutual funds for me. But it could be helpful if it points out where and how far off I am from my self-picked ideal asset allocation.

    What you're saying suggests a feature which would allow "what if" trades in Quicken: what would my asset allocation look like if I sold 'x' shares of this stock and purchased 'y' shares of a mixed mutual fund? While that could be useful, I see that as being something fairly complex to implement, whereas simply showing actual versus goal asset allocation should be relatively easy.
     
    In any case, this is a feature which exists in Quicken Windows and which some users find useful, so simply for the reason of platform parity, I think it's worth implementing in Quicken Mac. I do think being able to see what classes I'm over and under my goals in a simple graph has some usefulness.
    Quicken Mac Subscription • Quicken user since 1993
  • Jon
    Jon SuperUser, Mac Beta Beta
    edited February 20
    @jacobs I didn't make myself clear. I'm not expecting Quicken to recommend new stocks or funds for me to buy - I agree that's above it's pay grade. But that's not what I think of when I think of rebalancing - to me, rebalancing means moving money around within the investments I already own. 

    Just to provide a trivial example, let's say I've got $537,683.91 in an account, and that's currently split up between FundA & FundB. If my current allocation is 54.3% in FundA and 45.7% in FundB, and my desired allocation is 60% FundA & 40% FundB, that means I have to reduce my FundB holding by 5.7% & move that money into FundA.

    So in order to rebalance, the next question I have is: how much money do i need to move? What's 5.7% of $537,683.91, and how many shares of Fund B am I selling to get that? I'd like the rebalancer to tell me that. For extra credit, it could offer to enter the necessary buy/sell transactions into my account register for me; of course I'd need to tweak them later with the actual amounts, but it would save me having to type them in by hand.

    It gets more useful with more complex asset allocations. If I have 44% large cap/17% small cap/8% international/31% bonds and I want to get back to 40/20/10/30, then I need to sell the large cap & bond funds and buy the small cap & international funds, but each one will be a different dollar amount. Figuring out those amounts for me saves me some work.

    Quicken Mac subscription. Quicken user since 1990.
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    @Jon I agree that being able to do some "what if" scenarios could help with rebalancing. If you could enter a few trial sell and buy transactions and see how that would affect your asset allocation, that could be helpful. I just think creating a user interface for doing the trial transactions would likely be complex, and probably way down on a priority list.

    But having Quicken start suggesting money moves from which funds and into which funds you currently hold is, I just think, too problematic. Your example above talks about balancing between two funds, but I think what we're talking about here is balancing by asset class. If the rebalancer knows that you are too high in large cap stocks by a certain amount, and too low in domestic bonds by that amount, how would it know what to tell you to move if you have multiple multiple large cap stock securities and multiple domestic bond securities?

    For a simplified example, let's say I own $100,000 of Apple, $50,000 of Home Depot, and $250,000 of a S&P 500 Index Fund. And let's say the rebalancer calculates I am $25,000 over my goal in large cap stocks. You want it to somehow tell you which of your large cap stock securities to sell? How would it determine which to sell… and perhaps more importantly, why would you want Quicken to make such an evaluation? There are myriad factors you could use to decide where to reduce $25,000 from among those three holdings. Do you think Apple is poised to go higher, or has perhaps peaked for now? Is Home Depot on a growth run or not? And what about which of these trades might be most tax efficient, based on your unrealized gains in each? I just think this goes way beyond something Quicken could (or should) tackle. Quicken's job is to track it all and let you slice and dice the numbers however you want, and then apply your intelligence and sentiments about the markets and securities you hold to decide what to sell, to buy and to hold.

    If Quicken could help with doing some "what if"-type transactions to allow you to see the impact on your asset allocation without having to crunch the numbers, that would be cool. I just don't think I see how it could go beyond that to suggest which actual securities to sell and buy.
    Quicken Mac Subscription • Quicken user since 1993
  • Jon
    Jon SuperUser, Mac Beta Beta
    edited February 20
    jacobs said:
    For a simplified example, let's say I own $100,000 of Apple, $50,000 of Home Depot, and $250,000 of a S&P 500 Index Fund. And let's say the rebalancer calculates I am $25,000 over my goal in large cap stocks. You want it to somehow tell you which of your large cap stock securities to sell?

    If Quicken could help with doing some "what if"-type transactions to allow you to see the impact on your asset allocation without having to crunch the numbers, that would be cool.
    Yes, exactly. It could say "You're overweighted in large cap, here are your large cap holdings, which one would you like to reduce to get back to your desired allocation?" and let me choose. Maybe even let me choose more than one & adjust the split between them. Then show how many shares that translates into - if my choice ends up with me selling 44 shares of Apple I might decide not to deal with an odd lot like that, so I'll back up & try a different choice.

    Then it can say "You're underweighted in small cap, here are your small cap holdings, which one do you want to buy more of?" and let me choose. At the end, create a summary of the choices I made that lists the buy/sell transactions I need to make to implement those choices, and what the resulting asset allocation will be.

    OTOH, if I don't want to buy any more of my existing small cap holdings & want something new, then I think at that point I've strayed outside what the rebalancer can deal with. I don't expect Quicken to offer any suggestions about what new investments I could buy; I need to just do it myself at that point. But even there, at least it can give me some idea what I have to work with - knowing if I have $5K or $50K to invest in small cap might influence where I put the money.
    Quicken Mac subscription. Quicken user since 1990.
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    For what is worth the Quicken Windows rebalancer has been broken since they introduced allowing people to customize the asset classes.
    Signature:
    (I'm always using the latest Quicken Windows Premier subscription version)
    This is my website: http://www.quicknperlwiz.com/