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Transferred mutual funds from an Investment Acct to a Brokerage Acct - add shares lines created

Using Quicken Deluxe 2020 for Mac.

I moved two funds from an Investment Account to a Brokerage Account, both within the same investment company. The two funds are a MMF and 500 Index Mutual Fund.

In doing this, many "Add Share" entries were created in the receiving account. It looks like every dividend entry in original account led to an "Add Share" in the receiving account. They are all dated with the move date. The description column contains "number of [email protected]". What is the purpose of these individual entries in Quicken? What is wrong with having just one entry indicating the transfer of shares?
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Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    "Do you see an issue with that approach for an MMF?"
    No, I don't.  Future purchases will continue to be recorded one at a time so eventually you'll have a ton of entries for the MMF anyway.  One way to avoid this build up of entries, if this isn't a MMF that has to be "sold" with the actual funds not available until the "trade" settles, is to simply treat the MMF as "cash" in the Account.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    That preserves your lot-by-lot basis in the investment, allowing you more flexibility in how basis will be determined when you sell shares.  With one large "Add" of all the shares at the appropriate average price, you are limited to "average price" when it comes to figuring basis.
  • Dorothy H
    Dorothy H Member ✭✭
    That makes sense. With the index fund, the share price fluctuates so there is value in keeping the individual "add share" lines. With the MMF, the value was always $1.00. I am considering replacing the multiple "add share" lines with one entry. Do you see an issue with that approach for an MMF?

    This transferring of funds from one account to another has created so many lines in one chunk of time...I'd like to clean up if possible.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    "Do you see an issue with that approach for an MMF?"
    No, I don't.  Future purchases will continue to be recorded one at a time so eventually you'll have a ton of entries for the MMF anyway.  One way to avoid this build up of entries, if this isn't a MMF that has to be "sold" with the actual funds not available until the "trade" settles, is to simply treat the MMF as "cash" in the Account.
  • Dorothy H
    Dorothy H Member ✭✭
    Thank you. I appreciate your help this morning.
This discussion has been closed.