Need Investment % yield versus %capital gain report help

brucemid15

I've seen a few similar questions but not many good solutions. I'm seeking an investment report on my portfolio that will show the % yield (interest, dividends, etc) of each account (or security if desired) separately from the capital gain or loss from price movement -- and show it as a % of the cost basis averaged over the time period of the report.

The average cash flow is important for a retiree and both are impactful to making investment decisions that consider tax. Does such a report or measure already exist in Quicken? This seems like an obvious one for retirees and folks that tend to "buy and hold" strategies. All that I have read up on include the price fluctuations.

Rocket J Squirrel

Quicken calls this "return", not "yield". Look at the various statistics with "return" in their names and see if one provides what you're looking for.

brucemid15

Thanks - Yes I looked at those. Unfortunately - straight from help page...

Average annual return (IRR). "How is average annual return calculated in Quicken?
.... It takes into account money earned by the investment (interest, dividends, capital gains distributions) as well as changes in share price....."

ROI - "....The ROI calculation includes price appreciation of your shares (as of the most recent available market price), plus dividend and other income you received, plus realized gain..."

I'm looking to see the capital gains separately as they are taxed at a different rate (if long term) and are not part of routine cashflow for someone looking for that as a part of their income.

q_lurker

There is not any report that specifically presents the interest and dividend income and also presents the cost basis of the accounts. You would need to customize reports as desired and do the math independently. Exports to Excel might be helpful. 

These would of course be determining past yields, not future. Personally, I think I would make any such assessment using current market value rather than basis, especially for a long term investor who might have very low basis leading to a higher apparent (and misleading?) return. 

brucemid15

Yes your see your point. I'm trying to avoid all the manual math. I guess the easiest way to understand where I'm coming from is to think of a rental house. Perhaps I bought it for $200k (cost basis) 3 years ago - so I do want to be aware if the house is gaining or losing in its market value (capital gain) but this is less relevant until I'm thinking of selling it. I also VERY much want to know separately the cashflow and income from the house as a percent of what I paid for it. They are 2 totally separate measures of value on the same asset. I'm surprised that Quicken doesn't support such a viewpoint.

Mark1104

Not sure I am following the logic of wanting separating the capital APPRECIATION from the cash flow...... is that making an assessment of value too complex? for example: 

1) I purchase a security for $100,000 and it returns dividends of $5,000 per year which is reinvested, but the security does not appreciate. 
2) I purchase a security for $100,000 and it does not pay dividends but the security appreciates at 5% / year (compounded).

which investment is more valuable? and why? (don't worry about tax implications - that just confuses the issue even more) 

brucemid15

I'm no master of all the terminology - so I'm trying to describe what I'm looking for. As a person looking for liquid income in retirement I may likely need option #1 (understood I'm not reinvesting here - I'm buying groceries with the money!). In that scenario I'm using the dividends or other cashflow to fund my life. I'm living off the golden goose, while looking after the value of the goose (until I either sell it or pass it in the will!).

q_lurker

Let me go a step farther than my prior comments.  In customizing a report, like the Investment Income report, it is pretty easy to limit either the Actions or the Categories to exclude realized gains/losses.  That type of report also omits unrealized gains, by default.  Thus the numerator of your yield calculation comes to be.  Divide by your chosen denominator (cost basis, beginning market value, ending market value, 'average' cost basis, whatever) and you have your yield.  Taking the step to omitting reinvestment actions is an additional direction leading to a wholly different yield value where you would customize the report to exclude those reinvestment actions.

In my opinion -- 
All those variations are why it would be futile for Quicken to attempt to present any such customized value.  They can't be Burger King - they can't give it to you your way and to everyone else their way.  Any such path on their part dissatisfies more people than it satisfies.  You get the bigger picture return in various forms that include the unrealized gains (market value changes).  Anything more specific than that is on the individual user.  (I should note there is even disagreement over how some of those bigger picture returns are presented.) 

    

Mark1104

bruce - I guess you may have to pick ONE objective.  If you are trying to live off the golden goose, that sounds like value investing where the golden goose doesn't really grow in size but throws off cash (think value stocks, utilties, bonds).  if you are trying to grow the golden goose, that sounds like growth investing, where the golden goose grows in size but throws off little cash (think growth stocks, small caps, etc.).  

my two examples have EXACTLY the same return.

This may be as simple as measuring all the dividends vs. expenses.  The 'return' doesn't matter. That net is what financial planners call 'draw down'.  As long as the golden goose doesn't lose weight too quickly, there is enough money left to live off of the rest of your life.