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Purchase brokered CD

h stansfield

I recently converted some of an IRA into a brokered CD provided by the investment company (Vanguard). So, there was a share sale to provide the cash for the CD purchase, but I can't figure out how to enter the CD purchase—there isn't anything in the investment transaction menu for something like this. Or, do I create an account for the CD separate from the IRA?

Either way, it's going to be a little confusing

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Rocket J Squirrel

A CD is a security in Quicken, similar to a bond. Create the security and buy it in your IRA account.

q_lurker

I would keep the CD in the same IRA account. I would create a security for that specific CD and buy that security at $1.00 per share. As interest accrued to it, I would use a ReinvInt transaction. But all that might depend somewhat on how your Vanguard brokerage reports the asset.

Rocket J Squirrel

As interest accrued to it, I would use a ReinvInt transaction.

In my experience, CDs throw off cash and do not grow in value, meaning the interest transaction should be Int, not ReinvInt.

buy that security at $1.00 per share

My CDs at Morgan Stanley come through as $100/share.

Best to see what the brokerage does before making assumptions.

Tom Young

Leave the CD in the IRA because it is in the IRA.

There's various ways you might do this, but I'd use the KISS principle and simply do a Buy, using the $1 = ! share. Create the "security" (it really is a security) with an appropriate name like "3 mo Citibank CD 5%" or something. In the "Add Security to Quicken" select "Click here" to enter the info manually, ignore the Ticker Symbol box and select the CD Security Type or you could call it a Bond.

Entries from there will depend on how the CD works and how you want to make entries. So, for example, it the CD pays interest monthly that gets added to the CD you could create an IntInc transaction for that amount and then use that "cash" to buy more of the CD at $1/share. Eventually the CD will mature and you'd "Sell" it at that same $1/share, ending up with the actual amount of cash in the Account at that time and interest income properly stated.