Handling Single Premium Immediate Annuity

Question

How do I enter a Single Premium Immediate Annuity so that I reflect its asset value in my account. This is a single life annuity with payments guaranteed for 20 years, so its asset value declines each month by the payment I receive. I'd like to enter the purchase price of the annuity and automatically debit it monthly to reflect this payment. Thanks in advance to anyone with an answer.

NotACPA · Answer

https://community.quicken.com/discussion/comment/20458781#Comment_20458781

But the OP originally paid to receive that Annuity … so it pretty much must be an asset account.  Otherwise, that initial payment would be an expense

UKR · Answer

For me, if I were ever lucky enough to be on the receiving end of such an annuity, I would simply record the incoming deposits as a monthly Scheduled Reminder, like a paycheck, with a reminder End Date set in 20 years from now.

The total amount of the annuity payments may be an asset, but I don't have it in my hands yet, so why inflate my Net Worth?

NotACPA · Answer

When that Asset account gets to $0,  DON'T continue to use the account.  Instead, switch to using an Income CATEGORY.

My annuity is set up as a non-tax-deferred Asset type account, and the account balance will fall  to $0 with the October 2025 payment.  My checking account transaction for that month will be split with part coming from the annuity account (taking it to $0) and the balance from Income.

You DON'T want the asset account to go negative as that's an oxymoron.