How to record TIPS purchased for a ladder?

SomebodyInGNV
SomebodyInGNV Quicken Windows Subscription Member ✭✭✭✭
in Investing (Windows)

I just constructed a TIPS ladder in Fidelity. The transactions haven't settled and I can't download them yet. While trying to record them manually, I get confusing results. I understand that I'm buying (for example) 8 bonds and that the price is based on 100, but the numbers don't add up.

How do I record the transaction below? When I record it as a 8 shares @ 96.52, the principal amount is shown as 7721.60. If I set the total cost to 9829.13, the price changes to 121.78. And, how do I record the interest? As 10.85? Or 10.85*8?

I'm happy to jump through hoops to get this done. I'm not worried about tracking the price. I just want to record the dividends accurately, and the return of capital at maturity.

DateDec-18-2025
Symbol9128287D6
Symbol descriptionUNITED STATES TREAS NTS SER D-2029 0.25000% 07/15/2029
TypeCash
Shares+8,000.000
Price$96.52
Interest$10.85
Amount-$9,829.13
Settlement dateDec-19-2025

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Answers

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭

    I've never purchase TIPs but I know they are difficult to account for in Quicken because in calculating the current value of the security you need to multiply the "quote" by a "factor", and Quicken doesn't have a field for a "factor" it simply uses the broker's "quote." (This problem is shared with all bonds that incorporate a "factor" when determining current value, like mortgage backed bonds, and others.)

    You may be lucky here in that, apparently, Fidelity sends "quotes" that have been manipulated by the "factor" to result in correct pricing see

    https://community.quicken.com/discussion/7930760/tips-treasury-inflation-protected-securities-handling-the-inflation-factor

    so I'm guessing the "factor" for this bond was around 101.72275, assuming you paid the interest and it's included in the "Amount" you've shown.

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