How to best represent a manual 401k account

markusbohu
markusbohu I do not have Quicken yet Member
edited September 8 in Registers & Transactions (Mac)

I have a 401k account that uses simple "portfolios" that it curates for you. There is no quicken connection and there is no QFX export feature, so I have to make plan entries manually to keep track.

Their "Portfolio" consists of allocations to about a dozen ETFs at certain percentages.
At every paycheck I get a certain amount of $ (relatively low) transferred to the retirement account and that is then invested into the underlying ETFs. So you can imagine that when the $100-$500 from a paycheck is divided in such a way, the amount of shares purchased in each fund is tiny and it's also really hard to get that info (of current share price, at time of purchase, etc.)

So, how can I best represent that account in my Quicken App? At any given time I can easily get the current value and I can get the total investment increase (I think that may include reinvested dividends) So, I can also get the cost basis which should be total value minus increase.

I thought I'd treat the entire Portfolio as a custom Security and then keep adjusting its price.
But how do I properly enter the buy transactions and the value of a "share"? The first transaction is easy, because I could just say the share price is $1 and I purchase as many shares as I have dollars.
But then it gets super hary as the total value fluctuates and cash keeps arriving in the account that then has to be converted into shares via specific BUY transactions.

Has anyone dealt with such an account before? What is the best way to handle this with somewhat minimal manual work?
The cash transactions itself, are in the account (the contributions to the account as well as the dividend reinvestments)—what I can't figure out is how to enter the BUY transactions of the custom security. (and to make things worse: When I try to enter a BUY transaction of something like 0.1156 shares, it records as ZERO shares)

Answers

  • Jon
    Jon Quicken Mac Subscription SuperUser, Mac Beta Beta
    edited August 8

    When I had a 401K that I had to manage manually in Quicken, I didn't even bother tracking individual buys. Since I had separate transactions for my regular contribution, my catch-up contribution, and my company matching contribution, and each of those was spread across several investments, I was in a similar situation to yours with a dozen or more asset purchases each paycheck.

    What I ended up doing was just creating one custom security for each fund in the 401K and assigning it a value of $1 per share like a money market fund. I'd let the cash deposits from each paycheck build up in the account until the end of the quarter; once I had the quarterly statement in hand I'd subtract the cash from the account (with a Balance Adjustment transaction) and add or remove shares as necessary to reflect the amount of money in each investment. Not a great system for tracking account values week to week or even month to month, but for a 401K spanning decades I didn't think that was all that important in the long run - quarterly values were good enough. And I only had to update the account 4 times a year.

  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭

    @Jon, a very reasonable approach to an unfortunate (no download & no real securities) condition.

    And, using that approach, while the account values won't be perfectly accurate, the overall account value should be reasonably close month-to-month unless a security has major gains or losses.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • John_in_NC
    John_in_NC Quicken Mac Subscription SuperUser, Mac Beta Beta
    edited August 8

    I don't know if you are provided the actual data to correctly enter transx. More importantly, if you have the interest to do such-especially if the values aren't going to be useful for investment reports, etc.

    I know somebody who was in a similar boat, and she kept it real simple: she added an Asset account with an Opening balance amount of the value of the account. (In your case, your 401k.) She just adjusted that account regularly.

    Sure, it didn't show under Investments, but it kept her Net Worth correct. And being that a 401k has no tax implications, it didn't really matter for tax reports.

    Alternatively, you could add increase/decrease transactions to the balance periodically if you wanted to see how the account changes over time. That should be simple to enter. (If I recall correctly, that is how she did it.)

    That might be the simplest solution for you.

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