Investment Account Tracking

Quicken Deluxe 2008

Perhaps youve had a brokerage account or a retirement fund as a benefit from an off-
farm job, but havent used Quicken for any records associated with your investments.
Maybe you have had some experience with mutual funds and decided now that you want to
add individual stocks to your investment portfolio. If you are interested in monitoring and
analyzing performance, you may not be satisfied with the quarterly or monthly reports you
get. Quickens investment account features are capable of providing information that can
be sorted and summarized in a variety of ways.

In these instructions, we will:1

Add investment categories to the category list
Set up a mutual fund account and record historical transactions
Set up a brokerage account and record transactions
o 529 Plans for college savings
Manually set up a standard brokerage account for cooperative stock
o Enter historical data manually
o Record transactions for patronage dividends in the form of cash transferred
to the checking account and increased shares of stock
Record transactions in a 401(k) account we developed as part of paycheck tracking
o Update 401(k) holdings
Set up an IRA account
o Download asset classes
o Download historical data

Note: Due to different Internet connections you may have a different progression of
screens.

Additional instructions for setting up investment accounts are found in the online help
manual. In Quicken, select Help, User Manuals. Select to View or print Getting Started
with Quicken on the Web. (Acrobat Reader, a free download, is needed to read PDF files.
If you do not have it, the URL to obtain the download is available on the bottom of the user
manual screen.) For investing go to the section entitled, Managing Your Investments.

1. Add Investment Categories

An investment category list is available with Quicken to record income and expenses
from investments. The default list of investment categories is shown in Table 1. and shows
the assigned tax schedule. Realized and unrealized gains and accrued interest expense are
not assigned to a specific tax schedule because they are used in a calculation with other
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In these instructions, investments and company names are used for examples. In some situations, real ticker
symbols are used along with a fictitious account name so that we can demonstrate Internet downloads, etc.
No endorsement is intended nor implied.
variables. You may seek assistance from a broker or accountant to ensure accuracy in these
assignments and calculations.

Table 1. Investment Categories

Category Description Tax Tax Line Item
Income
_DivInc Dividend T Schedule B:Dividend income
_DivIncTaxFree Tax-Free Dividend T Schedule B:Div. income, non-taxable
_EmpStkOptInc Employee Stock Option Inc T W-2:Salary or wages, self
Employee Stock Option Inc for
T W-2:Salary or wages, spouse
_EmpStkOptIncSpouse Spouse
_ESPP Self Income ESPP Self Income T W-2:Salary or wages, self
_ESPP Spouse
ESPP Spouse Income T W-2:Salary or wages, spouse
Income
_IntInc Investment Interest Income T Schedule B:Interest income
_IntIncTaxFree Tax-Free Inv Interest Inc T Schedule B:Int. income, non-taxable
Schedule D:Div. income, cap gain
_LT CapGnDst Long Term Cap Gain Dist T
distrib.
Schedule D:Div. income, cap gain
_MT CapGnDst Mid Term Cap Gain Dist T
distrib.
_RlzdGain Realized Gain/Loss
_ST CapGnDst Short Term Cap Gain Dist T Schedule B:Dividend income
_UnrlzdGain Unrealized Gain/Loss
Expense
_Accrued Int Accrued Interest T Schedule B:Interest income
Form 4952:Investment interest
_IntExp Investment Interest Expenses T
expense

To add the investment categories to the existing category list, click on

Tools
Category List

Click on the Add Categories button (top right).

Available Categories
Investment (scroll down to find it and click on it to select it)

Click to select individual categories in the list or the Mark All button at the bottom of the
list.

Click on Add>> (in the middle of the window)

The selected categories will appear in the Categories to Add window at the right.

Click on OK.

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A new Investment selection appears on the left sidebar of the category list. By clicking on
Investment, you will see only the investment categories. Investment category names are
preceded by an underscore (for example, _Accrued Int).

Close the Category List window.

2. Setting up a Mutual Fund Account

Improvements in recent Quicken versions have emphasized the investment features.

Quicken along with Internet access allows you to download current and historical prices. In
this example, we will set up a mutual fund account for an index fund that is not an
Individual Retirement Account (IRA).

Choose
Investing (main menu)
Investment Accounts
Add Account

This account is held at the following institution:

Vangaurd Group

Next

Select the radio button next to NO as we will add this manually.

Note: For financial institutions that are connected online, you will need
account/user id and a PIN or password. Contact your financial institution for

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 information about online access to their account(s). Even if you set up an account
manually you will be able to access downloads, later.

Next

Select the radio button next to Single Mutual Fund.

Next

Tell us about this account

Name this account: Growth Index
Is this a tax-deferred account? NO

Next

What is the statement date for this account?

Statement date: 1/4/08

Note: The dates used in this tutorial are for example. You may substitute a different
date (prior or current) to enter.

Next

Enter the Ticker and Name as VIGRX and Vanguard Growth Index Fund, respectively.

Note: If you are connected to the Internet, you can search for the ticker symbol by
clicking on the Ticker Symbol Lookup button. You can select the investment type and

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 enter part of the Security name. Select the ticker symbol, copy using control Ctrl+C,
go back to Quicken and paste using Ctrl+V.

Next

Next

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Next

The next screen summarizes the information entered to this point and expresses the
importance of entering historical data to have accurate and complete reports.

Click on Done and you are now taken to an account summary screen.

We want to record the cost basis for shares that we own so that capital gains (losses)
are accurately calculated; click on the Transactions tab.

Click on Cost Basis under the Inv Amt column at the right.

Then click on the Enter Missing Transaction button.

From the Enter transaction: drop-down menu, choose Add-Shares Added so the cash
balance in the account is not affected by the entry. Enter the following data:
Click Enter/Done.

In our example, dividends were distributed and reinvested (the same process would be
used for reinvesting interest or capital gains distributions). Lets enter an example of the
reinvested dividends.

Click on Enter Cost under the Inv Amt column at the right.

Then click on the Enter Missing Transaction button.

From the Enter transaction: drop-down menu, choose Add-Shares Added so the cash
balance in the account is not affected by the entry. Enter the following data:

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Click Enter/Done.

You will be returned to the Enter Missing Transaction screen. We will continue to
enter historical cost information.

As part of our historical entries example, dividends were distributed and reinvested
(the same process would be used for reinvesting interest or capital gains distributions).
Lets enter an example of the reinvested dividends.

Click on Enter Missing Transaction.

Now at the Enter Transaction prompt, enter Reinvest Income Reinvested and the
following data:

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Click Enter/Done.

In our example, dividends were distributed and reinvested, but the same process would
be used for reinvesting interest or capital gains distributions.

Here are some additional transactions to enter for practicing the rest of the historical
cost basis information. Watch the columns as they may not be in the same order as the
screen for each action. Click on Enter Missing Transaction before each entry.

Action Date Number of Price per Investment or

(Transaction Shares Share Total Amount
and Acquired) (Calculated)
Add-Shares Added 2/16/06 20.6515 24.212 500.01
Add-Shares Added 5/14/06 19.82640 25.2190 500.00
Reinvest-Income 17.82
Reinvested 6/15/06 .84710 21.036477
Dividend
Add-Shares Added 8/16/06 18.3820 27.2005 500.03
Reinvest-Income 39.14
Reinvested 12/14/06 1.87893 20.831005
Dividend
Add-Shares Added 2/15/07 17.3981 28.7387 500.00
Reinvest-Income 18.00
Reinvested 3/12/07 0.89000 20.224719
Dividend
Add-Shares Added 3/12/07 31.32187 15.9632 500.00

Finish Later

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Once all transactions are entered, close the window by clicking on the X in the upper right
corner. Click on the Overview tab. You can view the summary data in various ways by
choosing another option for Show: (near the top left of the window), or by clicking on the
Performance & Analysis tab, or reviewing the Transactions tab.

Note: The As of date affects the values.

Although entering all buy and sell transactions can be time consuming if you are making
monthly purchases of a mutual fund, for example, accurate data provides the best
information for decision-making. When you decide to sell or gift shares, you can identify
the shares with the highest cost basis for sale (to minimize capital gains tax) and/or select
the shares with the lowest cost basis for gifts to charity (to avoid paying capital gains tax
on those shares). Also, at tax time, you can print a report for the accountant showing which
shares were sold and the amount of gain or loss.

3. Setting up a Brokerage Account

Lets say grandmother is anticipating an estate tax problem unless she starts reducing
the size of her estate. She decides to give each of her grandchildren 100 shares of two
stocks that she owns and you are one of the lucky beneficiaries. You open a brokerage
account to hold the shares and to allow you to trade in the future. As the brokers money
market rates look attractive, you also plan to store savings in the account. Click on:

Investing (main menu)

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 Investing Accounts
Add Account

Quicken Account Setup

This account is held at the following institutions:
BH Smith

Next

None of these. Use the following name:

BH Smith

Next

What type of investment account would you like to add?

Standard Brokerage

Next

Name this account: Brokerage Account

Next

Complete the following three screens as shown.

Next

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Next

Select Dont Connect to the Internet.

Next

Check the summary screen for accuracy.

Done

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 As with the mutual fund, you must enter the cost basis information for the stock gifts
to have accurate reports. Your basis will be the donors basis in the stocks. Lets say
grandmother paid $35 per share July 1, 2001 for the Merck stock and $45 per share on
May 1, 2003 for the Wal Mart stock.

Select the Merck row. Under the Cost Basis column click on Enter, Enter Missing
Transactions, and chose Add-Shares Added since no cash from the account was used to
purchase the stock.

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Click on Enter/Done.

Note: Until cost basis data are entered, share holdings are recorded as a placeholder
entry using the date entered for the statement. The transaction date needs to precede
the placeholder date to replace a placeholder and not affect the total shares held. The
placeholder share count will be reduced as historical transactions are entered.

Done

Repeat the process to record the Wal Mart stock cost basis.

Now that you are a stockowner, you decide to do some investing of your own. You
love chocolate and decide that your first stock purchase is going to be investing in a
chocolate company, for example Hersheys. You researched the company, personal liking
to chocolate aside, and decide it is a good company with solid income and/or growth
potential plus experienced and competent administrators. Choose: Transactions tab.

Enter Transactions
Buy-Shares Bought

Complete the screen as follows:

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You may be taken to the Add Security to Quicken as you enter a new security name or
click on Enter/Done after completing the above screen and you will be prompted:

Next

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 Note: If you are connected to the Internet, Quicken will search for the security
information and complete it for you. Otherwise, you may be taken through a series of
screens to enter the security information manually.

Done

Close the window by clicking on the X in the upper right corner.

Entry of most transactions is straightforward. Lets say that Halloween candy sales were
terrific. As a result, your Hershey stock paid a dividend on December 1 of $4.23 and the
cash is going to be reinvested in stock. Click on Enter Transactions at the top left of the
window, choose Reinvest-Income Reinvested and enter:

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Enter/New

At Christmas, the company decides to give its shareholders a Christmas present in the
form of a 2-for-1 stock split. To record a stock split, go to Enter transaction: field and
choose Stock Split. Enter the following:

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 Note: When entering a stock split, enter the ratio of the stock split. In the example
above, the split was 2 new stock shares to 1 old share, (2:1).

Click on Enter/New

Next April you want to sell 20 shares of your Hershey stock to generate some cash to
help pay taxes. The stock price is now $48.23 per share. Go to the Enter transaction: field
and choose Sell-Shares Sold.

DONT click on Enter yet!

To select specific shares to be sold, click on Specify Lots in the center column.

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Since we want to minimize the amount of gain and thus potential taxes on the sale, we will
click on the Minimum Gain button. The shares purchased through the dividend
reinvestment are selected along with the balance needed from the original purchase:
Notice the Shares to sell column has been filled in. Click on OK, and then Enter/Done.

529 Plans for College Savings

A 529 Plan account functions very similarly to a standard brokerage account.

However, the advantage to using the 529 Plan from the Investing accounts is that it is
already marked at tax-deferred and it maintains the college investments separate from other
retirement accounts. (Investing, Investing Accounts, Add Account, Enter 529 Plan name,
Select 529 Plan.)

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From this point on the entry is the same as a brokerage account.

4. Setting up a Brokerage Account to Track Co-op Stock

You have been a good customer of the local cooperative and your reward comes in the
form of a patronage dividend plus an increase in shares owned. It is easy to record the
dividend as a deposit in the checking account, but what if you want to track the shares of
co-op stock and dividends as you might with other investments? To track the shares of co-
op stock owned, set up an investment account. Choose:

Investing
Investing Accounts
Add Account

Next

Select:
None of these. Use the following name:
Hometown Co-op

Next

What type of investment account would you like to add?

Standard Brokerage

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Next

Name this account: Co-op Stock

Next

Next

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Enter your current holdings information.
Total Shares Stock
126

Next

A summary screen appears.

Done

Click on the Transactions tab. Now you choose how much historical data you want to
enter about your co-op stock. Quicken recommends that you enter each stock transaction
starting with your original purchase/acquisition so that it will develop accurate reports or
gains. Click on Enter Cost to record your original stock acquisition.

Click on Enter Missing Transaction. Add-Shares Added to establish the beginning

balance means no cash from this account is involved in the transaction. Choose the
following to enter the original stock received in December 2005.

Enter/Done

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Done

Recording Patronage Dividend

Lets say that you receive a cash patronage dividend from the profits from the last calendar
year, which you deposit in the Checking account at the 1st National Bank. Select Inc-
Income in Enter transaction. This is for cash income (dividend, interest, etc.) that is not
reinvested.

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The Checking account will show the $20 deposit. The cash balance of the Co-op Stock
account will not be affected.

Enter/New

If you also receive additional shares of stock when the co-op earns a profit, you can
add to the share balance by clicking on Enter Transactions, then Div-Stock Dividend.

Enter/Done

5. Setting up a 401(k) Account

Now, we will shift gears to demonstrate setting up a retirement account. If you have
previously set up an account, skip ahead to the Update Holdings section. If you have not
created a Retirement account while using the Setup Paycheck feature, then click on:

Investing
Investing Accounts
Add Account

Quicken Account Setup

This account is held at the following institution:
In Vested
Next

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 None of these. Use the following name:
In Vested

Next

Choose 401(k) or 403(b)

Next

Name this account: Retirement 403(b)

Next

Next

Would you like to track loans against this account? No

Next

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Next

Because our Ticker symbols are made up and not recognized, we get a report that Quicken
did not recognize these securities. Choose Don't Connect to the Internet (or Add
Manually) to input the information for this account.

Next

Done

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No (to continue with the investment accounts)

The Summary screen will appear.

Update 401(k) Holdings

We highly recommend that the historical cost basis information be entered for your
401(k) or 403(b) like the other investment accounts we have demonstrated. The process is
the same as presented for the mutual fund and brokerage accounts.

However, if you merely want the account to show the updated values without
recording fund purchases, you can use the Update 401(k) Holdings button (must be in the
Transactions screen). This process creates the placeholder entries in the transaction
register. Enter the information in the following screens.

Next

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Next

Total Withdrawals this period are all zero, so click on Next.

The securities in this account have not changed.

Next

Did you move any money from one security to another?

No

Next

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Next

Done

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6. Setting up an IRA Account

Individual Retirement Accounts (IRAs) are highly recognized investment tools.

Several forms of IRAs (Traditional, Roth, Educational, Keogh, SEP, and Simple) can be
recorded in Quicken. Lets add a Roth IRA account.

Tools
Account List
Add Account

Quicken Account Setup

This account is held at the following institution:
Golden Years
Next

None of these. Use the following name:

Golden Years

Next

Select IRA or Keogh Plan (in the Investments column)

Next

Name this account: Roth IRA

Next

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Next

Next

Next

If you are connected online with a valid Ticker symbol, Quicken will retrieve the current
market data. Our Ticker is fictitious and has to be entered manually. Respond with Dont
Connect or Add Manually.

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Next

A summary screen appears. When you are finished reviewing the information click on

Done.

You should record all historical transactions for which you have the information.
Some financial institutions will provide this information via Internet download in a format
that is compatible with Quicken. Otherwise, manually enter the information like discussed
previously for entering Cost Basis in the Mutual fund section of this tutorial.

7. Internet Downloads

With Internet access you may be able to download account information. You will need
to contact the financial institution to get a user identification and personal identification
number (PIN). You are also able to download asset classes and historical price data.

Downloading Asset Classes in Quicken

Information about the asset classification of your securities can be downloaded into
your Quicken investment accounts. Asset classes are groups of investment securities of
similar features and economic cyclical behavior. Quicken uses the Asset Classes provided
by Value Line and are classified as seen in the table below.

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Large Cap Stocks Stocks of U.S. companies that have a
market capitilization1 of $4.0 billion or
more.
Small Cap Stocks Stocks of U.S. companies that have a
market capitalization of under $4.0 billion.
International Stocks Publicly traded stocks of companies based
in countries other than the U.S.
Domestic Bonds Government or corporate bonds issued in
the U.S.
Cash and Cash Equivalents (money market, Stable, short-term investments that provide
CDs, and U.S. Treasury Bills) income that rises and falls with short-term
interest rates
Other Investments that cannot be classified in the
named asset classifications.
1
Market capitalization is the number of shares outstanding multiplied by price per share

If you do not download asset class information during the account setup, it is easily
added later. Go to:

Investing
Go to Investing Center
Analysis (tab)

Show Accounts: All

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Click on Download Asset Classes (blue print in the center of the top chart)

Note: If you have not previously registered your Quicken software or as a

Quicken.com user, you may need to complete the associated screens before
proceeding. Or click Remind me Later.

Update Now

You will see the One Step Update Summary window. There will be a message about the
number of securities and asset classes downloaded next to Download quotes, etc.

Close

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 You will then see an Asset Allocation window showing the asset classifications and
the percentage of your allocation. If you have a target allocation that you would like to
meet based upon your needs, risk tolerance, and years to retirement, etc., Quicken gives
some general scenarios as a guideline. It is best to evaluate your own situation and visit
with a financial planner. If you want to specify a target asset allocation, click on Options,
Change Target Allocation under the right pie of the upper quadrant.

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Enter the percentages for your target and click on OK.

The Analysis (tab) view of the Investing Center shows your current allocation and
your target allocation. Your allocation target may be changed should your situation
change.

Downloading Historical Prices

With an Internet connection and valid ticker symbol, it is possible to retrieve
historical price data for securities.

Investing
Portfolio

Download Historical Prices (menu line of the Investing Center)

Select the Securities for which you need historical prices.

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Update Now

A summary screen will appear with the number of securities for which historical prices
were downloaded.

Close

To view the historical data downloaded, go to the upper right-hand portion of the
screen and select: Show: Historical Performance.

Click on the Customize View button to manipulate the historical data to be of use
for you.

OK

These instructions have shown you only a few of the investment features built
into Quicken. Hopefully, they have demonstrated features that you might use in
tracking your investments and give you confidence in your ability to use them
effectively.

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