How To Track the Performance of Cash in an Investment Account

There are two ways to track the performance of cash or money market fund holdings in Quicken.

  • If you have not set up the investment account for transaction download

    To use this method, you must first set up a money market fund security. Set up a new security and name it something like MMF (for money market fund). For the security type, select Stock. For the share price, enter $1/share to represent the cash or money market fund. Then keep the account cash balance at zero by buying or selling shares of the MMF to offset any transactions that require cash (such as the sale or purchase of securities).

    Pros and Cons

    This method may make your transaction list look closest to the statement you receive from your brokerage account. However, it's the most time-consuming method.

    Example

    To represent a stock purchase, enter a Buy action of the security along with a Sell action of the MMF. When you receive a dividend from the security, enter a Div action in the security, and also enter a Buy action in the MMF.

    When reconciling this account, reconcile to the (typically zero) cash balances in your brokerage statement. As a part of the reconciling process, verify that the new balance for the money market fund is correct.

    12/31/99 XIn [BANK] $5,000
    12/31/99 Buy MMF $5,000
    1/1/00 Sell MMF $1,500
    1/1/00 Buy Intuit $1,500
    2/1/00 Div Intuit $5
    2/1/00 Buy MMF $5
    2/15/00 ReinvDiv MMF $12
    3/1/00 Sell Intuit $2,000
    3/1/00 Buy MMF $2,000
  • If you set up your investment account for transaction download

    If you set up your investment account for transaction download, the first time you download, Quicken identifies your financial institution's money market fund security and prompts you to use it for cash tracking. When you do this, Quicken calculates the performance for you, based on the money market fund's Dividend transactions.

    The ability to track your money market fund balance as cash is not available for all financial institutions. If this ability is available for your financial institution, Quicken displays the Cash Representation dialog the first time you download. (If you don't see the Cash Representation dialog during your first download, this option is not available for your financial institution.)

    If the option to track a money market fund as a security is available for your financial institution, and you initially choose to track the money market fund as a security, you can convert the fund to cash later. However, once you select to convert a money market fund to cash, you may not be able to convert it back to a money market fund later.

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