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Posted by John Pollard on February 18, 2007, 5:14 pm
Please log in for more thread options Richard F. Thomas wrote:
> Using Quicken 2005 Premier - R6 on a Gateway 850 and
> Windows XP Pro SP2 fully updated.
>
> Recently I SOLD all shares of one security in an IRA
> account. I see that there is still an "Amount Invested"
> showing for this security in the IRA account even though
> there are no remaining shares, for this security, in the
> account. All other values, i.e., Market Value, Cost
> Basis, Gain or Loss are properly stated as "zero".
> In viewing Quicken help, it states that the Amount
> Invested will not change unless you dispose of all
> shares. If this is true, it makes no since it shows an
> Amount Invested for nonexistent shares.
> How do I fix this problem, specifically how do I get the
> "Amount Invested" showing in the IRA account to be "zero"?
I don't think there is any problem to fix, but it's not totally
clear from your explanation because you don't explicitly say you
still own shares of that security in another account.
It's not clear to me why you think that selling your shares
changes the amount you invested: the amount you invested can't
change just because you sell shares ... you invested what you
invested.
Amount invested never really goes to zero - it may not be
visible if you no longer own any shares of that security in any
account. But if you then buy some more shares of that
security,the previous amount invested will be added to the new
amount invested.
Amount invested is used in computing "return"; here is how
Quicken computes "return":
"Return represents the total return of a security: the current
market value plus the income taken out as cash, plus cash
received from sales of shares, minus the amount invested.
Reinvestments are not explicitly added to the return, because
they contribute to the market value, which is already factored
in."
If the amount invested were reduced to zero when you sold
shares, the return would be overstated.
--
John Pollard
First initial underscore Last name at mchsi dot com
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