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Posted by P.Schuman on September 20, 2007, 11:44 pm
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> P.Schuman wrote:
> >>
> >>> I have several different mutual funds from Fidelity, Vanguard, TRowe,
> >>> and have conflicting views on how the funds are actually performing.
> >>>
> >>> Within Quicken -
> >>> the divs or cap gains are reported as transaction "div"
> >>> and then a corresponding transaction for "buy"
> >> Quicken has an alternative - instead of entering two
> >> transactions (the div and the buy), use "RD" - "reinvest dividends"
> >> transactions. Quicken then knows that you didn't inject
> >> any additional money and tracks, separately "amount invested"
> >> as opposed to "cost basis".
> >>
> > yeah - sounds good -
> > but of course these DIV + BUY are the transactions being downloaded
> > from Fidelity and others....
> > Some appear as dividends, some as LT cap gains, etc...
> > It's tough.... when we really didn't inject any more investment capital,
> > but yet, I guess we "did" when we received the dividend payout.
>
> I'm not sure if I understand where your concerns are, but I'll
> throw in what my take is (I have a bunch of Fidelity funds myself).
>
> First I'll say that I use to have the same issues as you do
> (I think). However, in order to minimize the amount
> of work in reconciling with the monthly statements, I
> now use the downloaded transactions as is. It matches
> up with the statement more readily.
>
> The different type of dividends (div, short term, long term) are
> necessary because the taxes paid are different for short vs. long
> term. The BUY is necessary because you are truly buying more of the
> funds, even if you don't handle it yourself. It would be the
> same as if you received the dividends transferred in your
> checking account and then sent the money to Fidelity and
> bought it yourself. From the IRS standpoint, Reinvesting
> is a Buy.
>
> WRT how the fund is performing, I look at the ROI. This is
> (the last I checked) the calculation of ($Return) / ($Invested).
> It is the total profit if you sold at the market price.
>
>
> > The harder one is with any of the MMF - since the "price/nav" stays at $1.
>
> At one point I wanted to know this as well. So I
> created a Security (e.g. FDRXX) and for each Cash
> transaction, Div/Int, Sell, Buy, etc. which changed
> "Cash" I would add a new entry for the MM security.
> So if I sold a stock and received $100 in the "Cash", I
> would then Buy $100 of the MM security.
>
> But now I'm too lazy. If I want to know what the interest
> rate is, the Fidelity statement shows the yield. e.g. for
> last month, the FDRXX 7-day yield was 5.08%.
>
I know all the reasons for the separation of the downloaded transactions,
it just makes it tougher to see relative performamce.
tnx for the reminder on ROI... now I just have to go find the account ROI in
Quicken.
I know I stumbled across this same discusssion before,
and Pollard probably answered it... have to go search the newsgroup.
For the MMF, I just pull up my Yahoo Portfolio and can see it there.
I created the portfolio on Yahoo since Quicken has for the past several months
stopped downloading the "news" icons, and I needed an easy way to keep up
with the "news" related to each security - without a bunch of mouse clicks per
security.
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