Where Does Transfer from Bank Deposit Go in Investment Account

This is a little involved.

I have always used an asset account to keep track of my 401(k). I set
up each paycheck I deposited to send the amount deducted for my 401(k)
to my 401(k) asset account in Money. I simply wanted to keep track of
the value.

Taking advantage of a switch my company made from one brokerage to
another I decided to set up my 401(k) accounts in Money as investment
accounts and to download the transactions directly from the broker.
An investment account is a very different account from an asset
account as I already knew from some stocks I own.

I have two questions:

I have the split in my paycheck deposit set up to send the money to
the 401(k) account. The account also downloads the transaction from
the web. I only see the one transaction so, does Money automatically
recognize this transaction from my paycheck transfer? Or does it do
something else with it? I noticed in one of the help files that it
talks about setting up a cash account for each investment account.

I also notice that there are no total amounts in the account register
for each transaction. I know that Money automatically updates the
amount of each line (I think). The only totals shown are those for my
contributions and for dividend reinvested.

I'd appreciate any clarification on what is going on here.

Thanks

Rich Wyllie

Art
Wed Jan 16 18:11:17 CST 2008

In line.

"Rich" <dickwyll@concentric.net> wrote in message
news:61351b7c-fa73-464a-b32c-5e5c95239236@d4g2000prg.googlegroups.com...
> This is a little involved.
>
> I have always used an asset account to keep track of my 401(k). I set
> up each paycheck I deposited to send the amount deducted for my 401(k)
> to my 401(k) asset account in Money. I simply wanted to keep track of
> the value.
>
> Taking advantage of a switch my company made from one brokerage to
> another I decided to set up my 401(k) accounts in Money as investment
> accounts and to download the transactions directly from the broker.
> An investment account is a very different account from an asset
> account as I already knew from some stocks I own.
>
> I have two questions:
>
> I have the split in my paycheck deposit set up to send the money to
> the 401(k) account. The account also downloads the transaction from
> the web. I only see the one transaction so, does Money automatically
> recognize this transaction from my paycheck transfer? Or does it do
> something else with it? I noticed in one of the help files that it
> talks about setting up a cash account for each investment account.

As you noticed, the cash account is used for holding the money from your
check until the purchase occurs. This is normally instantly. Thus have the
split transfer the money to the cash account portion. When you download the
purchases they will come from the same cash account, you may have to point
the first one to the cash account and after that the Money will
automatically choose the cash account.

Occasionally you may want to look at the cash account to verify that it is
not building up cash balance (neg or positive). I often find the company
match may be a penny off from what I expected and had entered.


> I also notice that there are no total amounts in the account register
> for each transaction. I know that Money automatically updates the
> amount of each line (I think). The only totals shown are those for my
> contributions and for dividend reinvested.

When you are looking at an investment account it comes up by default in the
"Investment Transaction" view. The other views are the "Cash Transactions"
and the "Account Summary". This final view provides the totals for each
stock or fund owned within the account. If the cash balance is not zero it
will also show in this view.

> I'd appreciate any clarification on what is going on here.
>
> Thanks
>
> Rich Wyllie

Richard
Wed Jan 16 20:14:53 CST 2008

Thanks for your response.
"Art McClinton" <art.mcclinton@cox.net> wrote in message
news:<F2xjj.11958$R55.5838@newsfe13.lga>...

> In line.



> As you noticed, the cash account is used for holding the money from your

> check until the purchase occurs. This is normally instantly. Thus have the

> split transfer the money to the cash account portion. When you download
> the

> purchases they will come from the same cash account, you may have to point

> the first one to the cash account and after that the Money will

> automatically choose the cash account.

This addresses a basic navigation point that I was unaware of. The only view
I had used was investment transactions. I see the cash transactions and
account summary view now. I'm still not sure how Money calculates the buy
though when the money comes over from my check. In my active account I have
only one fund, so it knows to enter it. But, if I had multiple funds how
would it distribute the purchase? Would it be corrected in any case when I
download transactions.

Also, it seems that the money from the split goes automatically to the cash
account. But for information's sake how could I point it there in the split?




> Occasionally you may want to look at the cash account to verify that it is

> not building up cash balance (neg or positive). I often find the company

> match may be a penny off from what I expected and had entered.



I understand. I always balance everything to the penny.




> When you are looking at an investment account it comes up by default in
> the

> "Investment Transaction" view. The other views are the "Cash Transactions"

> and the "Account Summary". This final view provides the totals for each

> stock or fund owned within the account. If the cash balance is not zero it

> will also show in this view.

Steve
Wed Jan 16 21:50:56 CST 2008

"Richard Wyllie" <richwyl50@comcast.net> wrote on 16 Jan 2008 in group
microsoft.public.money:

> This addresses a basic navigation point that I was unaware of. The
> only view I had used was investment transactions. I see the cash
> transactions and account summary view now. I'm still not sure how
> Money calculates the buy though when the money comes over from my
> check. In my active account I have only one fund, so it knows to
> enter it. But, if I had multiple funds how would it distribute the
> purchase? Would it be corrected in any case when I download
> transactions.
>
> Also, it seems that the money from the split goes automatically to
> the cash account. But for information's sake how could I point it
> there in the split?

You transfer the money from your paycheck to the cash portion of your
investment account. If your investment account is named "XXX", the cash
portion will be named "XXX (cash)", or something similar. It shows up as
a separate account in the drop-down list, even though it's only a part
of the investment account. (I can't check this right now, 'cause my wife
is using the PC that has Money on it.)

I'm confident the 401(k) fund manager is *not* making a purchase every
time you make a contribution. Mine always made a purchase quarterly. You
can verify that by looking at your statements. That means that the
balance in your cash account climbs with each paycheck. You then enter a
purchase transaction for the mutual fund, paying for it with the cash in
the cash portion of the account. The cash portion balance will then
(probably) be zero.

The best thing is to make sure the registers in your investment account,
both the investment and the cash portions, match the statement exactly.
I take the further step of manually marking transactions in the cash
portion as reconciled ("R"), just to remind myself that I really
balanced the statement last month.

--
Steve B.
New Life Home Improvement

Dick
Wed Jan 16 22:14:36 CST 2008

Both of ours make multiple purchases (according to investment choices) for
every paycheck deduct. Mine dwells by one week from the time the
corresponding weekly paycheck is direct deposited. My wife's dwells by one
to two market days. Sitting on an employee's 401(k) money in float and
earning interest on it is abusive and should be (but isn't apparently)
illegal. There are many things about 401(k)s that are very permissive to the
benefit of the plan sponsors and plan administrators.

"Steve" <respond@online.newsgroup> wrote in message
news:Xns9A27DE40EC6B4184365720018436572@207.46.248.16...
> I'm confident the 401(k) fund manager is *not* making a purchase every
> time you make a contribution. Mine always made a purchase quarterly.

Steve
Wed Jan 16 23:32:52 CST 2008

"Dick Watson" <littlegreengecko@mind-enufalready-spring.com> wrote on
16 Jan 2008 in group microsoft.public.money:

> "Steve" <respond@online.newsgroup> wrote in message
> news:Xns9A27DE40EC6B4184365720018436572@207.46.248.16...
>> I'm confident the 401(k) fund manager is *not* making a purchase
>> every time you make a contribution. Mine always made a purchase
>> quarterly.
>
> Both of ours make multiple purchases (according to investment
> choices) for every paycheck deduct. Mine dwells by one week from the
> time the corresponding weekly paycheck is direct deposited. My wife's
> dwells by one to two market days. Sitting on an employee's 401(k)
> money in float and earning interest on it is abusive and should be
> (but isn't apparently) illegal. There are many things about 401(k)s
> that are very permissive to the benefit of the plan sponsors and plan
> administrators.

I stand corrected. It appears I had bad adminstrators.

I'm now opening a personal 401(k) since I'm self-employed, so I'll watch
for that type of thing.

--
Steve B.
New Life Home Improvement

Art
Thu Jan 17 18:30:34 CST 2008

My company deposits (both with holding from my pay and company match) reach
Fidelity and TIAA-CREF the same day as the I receive my check. This used to
be weekly and now is bi-weekly. Fidelity and TIAA-CREF purchases occur the
same day.
"Dick Watson" <littlegreengecko@mind-enufalready-spring.com> wrote in
message news:%23Mz8P%23LWIHA.4712@TK2MSFTNGP04.phx.gbl...
> Both of ours make multiple purchases (according to investment choices) for
> every paycheck deduct. Mine dwells by one week from the time the
> corresponding weekly paycheck is direct deposited. My wife's dwells by one
> to two market days. Sitting on an employee's 401(k) money in float and
> earning interest on it is abusive and should be (but isn't apparently)
> illegal. There are many things about 401(k)s that are very permissive to
> the benefit of the plan sponsors and plan administrators.
>
> "Steve" <respond@online.newsgroup> wrote in message
> news:Xns9A27DE40EC6B4184365720018436572@207.46.248.16...
>> I'm confident the 401(k) fund manager is *not* making a purchase every
>> time you make a contribution. Mine always made a purchase quarterly.
>

Rich
Fri Jan 18 08:32:12 CST 2008

This all pretty much answers my questions. My main concern is that
Money is doing something in the background that I don't know about. I
have always kept all my accounts manually. In my old 401(k) accounts
I entered only the amount deposited and differences in value each
month. I thought I'd take advantage of a transfer to a new brokerage
to download all transactions. Now that I see where everything is and
that I can make any necessary changes myself I feel much more
comfortable with it.

Thanks all for your help.

>
> You transfer the money from your paycheck to the cash portion of your
> investment account. If your investment account is named "XXX", the cash
> portion will be named "XXX (cash)", or something similar. It shows up as
> a separate account in the drop-down list, even though it's only a part
> of the investment account. (I can't check this right now, 'cause my wife
> is using the PC that has Money on it.)
>
> I'm confident the 401(k) fund manager is *not* making a purchase every
> time you make a contribution. Mine always made a purchase quarterly. You
> can verify that by looking at your statements. That means that the
> balance in your cash account climbs with each paycheck. You then enter a
> purchase transaction for the mutual fund, paying for it with the cash in
> the cash portion of the account. The cash portion balance will then
> (probably) be zero.
>
> The best thing is to make sure the registers in your investment account,
> both the investment and the cash portions, match the statement exactly.
> I take the further step of manually marking transactions in the cash
> portion as reconciled ("R"), just to remind myself that I really
> balanced the statement last month.
>
> --
> Steve B.
> New Life Home Improvement