tycho.book Page i Wednesday, July 19, 2000 4:07 PM Quicken Setup Guide Get maximum benefit with minimum effort tycho.book Page ii Wednesday, July 19, 2000 4:07 PM Trademarks EasyStep, InsureMarket, IntelliCharge, Intuit, the Intuit Logo, MacInTax, Pocket Quicken, Qcard, QuickBooks, QuickBooks Pro, Quicken, QuickGuide, QuickZoom, and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. or one of its subsidiaries. Family Lawyer is a registered trademark of Parsons Technology, Inc. Billminder, Bizminder, Business CashFinder, Checklock, EasyQuote, End Financial Hassles, Financial Newsstand, HeadStart, Intuit Online Payment, Intuit Marketplace, Investor Insight, Quicken.com, Quicken Basic, Quicken Deluxe, Quicken Financial Planner, Quicken Home & Business, Quicken Suite, Quicken Transfer Utility, QuickenMortgage, QuickenStore, QuickFill, QuickInvoice, QuickMath, QuickReport, QuickScroll, QuickTabs, QuickTour, and "Revolutionizing How People Manage Their Financial Lives" are trademarks and/or service marks of Intuit Inc. or one of its subsidiaries. RSA Digital Signature and the RSA Logo are trademarks or registered trademarks of RSA Data Security, Inc. America Online and AOL are registered trademarks and service marks of America Online, Inc. in the United States and other countries. Microsoft and Microsoft Internet Explorer are trademarks or registered trademarks of Microsoft Corporation in the United States and other countries. Quicken contains Macromedia Shockwave™ Player and Macromedia Flash™ Player software by Macromedia, Inc., Copyright © 1995-2000 Macromedia, Inc. All rights reserved. Macromedia, Shockwave, and Flash are trademarks of Macromedia, Inc. Intuit acknowledges the contribution of Eric Tyson from 1996 through 1999 to the advice manual. Eric Tyson is a syndicated personal finance writer, counselor, and columnist. He is the author of several national best sellers, including Investing for Dummies, Personal Finance for Dummies, and Home Buying for Dummies. He has also written books on mutual funds, real estate, and taxes. His work has been critically acclaimed in Newsweek, Kiplinger’s, the Wall Street Journal, the L.A. Times, the Chicago Tribune, and on the NBC Today show, ABC, PBS, CNN, CNBC and CBS. He holds an MBA from Stanford. All other product names, company names, trademarks, and service marks are the property of their respective owners and should be treated as such. Some names, company names, and data used in examples and help content may be fictitious and are used for illustration purposes only. Any resemblance to a real person or company is purely coincidental. Copyright Copyright © 2000 Intuit Inc. All rights reserved. First Printing, June 2000 http://www.intuit.com/ Castanet™ technology from Marimba, Inc. Copyright © 1996-2000 Marimba, Inc. tycho.book Page iii Wednesday, July 19, 2000 4:07 PM Contents Chapter 1 Get the most from Quicken 1 Welcome to Quicken 2 How much detail do you want to track? Which accounts do you need? 3 How Quicken stores information 3 Get the most from this book 5 Next steps 6 Chapter 2 0 Connect Quicken to the Internet 2 7 Why connect Quicken to the Internet? 8 When to set up your Internet connection 8 How to set up your Internet connection 9 Next steps 10 Chapter 3 Manage your income and expenses 11 How Quicken helps manage your finances 12 Choose which accounts to track 12 Create a checking account 14 Practice entering transactions 14 Enter your own transactions 17 Reconcile your statement 18 Get answers: Quicken reports and graphs 20 Back up your Quicken file 21 Next steps 22 iii tycho.book Page iv Wednesday, July 19, 2000 4:07 PM Chapter 4 Bank Online 23 Understand online banking Set up online banking 26 Use online banking 27 Make payments online 30 Next steps 31 Chapter 5 24 Manage Your Investments 33 How Quicken helps manage your investments Set up an investment account 36 Enter transactions using EasyActions 37 Track your portfolio’s performance 39 Create a 401(k) retirement account 41 Next steps 42 Chapter 6 Track Investments Online 43 Understand online investing 44 Set up online investment account access Use online investing account access 45 Next steps 48 Chapter 7 34 45 Determine your net worth 49 Putting it all together 50 Track your home value, and associated loan 50 Track a vehicle and loan 53 Create asset and liability accounts 53 Calculate your net worth 53 Next steps 54 Chapter 8 Plan for Tax Time 55 How Quicken helps you plan for tax time Set up your paycheck 56 Track your tax-deductible expenses 58 Use the Tax Planner 60 Run tax-related reports 60 Next steps 61 iv Contents 56 tycho.book Page v Wednesday, July 19, 2000 4:07 PM Chapter 9 Develop a long-term plan 63 Begin planning 64 Review your plan 65 Modify your plan 65 Next steps 66 Chapter 10 Contacting Intuit 67 Contents v tycho.book Page vi Wednesday, July 19, 2000 4:07 PM vi Contents tycho.book Page 1 Wednesday, July 19, 2000 4:07 PM 1 Get the most from Quicken Welcome to Quicken 2 How much detail do you want to track? Which accounts do you need? Get the most from this book 2 3 How Quicken stores information Next steps 1 3 5 6 1 tycho.book Page 2 Wednesday, July 19, 2000 4:07 PM Welcome to Quicken Thanks for choosing Quicken to help manage your finances! Each Quicken user has different financial goals, different sources of income, and different money management priorities. The beauty of Quicken is that it is powerful and flexible enough to help anyone manage their finances better. This book describes the simplest complete path to setting up Quicken in a way that provides just the information you care about. Use this chapter to learn how Quicken works and to decide how much detail you want from Quicken. How much detail do you want to track? 2 Some people use Quicken only to manage their checking account, so they can keep track of their income and expenses. Others use Quicken primarily to download investment transactions from their broker, while also making use of a wealth of analysis, research, and performance-tracking tools. Many people use Quicken to track all aspects of their financial lives, including income and expenses, investments, assets, and loans. It’s up to you to decide how much detail you want to track. If you want to… Refer to… Bank online or pay bills online; invest online; perform investments research and download securities prices, history, and asset classes; enter Quicken data from the Web when you are away from home; download software updates when they become available Chapter 2, Connect Quicken to the Internet Save time and effort with your regular banking and billpaying chores; improve the accuracy of your recordkeeping; understand where your money goes, so you don’t run out of money before you run out of month. Chapter 3, Manage your income and expenses Download transactions as they clear directly from your bank or credit card company; pay bills online instead of by mailing checks Chapter 4, Bank Online Track the purchase price, change in market value, and performance of your retirement plan or investments; reduce your tax liability; know what your stock options are worth Chapter 5, Manage Your Investments Download investment transactions and holdings information directly from your broker; make more informed investing decisions Chapter 6, Track Investments Online Understand the overall state of your financial health Chapter 7, Determine your net worth Cut the time you spend each year preparing your tax return; minimize your tax bill Chapter 8, Plan for Tax Time Determine when you can retire and canoe the Minnesota Boundary Waters; save money to send your kids to college; find out if you can afford to quit your job and stay home when the baby arrives Chapter 9, Develop a long-term plan Get the most from Quicken tycho.book Page 3 Wednesday, July 19, 2000 4:07 PM Which accounts do you need? Initially, you may need only to set up a checking or investment account. Later, you may wish to set up additional accounts so you can track more of your financial activities. The types of accounts that you can create are shown in the following illustration. (You see this window whenever you create a new account.) Banking and Cash Use these accounts if you want to understand where your money comes from and (perhaps even more importantly) where it is all going! These accounts are discussed in more detail in Chapter 3, Manage your income and expenses. Investments Use these accounts to track the ongoing performance of your stocks and bonds, retirement funds, and other types of investments. These accounts are discussed in more detail in Chapter 5, Manage Your Investments. Household Use these accounts to track financial activities that affect your net worth or “bottom line.” For example, using a House account lets you track the equity you are building and the loan you are paying down as you make your mortgage payments. These accounts are discussed in more detail in Chapter 7, Determine your net worth. How Quicken stores information Take a few minutes right now to familiarize yourself with some common Quicken terms and concepts. You’ll see these terms throughout this book and while you are using Quicken. Files Quicken saves your financial information in a file on your computer. As with other types of files, such as for word processing or a spreadsheet, you store this file in a folder on your hard disk. Unlike most other programs, however, Quicken immediately saves your information as you work; you don’t need to save the file manually. However, as with all important data, you should back up your Quicken file frequently. Quicken 2001 Deluxe 3 tycho.book Page 4 Wednesday, July 19, 2000 4:07 PM Accounts Within a single Quicken file, you can create as many accounts as you need to organize your financial information. You may create only one account (such as a checking account) or you may create several accounts (such as checking, savings, brokerage, and so on). You can also create Quicken accounts to track other aspects of your financial life, such as a home mortgage or a vehicle loan. You should create all of your Quicken accounts within a single Quicken file. That way, you can use Quicken to create reports that reflect your complete financial picture. Registers Each Quicken account has a register. The format of the register looks like a paper checkbook register, where you record the checks you have written and deposits you have made. The best thing about the Quicken register is that it calculates your current balance for you! Transactions Within the register, you enter individual transactions that correspond to your real-world income and expenses. For example, you could enter check number 313 for $99.96 to McCarthy Produce as a payment transaction in your checking account. Similarly, you would enter your paycheck as a deposit transaction in the same account. If you bank online, you can download your transactions directly into the register, so you don’t have to enter them yourself. 4 Get the most from Quicken tycho.book Page 5 Wednesday, July 19, 2000 4:07 PM Categories To get the most out of Quicken, you should assign one or more categories to each transaction. Categories track the source of a deposit (such as Salary), the reason for an expenditure (such as Clothing), or the name of the account to which you are transferring funds (such as Savings). Categories are at the heart of Quicken. If you are interested in managing your money to any level of detail, you need to use categories. You’ll learn how in Chapter 3. Register Get the most from this book Transaction Categories As you read this book, use your own financial data to learn basic but powerful Quicken features. After you complete the tasks in a chapter, you will be able to use Quicken immediately to help meet your personal financial goals. Each chapter builds on the chapters that come before. Before you begin working through a chapter, make sure you have performed all the tasks and gathered all the recommended materials listed in “Before you start” and “What you will need” at the beginning of the chapter. Quicken 2001 Deluxe 5 tycho.book Page 6 Wednesday, July 19, 2000 4:07 PM The last page of each chapter contains a list of more advanced features. With the assistance of the extensive Quicken Help system and Show Me videos, you can work at your own pace to learn about these features when you are ready to use them. Next steps 6 Now that you understand Quicken basics, and before you start entering data into Quicken, you should connect Quicken to the Internet. Turn to Chapter 1 and take a few minutes to do so now. You’ll be glad you did! Get the most from Quicken tycho.book Page 7 Wednesday, July 19, 2000 4:07 PM 2 Connect Quicken to the Internet Why connect Quicken to the Internet? 2 8 When to set up your Internet connection How to set up your Internet connection Next steps 8 9 10 Before you start Install your copy of Quicken. See the QuickStart card for instructions. What you will need Your PC must be connected to the Internet. Many home PCs are connected through an Internet Service Provider (ISP), such as America Online. Your work PC may be connected through a local area network (LAN). If you can read e-mail or browse the Web, you are connected to the Internet. If you aren’t, you can sign up for Internet access during the setup process described in this chapter. 7 tycho.book Page 8 Wednesday, July 19, 2000 4:07 PM Why connect Quicken to the Internet? You don’t need Internet access to use Quicken, but “going online” can easily double the power and flexibility of your software. It can also significantly cut your data entry time. By connecting directly to your financial institutions and brokers, you can download much of your financial data directly into Quicken. Consider these additional possibilities: • Find and compare investment opportunities Use online search and analysis tools to help you research and choose investments. Retrieve stock quotes, news, historical prices, and asset class information. • Set up an online portfolio Export your Quicken portfolio to Quicken.com so you can track it anytime from any Web-connected computer. • Explore other financial opportunities Choose Household menu > Quicken Products and Services to shop for low mortgage and insurance rates, optimize your 401(k) retirement plan, and more. • Enter data online Use Web Entry to enter Quicken transactions from any Web-connected computer, whether at work, school, or on the road. • Prepare taxes online Easily complete and file your taxes online with Quicken TurboTax for the Web. • Receive Quicken updates Download and install Quicken software updates as they become available. Note: If you don’t already have an Internet Service Provider, you can install America Online from the Quicken program group. From the Windows Start menu, choose Programs > Quicken and then click the AOL installation icon. (Not available for Windows NT 4.0 or 2000.) When to set up your Internet connection If you are an upgrader If you have previously used Quicken on this PC, and connected to the Internet, then Quicken 2001 remembers your previous Internet settings. If you have changed your Internet Service Provider, or switched from using a modem to using a direct connection (for example, DSL), you can change your settings manually. See “Change your Internet connection” on page 10. If you are a new user If you are a new user, just register the product. When you register, Quicken helps you set up your Internet connection. For more information, see “How to set up your Internet connection” on page 9. 8 Connect Quicken to the Internet tycho.book Page 9 Wednesday, July 19, 2000 4:07 PM Why register Quicken? Whether you are an upgrader or a new user, you will periodically be prompted to register Quicken the first several times you open the product. It’s a good idea to register right away. You must register in order to use the online features. Also, if you register you can be sure to receive notification when new versions are released and new features are added. As part of the registration process, Quicken asks you for a Quicken.com user name and password. (If you already have a Quicken.com login, use it here. If you don’t have one, Quicken prompts you to create a new one.) When you do, you extend the reach of Quicken. By letting Quicken communicate with Quicken.com, you can access some Quicken features from your personal account on the Quicken.com Web site. For example, you can enter Quicken transactions from any Web-connected computer (helpful when you travel) and track your investment portfolio on the Web. If you choose to, you can also export some Quicken data to Quicken.com. Note: If you did not register your copy of Quicken immediately after installation, you can do so at any time by choosing Help menu > Register Quicken. (If you do not see Register Quicken on the Help menu, that means you already registered.) How to set up your Internet connection If you have not used Quicken on this PC before, then the first time you go online (for example, to register your software), Quicken asks how you connect to the Internet. 1 Follow the EasyStep® onscreen instructions; click Next to move through the windows. Click Help if you need more information. When you have entered all the setup information, Quicken displays a summary window. Quicken 2001 Deluxe 9 tycho.book Page 10 Wednesday, July 19, 2000 4:07 PM 2 Click Finish. If this is the first time you’ve connected to the Internet, Quicken also displays the Connection tab of the Customize Quicken Download window. Background downloading means that Quicken downloads product updates while you are doing other online activities. This saves download time. Click OK to accept the default settings. Click the Quotes tab to specify securities for which you want to download recent prices. You can export some Quicken features and data to the Web. Click the Bank Accounts tab or the Investment Accounts tab. 3 Choose the options you prefer, and then click OK. Change your Internet connection 1 Start Quicken and then choose Edit menu > Internet Connection Setup. Quicken displays your default Internet connection profile. Click New to create a new profile. This is useful if you have more than one way to connect your PC to the Internet, and you’d like to use a second method as your backup. When your regular connection is down for some reason, just use the alternate connection profile. If you have already told Quicken how you connect to the Internet, the settings are stored in your default profile. Click OK to accept your old settings, or Modify to change them. 2 If you want to change the way Quicken connects to the Internet, select the default profile and click Modify. If you want to create a new profile (for example, as an alternate way to connect), click New. Follow the onscreen instructions; click Next to move through the windows. Click Help if you need more information. Next steps 10 Now you are ready to start using Quicken to manage your finances. Continue with Chapter 3 to start organizing your banking and credit card accounts. If your first priority is tracking your investment portfolio, skip to Chapter 5, Manage Your Investments, on page 33. Connect Quicken to the Internet tycho.book Page 11 Wednesday, July 19, 2000 4:07 PM Manage your income and expenses 3 How Quicken helps manage your finances Choose which accounts to track Create a checking account Enter your own transactions 12 14 17 18 Get answers: Quicken reports and graphs Back up your Quicken file Next steps 12 14 Practice entering transactions Reconcile your statement 3 20 21 22 Before you start Think about the accounts you want to track in Quicken. This chapter discusses checking and savings accounts, as well as cash and credit cards. What you will need You will need your most recent statement for the checking account that you plan to use with Quicken. If you plan to track savings or credit cards, you will also need the most recent statements for these accounts. 11 tycho.book Page 12 Wednesday, July 19, 2000 4:07 PM How Quicken helps manage your finances Before you begin managing your income and expenses in Quicken, you should understand how Quicken tracks financial information. As mentioned in “How Quicken stores information” on page 3, the key to money management in Quicken is categories. Categories are labels that track how much you’re spending on particular types of items, such as rent, groceries, or dining. For example, you might have assigned the following transactions to the Clothing category: • • • a check for $229.95 for a new jacket a credit card expenditure of $100.00 for a mail-order special on a scarf a few cash expenditures for new school clothes for the kids, totaling $210 Because you assigned the “Clothing” category to these transactions, it’s easy to produce a report like the one shown below. (To run this report, choose Reports menu > Spending > Cash Flow Report.) When you assign categories to your transactions, a cash flow report shows exactly where your money goes. See any surprises? Make it a habit to assign categories to all of your transactions. If you move your cursor over the totals, the cursor turns into a magnifying glass when details are available. Double-click to zoom in on the details. Choose which accounts to track 12 If you want to track your overall income, spending, and saving habits, you need to create more than one Quicken account. Use the following guidelines to help you decide which accounts to create. (Remember, you can create all these accounts in a single data file.) Manage your income and expenses tycho.book Page 13 Wednesday, July 19, 2000 4:07 PM • Checking This is the most commonly used Quicken account. Start with the accounts into which you deposit your paycheck, from which you pay most of your bills, and from which you may make tax-related expenditures (such as charitable donations and mortgage interest). • Savings Use this account type for standard savings accounts, such as those available at most banks or credit unions. • Credit Card Most people track one or more credit cards in Quicken. Start with the one you use most often. If your credit card company supports downloading transactions into Quicken, you may never have to enter your credit cards transactions manually. Just download the transactions and assign categories as you accept them into your Quicken register. If your financial institution doesn’t support online access through Quicken, see “Apply for a Quicken Credit Card” on page 67. • Cash If you want to know where all of your money goes, including cash, you can create a separate account to track cash. A simpler way is just to create a category called “Cash,” and then assign it to ATM transactions and other cash withdrawals in your checking account register. If you do set up a separate account for cash transactions, save yourself some time and track only to the nearest dollar. Of course, you don’t have to create all these accounts today. On the next page, you’ll create a checking account, but the steps for creating the other types of accounts are almost identical. Quicken 2001 Deluxe 13 tycho.book Page 14 Wednesday, July 19, 2000 4:07 PM Create a checking account If you opened Quicken before you opened this book, you may have already created a checking account during New User Setup. 1 To see if you have already created a checking account in Quicken, choose Finance menu > Account List. • If there is a checking account in the Account List, skip to “Practice entering transactions,” in the next section. • If there are no checking accounts in the Account List, click New and continue with the following steps. 2 Choose Checking and click Next. 3 Follow the onscreen instructions; click Next to move through the windows. Click Help if you need more information. Be sure to identify your financial institution. If it is on the list that Quicken displays, select it from the list. If it is not on the list, type in its name. If you don’t have a recent bank statement, use the value of 0.00 and today’s date for the starting balance. Congratulations! You’ve just created a Quicken checking account. In the next sections, you’ll use the register to enter transactions and assign them to the proper categories. Practice entering transactions In this section, take a few minutes to enter some sample transactions. Then you’ll be ready to enter your own transactions. Open the register If your checking account register isn’t displayed, choose Finance menu > Account List, select your checking account, and then click Open. (If you prefer, you can double-click the account name to open it.) Click here to select your account. 14 Then click here to open the register. Manage your income and expenses tycho.book Page 15 Wednesday, July 19, 2000 4:07 PM Quicken opens the register and places the cursor in an empty transaction at the end of the register. (If you see the account overview page instead of the Register, click the Register tab at the bottom left corner of the window.) Click here to begin entering a transaction Click here to assign a category to the transaction Click here to save the transaction Assign a single category to a payment transaction In most cases, you assign the full amount of a transaction to a single category. 1 Enter a date, a check number, a payee such as “AnyTown Gas & Electric,” and a payment amount. (You can use the mouse or the Tab key to move from one part of the transaction to the next.) 2 Click in the Category field and choose a category such as Household from the drop-down list. (If you don’t see the category list, click the small arrow to the left of the word “Memo.”) Tip: If you don’t see a category that reflects the purpose of the transaction, you can create one. Click Add Cat and fill in the information that Quicken requests. You can use the category for any transactions you create from now on. 3 If you want, enter a memo such as “Wrench Set ” for the transaction. 4 Click Enter to save the transaction. Note: When you click Enter to save a transaction, Quicken updates your data file on your computer’s hard disk. That means that you don’t have to save the file yourself as you do with other software, such as word processing or spreadsheet programs. However, it’s a good idea to back up the file to another location from time to time; you’ll learn how in “Back up your Quicken file” on page 21. That’s it! You’ve entered your first Quicken transaction. Keep going to learn about entering other kinds of transactions. Assign multiple categories to a payment transaction Sometimes you need to assign two or more categories to a single transaction. This is called a split transaction. Quicken 2001 Deluxe 15 tycho.book Page 16 Wednesday, July 19, 2000 4:07 PM 1 In an empty transaction at the bottom of the register, enter a date, a check number, a payee such as “Mullen MegaMart,” and a payment amount. 2 Click the Split button in the lower right corner of the transaction. Click the Split button to split one transaction into multiple categories. Quicken displays the Split Transaction window. This transaction shows three categories assigned to one transaction. The [Petty cash] line is a transfer to your cash account. 3 On each line, choose a category, enter a memo (optional), and enter the amount to be assigned to the category. Repeat until you have split the transaction among all the appropriate categories. Tip: You can enter percentages instead of amounts. For example, to split a transaction 25/75 between two categories, type “25%” instead of a dollar amount. (Type the percent symbol but not the quotes.) When you move the cursor to the next line, Quicken calculates the percentage amount and recalculates the second split line to represent 75% of the total. 4 Click OK to save the split information, and then click Enter to save the transaction. Transfer funds to another Quicken account If you have set up multiple Quicken accounts within the same data file, you can transfer funds between them. For example, if you write a check to pay a credit card bill, you can transfer the payment amount to your credit card account. The balance in the credit card register will then reflect the payment you just made. If you have not set up multiple accounts in Quicken, skip to “Enter a sample deposit,” in the next section. 1 Enter a date, a check number, the credit card name as payee, and a payment amount. 2 Click in the Category field and scroll to the bottom of the category list. The names of all your Quicken accounts appear in [square brackets]. 16 Manage your income and expenses tycho.book Page 17 Wednesday, July 19, 2000 4:07 PM 3 Select your credit card account from the list, enter a memo (optional), and then click Enter to save the transaction. Enter a sample deposit 1 Enter a date, click in the Num field, select Deposit from the drop-down list, and then enter a payee such as “Income Tax Refund” and a deposit amount. Note: Use the payee field for a deposit transaction to identify where the money came from. 2 Assign the deposit to a category or split it among multiple categories, enter a memo (optional), and then click Enter to save the transaction. Delete the sample transactions Now that you know how to enter transactions, you’re ready to put some real data in Quicken. First, though, you should delete the sample transactions you just entered. For each transaction (except the opening balance), do the following: 1 Click in any field to highlight the transaction, and then click Delete. 2 When Quicken asks you to confirm that you want to delete the transaction, click Yes. Enter your own transactions Okay, enough playing around! If you entered the sample transactions in the previous section, you already know how to enter your own transactions in the Quicken register. Your next step is to decide which transactions to enter. When you first set up the account Use the following guidelines to help you decide which transactions to enter when you first begin using Quicken. • If you reconciled your last bank statement (that is, if you “balanced your checkbook”), then enter all your outstanding transactions—those that weren’t cleared on the statement and those that have taken place since you reconciled. • If you didn’t reconcile the last bank statement you received, don’t enter any transactions that have already taken place. If you do, some of them might be accounted for twice—once in the amount you entered for the Opening Balance when you created the account, and once when you enter them again. Quicken 2001 Deluxe 17 tycho.book Page 18 Wednesday, July 19, 2000 4:07 PM On an ongoing basis From now on, enter all new transactions as they occur. That is, each time you write a check, make a deposit, or transfer funds, enter that information in Quicken. Also, reconcile each new bank statement you receive with your Quicken account, even if you’ve never reconciled a statement before (see “Reconcile your statement” on page 18). Reconciling ensures that your Quicken account accurately reflects all your banking activities. Reconciling is a great way to catch transactions that you forgot to enter. Note: If you didn’t enter any existing transactions when you set up the account, you’ll probably have several transactions to enter the first couple of times you reconcile your statements. Tip: If you don’t want to enter transactions in your Quicken register manually, consider online banking with Quicken. Quicken can go online, retrieve all your transactions, and incorporate them directly into your Quicken register. Online banking is explained in detail in the next chapter. Should you still keep a paper check register? For the first month or two that you use Quicken, it may be a good idea to continue using your paper register. That way, you can double-check your record-keeping when you reconcile your bank statements. Also, if you tend to write a lot of checks away from home and you don’t bank online, you may want to keep your register so that you can remember to enter the transactions into Quicken. Because Quicken calculates your balance for you, you may not want to keep a running total in your paper register. You could skip writing in the paper check register altogether, and switch to checks that automatically create a duplicate copy when you write them. The carbon copy check serves as a reminder to enter the transaction in Quicken when you get home. Reconcile your statement 18 When you receive a statement for an account that you are tracking in Quicken, reconcile the statement with your Quicken data. Reconciling ensures that your Quicken data is correct, and can also help you discover any errors on your statement. You can reconcile a statement for almost any type of Quicken account, including checking, saving, credit card, and money market accounts. Manage your income and expenses tycho.book Page 19 Wednesday, July 19, 2000 4:07 PM 1 Open the account register and click Reconcile. Quicken displays the Reconcile Account window. If you’ve reconciled before, Quicken remembers the opening balance for this period. Enter the statement’s closing date and ending balance. 2 Compare the opening balance that Quicken displays with the opening balance on your statement. If they aren’t the same, change the displayed opening balance to match that on your statement. The first time you reconcile an account, Quicken may not have correct opening balance information. You should always make sure the displayed balance matches your statement; when you are finished reconciling, you can have Quicken make any needed adjustments in your register. 3 Using your bank statement, enter the requested information. Click OK. Quicken displays the Reconcile Bank Statement window. Did you forget to enter a transaction in the Quicken register? Click New and enter it now. When you are done, click Return to Reconcile to come back to this window. Click to put a check mark next to each transaction that appears on your statement. 4 Click each transaction that appears on your statement. This marks it as cleared in Quicken. (When you finish reconciling, these transactions will have an R in the Quicken register’s Clr column.) It’s a good idea to check off each transaction on the paper statement as you go along. Quicken 2001 Deluxe 19 tycho.book Page 20 Wednesday, July 19, 2000 4:07 PM 5 If there is a transaction marked as cleared in the Reconcile window that does not appear on your statement, click it to remove the check mark. 6 If there are any transactions on the statement that you don’t see in the Reconcile window, enter these in your register. Click New, enter the transaction, and then click Return to Reconcile. 7 When the Difference figure in the lower right corner of the window is 0.00, click Finished and, if you want, print a reconciliation report. Then proceed to “Back up your Quicken file” on page 21. If the Difference figure in the lower right corner of the window is not 0.00, determine how to resolve the discrepancy. You may have forgotten to enter a transaction, or accidentally entered one twice. Perhaps your financial institution has recorded a service charge or dividend that you haven’t entered into Quicken yet. For information about resolving reconciliation discrepancies, choose Index from the Help menu and enter accounts, reconciling. If the Difference still is not 0.00, your best bet is to click Finished and let Quicken create a Balance Adjustment transaction for you. Get answers: Quicken reports and graphs If you have assigned categories to your transactions, you can use the Reports and Graphs Center to see where your money goes. 1 Choose Reports menu > Reports and Graphs Center. The Reports and Graphs Center contains topic areas on the left and shows the reports for those areas on the right. Choose a topic area from the list, then select a report. 2 Click “How am I spending my money?” on the left and then select Itemized Categories Report on the right. 20 Manage your income and expenses tycho.book Page 21 Wednesday, July 19, 2000 4:07 PM 3 Change the date range for the report if necessary, and then click Create Now. Quicken displays a report that reflects your income and expenses, based on the categories you assigned when you entered transactions. As you enter more transactions, these reports will become increasingly useful. Spend some time playing with reports to get an idea of the different kinds of financial information Quicken can provide. Try customizing a report to change how it is laid out or the scope of information it includes. Tip: If you run a certain report or graph on a regular basis, you can memorize it for easy retrieval. While you view the report or graph, click Memorize and give the report a unique name. Quicken adds an entry called “Memorized Reports and Graphs” on the Reports menu. In this way, you have quick access to your favorite reports. Back up your Quicken file Remember, Quicken saves your file on disk each time you enter a new transaction. However, if you ever lose data on your disk as a result of hardware failure or a computer virus, you may lose your valuable Quicken data as well. You should back up regularly, so you always have a copy of your Quicken data available. You have two options for backing up. 1 Choose File menu > Backup. Quicken displays the Quicken Backup window. Quicken offers an online backup service. Click here. 2 Choose the backup location you prefer. • To back up to a removable disk (such as a floppy), select Disk, enter the drive letter if necessary, and then click OK. Quicken backs up the file, displays a message telling you that the backup was successful, and returns you to the Quicken desktop. • To back up to an Internet location, select Online, and then click OK. If you have already subscribed to the online backup service, Quicken encrypts your data, sends it to be safely stored, and returns you to the Quicken Quicken 2001 Deluxe 21 tycho.book Page 22 Wednesday, July 19, 2000 4:07 PM desktop. If you haven’t yet subscribed, Quicken displays information about the benefits and cost of the service. From there, you can install the online backup program and sign up for the service. Next steps 22 Now that you know how to manage a checking account with Quicken, you may want to create more accounts, such as savings, credit cards, and so on. The more accounts you set up, the more accurately Quicken reflects your true financial situation. At this time, you might also be thinking about how nice it would be to bank online, so that you can download your transactions into Quicken instead of entering them manually. If so, turn to the next chapter and get connected! To learn more about… Search the Help Index for… automating regular payments scheduled transactions, using saving reports so you can run them again reports, memorizing running reports that include only certain categories categories, reporting on selected bills bills Manage your income and expenses tycho.book Page 23 Wednesday, July 19, 2000 4:07 PM 4 Bank Online Understand online banking Set up online banking Use online banking 24 26 27 Make payments online Next steps 4 30 31 Before you start Before you can bank online, you need to create at least one Quicken checking account. If you haven’t already done so, follow the procedure in “Create a checking account” on page 14 before you continue with this chapter. What you will need You need to tell Quicken how you go online, as explained in Chapter 2, Connect Quicken to the Internet. 23 tycho.book Page 24 Wednesday, July 19, 2000 4:07 PM Understand online banking Online banking with Quicken consists of two different capabilities— online account access and online payment. • Online account access helps you improve the accuracy of your record keeping. You can download transactions from your bank, credit union, or credit card company directly into Quicken and compare your financial institution’s records to your own. Typically, when a check clears the bank or when a credit card purchase goes through, you find out about it the next time you go online. It also simplifies reconciling your monthly statements. You can also transfer funds between accounts at the same financial institution. • Online payment saves you time at every step of your regular bill paying chores. You enter a payment transaction in Quicken and then send the payment electronically with just a few key strokes. You may never again spend Saturday morning writing checks and addressing and mailing envelopes. Your financial institution may support both online account access and online payment, or only online account access, or neither. If your financial institution doesn’t support online payment from within Quicken, you can use the Quicken Bill Pay service to pay bills electronically. Is online banking with Quicken the same as Web banking? In short, no. Many financial institutions let you bank online using your Web browser. You may be able to see your balances, pay bills, and even transfer money between accounts. But you see only transactions that have already cleared at your financial institution. By paying bills and entering transactions in Quicken, you know your actual ending balance, including the transactions that haven’t cleared yet. If you prefer, you can still create payment and transfer transactions at your financial institution’s Web site, and then either enter them the same day in your Quicken register (so you always know your ending balance) or just wait to download them as they clear at your financial institution. Either way, you can ensure the accuracy of your records by comparing your financial institution’s records to your own. Why is online banking with Quicken better than Web banking? A major advantage to using online banking with Quicken is that if you enter transactions as they occur, Quicken calculates your actual ending balance. Quicken also offers these other benefits: 24 Bank Online tycho.book Page 25 Wednesday, July 19, 2000 4:07 PM • Web banking can’t provide a complete picture of your finances unless all of your accounts are at a single financial institution. Quicken can combine information from all your real-world accounts, so you can see the total effect on your cash flow and net worth. For more information about how many accounts to create, see “How much detail do you want to track?” on page 2 and “Choose which accounts to track” on page 12. • When you assign Quicken categories to your transactions, you get much more information out of your data than just the transaction history and cleared balance that is available from most financial institution Web sites. Using the reports, graphs, long-term planners, alerts, reminders, and tax features, you can save time, improve your net worth, and make informed decisions that will affect your financial situation for years to come. • You can pay your bills through Quicken Bill Pay, even if your financial institution does not offer online bill payment. See “Apply for Quicken Bill Pay” on page 26 for more information. • When you download transactions, Quicken marks them as cleared. This simplifies reconciling your account to your monthly statement. Reconciling online is even simpler. For information about reconciling accounts, choose Index from the Help menu and enter accounts, reconciling. Note: Many financial institutions offering Web banking also let you download your Web transactions directly into Quicken. If you already have a PIN, and if the Web site contains a button labeled “Download to Quicken,” this means that your financial institution supports online account access; you can skip to “Enable online account access” on page 26 to enable online access to your accounts from Quicken. Do all financial institutions offer online banking with Quicken? As the Internet becomes more widely used, the number of financial institutions that offer online banking with Quicken continues to grow. For a complete list of financial institutions that offer online account access, choose Finance menu > Online Financial Institutions List. Even if your financial institution doesn’t support online account access from Quicken, you can still use Quicken to make payments electronically; see “Apply for Quicken Bill Pay” on page 26. Quicken 2001 Deluxe 25 tycho.book Page 26 Wednesday, July 19, 2000 4:07 PM Set up online banking Apply for online account access 1 Open the register for the account you want to set up for online access. If your financial institution supports online banking, Quicken displays a Banking Online banner at the top of the register. (If you don’t see the banner, from the Options drop-down menu choose View Online Setup.) Note: If the banner is asking for information about your financial institution, click the underlined text, choose your financial institution from the list that follows, and then continue with step 2. If your financial institution is not on the list, your financial institution does not support online account access with Quicken at this time. However, you can still use Quicken Bill Pay to make payments online; see “Apply for Quicken Bill Pay” on page 26. 2 Click step 2 in the online banner to apply for online banking capabilities at your financial institution. Follow the onscreen instructions. The application process and terminology are different for each financial institution. You may be able to apply for both online account access and online payment, or just online account access. If you have any questions, contact your financial institution for assistance. If you want to pay bills online but your financial institution doesn’t support online payment, continue with “Apply for Quicken Bill Pay” in the next section. Enable online account access When you receive the enrollment materials from your financial institution, repeat the steps in “Apply for online account access” on page 26, but in step 2, click step 3 in the online banner, and then follow the onscreen instructions. Apply for Quicken Bill Pay If your financial institution doesn’t support online payment, you can still use Quicken Bill Pay. 1 Open the register for the account you want to set up for Quicken Bill Pay, and then click the Overview tab in the lower left corner of the window. 26 Bank Online tycho.book Page 27 Wednesday, July 19, 2000 4:07 PM Quicken displays the Account Overview window. Even if your bank doesn’t offer online account access or online bill payment, you can still apply for Quicken Bill Pay. Click Enroll Now. 2 Under the Account Attributes on the left side of the window, next to Quicken Bill Pay, click Enroll Now. Note: If you applied for online payment through your financial institution in the previous section, you won’t see this option. You can’t apply for both online payment and Quicken Bill Pay for the same account. Quicken displays the online payment application form. 3 Choose File menu > Print to print the form. 4 Follow the instructions on the form for filling it out and mailing or faxing it to the CheckFree Corporation. CheckFree is the company that provides the Quicken Bill Pay service. Enable Quicken Bill Pay When you receive your Quicken Bill Pay enrollment materials, repeat the steps in “Apply for Quicken Bill Pay” on page 26, but in step 2, click Available, not Enabled, and then follow the onscreen instructions. Use online banking After you have enabled online account access, your next step is to bring data from your financial institution into your Quicken register. (If you didn’t enable online access, but you did enable online bill payment, skip to “Make payments online” on page 30.) First, go online to send and receive (download) transactions. Then confirm that the downloaded transactions are correct and accept them into the Quicken register. Quicken 2001 Deluxe 27 tycho.book Page 28 Wednesday, July 19, 2000 4:07 PM Download transactions and compare them to your Quicken register Depending on how your financial institution communicates with Quicken, you will use One Step Update or the Online Center to download your transactions and to send any transactions that transfer funds between accounts. 1 Choose Finance menu > One Step Update. Quicken displays the Download Selection window. You can download stock and mutual fund information or select accounts and tools to coordinate with Quicken.com. Click to put a check mark next to each account you want to download, enter the PIN for each, and then click Update Now. • If your financial institution is on the list, make sure there is a check mark next to the name of your financial institution, enter the PIN for your account, and click Update Now. (In the top part of this window, you can also choose to download securities prices and update certain information from the Quicken.com Web site.) • If you know you have enabled an account for online access, but the account is not listed in the Download Selection window, it is probably a Web Connect account. Use the Online Center with this account. Click Cancel in the One Step Update window. Then choose Finance menu > Online Center, select your financial institution from the drop-down list, and then click Update/Send. Log on to your financial institution’s Web site when it appears, and choose Download to Quicken. Quicken connects to your financial institution through the Internet and downloads all new transactions. 28 Bank Online tycho.book Page 29 Wednesday, July 19, 2000 4:07 PM 2 If Quicken displays a summary window after all your transactions have been downloaded, click OK. After you download, Quicken displays the downloaded transactions at the bottom of the appropriate register. When you select a downloaded transaction, Quicken finds its matching transaction among the ones you have entered in the register. If you also enter transactions using QuickEntry or Web Entry, Quicken identifies those transactions here. Quicken compares the downloaded transactions to ones you have already entered in the register; if any transactions are the same, Quicken labels them Match. If there is no match, Quicken labels the downloaded transaction New. 3 Select a downloaded transaction and confirm whether Quicken has correctly identified it as a New or Match transaction. Use the following guidelines when reviewing downloaded transactions. • When you select a Match transaction, Quicken displays the matching register transaction. If it is incorrectly matched, click the Unmatch button. Quicken then labels the transaction as New. • If a downloaded transaction labeled New should in fact be matched with a register transaction, select the downloaded transaction and click Manual Match. When Quicken displays a window containing all the register entries that aren’t yet matched to online transactions, click the checkbox next to the transaction that you want to associate with the online transaction, and then click Accept. 4 Once a transaction is correctly labeled New or Match, assign categories if necessary, and then click Accept. (See “Practice entering transactions” on page 14 for information about assigning categories to transactions.) 5 Repeat steps 3 and 4 for each downloaded transaction. If you have downloaded transactions for other accounts in the same download session, their QuickTabs are marked with a lightning bolt. Click the QuickTab to open the next account and begin comparing transactions there. Quicken 2001 Deluxe 29 tycho.book Page 30 Wednesday, July 19, 2000 4:07 PM Congratulations! You’re now banking online with Quicken. Whenever you want to update the information in your account register, repeat the steps in this section, starting with “Download transactions and compare them to your Quicken register” on page 28. Make payments online To make payments online, you must have either enabled online payment when you enrolled with your financial institution (see “Apply for online account access” on page 26), or enabled Quicken Bill Pay (see “Apply for Quicken Bill Pay” on page 26). There are three steps to making online payments: creating payment transactions, setting up online payees, and transmitting the transactions to your financial institution. Create payment transactions Creating payment transactions from the Online Center is even easier than writing a check, but the first time you do so, you’ll need to give Quicken the name, address, and phone number for each payee. For commercial accounts such as for utilities or a credit card, you’ll also need your account number. This is usually on your bill or statement. 1 Choose Finance menu > Online Center. 2 If you have more than one account enabled for online payment, choose the account you want to use from the Financial Institution drop-down list, and then click the Payments tab. Quicken remembers the details for each of your online payees. The next time you make a payment, just edit the payment amount and delivery date. Then click Enter. When you’ve entered all the payments you want to make, click Update/Send. Quicken displays the Payments tab window. 30 Bank Online tycho.book Page 31 Wednesday, July 19, 2000 4:07 PM 3 Enter the payee name, payment amount, and other information for this payment. If this is the first time you’ve sent an online payment to this payee, Quicken prompts you for more information about the payee. 4 (First time only) Enter an address and phone number. If this is for a commercial account, enter an account number, too. 5 After you have entered all the information for the payment, click Enter. Quicken adds the payment to the list of transactions to be sent. Note: In many cases, the date on the check must be at least four business days later than the date on which the payment will be transmitted. In general, your financial institution requires a few days lead time. For more information, from the Help men choose Index and enter lead time. Tip: To see how the process works, set yourself up as a payee. In the next section, create a transaction to send yourself a dollar. Send payment transactions To send your payment transactions to your financial institution, either click Update/Send in this window or choose Banking menu > One Step Update. Next steps To learn more about… Search the Help Index for… matching downloaded transactions online account access using online payees online payees canceling an online payment transaction online payments, canceling security online payments, security storing PINs PINs One Step Update updating, one step update Quicken 2001 Deluxe 31 tycho.book Page 32 Wednesday, July 19, 2000 4:07 PM 32 Bank Online tycho.book Page 33 Wednesday, July 19, 2000 4:07 PM Manage Your Investments 5 5 Quicken can help manage your investments Set up an investment account 36 Enter transactions using EasyActions 37 Track your portfolio’s performance 39 Create a 401(k) retirement account 41 Next steps 34 42 Before you start Think about the investment accounts you want to track in Quicken, including stocks and bonds, mutual funds, tax-deferred retirement account, and so on. What you will need You will need the last statement you received for the investment and retirement accounts that you plan to track in Quicken. If you plan to enter historical details as well as current information, you will need all statements for the accounts. 33 tycho.book Page 34 Wednesday, July 19, 2000 4:07 PM Quicken can help manage your investments Before you begin managing your investments in Quicken, you should understand how Quicken tracks financial information. Then you can decide how to set up Quicken so you track your investments at the level of detail that is best for you. Which accounts do you need? Use Quicken to set up a variety of investment accounts. The following table can help you decide which account types best suit your financial situation. In this chapter, you’ll learn how to set up a brokerage account and a 401(k) account. To track this real-world account Choose this Quicken account type Investments such as stocks, bonds, and mutual funds (and any associated check-writing or debit card account) Brokerage 401(k) and 403(b) retirement accounts 401(k) Individual Retirement Account, including Traditional IRA, Roth IRA, Education IRA, Keogh Plan, or SEP-IRA IRA or Keogh Investment accounts in which earnings are reinvested in the same security Dividend Reinvestment Plan (DRIP) Any investment for which you want to track multiple securities and be able to report on income, capital gains, and performance Other investment account How do you want to handle cash? If you can write checks or use a debit card to withdraw funds from your investment account, you should set up a checking account that is linked to your investment account. A linked checking account lets you track your cash expenditures in detail, using categories to specify how the cash was spent. (Categories are discussed in detail in Chapter 3.) You can set up a linked checking account when you create the investment account. If you don’t want or need to track cash in detail, you can manage the cash within the investment account itself. 34 Manage Your Investments tycho.book Page 35 Wednesday, July 19, 2000 4:07 PM How much historical detail do you want to track? When you create your investment account in Quicken, you must decide how much historical data to track. For example, if you enter the actual purchase date for the shares you own, Quicken can group your shares together according to when you bought them and record their original purchase prices and dates. These groups, called “lots,” are important for calculating the tax rate that applies to your capital gains. Tracking this information in Quicken saves significant time and effort when you file your taxes. The following table lists options for tracking historical data, along with some advantages and disadvantages of each option. Historical detail tracked in Quicken Advantages Disadvantages From the purchase date of your current holdings, plus all transactions that have taken place since the purchase date Lets you track lots; lets you compare performance for all securities over time; lets you prepare tax reports for the current tax year Takes the most time to enter the data into Quicken From the purchase date of your current holdings, plus all transactions that have taken place during the current tax year Lets you track lots; lets you prepare tax reports for the current tax year Provides limited historical performance tracking From the beginning of the current year Lets you prepare tax reports for the current tax year for holdings you bought during the year Provides limited historical performance tracking; doesn’t track lots for holdings you bought before the start of the year Holding as of today Takes the least amount of time to enter data into Quicken Provides no historical performance tracking; doesn’t track lots; doesn’t let you use Quicken data to prepare tax reports for the current tax year You may want to discuss these options with your accountant or financial planner. You can always start tracking from today forward and then decide later to go back and enter historical information. You may be able to download some of this information. See Chapter 6, Track Investments Online, on page 43. Quicken 2001 Deluxe 35 tycho.book Page 36 Wednesday, July 19, 2000 4:07 PM Set up an investment account There are two tasks involved in setting up an investment account— creating a brokerage account and then entering information about the securities you currently hold in the account. Create a brokerage account 1 If you have your last brokerage statement, get it now. You can use the statement to enter the most recent account value, share price, and other details on your holdings. 2 Choose Finance menu > Account List, and then click New. 3 Choose Brokerage and click Next. 4 Follow the onscreen instructions; click Next to move through the windows. Click Help if you need more information. Use the following guidelines when you create the account: • Be sure to identify your financial institution. If it is on the list that Quicken displays, select it from the list. If it is not on the list, type in its name. • If you write checks or use a debit card with your brokerage account, or if you want to track cash in the account separately, Quicken can set up a linked checking account. If you have already created the checking account that is linked to this brokerage account, select the account from the list. Otherwise, click New Quicken Account. Enter information about securities in this account After you have entered basic account information for your investment account, you are ready to enter details about the types of securities you currently hold in the account. Follow the onscreen instructions; click Next to move through the windows. Click Help if you need more information. 36 Manage Your Investments tycho.book Page 37 Wednesday, July 19, 2000 4:07 PM Use the following guidelines when you add a security. Enter transactions using EasyActions • Use the information in “How much historical detail do you want to track?” on page 35 to decide what to use for the security’s start date. • In most cases, you should track cost basis using Lot Identification. For information about Average Cost, choose Index from the Help menu and enter average cost per share. If you have questions, consult your tax advisor. • If you create more than one Quicken investment account, and if you hold shares of the same security in more than one account, you can’t enter your security holdings in the second account at the same time you create the account. Instead, click cancel and use EasyActions® to enter information about your holdings in the second account (see “Enter transactions using EasyActions,” in the next section). Once you have set up your brokerage accounts, you can enter transactions in the register. Your next step is to decide which transactions to enter. Use the following guidelines to help you decide. • Enter transactions that reflect the historical activity in the account that you want to track (see “How much historical detail do you want to track?” on page 35). • If you have not enabled online investment tracking, enter all new transactions as they occur. That way, your financial information will always be current and accurate. Note: Online investment tracking lets you download transactions from your broker directly into Quicken, so you don’t have to enter them manually. Depending on how long your broker holds historical information about your account, you may be able to download much of your historical transaction data. If this is a new account, you can probably download all your historical transactions. If this is an older account, and your historical transactions are no longer available for download, you can still download holdings. Return to this chapter to enter historical transactions. For information about online investing, see Chapter 6, Track Investments Online. Quicken 2001 Deluxe 37 tycho.book Page 38 Wednesday, July 19, 2000 4:07 PM 1 To open the register, choose Finance menu > Account List, select your investment account and then click Open. Click here to select your account. Then click here to open the register. Quicken opens the register and places the cursor in an empty transaction at the end of the register. (If you see the Account Overview window instead of the Register, click the Register tab at the lower left corner of the window.) 2 Click EasyActions, choose the action you want to perform, and then enter the information that Quicken asks for. Note: Quicken uses special investment transaction categories to create investment reports and to help with tax planning. When you use EasyAction forms, Quicken assigns the appropriate investment categories to the transactions and tracks the tax consequences for you. 38 Manage Your Investments tycho.book Page 39 Wednesday, July 19, 2000 4:07 PM The information you have to enter varies depending on the action you choose. For example, if you choose Buy/Add Shares, Quicken displays the window for buying or adding shares. Click Help if you need assistance. That’s it! Next, you’ll learn how to use Quicken to see how your investments are performing. Track your portfolio’s performance Quicken provides a number of ways to review the performance of your investments. This section briefly illustrates a few options. For more information, see the How Do I? button, the Help menu, or Show Me videos. Portfolio View Use the Portfolio View to understand your entire portfolio at once. You can analyze the holdings, performance, and price information for every security you own, across multiple investment accounts. 1 Choose Investing menu > Portfolio View. Quicken displays a list of portfolio views to choose from. Quicken can group your investments for display by account, industry, asset class, and so on. Would you rather see performance data or fundamentals? Select one of the preset views, or click Customize to create one of your own. Quicken 2001 Deluxe 39 tycho.book Page 40 Wednesday, July 19, 2000 4:07 PM 2 Select the view you want Quicken to display. Quicken displays columns of information that pertain to the view you selected. If you want to see account information that is not reflected in the built-in views, you can customize them. Security Detail View Use the Security Detail view to see the price history and market value of your holdings, plus transaction history for an individual security. 1 Choose Investing menu > Security Detail View. Quicken displays the Security Detail View window. In this window, you can view details on any security you hold in any Quicken investment account. Use this drop-down list to display another security. Use this drop-down list to see either a price history graph or the market value for this security. 2 Choose the security you want to view from the list in the upper left corner of the window. 3 From the drop-down list In the middle of the window, choose Market Value or Price History. Reports and graphs 1 Choose Reports menu > Reports and Graphs Center, and then click the How are my investments doing? tab on the left side of the window. Quicken displays a list of reports that provide a variety of ways to analyze your investment performance. 2 Select the report or graph you want to view, and then click Create Now. Spend some time playing with reports to get an idea of the different kinds of financial information Quicken can provide. Try customizing a report to change how it is laid out or the scope of information it includes. 40 Manage Your Investments tycho.book Page 41 Wednesday, July 19, 2000 4:07 PM Create a 401(k) retirement account If you want the most complete possible picture of your net worth, or if you want help planning for your retirement, be sure to track your retirement accounts. In this section, you’ll learn how to create one of the most common types of retirement accounts, the 401(k). 1 If you have your last statement for this account, get it now. You can use the statement to enter the most recent account value while you are creating your account. 2 Choose Finance menu > Account List, and then click New. 3 Choose 401(k) and click Next. Quicken displays the 401(k) Setup window. 4 Follow the onscreen instructions; click Next to move through the windows. Click Help if you need more information. When you finish creating the account, Quicken displays the 401(k) account Overview page. The 401(k) EasyStep Update makes tracking contributions and fund performance easy. Click Update Account. Some 401(k) plans let you download transactions directly into Quicken. For more information, see “Set up online investment account access” on page 45. Are your 401(k) investments allocated among the right funds? Choose Investing menu > Investing Services > Maximize My 401(k). Update your 401(k) Whenever you receive a statement for this account, update the Quicken account information: 1 Choose Finance menu > Account List, select your 401(k) account, and then click Open. 2 If Quicken displays the register, click the Overview tab at the bottom of the window. Quicken 2001 Deluxe 41 tycho.book Page 42 Wednesday, July 19, 2000 4:07 PM 3 In the account Overview page, click Update Account. 4 Follow the EasyStep instructions to update the account information based on the information shown on the statement. Next steps 42 You can save time and ensure the accuracy of your investment tracking by simply downloading transactions from your financial institution. See Chapter 6. To learn more about… Search the Help Index for… entering the price history for a security prices, history updating stock prices prices, in the Security Detail View entering the prior transaction history of a security investment accounts, historical detail tracking stocks that you don’t own watch list researching stocks you own or are interested in investments, research adjusting the cash or share balance of an investment account investment accounts, balancing reviewing your asset allocation asset allocation investment reports investment reports investment graphs investments, graphs Manage Your Investments tycho.book Page 43 Wednesday, July 19, 2000 4:07 PM Track Investments Online 6 Understand online investing 6 44 Set up online investment account access Use online investing account access Next steps 45 45 48 Before you start Before you can manage investments online, you need to create at least one Quicken investment account. If you haven’t already done so, follow the procedure in “Set up an investment account” on page 36 before you continue with this chapter. What you will need You need to tell Quicken how you go online, as explained in Chapter 2, Connect Quicken to the Internet. 43 tycho.book Page 44 Wednesday, July 19, 2000 4:07 PM Understand online investing What is online investment account access? Online investment account access means that you can download transaction information from your financial institution directly into Quicken; you don’t have to enter the transactions into the register manually. For example, when your broker executes a buy or sell order, you get the details the next time you download transactions. Is online investment account access with Quicken the same as Web investing or online trading? In short, no. Many financial institutions let you manage your investments online using your Web browser. You may be able to see your holdings and recent transaction history, even buy and sell securities. Typically, the Web site does not track lots or history beyond a few months. If you enter those same transactions into Quicken, or better yet download them directly from your broker, you will have easy access to a level of detail not available elsewhere. Why is online investment account access with Quicken better than Web investing? A major drawback to Web investing is that by itself it can’t provide a complete picture of your portfolio unless all your accounts are with the same financial institution. There are other advantages to online investment account access with Quicken: 44 • First, it saves you time. Instead of entering transactions into Quicken manually, you download them when you go online. After you review them, Quicken adds them to the register for you. • Second, because Quicken records purchase dates and prices for you, you don’t need to search for old brokerage statements to identify lots and calculate tax liability when you sell. The Capital Gains Estimator lets you estimate which lots will realize the greatest after-tax yield. And the capital gains report can save you hours at tax time. • If you create a Quicken account for each of your real-world investment accounts, you can analyze all your investments together. The Investing Center, Portfolio View, Security Detail View, and the investment reports give you news, fundamentals, performance, history, and analysis. You can even create a personal asset allocation target that includes all your accounts together, then monitor and rebalance as necessary (choose Investing menu > Asset Allocation Guide). For more information, see “Track your portfolio’s performance” on page 39. Track Investments Online tycho.book Page 45 Wednesday, July 19, 2000 4:07 PM Do all financial institutions offer online investment account access with Quicken? As the Internet becomes more widely used, the number of financial institutions that offer online investment account access with Quicken continues to grow. For a complete list of brokers and other financial institutions that offer online investment account access, choose Finance menu > Online Financial Institutions List. Set up online investment account access Apply for online investment account access 1 Open the register for the account you want to set up for online access. If your financial institution supports online investment account access, Quicken displays an Investing Online banner at the top of the register. (If you don’t see the banner, from the Options drop-down menu choose View Online Setup.) Note: If the banner is asking for information about your financial institution, click the underlined text, choose your financial institution from the list, and then continue with step 2. If your financial institution is not on the list, do not continue with this chapter; your financial institution does not support online investment account access with Quicken at this time. 2 Click step 2 to apply for online account access at your financial institution. Follow the onscreen instructions. The application process and terminology are different for each financial institution. If you have any questions, contact your financial institution for assistance. When you receive your enrollment materials, continue with “Enable online investment account access” in the next section. Enable online investment account access When you receive the enrollment materials from your financial institution, repeat the steps in “Set up online investment account access” on page 45, but in step 2, click step 3, and then follow the onscreen instructions. Congratulations! You have successfully enabled online account access. Use online investing account access After you have enabled online account access, your next step is to bring data from your financial institution into your Quicken register. There are two parts to this. First, go online to download transactions from your broker. Then confirm that the transactions are correct and accept them into the Quicken register. Quicken 2001 Deluxe 45 tycho.book Page 46 Wednesday, July 19, 2000 4:07 PM Download transactions and compare them to your Quicken register Depending on the services your financial institution supports, you will use One Step Update or the Online Center to download your transactions. 1 Choose Finance menu > One Step Update. Quicken displays the Download Selection window. You can download stock and mutual fund information or select accounts and tools to coordinate with Quicken.com. Click to put a check mark next to each account you want to download, enter the PIN for each, and then click Update Now. • If your financial institution is on the list, make sure there is a check mark next to its name, enter the PIN for your account, and click Update Now. (In the top part of this window, you can also choose to download securities prices and update certain information from the Quicken.com Web site.) • If you know you have enabled an account for online access, but the account is not listed in the Download Selection window, it is probably a Web Connect account. Use the Online Center with this account. Click Cancel in the One Step Update window. Then choose Finance menu > Online Center, select your financial institution from the drop-down list, and then click Update/Send. Log on to your financial institution’s Web site when it appears, and choose Download to Quicken. Quicken connects to your financial institution through the Internet and downloads all new transactions. 2 If Quicken displays a summary window after all your transactions have been downloaded, click OK. Continue with “Compare downloaded transactions to Quicken data” in the next section. 46 Track Investments Online tycho.book Page 47 Wednesday, July 19, 2000 4:07 PM Compare downloaded transactions to Quicken data After you have downloaded transactions, Quicken displays the recently downloaded transactions at the bottom of the register. Quicken displays your recently downloaded transactions at the bottom of the register. When you select a downloaded transaction, Quicken finds its matching transaction among the ones you have entered in the register. Quicken compares the downloaded transactions to ones you have already entered in the register; if any transactions are the same, Quicken labels them Match. If there is no match, Quicken labels the downloaded transaction New. You may have slight differences between your data and your broker’s data, due to your broker’s rules for rounding off decimals or because you recorded the transaction on a different date or with a different number of shares. These transactions are labeled Near Match. (For information about how Quicken rounds off decimals in calculations, choose Index from the Help menu and enter round-off rules for investments.) 3 Select a downloaded transaction and confirm whether Quicken has correctly identified it as a New, Match, or Near Match transaction. Click Accept. Do this for each downloaded transaction. If there are discrepancies between a register transaction and a downloaded transaction, Quicken gives you a chance to edit the register transaction. Make any needed corrections, and then click OK. Quicken replaces the register transaction with the corrected version. For more information, click Help. 4 After you have accepted all the transactions click Done, or, if you have a checking account linked to this investment account, click Continue. If you have a linked checking account, Quicken displays those transactions for you to accept and add to your register. 5 Repeat steps 3 and 4 for each downloaded transaction. Quicken 2001 Deluxe 47 tycho.book Page 48 Wednesday, July 19, 2000 4:07 PM If you have downloaded transactions for other accounts in the same download session, their QuickTabs are marked with a lightning bolt. Click the QuickTab to open the next account and begin comparing transactions there. Congratulations! You’re now managing your investment account online with Quicken. Whenever you want to update the information in your account register, repeat the steps in this section, starting with “Download transactions and compare them to your Quicken register” on page 46. Next steps 48 To learn more about… Search the Help Index for… matching downloaded transactions to register transactions online investment tracking linked checking accounts linked checking accounts exporting your Quicken portfolio to the Web portfolio export Track Investments Online tycho.book Page 49 Wednesday, July 19, 2000 4:07 PM 7 Determine your net worth Putting it all together 7 50 Track your home value, and associated loan Track a vehicle and loan 53 Create asset and liability accounts Calculate your net worth Next steps 50 53 53 54 Before you start To get a complete picture of your net worth, you should enter all the financial information discussed in the previous chapters before you continue with this chapter. If you have completed the previous chapters, most of your work here is done. What you will need You will need information about the purchase price and value of your assets (home, vehicle, and so on) as well as information about any loans that might be associated with them. 49 tycho.book Page 50 Wednesday, July 19, 2000 4:07 PM Putting it all together While using Quicken as described in the previous chapters can bring a great deal of order to your finances, you still haven’t provided Quicken with a complete picture of your financial situation. In this chapter, you’ll learn how to use Quicken to track assets and liabilities that are not reflected in your bank balance or stock portfolio. The more financial information you provide to Quicken, the more Quicken can help you understand and improve your overall financial health. When you create liability and asset accounts, you are increasing the power of Quicken to incorporate all your financial data into a single, clear vision of where you stand and where you can go. In this chapter, you’ll learn how to create the following types of accounts: Track your home value, and associated loan • an asset account associated with a home you own or are buying, with an associated liability account if you are paying a mortgage • an asset account associated with a vehicle you own or are buying, with an associated liability account if you are paying off a vehicle loan • an asset account for other property you own, such as a stamp collection or a work of art • a liability account for other loans or debt, such as a student loan If you own a home, you can use Quicken to track its value, along with the mortgage that may be associated with it. Quicken calculates the value of your equity, tracks the interest you pay each year, and the remaining loan balance. You can even download the value of recent home sales in your area, to update its market value. Quicken creates both an asset and a liability account when you create a mortgage account. 1 If you have the last statement you received for the mortgage account you plan to create, get it now. You can use the statement to enter the most recent values, such as balance remaining on the mortgage, while you are creating your account. 2 Choose Finance menu > Account List, and then click New. Click here to create your new Quicken account 50 Determine your net worth tycho.book Page 51 Wednesday, July 19, 2000 4:07 PM 3 Choose House (with or w/o Mortgage) and click Next. Quicken displays the About this house/property window. Enter an estimate of your property’s market value here. Don’t worry if you don’t know its exact value. You can download the value of recent home sales in your area later. 4 Follow the onscreen instructions; click Next to move through the windows. Click Help if you need more information. Note: When you create the account, enter both the purchase price and the estimated current market value if you know it. Quicken enters the purchase price as the Opening Balance and creates an adjustment transaction in the House account register to reflect the current market value. This way you track can your equity. As the home’s value changes over time, you can enter additional transactions to keep the equity value current. If you told Quicken that you have a mortgage on the house, Quicken creates two accounts: one for the positive value of the house (a House account) and one for the negative value of the loan (a Liability account). Quicken then displays the Edit Loan windows. Enter information about your loan, including the current balance, interest rate, and total monthly payment amount. Quicken 2001 Deluxe 51 tycho.book Page 52 Wednesday, July 19, 2000 4:07 PM 5 Fill in the requested information about your home loan. When you have finished, Quicken displays the Edit Loan Payment window. Enter the payee’s name here. Don’t forget to assign a category to the part of your payment that goes to interest. This may be tax deductible. 6 Enter information about your regular loan payment. Tip: To have Quicken remind you to enter each payment transaction, click Payment Method, select Scheduled Transaction, and then enter details on when and how the transaction should be entered. 7 When you finish, Quicken asks if you want to download information about recent home sales near you. Fill in the requested information and then click Go Online. Quicken connects to the Internet, retrieves recent home sale information, and displays it in the Overview window for the house asset account. You can download the value of recent home sales in your area at any time. From the Actions drop-down list, choose “Download recent home sales.” You can also download this information at any time from the Account Overview page for the house account. Do this on a regular basis, and then update your house account balance to reflect the change in value over time. 52 Determine your net worth tycho.book Page 53 Wednesday, July 19, 2000 4:07 PM Track a vehicle and loan The steps for tracking a car’s value and loan are almost identical to those for creating a house and mortgage account. Quicken creates both an asset and a liability account when you create a car loan account. 1 If you have your last statement for the car loan, get it now. 2 Choose Finance menu > Account List, and then click New. 3 Choose Vehicle (with or without Loan) and click Next. Quicken displays the About This Car/Vehicle window. 4 Follow the EasyStep® onscreen instructions; click Next to move through the windows. Click Help if you need more information. If you told Quicken that you have a car loan, Quicken creates two accounts: one for the positive value of the vehicle (a Vehicle account) and one for the negative value of the loan (a Liability account). Quicken then displays the Edit Loan window. 5 Fill in the requested information about your car loan and regular loan payments. Click Help if you need assistance. Create asset and liability accounts You can track the value of anything that you own (asset) or owe (liability) in Quicken. Following the same procedures as in the previous sections, create any asset or liability accounts that you want Quicken to include when evaluating your financial situation. If you don’t want to track your assets or liabilities in great detail, you can create a single asset or liability account. For each account, enter a total value that you think is a good estimate of the total value of your assets or liabilities. Note: When you create a House or Vehicle account, Quicken prompts you to create the associated liability account and loan (if any). Don’t forget to create a liability account and loan for any other assets on which you owe money. Calculate your net worth Now that Quicken has more information about your finances, you can learn more about the value of your net worth. 1 Choose Reports menu > Reports and Graphs Center, and then click What do I own and owe? 2 Select Net Worth Report, and then click Create Now. Quicken displays a report that shows the value of all your assets and liabilities. Quicken 2001 Deluxe 53 tycho.book Page 54 Wednesday, July 19, 2000 4:07 PM Tip: If you want to exclude certain information from your net worth report, click Customize, make any desired changes, and then click Create. For example, if you want a report that excludes non-liquid assets, such as your home, click Customize and clear the home asset and liability accounts on the Accounts tab. Next steps 54 Now you are ready to take advantage of some of the most powerful financial management features that Quicken offers. The next two chapters explain how to use Quicken to plan for and reduce your taxes, and to develop a long-term financial plan for life events such as going to college or funding your retirement. Turn to these chapters when you are ready to put your past and present financial data to work in building your financial future. To learn more about… Search the Help Index for… tracking assets assets, tracking tracking liabilities liabilities paying off loans loans, paying off reducing your debt Debt Reduction Finder Determine your net worth tycho.book Page 55 Wednesday, July 19, 2000 4:07 PM 8 Plan for Tax Time 8 How Quicken helps you plan for tax time Set up your paycheck 56 Track your tax-deductible expenses Use the Tax Planner 58 60 Run tax-related reports Next steps 56 60 61 Before you start At a minimum, you should complete Chapter 3, being sure to create the account into which you deposit your paycheck. What you will need You will need a recent paycheck stub. 55 tycho.book Page 56 Wednesday, July 19, 2000 4:07 PM How Quicken helps you plan for tax time Quicken provides a number of tools to help you track your tax-related income and expenses. Tracking tax-related information in Quicken can be useful throughout the year, long before April 15. For example, Quicken can use your data to help you determine if you are having too much or too little deducted from your paycheck. Similarly, you can review your deductible expenses on an ongoing basis. The more tax-related information you track in Quicken, the easier your life will be when tax time does roll around. If you plan to use TurboTax software to prepare your taxes, you can export your data from Quicken directly into the software. Even if you don’t use tax-preparation software, you can still use Quicken to print reports that consolidate a year’s worth of information into a few pages; copy the figures onto your tax forms and your work is practically complete. In this chapter, you’ll learn how to use some of the tax tools in Quicken. In particular, you’ll learn how to: Set up your paycheck • create a paycheck transaction that tracks your gross income and all the deductions taken out of each paycheck • keep track of expenses that you can deduct when you prepare your income tax forms • use the Tax Planner to estimate your tax liability and investigate “What-If” scenarios • create reports that summarize your tax-related data While you could choose to enter the net amount of your paycheck as a deposit in your register, doing so loses all the details about the paycheck, such as amounts added to your 401(k) or deducted for federal taxes. So Quicken provides a special paycheck transaction that tracks gross amounts, deductions, and net amounts for each paycheck. Doing this simplifies a great deal of your tax planning in Quicken. Even if your paycheck varies from one pay period to the next, you can still use a paycheck transaction. Just adjust the details as necessary when you enter the transaction. Create a paycheck transaction When you create a paycheck transaction in Quicken, you accomplish two tasks at once. First, you use a recent paycheck stub to enter the financial details that are recalled each time you enter a paycheck. Second, you tell Quicken to remind you to enter each paycheck into your register, based on how often you are paid. 1 Choose Taxes menu > Tax Activities > Set up my Paycheck. Quicken displays the Welcome to Paycheck Setup window. 56 Plan for Tax Time tycho.book Page 57 Wednesday, July 19, 2000 4:07 PM 2 Follow the onscreen instructions; click Next to move through the windows. Click Help if you need more information. Use the following guidelines as you create the paycheck transaction. • Click Next to move through the windows, entering the information Quicken asks for. Click Help if you need assistance. • • Copy the figures for gross pay and deductions from your recent pay stub. When Quicken asks if you want to be reminded to enter each paycheck, choose Yes, and then choose to be prompted 0 days before the paycheck is due. 3 Review the information in the Summary window and then click Done. Note: If you get a raise or change jobs, or if other activities permanently affect your paycheck, future paycheck transactions should reflect this new information. Choose Taxes menu > Tax Activities > Set up my Paycheck, select your paycheck from the Manage Paychecks window, and click Edit. Follow the onscreen instructions to make any changes. Enter a paycheck transaction When you told Quicken to remind you to enter your paycheck when it is due, Quicken created a scheduled transaction for the paycheck. Quicken places a reminder about scheduled transactions in the My Finances window and in the Reminders window. In this section, you’ll learn how to enter the transaction from the My Finances page, but the procedure is identical if you use the Reminders window. (If the Bills and Schedule Transactions do not appear on your My Finances page, click Customize to add it.) 1 When you receive your paycheck (or, if you have direct deposit, your paycheck stub) choose Finance menu > My Finances. Quicken 2001 Deluxe 57 tycho.book Page 58 Wednesday, July 19, 2000 4:07 PM 2 In the Bills and Scheduled Transactions section of the window, locate the paycheck transaction, and then click Enter (at the right side of the window). Quicken displays the Enter Scheduled Transaction in Register window. 3 Edit the Amount (net pay) if necessary, and then click Split to adjust the individual elements of the paycheck. (For more information about splitting a transaction, see “Assign multiple categories to a payment transaction” on page 15.) 4 Click Enter to add the paycheck transaction to your register. Track your taxdeductible expenses Quicken can link categories to specific lines on a tax form. (Categories are discussed in detail in “Practice entering transactions” on page 14.) Linking categories to tax forms automates the process of tracking income and expenses that are tax-related. Use existing tax-related categories Quicken links the most common tax-deductible categories and subcategories to tax forms. If you created a paycheck transaction in the previous section, you may have noticed that your income was assigned to the Salary category and that deductions were assigned to categories and subcategories such as Taxes:Fed and Taxes:State. Other common tax-deductible categories that Quicken knows about include Charity, Medical, and Tax:Property. 58 Plan for Tax Time tycho.book Page 59 Wednesday, July 19, 2000 4:07 PM To see a full list of existing tax-related categories, choose Banking menu > Category and Transfer List. Tax-related categories have a T in the Tax column, and the Tax Item column indicates the tax form and line item associated with the category. Create additional tax-related categories Your Quicken file may not contain all the tax-related categories that you need. For example, if you subscribe to certain periodicals that are directly related to the production or collection of tax-related income, you may want to track this information in Quicken. Follow these steps to add tax-related categories to your Quicken file. 1 Choose Taxes menu > Deduction Finder. Quicken displays the Deduction Finder window. Choose an area you would like to investigate from the drop-down list. Select a deduction from the list here, and then answer the questions about it on the right side of the window. Quicken displays the results at the bottom of the window. 2 Follow the onscreen instructions. When you find a deduction you’d like to track, click Create a Category. Quicken adds the category (and perhaps a subcategory) to the category list for you, and associates it with the correct tax form and line item. 3 When you are through, click the Summary and Action tabs and review the information Quicken displays. You can return to the Deduction Finder at any time to add more tax-related categories. If you need more assistance than the Deduction Finder provides, the Quicken.com Web site provides links to tax forms and publications that can provide more detailed information. Quicken 2001 Deluxe 59 tycho.book Page 60 Wednesday, July 19, 2000 4:07 PM Use the Tax Planner Use the Tax Planner to prepare for the inevitable. After you create a paycheck transaction and assign tax categories to a few tax-related expenses, you already have a wealth of tax-related data at your fingertips. The Tax Planner can use your Quicken data to help you anticipate the current year’s tax liability. You can then adjust your payroll exemptions if necessary. You can also evaluate the tax implications of various tax-related financial actions, such as buying a home, or buying and selling stock. 1 Taxes menu > Tax Planner, and then click “How can Quicken help with tax planning?” on the left side of the window. 2 Read the onscreen instructions and then click “Let’s get started.” Click Tax Planner Summary to see an overview of your tax situation. Click one of the tax items below for more detail. At any time, you can click a tax line item on the left side of the window for more detail on a specific area. When you do, pay particular attention to the details in the bottom of the window. This is where the Tax Planner identifies the source of its calculations. You can use your actual Quicken data, import your TurboTax data from the previous tax year, or enter a new value manually. If you need assistance, click the Help icon in the upper right corner of the Tax Planner window. Run tax-related reports You don’t have to wait until tax time to review your tax information. In fact, you probably don’t want to. Use built-in tax reports to help you keep an eye on your tax information throughout the year. 1 Choose Reports menu > Reports and Graphs Center, and then click the What is my tax situation? tab on the left side of the window. Quicken gives you a choice of three reports that are designed specifically to use the tax-related information in your file. • 60 Plan for Tax Time The Tax Summary Report displays tax-related transactions subtotaled by category. tycho.book Page 61 Wednesday, July 19, 2000 4:07 PM • The Capital Gains Report displays long-term and short-term sales that are subject to capital gains tax. • The Tax Schedule Report displays tax-related transactions subtotaled by tax form line item. 2 To run a report, select it, make any changes to the date range at the bottom of the window, and then click Create Now. Next steps If ou want to use Quicken to help you plan or manage your taxes in more detail, try some of the other tools that Quicken provides. • Choose Taxes menu > Tax Center for a summary of your tax-related data. You’ll also find reminders about upcoming tax-related dates and help with questions such as “Am I over or under withholding?” • Choose Taxes menu > Itemized Deduction Estimator to review your expenses and make sure that you are taking all the deductions to which you are legally entitled. • Choose Taxes menu > Tax Activities > Estimate My Capital Gains to help plan security sales so you can maximize after-tax yields. To learn more about… Search the Help Index for… tax-related categories taxes, categories estimating capital gains capital gains estimating estimating your taxes taxes estimating estimating your itemized deductions taxes, deductions Quicken 2001 Deluxe 61 tycho.book Page 62 Wednesday, July 19, 2000 4:07 PM 62 Plan for Tax Time tycho.book Page 63 Wednesday, July 19, 2000 4:07 PM 9 Develop a long-term plan Begin planning 64 Review your plan 65 Modify your plan 65 Next steps 9 66 Before you start Think about when you would like to retire and what kind of standard of living you anticipate, large purchases you would like to make, or life changes (such as having children or going to college). What you will need If you haven’t already set up the accounts discussed in the previous chapters, you will need information such as account balances, the value of what you own and what you owe, and so on. 63 tycho.book Page 64 Wednesday, July 19, 2000 4:07 PM Begin planning Many of us dream of the day when we can retire. Retirement means different things to different people, but whatever retirement means to you, Quicken can help you make it happen. When you begin developing a long-term plan with Quicken, you can use your actual Quicken data or you can enter data as you go along. Using existing data In the past, you may have used tools such as a retirement calculator, in which you enter a few general estimates and get a simple result. In this chapter, you’ll learn how to use a much more powerful retirement planning tool, which uses your actual Quicken data. If you have entered most of the financial information covered so far in this book, Quicken uses it as a starting point. Much of the planner will already be filled out for you, using your paycheck transactions, investment income, house and mortgage accounts, and so on. The Retirement Planner can also include information from the Debt Reduction Planner. Entering data as you go If you haven’t yet entered a lot of data in Quicken, you can still use the planner. Just enter data as you go. You can enter figures that are based on your past experiences or your future plans. In fact, while you are developing long-term plans with Quicken, you can create the kinds of accounts discussed in previous chapters. For example, if you want your plan to include the value of your house but you haven’t yet created a mortgage and associated loan account, Quicken lets you do so during the planning process. Creating your plan 1 Choose Planning menu > Retirement Planner. Quicken displays the Retirement Planner Introduction window. Click Next to get started. Quicken walks you through the process. If you have set up the accounts discussed in previous chapters, much of your work is already done. Don’t worry if you haven’t; you can enter it here. 64 Develop a long-term plan tycho.book Page 65 Wednesday, July 19, 2000 4:07 PM 2 Click Next to move through the planner windows (recommended), or go directly to an area of interest on the left side of the window. To prepare the most complete plan, enter all the information that Quicken requests. In many cases, Quicken links to windows that contain explanations of terms or forms that you need to fill out. Click the underlined text to go to these linked windows. Review your plan Modify your plan While you are creating your plan, you can view the results at any time. To do so, click on one of the choices below Results, in the bottom left of the window. • “Your plan” displays a graph of your projected account balances from the present until the end of the plan, and tells you if you can retire when you want to. • “Check for problems” displays information about areas in your plan that might prevent you from retiring when you want, or that are missing information that Quicken needs to complete your plan. • “What if” lets you change one or more pieces of information used to generate your retirement plan, and then immediately displays how the new information affects the plan. (For more information, see “Modify your plan” next.) • “Summary” displays an overview of the key elements of your retirement plan, such as retirement age, years until retirement, and number of years you expect to be retired. Once you have entered enough data for Quicken to develop a plan, there are a number of ways you can play with your data to see how certain actions would change the plan. Quicken 2001 Deluxe 65 tycho.book Page 66 Wednesday, July 19, 2000 4:07 PM Playing “What If” One of the most powerful tools in the Retirement Planner is “What if.” Using “What if,” you can change many of the assumptions of your plan without actually changing the plan itself. Then you can decide whether you want to change your plan based on your What if calculations or not. Here are a few examples of the kinds of questions What if can help you answer. • What if I quit my job and stay home when the baby is born? (Change information such as salary, living expenses, and college expenses.) • What if I relocate to a different part of the country? (Change information such as current and future homes and assets, living expenses, and special expenses.) • What if I sell a chunk of my assets and take a trip around the world? (Change information such as investments and living expenses.) 1 If your retirement plan isn’t displayed, choose Planning menu > Retirement Planning. 2 Click “What if,” and then click “Try it.” Quicken displays an overview of your plan results. 3 From the drop-down list, change the goal type if you like (the default goal is Retirement), and then click any “What if I” link on the left side of the window. Choose a goal from the drop-down list. What are your options for reaching this goal sooner, or with less effort? Choose one here. Make your changes in the pop-up window. Quicken displays the result in the “What if” window. Do you like what you see? If so, click Save What if as Plan. 4 Use the buttons at the top of the “What if” window to either save your “What if” scenario changes (and incorporate them into your long-term plan), or close without saving, or reset the “What if” values and try out new ones. Next steps 66 As you can see, using Quicken to help plan your retirement gives you the means to make significant decisions about how you want to use your finances to fund your life and dreams. From here on, it’s up to you to keep your Quicken data upto-date, and to review it periodically to make sure that you are on track to reach your own financial goals. Develop a long-term plan tycho.book Page 67 Wednesday, July 19, 2000 4:07 PM 10 Contacting Intuit Technical Support Placing orders ■ To find out about Technical Support options or to give us feedback on Quicken, visit our Web site: www.intuit.com/support/quicken Shop the Web Quicken Help ■ The Quicken Help system is the fastest, easiest way to get answers. Choose Index from the Help menu. Web Help ■ Web Help provides Knowledge Base searches, updates, and answers to frequently asked questions. www.intuit.com/support/quicken ■ Purchase Intuit software and services at: www.shopintuit.com/ quicken_store/home.asp Buy checks, envelopes, and supplies at: www.intuitmarket.com/ Quicken Checks Customer Service ■ Please refer to the enclosed catalog for more information about ordering checks and other financial supplies. For additional information or to place your order: Phone from the U.S. 800-433-8810 Fax on Demand Monday - Friday, 5 am - 8 pm Pacific time Saturday, 7:30 am - 1 pm Pacific time ■ Call for a catalog of fax documents with answers to common questions. Phone 800-644-3198 Monday - Sunday, 10 am - 10 pm Mountain time Automated Technical Support ■ Answers to common questions. Phone 800-644-3193 Technical Support Options ■ Several no-charge support options are available. For details, see: www.intuit.com/support/quicken ■ Talk to a Technical Support representative. Phone 520-618-7155 Phone 900-555-4932 Monday - Friday, 5 am - 5 pm Pacific time Live telephone telephone support for the current Quicken version is $1.95 per minute. Terms and conditions are subject to change without notice. Phone from Canada 877-445-3233 Intuit Direct Sales ■ To place a product order or to find product information, see the following: www.shopintuit.com/quicken_store TDD/TTY 800-843-8828 Monday - Friday, 8 am - 5 pm Pacific time Phone from Canada 888-829-1722 Monday - Friday, 8 am - 5 pm Mountain time Extended hours September through April: Monday - Friday, 6 am - 11 pm Mountain time Saturday and Sunday 8 am - 8 pm Overseas Sales: Phone 520-901-3220 Monday - Friday, 6 am - 6 pm Pacific time 10 Getting started with online financial services Apply for online financial services ■ You need an Internet Service Provider (ISP) to use these services. To apply for online banking service (online account access and online payment), from the Banking menu choose Online Banking Setup and follow the onscreen directions. For online investment tracking service, from the Investing menu choose Online Investing Setup and follow the onscreen directions. For information on online financial services, and to see a list of participating financial institutions, see: www.intuit.com/online Apply for online payment with Intuit ■ If your financial institution doesn’t offer online payment, you can apply for online payment through the Quicken Bill Pay service using your existing checking account at a U.S. financial institution. From the Banking menu, choose Online Banking Setup and follow the onscreen directions. In the Financial Institutions list, choose Quicken Bill Pay. Apply for a Quicken Credit Card Customer Service for CheckFree Payment Services Monday - Friday, 8 am - 5 pm Pacific time ■ The Quicken Credit Card is offered through Intuit and Citibank USA. You can download your transactions directly into Quicken. Current benefits include no annual fee, a credit line of up to $50,000, and an optional TravelerMiles travel awards program that earns free and discounted air travel. To apply, speak to a representative or visit our Web site: Phone 800-442-4939, ext. 136 www.quickencard.com Phone from Canada Quicken Credit Card Support ■ If a problem occurs after you transmit your transactions, call CheckFree. For all other problems, call Quicken for Windows Customer Support. CheckFree Customer Service 800-297-3180 Monday - Friday, 8 am - 5 pm Mountain time Online financial services support ■ If the problem is caused by your Internet Service Provider (ISP) connection, call them directly. If not, click the Contact Info button in the Online Center. For setup problems, confirm your account information, then call Quicken Customer Support. Fax 520-901-3208 Intuit Customer Service ■ The Intuit Customer Service department provides after-sale, non-technical services such as checking order status, providing replacement disks, and answering billing questions. www.intuit.com/service TDD/TTY 800-843-8828 Overseas Service: Phone 780-440-5952 520-901-3220 Monday - Friday, 6 am - 6 pm Pacific time Fax 520-901-3208 Monday - Friday, 8 am- midnight Eastern time CreditCheck Service by ConsumerInfo.Com ■ For help with your credit report. Phone 888-888-8553 Monday - Friday, 6 am - 6 pm Pacific time www.consumerinfo.com/ H o u r s Unless otherwise noted, all business hours are seven days a week, 24 hours a day, except to allow for system and server maintenance. Hours and phone numbers are subject to change. ■ If you are a current cardholder and have questions about your Quicken Credit Card account balance, available credit, or charge activity, please call Citibank USA. Phone 800-772-7889 ■ If you experience difficulty downloading your Quicken Credit Card transactions into Quicken, call this number or visit our Web site: Phone 877-602-2484 Monday - Friday, 5 am - 5 pm Pacific time www.quickencard.com/ members.html/ 67 tycho.book Page 68 Wednesday, July 19, 2000 4:07 PM