How-To reflect a change in value for a 401(k) Account

Jerome Istin's Avatar

Jerome Istin

13 Apr, 2009 05:41 PM

Good afternoon Brian,

Thank you for your reply (see previous discussion with the same name - closed too soon if you ask me - and below).

"Jerome, From within your investment account, choose tools->edit securities and edit the price for 401(k) from $100 to $50."

Unfortunately this doesn't help me at all since the "securities" screen is empty. Now, maybe I didn't setup my account 401(k) account correctly and somebody can help me with that.

I creates a new account (a Bank Account if I remember well). Put my 401(k) balance as of 12/31/08 (let's say $100).

Since then, I withdrawal some money from my checking to this account every month.

Few days ago, I received a new statement and the global value of my account dropped from, let's say, $100 to $75 even including money I added since January.

How to reflect this change of value. Or I just did it plain wrong and created the wrong kind of account to begin with?

  1. 1 Posted by Brian Adler on 16 Apr, 2009 02:16 PM

    Brian Adler's Avatar

    Jerome, As the original author of a conversation, you may re-open it at any time. We mark convesations as "resolved" more as our own accounting. It let's us quickly know that we have responded and are awaiting reply (if necessary) from the user.

    It would have been more appropriate to set up your 401K in an investment account. In that case you would have edited the value of your 401K as I described. But I believe you can continue to use your account as you have set it up if you wish. I would create a new category (tools->edit category) titled "401K increase in value" (an income category) and a new category "401k decrease in value" (as an expense category). You could then enter transactions to reflect changes to the value of your account that are not determined by you either adding or withdrawing funds to the account but instead reflect changes to the underlying value of the account itself. However, while I believe this would work. It would probably be preferable to set up your account as an investment account and add the cash and securities to that account. Then, the changes to the cash balance could be reflected by deposits/withdrawals and changes to the 401K itself could be reflected by changes in value to the securities represented in your 401K.

  2. Brian Adler closed this discussion on 16 Apr, 2009 02:16 PM.

  3. Jérôme Istin re-opened this discussion on 17 Apr, 2009 01:20 AM

  4. 2 Posted by Jérôme Istin on 17 Apr, 2009 01:20 AM

    Jérôme Istin's Avatar

    Hello Brian!

    Thanks for the tip about reopening a discussion.

    Anyway, I tried to follow your advice and created a investment
    account. It's when I came to the securities thing that things became
    complicated. I'm a zero in finance and I'm not interested in it. I
    paid a company to manage my account and these guys are investing with
    401 (k) in 15, 20 different funds.

    I'm guessing the securities will be all these funds, since I'm asking
    some weird questions about length, %...

    I'm not interested in a close follow-up of all these funds. I just
    want to have a balance at the beginning of the quarter, add my monthly
    withdrawals and change the value of the account at the end of the
    quarter, that's it.

    I guess I will use the first solution which fit my needs better.
    Thanks for trying to help me anyway.

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