Vanguard Case Deposit fund (Settlement fund)
In a Vanguard Brokerage Account, I've converted the Settlement fund (VMFXX) to a Vanguard Cash Desposit fund. This fund is FDIC insured and is not an investment asset but does earn interest. I would like to know how to handle this within the Investment account I have that tracks my Vanguard Brokerage Account. Currently the downloaeded Vanguard Account information does bring in all the correct transaction amounts, but I don't know how to create or assign the Cash Deposit fund so it balances and tracks correctly.
I've also mistakenly created a Vanguard Cash Deposit security which I cannot delete to start over. Any suggestions for this?
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1 Posted by Stuart Beesley ... on Dec 03, 2022 @ 10:07 PM
I don't completely understand the question, but some pointers:
You can use txn type XFR to put cash interest into the investment account... Put your interest category in the Transfer field.
OR, if you want the interest "linked" to a security's performance, then use MiscInc against the security to record the interest in the Category.
To delete the VG Cash Deposit security, you must remove all txns that refer to it. Use Toolbox extension, Security Tools, Can I delete Security to identify these.. Once they have all gone, then you can remove the security and then delete the security.
2 Posted by TimberWolf on Dec 04, 2022 @ 01:50 AM
Stuart,
Thank you for replying.
I'll try to clarify (please ask for more info if it helps).
1. Vanguard Settlement funds hold cash that is not being held in a security
(aka a stock or mutual fund). The original Vanguard Settlement fund I had
was actually a mutual fund with a ticker of VMFXX.
I went through the process (at Vanguard) of converting that Settlement fund
to a Vanguard Cash Deposit that is not a mutual fund or security. It
generates monthly interest that is reinvested into the Vanguard Cash
Deposit. I'm thinking of it like a bank account because it's FDIC insured.
After using Moneydance > Online > Download All Accounts the transactions
are listed as follows:
Date Action Description Security Cat
11/30 Sell MONEY FUND REDEMPTION VMFXX >>> this appears
correct
11/30 Div DIVIDEND PAYMENT VMFXX >>> this appears
correct
11/30 Misc/Inc INTEREST PAYMENT Vanguard Cash Deposit $
xx.xx
>>> this to the 'security' i may of wrongly created
11/30 Xfr ***blank*** ***blank*** $
- xx.xx
>>> this is Transfers to: a personal bank account
but not the Vanguard Cash Deposit.
>>> If I change this to the Van Cash Deposit the Balance
is no longer $ 0.00
11/30 Buy MONEY FUND PURCHASE Vanguard Cash Deposit >>> this
appears correct.
If I do nothing, the total in the Vanguard Cash Deposit is short the amount
from 11/30 Xfr, however the amount in a different bank account now has that
interest payment shown deposited. Confused? I am.
Question: In Moneydance would such a Vanguard Cash Deposit fund be
considered a security? Or is there another method to handle the fund and
still have it shown in the Moneydance > Investments > Vanguard Brokerage
account?
2. Trying to delete the Security I created in error.
From Moneydance > Extensions > Toolbox > Security Tools > Can I delete a
security?
After deleting anything that was downloaded via Moneydance > Online >
Download All Accounts that referenced the newly create security (anything
on 11/30) I get the following result:
"You want me to look for Security: Vanguard Cash Deposit
Searching through 39 security (sub) accounts..
>> Security: Vanguard Cash Deposit is used in Account: Vanguard
Brokerage - Share holding balance: 0.0
Checking security for price history...:
>> Security has no historical prices.
-----------------------------------------------------------------
USAGE FOUND: You are using security: Vanguard Cash Deposit in 1 accounts!
... with a share balance of: 0.0. These would need to be removed before
security deletion
Sorry - usage of Security: Vanguard Cash Deposit found - refer to script
output for details..
<END>"
I can find no reference to the "Vanguard Cash Deposit" in any account. How
should I track this one down? It's not in the Portfolio View, Register, or
Bank Register. If it existed it would be dated 11/30/2022.
Again, thanks for any and all help. I may be in over my head on this one.
If I continue to have difficulty straightening this out, could the
discussion be moved to a private discussion (an how would I do that?).
3 Posted by dwg on Dec 04, 2022 @ 02:23 AM
Looking at the following transaction:
11/30 Misc/Inc INTEREST PAYMENT Vanguard Cash Deposit $xx.xx
I suspect it would work better if Vanguard Cash deposit is defined as a security.
XFR without a category I believe should transfer the funds to the first account in the Bank list.
4 Posted by TimberWolf on Dec 04, 2022 @ 02:43 AM
dwg,
I have defined the Vanguard Cash Deposit fund as a security, just not
certain that works the way it should in my case.
The XFR ($ -xx.xx) is defaulting to the first bank account as you point
out, however I don't want that...
I want it to be 'reinvested' or "buy" or deposited back into the Vanguard
Cash Deposit. But since the amount is a negative $ -xx.xx, any attempt to
alter this line results in a non-zero $xx.xx balance in the Register and
the Vanguard Cash Deposit is further from what the online account reports.
I must be missing something that is obvious to others (or everyone else).
Help!
5 Posted by dwg on Dec 04, 2022 @ 03:22 AM
Software can only deal with data as it is presented. For a buy a transaction the download would either need to be a DivReinv or a Div/MiscInc followed by a Buy.
You cannot deposit money into a security, cash is always held at the level of the Investment account, and it is 'free' cash not cash associated with any security. Investment accounts do not understand about cash investments as such. This is why it is necessary to set them up as Securities then use buy/sell transactions to maintain the "balance" usually at a price per share of $1.
Funds have various ways of trying to show things in their downloads, some can be quite creative, a negative transaction implies the removal of money and does imply a movement to an account outside of the investment but to do this and end up in the right account would need an entry for the category in the transaction that matches the account name the funds are to go to.
Many users report about having to edit entries downloaded from investment houses.
6 Posted by Stuart Beesley ... on Dec 04, 2022 @ 08:15 AM
To make private, go to this thread online and tick the private box:
https://infinitekind.tenderapp.com/discussions/investments/7291-van...
7 Posted by Stuart Beesley ... on Dec 04, 2022 @ 08:17 AM
To delete the cash security, go to the ‘ Vanguard
Brokerage’ investment account, and then the details tab, then top right, click actions, remove security. Select the cash security.
8 Posted by Stuart Beesley ... on Dec 04, 2022 @ 08:19 AM
I suspect if you delete the Xfr txn then
A) the cash will be left in your investment account
B) your cash balance will now be correct
Try it?
9 Posted by Stuart Beesley ... on Dec 04, 2022 @ 08:28 AM
I think VG creates a fake transfer to hold the cash in a security sub account, but MD can’t do this, so you will need to delete the Xfr and hold the cash as free cash in the investment account.
10 Posted by TimberWolf on Dec 04, 2022 @ 04:24 PM
Tried that. It cannot be removed even when I delete the entries that refer
to it.
11 Posted by TimberWolf on Dec 04, 2022 @ 04:25 PM
If I delete the Xfr transaction, the balance in the vanguard brokerage is
non-zero and not displayed as in the portfolio view.
12 Posted by TimberWolf on Dec 04, 2022 @ 05:26 PM
The questionable ***blank*** transaction is listed on Vanguard's website
list as "Reinvestment" $ -xx.xx, however when it's downloaded by Moneydance
the action is listed as "Xfr".
I'm not quite certain how to rectify this.
The way I see it, there are two registry entries involved with this problem:
1. 11/30 MiscInc Interest Payment to "Van Cash" $ xx.xx
2. 11/30 Xfr ***blank*** to "Bank acc1" $ -xx.xx
Vanguard's website lists these transactions as:
1. 11/30 "Interest" (vs MiscInc) $ xx.xx
2. 11/30 "Reinvestment" (vs Xfr) $ -xx.xx
Note:
If I delete the "Xfr" entry, the next "moneydance > online > download"
brings it back so that's not really an answer.
And the Register Balance is no longer $0.00.
And the Current Value of Cash Deposit is still short of the "interest".
Correcting the Xfr....
1. Could I make a bank account entry to 'return' the "Xfr" amount back to
"Van Cash"? So far, I've failed with my tests. If it's possible, how
would I do this?
2. Is there a better way to fix this?
Any suggestions would be appreciated
Thanks for your help..
13 Posted by TimberWolf on Dec 04, 2022 @ 08:30 PM
MAY have stumbled on a Manual Correction that results in a zero Register
Balance and a correct VG Cash value in the Portfolio:
See if the following makes any sense:
Note: These are alterations to the Registry entry: "Xfr blank $ -xx.xx
Change Action: from "Xfr" to "Buy"
Add Description: "Vanguard Cash Deposit Interest"
2nd line: "Manual Correction xfr <> buy" Change Security Category: "Vanguard Cash Deposit"
Change Share Price: $ xx.xx (positive value)
Amount Fee: $ xx.xx (positive value) # shares: 1
Results:
1. No xfr to Moneydance Bank account.
2. Register Balance is $ 0.00
3. Security "Vanguard Cash Deposit" is now correct in the portfolio.
4. Subsequent Moneydance Vanguard Account Downloads do not add or alter
existing Registry entries.
I'm hoping this is a proper way to manually correct the Register entry...
that is unless someone sees a potential problem.
So far, it seems to be working.
Thanks for everyone's assistance.
System closed this discussion on Mar 05, 2023 @ 08:40 PM.