Tips on Moneydance
How do you set up a 401K
Suppose you have an existing 401K, you can go back and enter the last x number of years of history, but that would be time consuming. Since you do not need to track the buy and sell prices of an asset in the 401K, you can start from scratch using your last statement.
- Create an investment account to house your 401K. Enter as the initial value, the value on last date of your statement.
- Create and add security to the 401K.
- Now, start buying all of the shares listed at the last day of the statement at the prices listed at the last date of the statement. Select the transaction buy and list your account as the category.
- When you are finish, you should have a cash value of zero in your account (unless you had cash in their before), because you “purchased” all of the assets listed in your statement.
How do you set up a Mortgage
Mortgages consists of a loan account and an escrow account. When you pay your mortgage, some of the money goes into the escrow account, which is then used to pay off the taxes, insurance, and other fees.
- Create an asset account and name it something like “House Escrow”.
- Create a loan acount and name it something like “House Mortgage”.
- Enter the loan amount into the principle (ex: 250000).
- Enter the loan interest rate into the APR (ex: 5.25).
- Enter the points on your mortgage into points.
- Enter the number of payent per year (probaby12).
- Enter the total number of payment for the life of the loan. (ex: A 30 year loan that is paid monthly would be 30 year x 12 month = 360 payments).
- Set the interest category. I used the built-in category Bills:Mortgage Interest.
- Enter the amount being transferred to the Escrow account monthly. This should be in your mortgage statement.
- Set the Escrow account to the escrow account you created earlier.
- If you’re lucky, the payment calculated should your payment on your bill. If not, you select the specify payment radio button and enter your payment.
- Enter the start date of your loan.
- Press OK.
- At this point, I am prompted if I want to transfer the amount from another account. Since the loan has been around for a while, I didn’t need to track where the money came from, so I answered No.
What’s the difference between liability and loan?
Loan account is a special type of liability account that allows you to specify the number of payments, APR, escrow account, etc. Generally loan accounts are used to track mortgage and car loans. A liability account can be use for simple debts such as an interest free loan from a family member.