Article ID: 150176
Article Last Modified on 1/19/2007
APPLIES TO
- Microsoft Money 2004 Deluxe Edition
- Microsoft Money 2003 Deluxe Edition
- Microsoft Money 2002 Deluxe Edition
- Microsoft Money 2001 Standard Edition
- Microsoft Money 2000 Deluxe Edition
- Microsoft Money 99 Standard Edition
- Microsoft Money 98 Standard Edition
- Microsoft Money 97 Standard Edition
- Microsoft Money 98 Deluxe Edition
- Microsoft Money 98 Financial Suite Edition
This article was previously published under Q150176
SUMMARY
Microsoft Money does not have a built-in way to track annuities. This article discusses different options for tracking annuities.
MORE INFORMATION
An annuity is a contract sold by life insurance companies that guarantees a fixed or variable payment to the annuitant (person holding the annuities) at some future time, usually retirement.
In a Fixed Annuity, the amount will ultimately be paid out in regular installments, varying only with the payment method elected. This can be in the form of cash or reinvestment.
In a Variable Annuity, the payment is based on a guaranteed number of units; unit value and payments depend on the value of the underlying investments. All capital in the annuity grows tax deferred.
There are two methods for tracking annuities in Money: Simple and Comprehensive. With the Simple method, the value of the annuity is updated when you receive your statement. With the Comprehensive method, the value of the annuity can be updated on a regular basis, based on shares quantity and current price, or from the most recent statement.
Simple Method
- Set up an Asset account, and set the starting balance equal to the current value of the annuity.
- Every month when you get your statement, follow these steps:
- Click the Balance button.
- Enter the new balance and statement date.
- Choose a category.
- Click OK.
For more information about how to create an Asset account, see Microsoft Money Online Help.
Comprehensive Method
Set up a tax-deferred Investment account with an associated cash account. Set up an investment for each subaccount (investment) in your annuity. If this is for an existing annuity, then set the balance of the cash account equal to the current value of the annuity. For a new annuity, set the value to zero.
Note In an annuity, the insurance company refers to each investment as a subaccount. In Microsoft Money, each subaccount is referred to as an investment.
Every time you make an annuity payment, transfer the funds into your associated cash account. When you get your statement, enter a buy for each investment with the correct share amount and dollar price to reflect new purchases made by the insurance company. Many statements do not clearly communicate all this information, so the process may involve some computation on your part.
To keep track of the annuity's value on a regular basis, update the price of each subaccount (investment). Because the investment account will contain the proper number of shares for each subaccount, the account value will reflect changes in the prices of the subaccounts.
In Money you can enter an Estimated value for an investment account. This would be a good way to handle Asset Allocation funds. Then, as value changes, edit the details to update the estimated value. For more information about how to set up investment accounts and investments, and how to update investment prices, see the Microsoft Money Online Help.
For additional information about how to begin tracking an existing, click the following article number to view the article in the Microsoft Knowledge Base:
142084 Money: How to Start Tracking Existing Investments in Money
Additional query words: money2004 w_money net worth retirement annuity annuities investments track 97 6.0 rex Money97 Money98 Money99 Money2000 Money2001 Money2002 Money2003
Keywords: kbinfo KB150176
