Mid-Year Adjustment...
 
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Mid-Year Adjustment Timing

 

Motogopher
(@motogopher)
Active Member Customer
Joined: 1 year ago
Posts: 19
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What day in June should the account values for the mid-year adjustment be taken from? 1st, 15th, or 30th? I suspect it would or may be different for how the money management is set up - beginning or mid-year calculations.


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NC Cpl
(@nc-cpl)
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Joined: 11 months ago
Posts: 98
 

If there ever was a year that this new feature was suited for...this is that year! According to the manual "PRC provides a simple toggle button that allows you to specify whether annual account growth is to be based on the year-ending balance of the prior year or the mid-year balance which takes into consideration contributions to and withdrawals from the account. If you select this latter option, PRC will figure the growth based on the prior year's ending balance plus half of the current year's contributions minus half of the current year's withdrawals." So I suspect as close to July 1 as you can get is best.

I'd also be curious to know if once the mid-year calculation is done, is there any way to revert back to the 1/1 starting balances? Or is it better to keep a copy of the starting 1/1 balances file and only make adjustments in the Mid-year copy?

This post was modified 1 month ago 2 times by NC Cpl

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Stuart Matthews
(@smatthews51)
Member Admin
Joined: 2 years ago
Posts: 335
 

@nc-cpl The feature you're referring to doesn't actually make any changes to your starting balances; it's simply an alternate (and probably superior) algorithm for calculating the annual growth on your accounts. It sounds like you might possibly be confusing this mid-year growth calculation option (which is on the FA > Management page) with the mid-year adjustment option (which is on the FA > Initial Balances page) which actually DOES adjust initial balances based on year-to-date ACTUAL performance. If you're referring to the latter then, yes, it's probably a good idea to save your original initial balances so you can revert back to your starting position is you so choose. The tool doesn't have any ability to revert.

Stuart


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NC Cpl
(@nc-cpl)
Trusted Member Customer
Joined: 11 months ago
Posts: 98
 

@smatthews51 Thanks Stuart. In this case, I was referring to the mid-year adjustment option under FA > Initial Balances. But to the OP's question, does the mid-year adjustment option "split" the year in half such that you'd ideally want the balances as close to June 30/July 1 as possible?

This post was modified 1 month ago by NC Cpl

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Stuart Matthews
(@smatthews51)
Member Admin
Joined: 2 years ago
Posts: 335
 

@nc-cpl No, it's uses whatever fraction of the year is applicable on the date you do it.


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