I am a new user. Please critique the following approach to Build:
All Money Market holdings go under Cash Accounts.
Therefore under Taxable Investment Accounts when listing a brokerage account the initial balance should exclude MM holdings since it was entered above in Cash Accounts.
Then in Build-Financial Assets-Advanced Portfolio Modeling (Mode 1)-Growth Taxation-Stocks, it should include all stocks from all brokerage accounts. To calculate the Growth Taxation for Qualified Dividends for example I woud enter the following percentage: (all qualified dividends from all brokerage accounts/all stock holdings balance)/ROR for stocks in order to get the % of growth due to qualified dividends.
Is this the correct approach? If not please advise.
Thanks
I am a new user. Please critique the following approach to Build:
All Money Market holdings go under Cash Accounts.
Therefore under Taxable Investment Accounts when listing a brokerage account the initial balance should exclude MM holdings since it was entered above in Cash Accounts.
I think it's worth distinguishing money market accounts (at a bank) from money market funds (within an investment account). I use the Cash account in Pralana to approximate my bank accounts (checking/savings/money market), and a Cash allocation within my taxable account to approximate holding a money market fund.
Then in Build-Financial Assets-Advanced Portfolio Modeling (Mode 1)-Growth Taxation-Stocks, it should include all stocks from all brokerage accounts. To calculate the Growth Taxation for Qualified Dividends for example I woud enter the following percentage: (all qualified dividends from all brokerage accounts/all stock holdings balance)/ROR for stocks in order to get the % of growth due to qualified dividends.
Is this the correct approach? If not please advise.
Yes - might be clearer to express it as: qualified dividend proportion (of stocks growth) = qualified dividends / (stocks holdings * stocks RoR)
So, a simple example:
$100,000 stock portfolio, 5% total ROR, 2% qualified dividends.
The qualified proportion of stocks growth = 40%
Correct?
$100,000 stock portfolio, 5% total ROR, 2% qualified dividends.
The qualified proportion of stocks growth = 40%
Correct (5% of $100K is $5000; 2% of $100K is $2000 which is 40% of $5000)
Another newbie question. Is this correct?: If I click the "enabled" button on the Roth Conversion analysis the analysis gets incorporated into the scenario. If I click the "disabled" button the analysis is for the Roth Conversion analysis page only and does not become part of the scenario.
Thanks
Yes, that's right, although I don't know what you mean by "the analysis is for the Roth Conversion analysis page only" as no conversions are done and the displayed "Current" results (under "Current vs. Baseline") reflect that.
Thank you for your help. I don't think I understand enabled/disabled in the Roth Conversion analysis. Please explain further.
Thanks
