Cash (MMF) in a Brokerage Account

The dividends from one of the securities in my Fidelity brokerage account are reinvested in the core account, a muni mmf. However, I dont seem to be able to achieve this in Quicken (09), either manually
or when I download. Instead, the dividends go to the accounts cash balance. Am I doing something wrong, or is this just how Quicken works with a brokerage account? Would it be simpler to just eliminate the mmf and pretend that I simply have a cash balance?
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Hi, JRoss.

Yep. Thats how I have been handling my Merrill Lynch CMA account for about 20 years.
This might not work for some brokerages because each has its own way of handling "sweep" accounts.
RC
--
R. C. White, CPA
San Marcos, TX
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JRoss wrote:

I think Fidelity often does not download the correct transactions.
But I can't think of any reason why you couldn't manually enter a reinvestment transaction - remembering that a dividend reinvestment transaction ("Reinvest-Income Reinvested") is a different Quicken transaction than a dividend transaction ("Inc-Income (Div, Int, etc").
You should also be able to "Edit" a dividend transaction and change it to a dividend reinvested transaction.
On the other hand, you may prefer to just leave it as cash. Some financial institutions allow this directly (though I think you can do it anyway). To see if Fidelity does, click
Investing > Investing Activities > Adjust Cash Balance (with the Fidelity account open).
If you see a "Cash Representation" button in the resulting dialog, click that.
--

John Pollard



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Thanks R.C. and John. ("Cash Representation" wasn't an option.) I assume that if I edit the dividend to "reinvest" I must change the security from the actual security which paid the dividend to the one in which it was reinvested. In my case that's a change from a taxable to a tax-exempt fund. Will Quicken then think I received a tax-exempt dividend? Just curious; in recent years I haven't downloaded investment data from Quicken for tax purposes, so that's not a crucial consideration. If I go with the cash option, would I just "sell" all my money fund shares?
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WHOA! WHOA! WHOA!
Using a dividend from one security to purchase another security is
NOT NOT NOT
a reinvestment. It's a dividend and a purchase.
No wonder Q can't figure it out ... 'cause you can't either.
And Q can't possibly record what you can't understand!
db
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snipped-for-privacy@aol.com wrote:

I didn't understand from your original post that you were using the dividend to buy shares in a different fund. As noted elsewhere, that's not a reinvestment.
Just let the plain dividend transaction increase the cash in your account, then use that cash to Buy shares in the other fund.
--

John Pollard



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Thanks again John. John R.
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