Mutual Fund Monet Market Accounts

If it's a pure stand-alone MM account I'd probably put it in the Cash section since that's really what it is. You may think about it as money you're squirreling away ("an Investment") but from an accounting standpoint it's pretty much cash since the chance of gain or loss is slight and it's immediately available.

If it's a MM account inside an Investment (e.g., a "sweep" account inside a brokerage account) there's a theoretical argument to be made for establishing the account in the Cash section, but the practical aspects of such an arrangement (i.e., record every "sweep" transaction within the brokerage account as a Transfer in Quicken, having to add the Cash and Investment accounts together to balance to the broker's month-end statement) persuades me to just leave the whole thing in the Investment section.

Tom Young

Hi, Dick.

I agree with Tom on the treatment of Money Market ACCOUNTS.

Just note that Money Market FUNDS are a different animal.

An MM account pays you interest at a rate based on the 'money market". An MM fund is a special kind of mutual fund that buys and sells very short-term instruments. If you own shares of an MM fund, you will receive dividends, not interest (although those dividends are usually paid out of the fund's interest income.)

RC

Dick:

What I do in Quicken 2008 H&B is to keep investments with check-writing in the Investing section. I have the "Show Cash in a Checking Account" checked, so there is a separate register in Cash Flow, or Business. If you don't write a lot of checks, it may be simpler to not use the "Show Cash" feature. But, if you write a lot of checks, you may want the separate check register.

Bob