Re: Cash Account / Money Account Question

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Posted by Mark on August 13, 2006 at 10:00:38:

In Reply to: Cash Account / Money Account Question posted by Steve on August 12, 2006 at 23:31:22:

: The way OFX handles money market transactions is somewhat confusing to me in context of written brokerage statements. I've manually set up a default cash account, to which I've also manually entered interest income. Now, when retrieving OFX transactions, one of the symbols retrieved is ZZZZ...which isn't clearly listed as such, but on the basis of transactions appears to be a symbol for money market transactions. Obviously, money markets and default cash are different accounts but it isn't clear to me that OFX knows this.

: I presume I should list this a subportfolio as a money market account, AS DISTINGUISHED FROM a default cash account, as opposed to somehow making them one and the same. Sorry for asking but I don't want to mess anything up.

Hi Steve,

Often times brokerages will use a "sweep" account, where your money goes before it goes into your cash account. I'm guessing that is what this ZZZZ investment is, but you can ask your broker to be sure. There is nothing wrong with assigning your money market as your default cash account. If all your money goes into/out of this money market, this is the correct thing to do.

It is up to you how you want to handle the sweep account, but to keep things simple I would suggest ignoring those transactions. If they show up, just un-check them in the Preview dialog before finishing the retrieve. Since you have the money market assigned as the cash account, Fund Manager will take care of sweeping the proceeds into/out of this money market for you, without the creating of an additional/temporary sweep account. This will also make reconciling with your written statements easier, since you probably won't see mention of these sweep accounts there. I'm sure the broker can also explain in more detail about any of these accounts that don't look familiar to you.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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