Chapter 10
Keeping Tabs on Your Net Worth
In This Chapter:
• Exploring the Net Worth view
• Accessing Property and Debt account registers
• Creating alerts for Property and Debt accounts
• Working with Property and Debt alerts
Once you have entered your asset and debt account transactions into Quicken 2015, as discussed in the previous chapters, Quicken summarizes your entries and calculates their balances. The information displays in a number of places: the Account Bar, the Property & Debt tab, account registers, reports, and graphs. You can consult Quicken’s calculated balances and totals at any time to learn about your equity and the expenses associated with your debts.
This chapter explains how to use Quicken’s features to keep tabs on your financial picture. As you’ll learn in these pages, a wealth of information about your net worth is just a mouse click (or two) away.
The Property & Debt Tab
Asset and debt account information, as well as an overview of your financial standing (net worth), are part of Quicken’s Property & Debt tab. Open the Property & Debt section by clicking its tab. Within the Property & Debt tab are three views with which you can view your financial standing in useful graphic format. You access these views with three buttons: Net Worth, Property, and Debt.
Each of these views displays graphs and report snapshots to help you understand your true financial position. An example is the two graphs you see when you click the Net Worth button, as shown in Figure 10-1. Click either the Net Worth Summary Report or the Account Balances Report buttons to display additional information about your net worth accounts. Together, these snapshots paint a picture of your overall financial situation. While not shown in Figure 10-1, you can see the Account Balances Report button at the lower left of the Net Worth By Account Type snapshot.
Figure 10-1 • The Net Worth by Assets and Liabilities and Net Worth by Account Type are examples of the graphs available in the Net Worth view of the Property & Debt tab.
In this part of the chapter, we’ll take a closer look at the snapshots in the Property & Debt tab sections so you know both what you can find and how you can customize the information for your use.
Exploring the Net Worth View
As you click the button to open the Net Worth view, you’ll see both the Net Worth by Assets and Liabilities graph and the Net Worth by Account Type graphs, as shown in Figure 10-1. You can customize the information shown in this view, but you cannot customize the information for each graph separately.
There is much more information available within the Net Worth view than first meets the eye. At the top of the section are three drop-down lists with which you can customize information to meet your requirements:
Accounts Drop-Down List The first drop-down list displays the accounts you want to use for your graphs. The default, as shown, is All Accounts. Click the downward arrow and choose Custom… to open the Customize dialog. From this dialog you may
• Click the Select All button to include all of your accounts in the graph.
• Click the Clear All button to deselect all of your accounts.
• Select or clear the check box displayed by each account name to include it in the graph.
• Click the Show (Hidden Accounts) check box to display the accounts you have chosen to hide so you can opt to include them as well. If you do not see the check box, you have not hidden any accounts.
When you have completed your selections, click OK to close the dialog.
Time Period Drop-Down List The second drop-down list in the Net Worth button’s view allows you to set the time period for your graphs. You can choose from the Last 12 Months, the Last Year, the Last 3 Years, the Last 5 Years, the Last 10 Years, or the default time period, which is the Earliest to Date.
Use the Custom Date option to set the time period to show the information displayed in the graph.
Set the Interval to Display The three choices on the Interval drop-down list are Months, Quarter, and Year. For example, if you want to see what your financial position has been for the last three years, you might choose to display the information by quarter instead of months to see the general trend.
Net Worth by Assets and Liabilities
The first snapshot in the Net Worth view is the Net Worth by Assets and Liabilities, as shown earlier in Figure 10-1. This graph uses a stacked column to indicate your net worth for the period you choose. In our example, we have chosen to display all of the accounts for the last five years. We chose annual intervals to get an idea of how our savings and investment plan has worked for that time period. The period covered by the graph shows above the display. We can change the information displayed on the graph by changing the options in any of the drop-down lists.
The green bar represents your assets, the muted red bar represents your debt, and the red circle represents your net worth. Ideally, the green bars should get taller while the muted red bars get shorter. The net effect is a rise in the net worth line, as seen in Figure 10-1. In our example, the base line of the graph shows that since 2009, this family’s assets have steadily increased. If the net worth line is below the baseline of the graph, you’re in some serious financial trouble because your debts exceed your assets.
How you perceive the colors may depend on your monitor’s settings.
When you position your mouse over a specific area on the net worth line of this graph, you see your net worth as of that date, as shown here. When you position your mouse on a green area, a similar report appears showing exactly what your assets were worth as of that date. Similarly, put your mouse in the debt area to see how much you owed at that date. Click any bar location to open another chart that displays your assets and liabilities in a pie chart as seen below. Click Done to close the chart.
The size of the “pie” in the pie chart may vary depending on the number of accounts you have chosen to display. The pie charts are sized by the number of account-type legend entries. Therefore, if you have more account types for assets, the assets chart may be smaller than the liabilities chart. This can be a bit disconcerting to see your assets looking smaller than your debts. If you have chosen only one or two asset and liability accounts, the “pies” in the chart may appear to be the same size.
Keep in mind that, by default, this graph represents all of your accounts in Quicken—including your banking and investment accounts. It’s a true view of your net worth trend for the accounts and time period you choose to display.
Net Worth Summary Report
Below the Net Worth by Assets and Liabilities graph, you’ll see a button labeled Net Worth Summary Report. The report that appears when you click this button displays your information in both graphic and report format. (This report can also be displayed by selecting Reports | Net Worth & Balances | Net Worth.) As with any report or graph, the information is fully customizable. Click the red X to close the report and return to the Net Worth view. See Chapter 15 to review your many options when customizing reports.
Any accounts you have hidden in Quicken are not included in your Net Worth reports unless you choose to include them by customizing the report.
Net Worth by Account Type
By default, the Net Worth by Account Type graph appears in the lower portion of the screen when you select the Net Worth button in the Property & Debt tab. This graph shows the percentage of your net worth represented by each of your account types. This is also a stacked bar graph with each account type represented by a different color. The legend to the right of the graph shows what color indicates which type of accounts.
Account Balances Report
The Account Balances Report button, at the bottom of the Net Worth by Account Type graph, opens the Account Balances report with the date range settings you have entered at the top of the Net Worth views. This report can also be opened by choosing Reports | Net Worth & Balances | Account Balances. However, the default settings for the report you see using that method show your balances from the earliest date entered in your Quicken account with no interval (such as monthly, weekly, and so on) set. Click the red X to close the report and return to the Net Worth view.
Using the Property View
To open the Property view, click the Property button in the Property & Debt tab. Each of your assets and any associated liability show in a horizontal bar graph, as seen in Figure 10-2. If you have two current liabilities associated with one asset, as shown in the House account, each liability is displayed with a different color. At the right of each asset, the total equity you currently hold in this asset displays. The equity that shows is the current value of the asset less the current loan balance.
Figure 10-2 • Bar graphs in the Property view display both assets and any associated debt.
Depending on your screen or monitor, you may not see the different colors because the color differences are subtle.
If you have refinanced an asset, such as your house, zeroed-out mortgages may be included in the total equity value with a zero balance.
The drop-down list box at the top of the screen lets you select which of your accounts you want displayed in this graph. While All Accounts is the default choice, you may choose from several options:
• Personal Accounts Only
• One specific account (each shows by the account name)
• Custom (which opens a list of all of your asset accounts so you may choose two or more)
Click the Property Options button at the right side of the screen to open a menu from which you can choose among the following:
• Add A House Asset Account
• Add A Vehicle Asset Account
• Add Other Asset Account
• Add A New Loan
Each item on the Property Options menu has a small white plus sign in a green circle to its left. You open the appropriate Add Account screen when you click that green circle icon or click the adjacent text.
Creating a new account from the Property Options menu saves a step or two when adding a new account, as the Add Account dialog opens directly to the type of account you are creating.
Within the graph itself are similar icons to the right of each asset name. Use these green circle icons to open a menu with which you can perform the following actions:
Link Existing Loan To This Property This option opens a list of existing loans from which you can choose the loan to link to this property (asset).
Link Existing Line Of Credit To This Property Choosing this option opens another list menu that displays all your current credit accounts from which you can choose.
Unlink Existing Liability From This Property When you choose this option from the list, any current loans that have been associated with this asset are displayed. Click the one you want to unlink from this asset. If no liability (loan or line of credit) is currently linked with the property (asset), you will not see this option.
New Loan Selecting this option opens the Add Loan Account dialog. Chapter 9 explains how to set up loans. If you have not downloaded yet today, when you select New Loan, Quicken will connect to the Internet and download an updated list of financial institutions.
The ability to link credit accounts with assets can be valuable. However, unless you have set up a line of credit as a “credit” account instead of a loan, Quicken does not make this information available as an “existing line of credit.” Since you cannot change the account “type” after you have entered it, be cautious when creating your new accounts.
Opening the Debt View
Clicking the Debt button opens the Debt view, which by default, displays two graphs that show your current debt position, as seen in Figure 10-3. Each graph portrays your liability information in a slightly different format. At the top of the graphs are several drop-down lists that let you select the accounts with which you want to work, the time period to cover, and the intervals to be displayed. A legend appears at the right telling you what color the graph uses for each debt listed.
Figure 10-3 • Click the Debt button in the Property & Debt tab to view your financial obligations in several ways.
The first drop-down list lets you choose which accounts you want to use in the graphs. You have your choice of the following:
• All Debt Accounts sets the graph to display all of your debts. This is the default setting.
• Credit Cards Only displays just the amounts you owe to credit card companies.
• Loans Only shows all of your current loans, including any mortgages. If you move your mouse cursor over any section of the stacked bar graph, a small message appears that displays the balance of that loan at that point in time.
If you have designated a liability as “Other Liability” in the Add Account dialog, you may see an option for “Other Liabilities Only,” which displays all items of this account type.
• Custom opens a Customize dialog that lets you choose which accounts to display. Click Select All to display all of your debts. Click Clear All and choose only the debts you want to display in your graph. Clicking the Show (Hidden Accounts) check box will enable you to include those debts that you have hidden in Quicken for selection in the graphs. Click OK to close the dialog and return to your graph.
• Specific debt account names let you create a graph that shows only one of your debt accounts.
The second drop-down list offers a variety of dates for which you can set your graphs. Most of the options are self-explanatory; however, when you click Custom Date, a dialog appears that you can use to set the period for which you want each graph to display. Be aware that in this dialog, unlike most dialog boxes in Quicken, you have to click in the To field to change the date instead of using the tab key to move to it. In this dialog, pressing the TAB key when you enter a date in the From field moves your cursor to the OK button. Click OK to save your date selection and return to the Debt view.
The third drop-down list lets you choose between three interval options for your graph’s display: Months, Quarter, and Year.
Loan and Debt Options
At the top right of the Debt view is a drop-down list offering additional options:
• Add A New Loan
• Refinance Calculator
• Loan Calculator
• Add A Credit Card
Both of the “Add” choices open the Add Loan/Credit Card Account dialog with which you can quickly create a new account of the type you selected. Again, if this is the first time you have done any online activity for the day, Quicken will retrieve the list of financial institutions when you click the Add A New Loan or Add A Credit Card drop-down item. The Calculator options open either the Refinance or the Loan Calculator for your use. Learn more about Quicken’s useful financial calculators in Chapter 12.
Balance of Selected Debt Accounts Graph
As seen in Figure 10-3, the first graph you see in the Debt view of the Property & Debt tab is a stacked bar graph that shows your total debt by year for a period you designate. This graph includes a legend explaining the color used for each debt item account included in the graph.
Using the drop-down lists at the top of the screen, you can tell Quicken to show a wide variety of accounts, dates, and intervals to make the information meaningful to you.
Current Value Graph
The second graph in the Debt view of the Property & Debt tab displays the current value of the debts you selected in the first drop-down list at the top of the page. Each drop-down list selection you make displays the information in a slightly different way and includes somewhat different information, as shown next.
As you can see, the Selected Liability and Credit Accounts (Debt): Current Value graph displays information in both a pie chart and with columns of information. How you have chosen to display your debt accounts in the Debt view’s first drop-down box will affect what shows on the Current Value graph. Depending on your choices, the information about the (non-hidden) debt accounts is shown in two sections: Loans and Credit. If you have other debt accounts that are not credit or loan, you will see a third debt type: Other Liabilities.
If you only have one debt account with a balance for a particular debt type, a pie chart will not be displayed for that debt type.
Loans If you have selected All Debt Accounts or Loans Only in the first drop- down list, you will see the following:
• Interest displays the rate of interest for each loan.
• Payments Left shows you how many more payments you have through the life of the loan or debt.
• Principal Paid shows the amount of principal you have paid on this loan since its inception.
• Interest Paid totals the interest you have paid to date. Remember, interest is the amount you pay to rent someone else’s money.
• Balance shows what you still owe on this debt. It shows as a minus because it subtracts from your net worth.
Credit This section displays the credit cards you have entered into Quicken. If you do not have any credit card accounts set up in Quicken, you will not see this section in the Debt view. The information displays in pie chart form for the options you chose in the drop-down boxes. You see the following:
• Interest displays the interest rate being charged on each card. If it does not show, click the Set button to open the Interest Rate dialog. Enter the interest rate for the card as shown on your monthly statement, and click OK to close the dialog. You may also use this dialog to change the interest rate for the credit card. Click the current rate to open the Interest Rate dialog and enter the new rate.
• Credit Limit displays the credit limit of the card. The amount does not show if you have not entered the limit. Click the Set button to open the Credit Limit dialog. Type the amount of this card’s credit limit, and click OK to return to the graph.
You can also change the credit limit by clicking the existing value and entering a new amount.
• Available displays the amount you can still charge on this card. It is your credit limit minus the current balance.
• Balance displays the amount you owe on this card to the credit card company as of the date you set.
If you have not set the interest rate or the credit card limit on any of your credit accounts, two Set buttons appear. If you have set the interest rate but not the card limit, only one Set button appears, as seen here. You may adjust the interest rate and credit limits with the appropriate Set button.
1. Locate the account you wish to adjust and, in the proper column, click the Set button.
2. From the dialog that appears, you may set an interest rate or a credit limit. Type in the information and click OK.
You may also adjust any number that appears in blue in the graph. For example, when our credit card company complies with our request to lower our credit limit, we do the following:
1. Click the amount shown in blue in the credit limit column for the appropriate account.
2. In the Credit Limit dialog that appears, as seen here, type the new amount.
3. Click OK to close the dialog and return to the Debt snapshots in the Property & Debt tab.
Accessing Property and Debt Account Registers
To learn more about the transactions and balances for a specific account, you can view the account’s register.
• Click the name of an account in the Property view in the Property & Debt tab’s screen.
• Click the name of the account from the Account Bar.
• Click the account’s name from the Current Value graph in the Debt view of the Property & Debt tab.
With any of the three methods, the account’s register will open. The register lists all transactions entered into that account, as well as the ending balance. As with all of the Quicken registers, you can enter transactions directly into the register. Quicken automatically calculates and enters other transactions such as principal payments for a mortgage or other loans.
Viewing the transactions and entering or editing the transactions will work in all loan registers, except online loan registers. You cannot edit those registers.
Creating Alerts for Property and Debt Accounts
While Chapter 6 introduced you to Quicken Alerts, there are some special alerts that relate directly to your property.
Setting Up Property and Debt Alerts
To set up an alert, begin by opening the Tools menu and clicking Alerts Center. Click the Setup tab and choose General. Click the name of the alert you want to set from the options on the left side of the window to display its options on the right. Of the several options available, two alerts apply specifically to your property as shown next. The Reminders alerts are discussed at length in Chapter 6.
• Insurance Reappraisal notifies you before an insurance policy expires so you can either reevaluate coverage or shop for a new policy.
• Mortgage Reappraisal notifies you before a mortgage changes from variable to fixed (or fixed to variable) so you can consider refinancing. Even if your mortgage doesn’t convert, you can use this alert to remind you periodically to check for better mortgage deals.
Both alerts work in much the same way. For each alert, enter a name and date in the right side of the window. For example, to set insurance policy expiration dates, click in the Policy Name field that contains the name of the policy holder with which you want to work. You can change the name or add a new policy holder (the insurance company). You’ll see that your text appears on the right side of the box. Use your TAB key to move to the Exp. (Expiration) Date field. Enter the expiration date.
The Lender Name or Policy Name field (depending on the alert you have chosen to work with) are right justified when entering the text. That can appear odd if you are expecting the text to appear at the left side of the field.
Select one of the options at the bottom of the window to indicate how you want the alert to appear: as text in the alert list or as a pop-up dialog that appears when you start Quicken. Finally, use the drop-down list to specify the length of time the alert should remain in the list and click OK.
Repeat this process for each alert you want to set. When you’re finished, click OK.
Working with Property and Debt Alerts
Once you have established property and debt alerts, you can manage them in several ways:
• Open the Alerts Center’s Show All tab by clicking Tools and choosing Alerts Center. Select an alert and click the Delete button to remove an alert.
• In the Alerts Center’s Setup tab, you can uncheck an alert category to prevent all the alerts in that category from being displayed in any way.
• If you have made changes in the Alerts Center’s Setup tab, click OK to save your changes and close the Alerts Center window.