Add a new investment account to Savings & Investments

Add a new investment account to Savings & Investments

1 Go to the Savings & Investments Accounts place.

1 On the navigation bar (The strip at the top of the Money screen where you can click to go to the different areas in Money.), click Planner.

2 Click Lifetime Planner.

3 In the left pane, click Savings & Investments.

4 In the left pane, click Accounts.

2 At the bottom of the screen, click New Account.

3 Follow the instructions on the screen.

What if I donÆt track my investments very well?

You can still have a valid financial plan without having to balance all of your accounts. Enter estimated values for your account balances. Be sure to update your estimates from time to time.

What if I donÆt know the cost basis for my investments?

ItÆs OK to estimate. The difference between what you sell an investment for and its cost basis determines your capital gain or loss. If you enter zero for cost basis, therefore, you may find yourself with an overly-pessimistic forecast, because the Planner will assume you're paying excess capital gains tax.

How do I plan to start saving in the future?

Add a contribution to the Savings Contributions place (in Lifetime Planner). Pick a date in the future when you think youÆll start saving, such as the end date of your Debt Reduction Plan. See Enter a new contribution for more information.

How do I convert a future account into a current one?

You canÆt convert an account that you have planned for the future into a ôrealö account. Delete the future account and then create a new one to replace it. Note that when you delete your future account, any future contributions youÆve planned will also be deleted.

How do assets figure in?

You wonÆt find houses or other assets included in the Savings & Investments Accounts place ù and you wonÆt be able to add them ù because theyÆre not liquid. You canÆt spend the money youÆve put into an asset such as a house until you sell it. To include the sale of an asset in your plan, enter a planned future sale in the Houses & Assets place (in Lifetime Planner). See Change the sales information for your house or other asset for more information.

What if my kids have money in an UTMA or Education IRA?

If your children have savings, you can include those accounts in your plan. Follow the instructions of the New Account wizard for creating an account, then tell Money that your children are the owners. Funds earmarked as your childÆs are not available for plan goals other than college expenses.

Is my Education IRA tax-deferred?

Money that you invest in an Education IRA grows on a tax-deferred basis. If you withdraw money for qualified higher education expenses, the money may also be withdrawn tax-free. If you qualify for an Education IRA, you can contribute up to $500 per child annually until the child reaches 18. However, your contributions are not tax deductible.