Hi,
New to PP, I’m trying to manage an"old" security account with PP, and I wonder how to initialize all the lines of my portfolio, especially in order to take into account the historical average purchase values. Am I suppose to use a single “buy” operation for every asset, using today’s date but entering a virtual quote corresponding to the historical average purchase value provided by my broker ? Or is there another trick ?
I noticed a “transfer” feature, but it seems to work between 2 existing PP accounts…
Hi @DaveBin,
Technically you have those three options: Manage your portfolio - Portfolio Performance Manual
So start with your preferred way.
Transfer enables you to replicate a physical change of securities from Broker A to B.
Find our more
Cheers
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Hi @Sn1kk3r5, thx for your answer.
Infact, I’m inheriting a securities account, and I do not know its whole past history of operations, I just have historical averaged purchase values (for fiscal purpose, so I’d like to record them somewhere…).
So I wonder how I can track this account in PP, tracking its performance the more accurately possible.
I saw that there is a “delivery inbound” operation that could suit my needs. But should I use the averaged purchase value as a “buy” price ? Or just the quote of the inheritance day ? I just wonder if the performance calculation is correct, regarding the historical purchase prices that are not really dated because they are by definition averaged…
Hi @DaveBin,
Well so here is the thing.
When you use the average price you need to find a good date for. Otherwise your performance is almost impossible to track.
Another option would be taking the day price from the day you start to track. This will give you the performance since you inherited the security account.
Inbound or purchase doesn’t make a difference performance wise. Advanced of inbound delivery is you do not need to maintain your cash account.
No matter what you do the complete performance is only trackable when you make use of every purchase date.
So best is to start with a given date like today and daily pricing for each security.
But ultimately it’s up to you and what you like to measure.
Cheers
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Yes you’re right. The fact is I’d like to measure the performance since I inherit and manage this account, but I also would like to keep track of the original purchase value that is taken into account in the tax calculation when I sell some assets.
Well, there’s not much, a stranger can help you with.
That’s easy and straight forward. Inbound delivery with daily quote and given amount per security.
Only feasible when you collect all the bits and peaces together.
When you start to measure your performance today and sell in let’s say two years. No matter what, all your measurements won’t be worth a penny, as the tax will be calculated from original purchase quotes. The only correct KPI’s will be the performance based on gains starting from today.
You need to define your strategy on how you will go forward. I could think of a couple options, depending on what you’d like to do.
Cheers
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Ok for inbound delivery, that’s what I did.
For the tax calculation, in France, the average purchase value is taken into account when a sell is done to tax the average benefit. This average value is usually provided by your broker, and updated every time you buy some new shares of the same asset. The calculation is quite straightforward, it does not take into consideration any time/date value but just number of shares and quotes, and seems to be the same as the one PP is doing when you give him “all the bits and pieces together”, as you said.
But I understand that if I do not provide PP with complete time/date info, it will be hard for him to compute performance on the whole period, especially before the inheritance day.
But maybe, I could enter the purchase values a few days before I inherit the account, and for any performance calculation, only ask for period starting at least at the inheritance day ? Then these performance calculations will use complete data (with precise quotes and times).
Correct.
Just take into account, when taxes comes to PP some of your KPI’s will be simply wrong.
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