@Blake how do you categorize the initial purchase of an asset? I understand splitting the sale into basis and gain/loss, but what about the initial purchase?
And to clarify, did you say in #3 that if one’s brokerage account is linked, both sides of these transactions tracked and therefore net to $0?
It seems people have differing opinions on how to categorize initial investment transactions. Some prefer to call it an Expense, others prefer to call it a Transfer. Both kind of make sense and kind of don’t. That what’s confusing.
What about a fourth Transaction Type called Investments, with various asset classes as Groups (stocks, bonds, notes, real estate, etc.), and actual assets as Categories (VTI, BND, ACME preferred stock, 123 Magnolia, 456 Baker, emergency fund, etc.). Seems like it would allow one to track granular Position History (as they’re just Category filters), the Transfer Type always nets out to $0, and one can set up auto-cat rules for specific asset buys.
Can someone point out the flaws in this idea? How might it go wrong? Unnecessary complexity? Is there something obvious and simple I’m missing?
Ultimately, I’m trying to bridge the gap between tracking cash flow and managing my portfolio in one place. A single source of truth. Pipe dream? Possible? How do you do it?