Verifying Investment Statements

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littlewintered
Posts: 22
Joined: Fri Apr 22, 2022 8:44 pm

Verifying Investment Statements

Post by littlewintered »

I apologize if this question has already been asked. But my search on bogleheads didn't turn up the question/answer I was looking for. How rigorous do we need to be about verifying statements from our financial custodians are correct?

I've always downloaded my 401k and 529 statements and just set them aside because the specialized financial products they offer, which I'm invested in, is opaque, and I don't think I can look up data like dividends and capital gains. Even the historical daily price for their specialized financial products is difficult to access. (I can't directly invest in products like VTSAX in my 401k or 529 without paying extra.) Is it ok just to take it on faith that account custodians like Fidelity is doing housekeeping correctly and will not fudge anything up?

Also, how about in brokerage accounts? Should we take the trouble to verify things like purchase price, dividends, and capital gains are correct? I currently do this but was wondering whether it's necessary.

TIA
jebmke
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Re: Verifying Investment Statements

Post by jebmke »

I review all the transactions. If I have a trade, I compare with the confirmation but I trade very infrequently. I don’t worry about month end prices since those are stale. Share balances are the more important data.
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jimkinny
Posts: 1856
Joined: Sun Mar 14, 2010 1:51 pm

Re: Verifying Investment Statements

Post by jimkinny »

I have never tried to verify, from an outside source. that the dividends or capital gains on a 401 were accurate. I never considered the investments that I had opque. I used to scan the statements to make sure my contributions were all accounted for. I have most of my investments now at a major brokerage and I just review transactions and I do not think that is even necesary.
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BolderBoy
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Location: Colorado

Re: Verifying Investment Statements

Post by BolderBoy »

jebmke wrote: Mon Jun 05, 2023 4:50 amI review all the transactions. If I have a trade, I compare with the confirmation but I trade very infrequently. I don’t worry about month end prices since those are stale. Share balances are the more important data.
This. I do this every month when I get my VG household statement.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
Doctor Rhythm
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Joined: Mon Jan 22, 2018 2:55 am

Re: Verifying Investment Statements

Post by Doctor Rhythm »

I mostly only confirm manual transactions by checking account activity a few days later. This is because I don’t trust myself not to screw up something.

I don’t confirm automatic transaction such as monthly contributions from payroll deduction. I don’t reconcile balances, shares, distributions or returns. I couldn’t tell you how many shares I own within an order of magnitude.
delamer
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Joined: Tue Feb 08, 2011 5:13 pm

Re: Verifying Investment Statements

Post by delamer »

With Quicken, I enter transactions in one process and update share prices in a separate process.

Using that information, I can reconcile my totals in Quicken against my totals at my broker.

I don’t go to the extent of confirming my total dividends earned are correct based on shares owned and earnings per share.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
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DeliberateDonkey
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Joined: Fri Dec 24, 2021 9:41 am

Re: Verifying Investment Statements

Post by DeliberateDonkey »

I believe this is somewhat of an exercise in futility. While it is reasonable to monitor your accounts for fraud, it would be exceptionally rare to identify a transaction, handled entirely electronically, which was processed incorrectly by a broker. It may be helpful to examine these, for example, to understand specifically when distributions are paid or reinvested, but I'm not sure what type of errors folks hope to catch and what the proposed remedy would even be.

Employer-sponsored accounts are one type which may be worth additional scrutiny, not because of potential errors on the part of the broker, but to ensure that the employer is depositing funds in a timely manner. Even then, you are more likely to catch wind of disappointing policies than an actual breach thereof.
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