How to Read a Year-End Brokerage Account Statement
Although brokerage statements vary in design from firm to firm, most provide similar information on year-end statements, which are often the most important statements of the year. For starters, most year-end statements will outline an investor's transactions for the year, which can assist in tax filing. Additionally, year-end statements generally provide total return figures for the year, or at the very least year-beginning and year-ending account valuations.
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Instructions
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Check the front page for account valuation information. Generally, account values are placed in a very visible spot on the front page of an account statement, as this is the most important information that a statement can provide for most investors. While the most basic account statements will only list current-month valuations, most firms will provide at least the change in value from the previous month, and many will list the year-to-date account value change on the front page, particularly on a year-end statement. If you cannot find this most vital information, call your investment adviser and ask him to walk you through the statement. Even if it is not listed on the front page, it will most definitely be provided somewhere in the statement.
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Look for account transaction information. After account value, the most valuable information that most year-end statements provide is a list of transactions executed in the account for the year. This information is rarely shown on the front page of the statement, but usually is clearly labeled on a secondary page. One of the main benefits of a year-end transaction summary is that you will not have to refer to a year's worth of individual trade confirmations in order to file your taxes correctly, although you should double-check the statement entries with your own records. List each trade on your Schedule D before you transfer the net capital gain or loss information to line 13 of your Form 1040.
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Find your asset allocation. Year-end is when many investors take a closer look at their asset allocation, and how it may have changed over the course of a year. As a result, most firms will provide an asset allocation pie chart or other diagram on your statement. This information is often provided on the front page of your statement. Compare the allocation figures on your year-end statement to those from the previous year and against the allocation you devised when you created your financial plan. If your allocation has changed dramatically, you might want to discuss steps to correct this with your financial adviser.
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Check for a year-end tax summary. Although a list of transactions in the account is helpful for filling out your Schedule D, some firms will also provide a year-end tax summary which will show your net capital gain and loss for the year. Use this information to check your math and keep it as a backup reference for when you file your taxes.
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