The Expected Net Return on Capital is an attempt to establish a reasonably achievable total return over a long term (net of taxes and fees) on the aggregate portfolio of household assets that are being made available to meet desired capital requirements. It also serves as the Discount rate for future cash flows.

Target-Maps cannot provide a separate rate of return for each asset. Rather, Target-Maps use a single blended rate.

It is important to note that "net" refers to the gain after costs associated with the return. "What you have" values make an assumption that the returns are net of investment related expenses and ongoing taxation in order to use one singular portfolio rate across all investment types, strategies and vehicles.

The Expected Net Return on Capital can be set globally in Target-Map Preferences and is used on all Target-Maps generated.

It can be adjusted manually on a specific Target-Map during presentations.

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Tags: present, value, discount, rate, conversation, risk, return, long, term, deficit, surplus

10/2022