The Expected Net Return on Capital aims to determine a realistically attainable total return over the long term (after accounting for taxes and fees) on the overall portfolio of household assets designated to fulfill desired capital needs. This figure also functions as the discount rate for future cash flows bringing future cash flows totals into Present Value equivalents.
Target-Maps™ does not provide individual rates of return for each asset; instead, it utilizes a single blended rate that the advisor can adjust.
It is essential to understand that "net" refers to the gain after deducting costs associated with the return. The "What you have" values assume that returns are net of investment-related expenses and ongoing taxes, allowing for a unified portfolio rate to be applied across various investment types, strategies, and vehicles.
The Expected Net Return on Capital can be set globally within the Target-Map Preferences and will be applied to all generated Target-Maps. Learn more of Target-Map Preferences here.
Additionally, it can be manually customized for a specific Target-Map during client presentations.
Learn more about Expected Net Return on Capital and other great information about Target-Maps at our weekly no-cost Target-Map seminars. 📅 Book your spot today!
Tags: present, value, discount, rate, conversation, risk, return, long, term, deficit, surplus
7/2025