Overview
The Expected Net Return on Capital is a core setting in Asset-Map’s Target-Maps. It represents a single, blended annual rate of return applied to all investable assets within a specific Target-Map.
Rather than assigning individual growth rates to specific stocks, funds, or properties, Asset-Map utilizes this single "global" variable to project the long-term growth of the household’s total capital.
Default Setting: All Target-Map templates default to a 5% rate out of the box.
Please note: Growth is not displayed on a client's Asset-Map. There are no growth calculations on an Asset-Map.
How It Works
This setting performs two critical mathematical functions simultaneously within a Target-Map:
Asset Growth (Compound Interest): It projects the future value of current investable assets by growing them annually at the specified percentage.
Discount Rate (Present Value): It acts as the "discount rate" to calculate the Present Value (PV) of future cash flows (e.g., Social Security, pensions, annuities).
Example: If a client expects a $20,000 annual pension in 20 years, Asset-Map uses this rate to calculate what that future income stream is worth in today’s dollars, ensuring an "apples-to-apples" comparison with current assets.
What does "Net" mean?
The rate is "Net" because it should represent the attainable return after deducting:
Investment-related expenses (management fees, expense ratios).
Ongoing taxes.
Note: Asset-Map does not calculate an average rate for you based on your inputs. The advisor must intentionally select this rate based on their professional judgment of the portfolio’s blended potential.
Why Use a Single Blended Rate?
Asset-Map is designed to facilitate high-level decision-making rather than granular portfolio analysis. Using a single rate:
Simplifies the Conversation: Shifts the client focus from "Which fund performed better?" to the broader questions: "Are we going to be okay?" and "What do we need to do if we aren't?"
Reduces False Precision: Attempting to predict specific future returns for individual assets is often inaccurate. A blended rate provides a reasonable baseline for long-term planning.
Streamlines Reporting: Eliminates the need for extensive disclosure statements required when projecting individual security performance, resulting in cleaner, shorter reports.
How to Configure the Rate
Advisors can adjust the Expected Net Return on Capital in two ways:
Global Default (Advisor-Level):
Go to Target-Map Preferences.
Set a new default rate. This will apply to all new Target-Maps created moving forward.
Specific Adjustment (Client-Level):
Open a specific Target-Map.
Click the Settings or Edit button.
Adjust the percentage slider or input a number to see how changing the rate impacts that specific plan immediately.
Advisor-Client Meeting Strategies
1. Explaining the Rate
When a client asks why different assets (e.g., cash vs. equities) are growing at the same rate, explain the concept of a Blended Portfolio Rate.
Script: "Rather than guessing the performance of every single account, we use a conservative blended rate—like 5%—to represent the long-term average growth of your entire portfolio after fees and taxes. This helps us see if your total capital is enough to fund your goals."
2. Running "What-If" Scenarios
Use the Clone feature to show sensitivity analysis during a meeting:
Create a Target-Map with the baseline rate (e.g., 5%).
Clone that Target-Map.
In the clone, lower the rate (e.g., to 3% or 4%) to illustrate a "Bear Case" or "Conservative Outlook."
Toggle between the two maps to visually demonstrate how market volatility impacts their funding progress.
3. Notating Individual Asset Performance
If you must display a specific historical return for a single asset (without affecting the math), you can:
Type the rate into the Reference Name or Location field of the asset (e.g., "Growth Fund [8% Hist]").
Add the details to the Notes tab of that specific asset.
Note: These text inputs are for display only and are not calculated.
1/2026