What is the difference between the capital gains and deferred growth return rates?
The terms “capital gains” and “deferred growth” both refer to capital gains; the difference is when taxes are applied. Typically, a capital gain is the result of the difference between the price paid for an investment and the price for which it is sold. • When a percentage is entered as a capital gain, it is the expected annual return attributed to capital gains, or the portion of capital gains that will be realized annually and taxable each year. • When a percentage is entered as deferred growth, it is the expected annual rate of return to be attributed to the growth of the investment. Taxes are not applied to deferred growth until the year in which the investment is redeemed or, in the case of a projection, at the end of the specified period.
