Under the FAR® Program, Managers’ incentive or performance comp is worth more.

Tax-Deferred Investing Is a More Powerful Accumulator:

  1. You double your investment.  If you earn $1 million of IC, you invest the full $1 million rather than the after-tax amount (assume $500,000).
  2. You do not pay taxes on gains.  Your wealth accumulates at almost double the rate of return.  If your IC grows by 10%, you would have $1,100,000.  If you invested your $500,000 on an after-tax basis, you would pay taxes on your gain leaving you with only $525,000.

The FAR® Program provides a demonstrably better alternative to carried interest or performance fees.