As tax season approaches, we know many investors are focused on maximizing their returns while staying tax-efficient. That’s why we’re excited to introduce major improvements to the Trust account investment workflow on FrontFundr!
Investing in private companies through Registered Plans is an opportunity many investors may not realize is possible—yet, FrontFundr has been at the forefront of innovating this experience, making it easier and more accessible for both investors and issuers. Now, we’re taking it a step further by streamlining the Trust account investment process.
Historically, opening a Trust account with Western Pacific Trust Company or Olympia Trust when making an investment on FrontFundr was a manual and time-consuming process. Now, we’ve improved the experience—allowing you to create a Trust account directly within the investment flow, eliminating unnecessary steps and platform switching. Here’s what’s new:
Instead of selecting a Trust account at the end of the investment process, you can now choose this option upfront, making the experience more intuitive.
If you already have a Trust account from a previous FrontFundr investment, your plan number will be auto-selected—saving you time on future investments, provided the same Trust company is available for the offering.
Investors often asked about Trust account setup and annual fees. Now, all fee details are displayed upfront in the investment process, ensuring full transparency before you proceed.
This is the biggest enhancement! Previously, investors were redirected to the Trust company’s website to open an account. Now, all account opening documents appear directly within FrontFundr’s investment flow for e-signature.
These documents will also include details on how you plan to fund your Trust account, streamlining the funding process.
Once signed, we submit your account opening documents to the Trust company, which assigns your plan number. This plan number is then automatically added to your investment signature document, simplifying the process. Once we receive confirmation that your funds have been received from the Trust company, your investment status will be updated accordingly.
By centralizing more of the Trust account setup within FrontFundr, we’ve reduced the need to switch between multiple platforms—creating a more seamless experience for investors, Trust companies, and our team alike.
Investing through registered accounts such as RRSPs, TFSAs, and LIRAs allows you to take advantage of tax benefits while growing your wealth. On platforms like FrontFundr, you can even hold private market investments within these accounts, unlocking more opportunities for portfolio diversification. Here’s a quick breakdown of each account:
RRSP (Registered Retirement Savings Plan)
TFSA (Tax-Free Savings Account)
LIRA (Locked-In Retirement Account)
Investing through registered accounts provides several key benefits. First, tax savings help reduce or eliminate taxes on investment gains, allowing your money to grow more efficiently. Additionally, long-term growth is maximized through compound returns, ensuring your investments accumulate wealth over time. Finally, retirement security is strengthened by building a stable financial foundation for the future.
By leveraging these accounts, Canadians can optimize their investment strategy while minimizing tax burdens. If you have any tax related questions regarding registered accounts, we recommend consulting a tax professional.
If you have any feedback about the improvements to our trust process, please let our team know at support@frontfundr.com.
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