Self-Managed Super Funds vs Self-Managed Super Wraps

There is a huge difference between the self-managed super funds and the self-managed super wraps. And, if you don’t know what the difference is, then it is going to be hard to decide which one you should consider. These are some of the differences between the SMSF and the SMSW that you need to know.

What is the main difference between them?

Before you can decide which one to choose, you need to make sure that you know what the difference is between these two funds. The one is SMSF and the other one is the SMSW. This is basically the same type of fund with just one main difference.

With the SMSW, you are still working with a broker or advisor. This means that you will have more chances of making a success of this fund. You will also be able to know for sure that there is someone that you can go to when you are struggling. With the SMSF, you are working alone. All the money that you are making is your own, but you will not have the benefit of having an advisor when needed.

Benefits of the SMSF

With the SMSF or self-managed superannuation fund, the main benefit is that you are working alone. You don’t need to pay anyone broker’s fees. The decisions that you are making are all just your decisions. Good or bad decisions are all just your own fault.

The growth rate of the SMSF is much higher, because there aren’t any fees payable to a broker or advisor. You also don’t need to hire an accountant to assist you with the financial aspects.

Benefits of the SMSW

There are also a couple of benefits that you need to know about the SMSW or the self-managed super wrap. You are going to have people behind you that are going to assist you when needed. They are going to make sure that you aren’t losing money instead of getting a profit and making your retirement fund growing.

With the services of an accountant and an advisor that you need to hire, the chances of failing are really slim.

Which one should you rather consider doing?

You should be really careful when you are deciding if you want to go for the SMSF or the SMSW. This is because with the SMSW, you are still not doing everything alone and you are still not making all the decisions. You need to hire an advisor for advice and an accountant. If you want to manage your whole retirement yourself, the SMSF is the much better option than SMSW.

SMSF or SMSW? Which one is going to be best for you? Before you can answer this question, you need to know what the difference between these two actually is. This is the only way to know which option is going to be best for you personally. Most people prefer choosing SMSF, but if you are considering SMSW this don’t mean that you are making the wrong choice. There isn’t a wrong or right answer; just that the SMSF gives you more freedom about your retirement fund.