The self managed super fund, or shortly known as SMSF, is one of the most efficient ways of saving money for your retirement days. Available for all Australians, the self managed super fund provides lot of benefits. Currently, the SMSF accounts for over 30% of all superannuation assets in whole Australia, which confirms how reliable this fund is. Setting up a self managed super fund is relatively easy, all you need to do is to follow some specific rules. You need to set up a fund in accordance with the Australian Taxation Office (ATO) rules, prepare the trust deed and open up a cash account for your SMSF. But many Australians are in doubt whether setting up a self managed super fund is better than setting up a wrap account.

The wrap services were specifically developed for the residents of Australia and New Zealand, but since 2000, the wrap account services are available in the United Kingdom as well. A wrap account is another popular solution for saving money for your retirement days. The wrap accounts are easy and simple to open, they allow you to build a flexible portfolio of managed investments and cash. You have a 24/7 access to your wrap account via online reporting service, and also you can receive consolidated reports of each investment you make.

• There are two ways of operating a wrap account:

• Investor Directed Authority – You must sign all important documents.

Authority To Operate – You allow your financial planner to sign all documents on your behalf to speed up the process.

If you want a complete control over your fund, then consider setting up a self managed super fund. However, setting up a smsf requires certain rules to be followed:

• Maximum 5 members;

• The members are trustees of the fund;

• No trustee of the fund can be a member of another SMSF;

• No trustee of the SMSF receives any compensation for the duties and services as a trustee of a fund;

When setting up a self managed super fund, you should specify the rules for traveling or working overseas. Temporary absence from Australia might not be a big issue, but if a trustee decides to leave Australia permanently, the residency requirements will not be satisfied. In such case, you can consider including another approved trustee into your SMSF. In order the SMSF to maintain the main purpose of providing the trustees with retirement benefits, the fund must be well-maintained and all requirements must be satisfied.

By setting up a SMSF, you are getting a flexible and easy to control super fund for your retirement days with which you can control all your investments and achieve great cost savings.