Ep 326: Part 2: Pros and cons of using a wrap to invest your super

Investopoly

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In this episode, Stuart Wemyss explores the benefits and drawbacks of using a wrap account to invest in superannuation. He explains that wrap accounts offer a similar level of transparency and control as self-managed super funds (SMSFs) but with lower costs and fewer administrative burdens.
Stuart describes a wrap account as an investment platform that provides a wide array of options, including shares, ETFs, and managed funds, allowing users to build a diversified portfolio. It simplifies tax reporting, compliance, and performance tracking. One of the key benefits is tax efficiency—investors can avoid capital gains tax by holding assets long-term and transitioning to a pension phase upon retirement.
However, wrap accounts come with administrative and investment fees, which, while lower than SMSFs, still need to be considered. Stuart advises that wrap accounts may be suitable for individuals with over $1 million in super, those confident in managing their investments, or those seeking financial advice. He also mentions Hub24 and Netwealth as highly rated platforms, though most wrap accounts are advisor-driven.
Ultimately, Stuart suggests wrap accounts are a solid option for investors seeking flexibility without the complexities of an SMSF.

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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.

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