Aaron is a 32-year-old IT professionalwho lives in a rented apartment in Adelaide with hisstep-brother Tobywho is 20. At the age of 18 Aaron'sfather encouraged himto invest a small amount of money in shares and over the years he has actively and successfully traded hisshare portfolio to the point where it is currently valued at $165000. The cost base of hisportfolio for CGT purposes is $88000.The current balance in Aaron's industrysuperannuation fundwas$172000. On thelast statement from hissuperannuation fund Aaron noticed that the indirect cost ratio was 0.61%and investment fees was 0.21%. The fundchargesan admin feesof $78per yearplus 0.19% of theaccountbalance. Aaron is considering establishing an SMSF but is unsure whether the costs of establishing and running an SMSF would be less than the costs charged by hisindustry fund.As Toby has recently started working as an apprentice mechanic, earning $55000 a year, Aaron is wondering if it is advisable for Toby to join his SMSF if he were to set up one.If Aaron does establish an SMSF he would like to contribute hisshare portfolio as an in-specie contribution which he would continue to actively manage inside hisSMSF. Aaron is planning to then use the share portfolio in his account as a collateral to enterinto margin loan with his bankto buy more shares. He also has an uncle who knows a bit about accounting but nothing about SMSFwho has offered to help Aaron set up and run hisSMSF.Requirements Your task is:(a)Firstly, provide evidence-based research to compare the relative advantages and disadvantages of Aaron remaining in an industry fund versus moving into a SMSF. Your findings should include a comparative cost analysis. (10 marks)(b)Secondly, research and provide Aaron with recommendations to guide himin managing hissuperannuation savings.(10 marks)Yourrecommendationsin (b)should give consideration and appropriate discussion to eachof the followingareas:If Aaron was to sell the share portfolio and contribute the full sale proceeds to hisindustry fund as a non-concessional contribution,what would be the approximate annual cost applied by the industry fund to Aaron's account?What are the CGT consequences of contributing the share portfolio to the SMSF?Will Aaron be able to contribute hisshare portfolio to the SMSF and be able to avoid any excess contribution tax penalties?Will Aaron be able to borrow through a margin loan to leverage his funds?What factors are likely to impact on the cost of establishing and running an SMSF for Aaron?What factors besides costs does Aaron need to take into account in determining whether or not he should establish an SMSF?What issues need to be considered when setting the fund investment objectives and strategies?