Bill and Jill own and operate a bakery under a franchise arrangement. The business is valued at $100,000, which is made up of $60,000 plant (depreciated value) and $40,000 goodwill. They own the land and premises for their store as joint tenants, which is currently valued at $700,000. There is no debt over this property. While Bill, aged 59, works full time in the business, Jill aged 57, is employed full time in the public sector. Under the award that sets her conditions of employment she is entitled to a base salary of $200,000, with superannuation of 12% payable in addition to her base salary as long. as the contributions are paid to the Public Sector Superannuation Fund. Under the terms of the Public Sector Superannuation Fund she also pays a personal contribution of 5% of her base salary, which is currently salary sacrificed. Her current balance is $1.3m in the defined benefit division. She has life insurance and income protection insurance through this fund. Bill currently has superannuation of $150,000 in a retail fund. He makes contributions up to the concessional cap each year, depending on the business profits, and claims a tax deduction. They also have investments of $400,000 in managed investments outside the superannuation environment. They do not consider themselves to be sophisticated investors and are generally happy to rely on strategies set by fund managers. They have not made any non-concessional contributions over the last three years. Bill and Jill have an adult daughter, Leah, who has studied business and finance at university. She has a superannuation balance of $20,000 in a defined contribution fund. Jill's sister has recently died. She had a superannuation account with a balance of $800,000, with Jill as the nominated beneficiary. The account is 70% taxable and 30% non-taxable components. Bill and Jill have been told by "a mate at the pub" that they could do much better if they set up a selfmanaged superannuation fund because they could "run their business through the SMSF". Required: Advise Bill and Jill on the following issues: 1. What are the advantages and disadvantages of setting up a SMSF and would you recommend it