Scenario Sam (35) used to work as a digital content creator for an online magazine before starting her own web design business, Creative Hive Media, a few years ago. Sam's business is doing well: she is looking into buying an office space (value: $500,000) in Woolloongabba, but she doesn't have sufficient free funds to cover the deposit. She also won a new major client in Singapore, which would require her to move to Singapore for the next 3 years. Her current super account of $45,000 is with Rest Super (Core Strategy 'MySuper' product), which charges an administration fee of $1.50 per week plus 0.10% p.a. of the account balance. The investment fee and indirect cost ratio are 0.52% p.a. and 0.09% p.a., respectively. Other than super, Sam owns an investment portfolio consisting of tech stock and over the past 5 years, she has actively and successfully traded her share portfolio to the point where it is currently valued at $50,000. The cost base of her portfolio for CGT purposes is $25,000. Since starting her business, Sam has not made any contributions to her super and is wondering whether that's something she should be looking into. She asked her uncle, who does her business accounts for her, for advice. Her uncle suggests that she and her stepbrother Jay (23), who works for Sam on a part-time basis and currently has $12,500 in super, pool their superannuation balances and establish a SMSF. According to Sam's uncle, the SMSF would provide Sam with greater flexibility to manage her contributions and greater choice regarding superannuation investments. An SMSF appeals to Sam, who would like to invest in cryptocurrency. Requirements Industry super fund alternative (10 marks) 1. To assist Sam with deciding whether to remain in her current super fund or establish an SMSF, discuss the implications of remaining within Rest Super. In your discussion consider the annual fee she would be charged on her balance, the suitability of the investment strategy of Rest Super for Sam, and any other relevant factors. Research and provide recommendations on how she can manage her super contributions to boost her super balance within a large APRA-regulated large super fund. Self-managed super fund (SMSF) alternative (15 marks) 2. Conclude whether Sam would be better off establishing and running a SMSF with Jay, as suggested by her uncle. Your recommendation should be evidence-based and consider costs, trusteeship, investment strategy, legal requirements, and any other relevant factors.