Invest using a Model Portfolio.................................................................................................56

110. Make a Non-Concessional Contribution with the Proceeds of your Business Sale

We recommend that you make a non-concessional contribution of $XXX to your YYY Superannuation Fund. As this is the sale proceeds from your business, you can use the small business provisions for making additional contributions to super.

Benefits:

 [15-year exemption] As you have held your business asset for 15 or more years, you will not have a capital gains tax liability to pay and the full amount of $XXX can be contributed to super without impacting the nonconcessional cap.  [Retirement exemption] You will receive a capital gains tax exemption for up to $500,000 transferred into superannuation from your sale proceeds. You may still have capital gains tax to pay on the balance. Please seek specialist tax advice for more details.  This contribution will form part of your tax-free component. This means that it will be tax-free on withdrawal, it will form the tax-free component of any pension payments and it will be received tax-free by beneficiaries upon death.  Superannuation is not means tested for Centrelink payments until you reach age pension age.

Points to Consider:

 [Under 75 super] As you are under age 75 you are eligible to contribute to Super. Please refer to the Super Flyer for criteria.  You will not be able to access this money until you meet a condition of release such as retirement.  [15-year exemption] The limit for the 15-year CGT exemption is $1,650,000. Any contributions in excess of this will count towards your non-concessional contribution cap. Normal rules apply and excess contributions may be withdrawn or they will be taxed at the highest marginal tax rate.  [Retirement exemption] The limit for the retirement exemption is $500,000. Any contributions in excess of this will count towards your non-concessional contribution cap. Normal rules apply and excess contributions may be withdrawn or they will be taxed at the highest marginal tax rate.  Non-concessional contributions can only be made if the super balance is less than $1,700,000.  Due to the complexities in these options and further considerations around your business, we strongly

recommend you seek specialist tax advice prior to acting on this advice. 111. Invest in a Portfolio via a Managed Discretionary Account (MDA)

We recommend you invest in a portfolio of direct shares, via an MDA, as part of your wealth creation strategy. We recommend use of funds from your cash / investment account to fund the purchase of this portfolio. Details of actual share purchases are provided in the next section of this SoA.

Benefits:

 MDAs allow us to create and manage a portfolio of stocks that align with your investment risk profile and personal wealth objectives.  MDAs provide timely reporting as well as access to investment research and market insights through the online portal.  As your portfolio is designed specifically for you, we have flexibility in managing your dividends, tax payments and capital gains.  By granting us a dealing authorisation, we can trade, acquire and dispose of investments on your behalf to keep your portfolio aligned to your investment objectives.  Having direct control over the stocks within your portfolio allows us to time or stagger investment decisions in response to market conditions.  Investing in direct shares will provide diversity to your overall investment portfolio.  Australian share dividend income is tax-effective where franking credits are provided.  You have the option to reinvest your dividend income back into your shares, reducing transactions costs as well as investing for further capital growth.  Holding shares directly provides flexibility as you can sell a selection of individual shares as needed. It also provides flexibility to manage capital gains tax on the sell down of your portfolio.  Corporate actions can take place swiftly on your behalf.

Points to Consider:

 Investing directly into shares increases your exposure to market volatility.  Capital growth and dividend payments are not guaranteed.  Negative returns are likely where the value of your portfolio falls to less than what you start with.