Your friend is 20 years old and wants to save for his old age as he doesn’t have a salaried job but has started his own consulting business after Varsity. He is extremely cash strapped at present, and invested all the spare cash into the business which “seemed” to be going well until Covid hit. He hopes that in a year’s time the situation will be back to semi-normal, and that he can actually start saving something starting on his 30th birthday. He doesn’t want to start a retirement annuity as he “wants to be flexible in case he needs cash for the business”. So he wants to make monthly deposits of R3 000 into a savings account (starting ON his 30th birthday). Then every 3 months (business allowing), he wants to “take out” R5 000 and pay it in. Then once a year, he wants to take part of the profit and pay in this R20 000 starting on his 31st birthday, this annual part of the profit increasing at hopefully 6% every year. The account is earning interest @6.5 pa, compounded daily. Assume that he has to annually pay tax on any interest received at his marginal rate of 40% and that he wants to retire at age 60, when he also envisages that he can sell the business “at a tidy profit”. Do you believe that he will have enough money to actually retire? Discuss, quantify as much as possible, and advice your friend.