A married couple with three young children, 5 (45), T (38), have three children, ages 7, 5, and 2. Your firm's financial planner was recommended to them by their accountant. They want you to come up with some ideas on how to make things easier and more relevant for them financially. Stee was a regional manager at Telstra before. He agreed to be laid off after working for the company for more than two decades. He bought and now runs a bakery franchise three years ago. Physiotherapist T used to be, but since the birth of their third child, she hasn't returned to work. The bakery's profits have increased year after year, allowing them to take home $200,000 in annual revenue between them. They say they can afford to live on a combined Income of $75,000 nett per year, but they'd rather not. Due to S's redundancy, they own the majority of their home, but they had to borrow $150,000 from their equity to start a bakery. As co-guarantors on the loan and as franchise owners, they are both equally liable for its repayment. They want to find out how to run the business better because they didn't get any help when they bought the franchise. S and I want to go over their retirement plans and insurance policies, as well as devise a plan for saving for their children's private secondary school tuition. No personal insurance policies are in place for S or T. Both the bakery and their home are covered by a single policy. I Both S and T lack a will. S has $190,000 in Telstra's super because he has worked for the company for a long time. T accumulated $45,000 in retirement savings as a Physiotherapist. In addition to $32,000 in cash, S and I have the remainder of his redundancy benefits. There is a 15-year timetable for their retirement. Personal financial information about $ and T has been entrusted to your associate financial adviser for analysis. A written report to you will include the findings of your analysis, as well as those you've already identified below. Q: What lump will S and T need in today's dollars to fund their retirement assuming 60% of their final salary and debt free. Assume an interest rate of 5% on accumulation funds and inflation rate of 2%.