Based on their current income, Troy and Kristy Reynolds (both 56) have determined that they will need a retirement income of $93,000 in today's dollars. They plan to retire in eight years and anticipate an after-tax return on their investments prior to retirement of 8%. They intend to rebalance their assets after retirement and anticipate a net return of 6%. Troy's parents are both in their late eighties, and Kristy's parents are in their seventies. Troy and Kristy expect retirement to last 30 years, with inflation averaging 2%.

Please read the information above! Answer the following question (explain) and show your calculation in the calculation section.

• a) How much money will Troy and Kristy require during their first year of retirement?
• b) How much capital is required at the start of retirement to support their income needs throughout retirement?
• c) The Reynolds reach full retirement age for Social Security retirement benefits at the age of 67. In today's dollars, their total benefit is expected to be $30,000. How much personal capital would the Reynolds need to accumulate at retirement if they decided to factor in Social Security and begin receiving Social Security benefits when they retire at age 64?
• d) How much additional capital would the Reynolds need to have accumulated by the time they retire at age 64 if they wanted to leave a specific bequest to their favorite charity (Wounded Warrior Project) in the amount of $2 million (actual donation at death)?
• e) The Reynolds want to know how much they should save each year to fund their retirement. For the purposes of this calculation, assume they have $162,491 in retirement savings, want to retire at 64, will live until 95, and expect to inherit $1,000,000 at 64. (Just when they are retiring). Social Security benefits are the same as previously described.
• f) The Reynolds have changed their minds and want to know how much they need to save each year to fund retirement, with a few changes. For the sake of this calculation. Assume they have $900,000 in retirement savings (from the sale of a few assets), they want to retire at the age of 62, they will live until 95, and they will not receive an inheritance. They also believe that in today's dollars, they can live on $86,000 rather than $93,000. Social Security benefits are the same as previously described.

Thank you,