Joe, who is married $($Julia$,$ age $34)$ and the father of one $($age $4),$ is $38$ years old and expects to continue to work until age $67.$ He earns $$90,000$ per year and expects annual salary increases of $2\%.$ Fred expects inflation to be $3\%$ over his working life, and the appropriate risk$-$free discount rate is $6\%.$ His personal consumption is equal to $18\%$ of his after$-$tax earnings, and his combined federal and state marginal tax bracket is $25\%.$ James and Teresa have set the following goals and assumptions:

$\backslash$table$[[$Income needed $-$ readjustment period $(1$ yr$.),$$$75,250$