Matt and Ashley Smith (both currently 56) have determined that they will require retirement income equal to $93,000 in todays dollars, based on their current income. They plan to retire in 8 years and wish to assume an after-tax return on their investments, prior to retirement, of 8%. They plan to re-asses their assets after retirement and believe that their net return will drop to 6%. Matts parents are both in their late eighties, and Ashleys parents are in their seventies. Matt and Ashley assume that retirement will last for 30 years, and that inflation will average 2%.

For purposes of Social Security retirement benefits, the Smiths reach full-retirement age at age 67. Their full benefit is expected to be $30,000 in todays dollars. If the Smiths decided to factor in Social Security and begin taking Social Security benefits when they retire at age 64, how much personal capital would they need to accumulate at retirement?