Retirement Information Brad and Ashley would both like to retire when they are 65 and 64 years old, respectively, and they expect to be in retirement for 30 years. They would hope to have $75,000 per year of pretax income in today's dollars during retirement. They do not want to rely on Social Security benefits for their retirement planning. Any money received from Social Security will be considered extra income. Brad does not participate in the Section 401 (k) plan available through Moore & Moore. In the plan, the firm matches $0.50 for every dollar contributed, up to 6% of his contribution (if he contributes 6% of his salary, the company contributes 3%). Brad may defer a maximum of 16% of his salary. Ashley is enrolled in a defined contribution plan in which the school contributes 7% of her salary and she contributes 3%. The plan provides several investment options: bond funds, stock funds, and money market accounts. She has chosen to invest this contribution in fixed instruments (bond funds). The plan has a 2- to 6-year graduated vesting schedule, and she has been a participant for four years. The total balance of her account is $16,500. Although she has not participated, the school also offers a 403(b) plan for salary deferrals. There are no employer contributions with the 403(b).

How much would they need to save monthly to fund their retirement goal? Assume an 8% investment rate. (Please post formula and steps)