Roy and Barbara are near retirement. They have a joint life expectancy of 28.3 years in retirement. Barbara anticipates their annual income in retirement will need to increase each year at the rate of inflation, which they assume is 3.5%. Based on the assumption that their first year retirement need, beginning on the first day of retirement, for annual income will be $80,000, of which they have $35,000 available from other sources (social security), and an annual after-tax rate of return of 6.2%, calculate the total amount that needs to be in place when Roy and Barbara begin their retirement.