SalaryAsha $102,000 Salary John $80,000 John and Asha would like to retire at age 65. They expect their living expenses in their first year of retirement to be equivalent to 70% of their current earned income (as adjusted for inflation). They assume their life expectancy in retirement will be 30 years. Social Security $2,100 John and $2,600 Asha.

The Patels are looking to retire at age 65, as described in detail in the RETIREMENT INFORMATION section of the case study. What balance do they need on the first day of retirement to support this goal, taking their Social Security benefit into account?

Assume a 7% investment return on their retirement portfolio before they retire and a 5% return after they retire, and that inflation will average 3% for their entire lives.

Please include your calculator steps and inputs in your answer