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Steve and Tanya (both currently 56) have determined that they will require retirement income equal to $93,000 in todays dollars, based on their current income.

Steve and Tanya (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 readjust their assets after retirement and believe that

their net return will drop to 6%. Steves parents are both in their late eighties, and Tanyas parents are in their seventies.

Steve and Tanya assume that retirement will last for 30 years, and that inflation will average 2%.

1. How much income will Steve and Tanya need in their first year of retirement?

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