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.

Given information:

Current income: $182,000

Expected living expenses in retirement: 70% of current income

John's monthly retirement benefit: $2,100

Asha's monthly retirement benefit: $2,600

Life expectancy in retirement: 30 years

Investment return before retirement: 7%

Investment return after retirement: 5%

Inflation rate: 3%