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You have just finished helping John and Mary complete a retirement budget for expenses in 10 years time. If, in todays dollars it would cost

You have just finished helping John and Mary complete a retirement budget for expenses in 10 years time. If, in todays dollars it would cost them $50,000 to live (please ignore income tax) and the inflation rate is expected to be 3% for the next 10 years, how much is it going to cost them to live the first year they retire?

Once they retire John and Mary expects to live for 25 years. If we assume that the real rate of return on their investment post retirement will be 3%, how much will John and Mary need to save once they retire to ensure they dont run out of money (once again, please ignore income tax.)?

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