You have met with your clients a few times and are now ready to do their retirement needs analysis (RNA). The couple, filing Married Filing Jointly (MFJ), are both 39 years of age and expect to work another 23 years. They both plan on living to age 93. He currently earns $60,000; her $58,333. Returns are expected to be 8.2% and inflation 3.1%. You and the clients have determined that they will cut $47,234 of their current expenses out upon retirement, but that they will see an increase of $21,200 in other areas.

Given the information above, please calculate the following for your client:

1. What is your client's Wage Replacement Ratio?

2. How much will they need to have saved at retirement to retire based on their WRR?

3. How much will they need to save each year from now until retirement to retire comfortably?

4. How much will they need to save each year from now until retirement if they currently have saved $125,000 jointly in their 401(k)'s and ROTH IRA's?

5. If they currently have $400,000 saved, what annual rate of return do they need to earn, if they save $2,500 per month from now until retirement ?