You have two clients, a married couple, who come to you as their financial advisor for some assistance with calculating their retirement income needs. Bonnie and Clyde, both $56$ years old, estimate that they will need $$93,000$ in annual income in today's dollars to be comfortable in retirement when they retire in $8$ years. They assume a $2\%$ annual rate of inflation and an $8\%$ after$-$tax rate of return on available investments $($during the period prior to retirement$).$ They anticipate a long retirement period of $30$ years since Bonnie$$s parents are in their $90$s and Clyde's parents are $86$ and $88$ years old. They plan to readjust their portfolio after retirement and believe that their net investment returns will drop to $6\%.$ All work must be shown.

#$1.$ What is the couple$$s first$-$year retirement income need?

#$2.$ What is the total capital required to support the annual retirement need from Question $1$ at the start of their retirement in $8$ years?

#$3.$ Bonnie and Clyde reach full retirement age $($FRA$)$ at $67$ years old for the purposes of SS benefits. Their full benefit is expected to be $$30,000$ in today's dollars. Suppose the couple decided to include their Social Security benefits into their retirement calculations and began taking Social Security benefits when they retired early at age $64.$ What would the couple$$s first year of retirement income need be then?

#$4.$ Continuing with Question $4,$ what is the total capital required to support the annual retirement need at the start of their retirement in $8$ years if Social Security benefits are factored in$?$

#$5.$ Suppose Bonnie and Clyde became concerned that they might outlive their money, given that both sets of their parents have lived so long. They ask you what their total capital required would be if you calculated their needs using the capital preservation approach and not including Social Security. What amount do you tell them?