You have worked your whole life and have been able to build an estate worth $$7$M$.$

Part of this is your house and other tangible assets, but $$5\mathrm{.}5$M is cash invested in stocks and bonds.

You have planned to be able to live on the proceeds of this $$5\mathrm{.}5$M portfolio and leave $$2$M to each of your three children in $25$ years.

Your advisor has estimated that your annual expenses of home maintenance, taxes, living, travel, and recreation is $$300,000$ per year.

What kind of return will you need to have on this $$5\mathrm{.}5$M to accomplish your plan?

$4$a$.$ At year $10,$ the securities market experienced a sharp reversal and your portfolio declined $30\%.$ What kind of return will you need for the remaining $15$ years in order to meet your retirement plan? Show all your work.