Your clients are both 34 years old, want to plan for retirement at age 66, and both want to plan to age 100. They have a household income of $154,000, which they said (for planning purposes) to assume it increases by inflation as it will keep the plan more conservative. They currently have a total of $72,723 saved for retirement purposes, but are saving 15% of their household income, including company matches, into employer-provided retirement accounts.

You and the client have agreed on the following assumptions: Inflation = 2.85% Investment Return = 7.20% Wage Replacement Ratio (WRR) = 65% No legacy asset

a. How many years do they have until retirement? Said another way, what is their remaining Work Life Expectancy (WLE)? (enter just the number)

b.How many years will they have in retirement? Said another way, what is their Retirement Life Expectancy (RLE)? (enter just the number)

c. How much are they currently saving each year?

d. What is the retirement income need they will need to withdraw from their portfolio to support their first years living expenses upon retirement (hint: Step 2)

e. If they dont change anything, how much will they have in their retirement accounts to begin retirement with?

f. If they dont change anything, how many years will their portfolio last in retirement? (round to two decimals).

g. How much in assets do they need to start retirement with in order to achieve their goals?

h. What annual savings amount do they need to hit in order to achieve their retirement goal?

i. What rate of return do they need to achieve in order to meet their retirement goal?