Your clients, George and Jane Jetson, have come to you for assistance with their financial plan. They provide you with the following information:

George $($age $44)$

$$ Earns $$104,000$ annually working at Spacely Sprockets

$$ Contributes $$1,625$ to his $401($k$)$ each month

$$ Employer matches $100\%$ of the first $3\%$ and $50\%$ of the next $2\%$ of George$$s salary

$$ Would like to retire at age $67$

$$ Social Security benefit estimate in today$$s dollars is $$2,050/$month at age $67$

Jane $($age $44)$

$$ Earns $$31,000$ working part$-$time from home as a graphic artist

$$ Contributes $$7,750$ per year to a Simplified Employee Pension $($SEP$)$ plan

$$ Would like to retire at the same time as George

$$ Social Security benefit estimate in today$$s dollars in $$1,725/$month at age $67$

Family

$$ Children: Judy $($age $9)$ and Elroy $($age $5)$

$$ Judy has a $529$ Plan with a balance of $$23,500$

$$ Elroy has a $529$ Plan with a balance of $$12,000$

$$ $$150/$month is being contributed to each child$$s $529$ plan

Expectations

$$ George and Jane would like to have $$125,000/$year $($in today$$s dollars$)$ at retirement

$$ Neither George nor Jane expect their earnings to change before retirement

$$ Both Judy and Elroy will go to Galaxy University

o Currently, one year of tuition is $$13,200$ and they expect to pay for $5$ years of school per child

o The Jetsons believe the cost of tuition will increase at a rate of $6\%$ per year until the time both children graduate

$$ The Jetson$$s expect inflation to average $3\%$ per year during their lifetime

$$ George and Jane each expect to live to age $95$

$$ They expect their invested money to average a $9\%$ per year return during their lifetime

Additional Information about the Jetsons

$$ Current net worth is $$1,072,000$

$$ Liabilities

$$ Home mortgage: $$325,000(12$ years left at $$1,800/$month$)$

$$ Auto loan: $$17,000(2$ years left at $$730/$month$)$

$$ Credit Card: $$8,400($paying $$450/$month$)$

$$ Cumulative living expenses $($food$,$ utilities, fuel, clothing, etc.$)$: $$1,700/$month

$$ Effective income tax rate is $18\%$

Assets

$$ Home value is $$575,000$

$$ George$$s $401($k$)$ balance is $$625,000$

$$ Jane$$s SEP balance is $$95,000$

$$ Investment account balance is $$45,000$

$$ Bank CD balance is $$75,000($at $1\mathrm{.}5\%$ interest$)$

$$ Checking account balance is $$7,400$

Question: Using the Capital Preservation Method, calculate how much capital the couple needs to retire at their goal ages using only retirement account assets.