Client Background: Your new client is Sarah Thompson, a vibrant 54-year-old with a passion for adventure and a meticulous approach to planning. As she embarks on the journey towards retirement, she envisions a life filled with new experiences and opportunities. Her desired retirement age is 64 , and she aims to make the most of her golden years until a projected life expectancy of 98 . Currently working, Sarah's annual expenses amount to $47,000, encompassing her day-to-day needs and the occasional indulgence. She diligently manages her finances and has accumulated retirement savings of $67,835, a sum she has carefully nurtured over the years. Additionally, she expects to receive an inheritance of $200,000 at the age of 64 , providing a substantial boost to her financial resources just as she embarks on her retirement phase. However, Sarah's aspirations reach beyond her personal well-being. With a heart for giving, she dreams of leaving a lasting legacy by donating $2,000,000 to a cause close to her heart upon her passing. Amidst her aspirations, Sarah is also considering the role of Social Security benefits in her retirement plan. She is aware that her full retirement age for Social Security is 67, at which point she could receive a benefit of $30,000 (in today's dollars). Contemplating different scenarios, Sarah ponders the possibility of retiring at 64 and incorporating Social Security benefits from that age onwards. Balancing her desire for a fulfilling retirement and a meaningful legacy, Sarah seeks to determine the optimal financial strategy. With an annual inflation rate of 2%, preretirement investment returns of 6%, and a projected retirement interest rate of 4%, Sarah understands the importance of a comprehensive approach to her financial planning. As she steps into this pivotal phase of her life, Sarah looks to navigate the intricate landscape of retirement preparedness with strategic foresight and informed decision-making. Your Task: (Explain your answers in detail, providing support from the textbook or other relevant sources. Your answers should be formatted as a report you are preparing for your clients' financial planning team, so be professional and thorough.) 1. How much income will the client need in their first year after retirement? 2. What amount of capital is necessary at the start of retirement to support their income needs throughout retirement? 3.For purposes of Social Security retirement benefits, the client will reach full-retirement age at 67 . Their full benefit is expected to be $30,000 in today's dollars. If they decide to factor in social security and begin taking social security benefits when they retire at age 64 , how much personal capital would they need to accumulate at retirement age? 4.If they wanted to leave $2,000,000 (actual amount of donation at death), how much additional capital would they need to have accumulated at the time they retire at age 64 ? 5. They would like to know how much they need to save each year to fund retirement. For purposes of this calculation, assume they have accumulated retirement savings of $67,835, they want to retire at age 64 , they will live until age 98 , and they expect to inherit $200,000 at the age of 64 (just when they retire). Social Security benefits are the same as described above