Ignoring Social Security benefits, how much money should the Peytons have accumulated by the first year of retirement assuming they want to spend $202,823 at the beginning of that year. They want their payments to increase with inflation each year as stated in the case. Use their assumption on pretax average annual rate of return from the Retirement Information section of the case.

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Retirement Information Both Elaine and Archie plan to retire when Elaine turns 65. They expect their retirement portfolio to earn a 10% pretax average annual rate of return. They also expect their retirement period to last 30 years. Social Security retirement benefits for Archie are expected to be $26,000 annually at age 67, while Elaine's Social Security benefit will be $9,600 annually at age 67. Archie has not contributed to the traditional IRA in several years. ABC Company sponsors a profit-sharing plan with a Section 401(k) feature. The Section 401(k) component of the plan allows participants to defer up to 25% of salary The plan also matches $0.50 for every dollar contributed, up to 6% of salary. Neither Archie nor Elaine has ever made deferrals to the plan, but both have vested balances in the plan, as follows. Archie Elaine Vested Balance as of January 1, 2022 $80,000 $12,000 The plan allows participants to self-direct their retirement plan assets through the choice of various mutual funds. Retirement Information Both Elaine and Archie plan to retire when Elaine turns 65. They expect their retirement portfolio to earn a 10% pretax average annual rate of return. They also expect their retirement period to last 30 years. Social Security retirement benefits for Archie are expected to be $26,000 annually at age 67, while Elaine's Social Security benefit will be $9,600 annually at age 67. Archie has not contributed to the traditional IRA in several years. ABC Company sponsors a profit-sharing plan with a Section 401(k) feature. The Section 401(k) component of the plan allows participants to defer up to 25% of salary The plan also matches $0.50 for every dollar contributed, up to 6% of salary. Neither Archie nor Elaine has ever made deferrals to the plan, but both have vested balances in the plan, as follows. Archie Elaine Vested Balance as of January 1, 2022 $80,000 $12,000 The plan allows participants to self-direct their retirement plan assets through the choice of various mutual funds.

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