The Garcias want to retire at 66 and they are currently 36. After accounting for their expected social security benefits, you have determined that they will need an additional $80,000 every year in retirement. They both expect to live until age 100. Current rate of inflation is 3.5% annually and given their risk tolerance, the expected market return is 8.5% annually. The value of their investment portfolio is $10,000, and you should assume they will use this money for retirement. Using the capital depletion approach, how much money do they need to have accumulated as of the day they retire? (Their current income is 195,000 and WRR was not given)  

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To determine the amount of money the Garcias need to have accumulated as of the day they retire usin... View the full answer