Dave is 35 years old and Margaret is 37. Dave earns $43,000 per year and Margaret $52,000 per year. They would like to retire when Margaret is 66. Social security will be $21,000 each in today’s dollars. Dave has a 401(k) with a balance of $62,000, is saving $500 per month while earning 6.3% per year. Margaret has a 457 (this is another type of Retirement Plan that is similar to 401K. However, I think this is irrelevant to determine the answer to this problem. Our professor enjoys making these problems more complicated than what they really are by adding verbiage that doesn't really apply to the case) with a balance of $78,000, contributing $375 per month and is earning 7.8% per year. Inflation is at 1.8% and you should plan on age 100 for both. They would like to retire with $145,000 in today’s dollars in their first year of retirement. How much will they need at retirement? Can they reach their goal, if not what should they do? What rate of return will they have to achieve in retirement to maintain their goal with inflation?