**How to calculate Steve's annual retirement contribution using the Annuity method with the Dalton approach:**
1. **Calculate the real rate of return before retirement.**
The real rate of return is calculated using the following formula:
```
Real rate of return = Nominal rate of return - Inflation rate
```
In Steve's case, the real rate of return before retirement is 8% - 5% = 3%.
2. **Calculate the real rate of return after retirement.**
The real rate of return after retirement is calculated using the same formula:
```
Real rate of return = Nominal rate of return - Inflation rate
```
In Steve's case, the real rate of return after retirement is 6% - 5% = 1%.
3. **Calculate the annual contribution.**
The annual contribution is calculated using the following formula:
```
Annual contribution = Future value / (1 + Interest rate)^Years
```
where:
* Future value is the amount of money Steve needs to accumulate by the day of his retirement, which is $6,000,000 in nominal terms.
* Interest rate is the real rate of return on Steve's retirement investments, which is calculated using the Dalton approach.
In Steve's case, the annual contribution is calculated as follows:
```
Annual contribution = 6000000 / (1 + 0.03)^26 = $30845.67
```
**Conclusion:**
Steve needs to contribute $30845.67 to his retirement fund at the end of each year to accumulate enough by the day he retires.