Question 1: You and a client are in your office discussing possible retirement scenarios based on the amount of savings the client has amassed. At one point, the client has a look of concern on his/her face, then interrupts the conversation and says, But wait, what about inflation? How does that get factored into the time value of money? Post your response to the clients question.

OR

Question 2: Your neighbor, who is not a client, sees you in your driveway and starts talking with you. She mentions that she read that the annual salary deferral limit for 401(k), 457(b) and 403(b) accounts changed from $19,000 in 2019 to $19,500 in 2020. Your neighbor, who is 30 years old, says Big deal, $500 more. Not like that will make any difference!. Although she is not a client, you want to educate your neighbor on the power of compounding and the concept of the time value of money. How would you respond to her?