To assist with this assignment, first read the following scenario:

You have been hired as a financial planner for your friend Grace. Her current annual salary is $60,000 and she has $100,000 in her portfolio currently. She would like to retire in 25 years with a nest egg of at least $2,000,000.

Grace can save 6% of her annual salary to her portfolio, and her portfolio invests solely in an index fund that tracks the S&P 500. She is hoping you can help her plan for retirement with a better understanding of her wage growth and portfolio returns.