Next, if you keep this in a savings account, then after one year, this value will become 104 (assuming 4% interest rate), but the real value will be 94 (in simple maths). After 7 years, it will have a real value of 65, but a nominal value of 128. This actually needs to be hammered in. Agents, advisors, media, etc show us the value of 128 and tell us how good that is, and how 'surely' you will get that nominal value (of course, there is least risk in a savings account), but in actual values, you have lost 35% of your purchasing power.