10 Easy Ways to Save More for

RetirementThe little things can add up!

A Quick Note Before Starting

The most effective ways for saving more for retirement involve lifestyle choices: finding your level of “Enough,” living near where you work and play, etc. But these take a significant amount of time, effort,

and planning, so they aren’t included here.

I’ll give an idea of how much extra retirement money you could save. This will assume that money saved will be

invested for 25 years and return 6% after inflation—to keep these numbers in today’s dollars.

1) Get the Maximum Match

Many employers offer a “match” for participating in a workplace retirement plan—often known as a 401(k) or 403(b).

The most common form is when an employer donates $0.50 for every dollar an employee does, up to 6%.

This is the closest thing to “free retirement money” you’ll ever see!

If you earn $75,000 per year...

The “free money” you get just this year would be worth $9,650 in 25 years.

If you did this every year for 25 years, this “free money” would total over $130,850.

Remember, this is just the match—you didn’t have to do anything but contribute to get it!

2) Open and Max Out a Roth IRA

The money you contribute to your 401(k) is tax-deductible. But when you withdraw it in retirement, you’ll be taxed.

A Roth is the exact opposite: You pay taxes now, but all growth and withdrawals in retirement are tax-free

Under age 50, the maximum contribution is $5,500. Older workers can contribute up to $6,500

The money that you put away this year will be worth $23,600 in 25 years.

If we assume that you contribute the maximum for 25 years and retire at age 67 (contributing the elevated level for 17 years), your Roth IRA would be worth $350,000 when you retired.

3) Open a Health Savings

Account (HSA) You must have a qualified

high-deductible health insurance plan.

Contribution limits: $3,350 for individuals $6,650 for families Add $1,000 if over 50

The money never disappears

HSA money is tax-deductible and can be invested and grow tax-free. It’s dispersed tax-free for qualified medical expenses.

4) Wait to Claim Social Security

Currently, you can start receiving Social Security benefits as early as age 62, and as late as age 70.

The program incentivizes waiting to collect, as those who do will see their benefits increase by about 8% for every year they delay.

Let’s assume you averaged a $75,000 salary throughout your career. Here’s how annual benefits stand today, based on the age you claim benefits:

Age 62: $20,220

Age 64: $23,370

Age 66: $26,960

Age 68: $31,270

Age 70: $35,590

5) Invest with Low Fees

ETFs or Index Funds

Mutual funds usually charge anywhere between 0.5% and 2.0% annually to manage your funds.

ETFs or Index funds often charge less than 0.5% per year.

After fees, you’ll generally get better returns with ETFs and/or index funds.

Do-It-Yourself

This usually requires a little more legwork on your part, but that’s why The Motley Fool exists!

By slowly learning how to invest for yourself, the only fees that you’ll pay will come from the stock purchases you make through your brokerage.

By now, you might be thinking…

“You’re telling me where to save money, not how to get that extra cash!”

That’s fair!

So these next five tips will focus on easy

ways to save money and put them in your retirement accounts.

6) Save That Raise

We have an awful tendency to take any raise we get and immediately increase our level of spending.

While this might provide a momentary bump in happiness, research has shown that it will only be momentary.

Hedonic Adaptation will cause you to continually want more.

Instead, bank half of your raise immediately into savings.

This simple step improves your chances for a comfortable retirement two-fold:

1. You’ll have a bigger nest egg.

2. You’ll require less in retirement to continue living the life you lead.

7) Learn How to Cook

Last year, for the first time, Americans spent more eating out than on food at home.

The average American family with a household income of $75,000 spends $3,200 eating out per year.

If we assume that eating at home is only half as expensive as eating out, that’s $1,600 in savings.

If you do this, and invest the difference, over 25 years, you’re adding $93,000 to your nest egg.

8) Switch to Republic Wireless

• In late 2013, the average household smartphone bill from Verizon Wireless was $148 per month.

• Republic offers unlimited talk, text, and data on a 3G network for $25 per month.

• Assuming 2 smartphone users in a family, using Republic represents savings of almost $1,200 per year.

• If this difference is saved and invested over 25 years, you’ll add $70,000 to your nest egg.

9) Cut the Cable

• The average monthly cable bill is $64; DirectTV is $107 per month.

• A subscription to Netflix costs $8 per month• Broadcast TV is free and can

meet most of your news/weather/sports needs.

• Average yearly savings from Netflix over cable or DirectTV are $670 and $1,190, respectively.

• Investing the difference over 25 years will increase your nest egg by $39,000 and $69,000, respectively.

10) Get those Credit Cards

Working for You• Some expenses are

unavoidable. When you know you aren’t overspending, put them on your credit card.

• If you’re willing to put a little legwork in, you can use the rewards programs on these cards to your advantage.

• Here’s a link to a great place to get started investigating these benefits.

One more thing…

…there’s a Social Security loophole I didn’t mention that could increase your benefits by $60,000.

To learn more, check out:

THE $60,000 SOCIAL SECURITY BONUS MOST RETIREES COMPLETELY OVERLOOK