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Retirement Saving and  Investing     Overview Starting to Save   Reasons to Start Early   Getting a Late Start?   Finding Money to Invest Making Your Plan   Steps to Get Started   Investing Strategies   When You Change Jobs Putting Your Plan Into Action   Retirement Account Options at Fidelity

Finding the Money to Invest   People frequently find it difficult to save for retirement because of pressing demands on their finances. Bills, children's needs, and unexpected expenses add up to make it difficult to save for retirement. But sometimes it's the little things that count. Imagine what would happen if you put some of the money you spend going out to dinner, seeing movies, or buying on impulse toward saving for retirement. It might not seem like much at first, but these simple tradeoffs really can add up over time, as the following chart demonstrates.   Possibilities for Cutting Back Item Estimated Savings Estimated Growth* Doing "take-out" vs. dining out once a month $45/month $83,001 Spending less on dry cleaning $7.50/week $60,099 Reducing new clothes purchases $400/year $59,430 Buying cappuccino every other day instead of daily $7/week $56,092 Exercising at home vs. gym membership $300/year $44,572 Less frequent manicures $15/month $27,667 Getting a car wash every two weeks instead of weekly $12/month $22,134 Renting a video vs. seeing a movie once a month $11/month $20,289 * These hypothetical examples of savings in a tax-deferred account are based on a 9% annual rate of return compounded at the same rate as contributions over a 30 year period and are not meant to reflect the performance of any investment product. All numbers are in today's dollars. Your own investment returns may be more or less than these examples, and income taxes and penalties may be due when you withdraw from your account. You may not be able to invest the contribution at the same rate as periodic savings because of investment minimum requirements. This table is not intended to imply the performance of any Fidelity product. Saving Money From Your Budget One of the easiest ways to save this money is to take it out of your hands in the first place. Take advantage of automatic account builder programs that automatically withdraw funds from your paycheck or bank account and invest them automatically.1 Chances are, you won't even notice the small difference, but it can add up. Start Saving More Today! If you participate in an employer-sponsored retirement plan, increasing your current contribution by as little as 2% could add up to a larger retirement savings over time. Once you've maximized your contribution to an employer-sponsored retirement plan, or if your company doesn't offer one, consider saving for retirement through an IRA and other tax-deferred retirement plans.   Next Steps   Open an IRA     Contribute to an IRA Automatically   1 Periodic investment plans do not assure a profit or protect against a loss in a declining market.    Related Link Start saving for retirement through an Individual Retirement Account.  Earn 1.5% on Purchases Use this no annual fee MasterCard® credit card and earn 1.5% on your eligible purchases. Rewards are deposited into your IRA. The Fidelity Investments® Investment RewardsSM credit card.   Copyright 1998–2009 FMR LLC All rights reserved. Terms of Use  Privacy  Security  Site Map