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That said, the stock market is volatile and unpredictable. And you can get them by simply buying an S&P 500 or total stock market index fund, which - with a single purchase - makes you a legitimate part owner of hundreds of the biggest companies in the world.

Those higher returns from stocks are the reason they are the investments of choice here at The Motley Fool.

Treasury bills (essentially cash): 3.3% average annualized returns.

Government bonds: 5.5% average annualized returns.

Large-cap stocks (such as those found in the S&P 500): 10.2% average annualized returns.

According to Ibbotson Associates, here are the compound average annualized returns of the main types of investments from 1926 to 2019: You can set your portfolio up for success by choosing investments that have attractive long-term returns. These tax breaks can boost your retirement savings by tens of thousands of dollars, compared to what you’d have if you’d saved in a regular bank or brokerage account.

Roth IRA/401(k)/403(b)/TSP: You receive no tax benefits on contributions, but investment returns and withdrawals are tax-free as long as you follow the rules.

But withdrawals from the account are taxed as ordinary income. Plus, you won’t owe taxes on the interest, dividends, or capital gains generated by your investments in the account each year.

Traditional IRA/401(k)/403(b)/TSP: Contributions might lower your taxable income, resulting in a lower tax bill in the year of the contribution.

What are the tax advantages of these accounts? It depends on the type: Furthermore, your employer might sweeten the deal by matching your contributions to your account. These include 401(k)s, 403(b)s, and the Thrift Savings Plan (TSP). The other accounts are offered by your employer (or yourself, if you’re self-employed). One such account is an IRA, which anyone with earned income (i.e., a paycheck) can open. Uncle Sam’s help comes in the form of accounts with special tax advantages. Uncle Sam and maybe your employer also want to help out. You’re not the only person who wants you to eventually retire.

Since the average household devotes 13% of its budget to food, that’s almost 4% of annual earnings going in the trash. Food: According to the Department of Agriculture, Americans waste 30% of the food they buy.Getting a car to 200,000 miles saves $30,000 on average, according to Consumer Reports. The key to driving down these costs: Buy small to midsize fuel-efficient vehicles, and keep them for 10 to 15 years. Consumers are taking out bigger, longer-term loans to afford these cars, and in many cases still owe money on a car when they replace it. Transportation: According to Kelley Blue Book, the price of a new car is almost $40,000.

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Buying or renting only as much space as you actually need, and in locations that are not highly priced, can free up hundreds of dollars each month. Housing: According to the Department of Labor, housing expenses eat up a third of the average budget.While every little bit does indeed help (when compounded over decades), your financial destiny is more likely determined by how much you spend on the three biggest categories in the typical American’s budget: You’ve likely heard of financial gurus claiming you could be a millionaire if you give up your daily latte. A key to a secure retirement is limiting your current consumption in order to fund that future consumption.