by Marco Angioni II

Created on: January 14, 2008

Everybody wants to retire, yet it seems that many people have an unrealistic view of what the costs of retirement will be. If you are in your twenties, you need to be realistic about what you can expect from the government. The Social Security program has been in dire financial condition for some time now. This means that absent some kind of massive tax reform, it is more likely than not that Social Security payments will not be an income stream from which you can collect. Relying on Social Security income alone is a bad strategy, but if you are young (given the condition of the system), this strategy becomes even worse.

Put simply, the best way to maximize your retirement income is to start planning for it now. People in their twenties or thirties who plan their retirement and take action to fund their retirement could have a substantial nest egg from which they could draw income so that they can retire comfortably. Funding your retirement can involve many investment devices. 401(k)s or some other employer related retirement plan, IRAs (individual retirement accounts), annuities, and traditional savings accounts are just some of the ways you can start saving for retirement. All of these investment devices offer a wide variety of interest rates and risk thresholds so that the investor can make an informed decision about how he/she wants to invest his/her money.

The point is, in order to maximize your retirement income, you have to maximize your income streams. This means that you should invest in all (if possible) of these retirement products. However, your investment options are not limited to these products. The real estate market and the stock market are both great avenues of income production. However, keep in mind that the money you are investing is for your retirement. Therefore, if you are in your twenties or thirties, long-term, growth investments are what you should be studying. Real estate investments can give you this continuous, long-term growth and is more exciting than a savings account.

Consider all of your options and invest in many areas. When retirement comes, you do not want only one income stream from which to draw income for the rest of your life. By diversifying your investments and by investing now, you could experience a long, comfortable retirement without having to worry about whether or not the well will run dry.

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