Planning for retirement should always start early, and there are several incentives when you start at this right time. There's a saying, "early bird catches the best worms." Same is the case with financial investments. If you start saving today, the interest you gain over the long run will be quite high, in comparison to investing at a later date. The best time to start with it is in your 20s, as you have that enthusiasm and drive to work hard and earn more. The best part of investing early is that, with time and a little bit of luck, you can accumulate a lot of money through the compound interest you earn. Mentioned below are some effective investment options that you can choose to make your future safe. Best Options Whether you are employed in a company or self-employed, you never know what the future has in store for you. You may meet with emergency situations, wherein you may need to spend thousands of dollars at one go. Yes, you may have insurance coverage or other similar products to cover you, but that may not be enough. So, it's always important to start investing at a very early stage. Some of the best savings for the same include: Immediate Annuity One of the best options, which has the potential to provide a steady income, is an immediate annuity. Of course, it depends a lot on the reputation and the strength of the insurance company you are dealing with. The benefit of such an investment is that you pay the company a lump sum amount, and in turn, it promises to pay you an income each month as long as you are alive. In case the unthinkable happens, the insurance company keeps the rest of the money. However, if you live long enough, it keeps paying you till your death, and this amount can be substantially higher than what you have paid initially. Total Return Portfolio This is another excellent option, wherein you can create an income to be used after you retire. You need to create a portfolio of bond index and stock funds, and it should be so created that you can achieve a respectable rate of interest in the long run. The best part is that you can withdraw a specified amount every year, and this amount varies and increases slightly in years when inflation is high. You can also opt to invest in Individual Retirement Account (IRA), which is another good option. Property Even though there are costs of maintaining it, a piece of real estate property can be the best source of retirement income, wherein you get a steady amount each month through rent. Moreover, the price of the property is always on the rise, and in case you want to sell it, you can get a substantial amount of money when you do so. Furthermore, you can also use this money to invest in some other financial product of your choice, which will provide you a steady income. Best Stocks If you are thinking of investing in stocks and bonds, which you can use after retirement, then it is one of the best options that you are exploring. Compared to other alternatives, stocks have always outperformed the rest in the long run. The best option to invest in is government treasury bonds, but as you may know, stocks tend to fluctuate a lot, may be even in minutes. There may be times when you buy them in good financial times, but when there is slack in the economy, you may lose that money. But then, risky investments usually pay more than safe ones, except, of course, when they fail. Any investor would demand a higher rate of return when he takes more risk and hence, stocks tend to return more. And this is also a reason for why long-term bonds pay more than short-term ones. Another lucrative option is government bonds and stocks. You can rest assured that the government would never default, and the economy of the country remains fairly strong. In case there is huge debt, the government can always print more money in case there is a need. So, treasury bonds and stocks are considered low-risk investments, but in case the interest rate increases, your return may suffer. But then, this is the case with all other options, as well. Thus, there are several alternatives for you to decide which one is best for you in context to retirement. Always remember to look at the advantages and drawbacks of each option before you zero on one. For stocks and bonds, consult to a financial adviser, so that you know all the risks associated with investing in them.