Financial planning is very important for all individuals, employed or self-employed. It not only involves saving money, but also investing it wisely to generate superior returns over a period of time. Investments must be done only after considering the time horizon and risk taking ability of an individual. However, many people are confused about choosing where to invest and often end up making wrong choices which might result into a huge financial loss. So, to avoid such a situation, you should have an idea about the various ways to invest for your retirement. Real Estate If you ask me what the best way to invest money for retirement is, my answer would be the real estate. Investing in real estate involves lower risk than other forms of investments. Even though the property market has seen many ups and downs in the recent past, but over a long period, say for the next ten to twenty years, this sector is definitely worth investing in. In fact, any dip in realty prices can be used as a buying opportunity to get long-term profits. Stock Market For all those who want to invest for an early retirement, the answer would be to invest in quality stocks of blue chip companies. Over the years, equities have beaten all other forms of investments in terms of returns for investors. Annual returns from equity investments can be in the range of 25% to almost 70% depending on your expertise and the type of stocks you choose. Some people can almost get double or triple the valuations in two to three years which is mind-boggling! If you can take more risks, you can go for quality mid-cap and small cap stocks which generate higher returns than the large cap ones. Mutual Funds One of the best ways to invest money can be in diversified and large cap mutual funds. Diversified mutual funds have their investments in different stocks in various sectors. This reduces the risk for investors in times of stock market crash. The investors can also look at the sector-specific mutual funds or value funds for retirement purposes. Gold Investments Gold is undoubtedly one of the best ways to invest, considering its safety and stability in returns. These days, most gold investments are made in electronic form. This reduces the risk of owning gold personally. A common investor can buy gold at a lower cost and sell it at a higher price to get substantial profits. Fixed Deposits Fixed deposits are often referred to as the conventional and age-old methods of investments which give less returns. However, these are safe investments and hence, some portion of the total amount should go into fixed deposits. There are many banks and financial institutions offering attractive interest rates which are much higher as compared to those offered on saving accounts for those who wish to have long-term fixed deposits. Bonds Bonds are loans given to corporations by retail investors to fund their expansion plans and acquisitions. Companies issuing bonds to investors are required to pay fixed interest annually, irrespective of their financial situation. So, this guarantees good returns to retail investors. Another commonly asked question by investors is how much to invest for retirement. Ideally, you can start investing around twenty-five to thirty percent of your yearly income to get huge cash when you retire. Good luck for your future! DISCLAIMER: This article is for reference purposes and does not recommend any investments. It rather suggests some ways for the same.