You can't retire these days without depending on your returns from investments. After seeing a downward trend in the nation's economy, you just can't depend on your Social Security checks to provide for your retirement expenses.

You may not be worried about these things yet because you have a nice paying job and a clean bill of health. However, have you ever stopped for a second and think that jobs and good health are not permanent and may go anytime? Are you doing anything right now to prepare for a better retirement later?

No matter how you may think about it today, you must have your own financial plans that will make your life much easier in your later years. First, you have to familiarize yourself on the kinds of investments you can start with. Here they are:

Medical and Life Insurance

Perfect health all your life will never be a reality. Most importantly, you can't live forever. Investing in medical and life insurance policies are ways of providing financial assurance to your family in the event you get sick or die. It offers valuable tax deductions and provides you and your loved ones peace of mind and financial security.

Real Estate

Investing in real estate is relying on tangible assets which include land and any structure permanently attached to that property. Other properties may refer to your home, properties for rent or lease, your own company, or empty tracts of land. If you have prime properties and excellent location, this investment may be the right one for you.

401-k Plan

401-k plans are very popular especially to working people who are preparing for their retirement. This is a savings plan funded by employee contribution and, depending on the company, matching contribution from the employer. In this plan, contributions are automatically deducted from your paycheck before taxes and transferred to your account.

Mutual Funds

Mutual funds are investments centered on the losses and gains of a shareholder. In essence, a person or a company manages the money of a group of investors and invests that money in, not one, but different stocks to protect the investment and to provide the highest gains. It's like putting your eggs in several baskets.

Stocks and Bonds

Stocks allow you invest in a company's business and, in effect, make you a partial owner depending on the number of your shares. If the company grows, you grow with it as well as the value of your stocks.

Bonds are, in essence, promissory notes issued by the government or a private company wherein you invest your money as a loan which they use for a pre-set period of time with guaranteed interest rate. This is a popular investment especially for new investors because investment losses are virtually nil.

Certificates of Deposit (CD's)

Certificate of Deposit requires you to put your investment on deposit for a predetermined time period where it accumulates interest. You can take out your investment anytime you wish without fear of penalty payment which, during these uncertain economic crises, is a welcome option to have at your disposal.