You may already know about how to use IRAs and 401Ks to help plan for retirement, but these are not your only options. In fact, the more diversified your retirement investments are, the more cushion you can provide against potential losses should the market turn south. Here are a few options to consider that go beyond traditional IRA and 401K accounts.

Real Estate

Real estate can be a great investment at any age, but for people about to retire, it can yield monthly income you can rely on to help cover your expenses and then some. Work with a real estate agent experienced in finding properties that are ideal for use as rentals, and if possible, use part of your savings to pay cash for the property. With no monthly mortgage to contend with, you can expect to pay just the property taxes, the cost of upkeep, and any other miscellaneous expenses for the property. Hire a property management company to handle the day-to-day operations, and you have a relatively hassle-free stream of passive income. Owning real estate also means you have a way to bequeath something tangible to heirs.

Income Annuity

An income annuity provides a monthly income you can rely on throughout your retirement. To invest in an annuity, a lump sum is generally paid to an insurance company. When your annuity is activated, it pays out a fixed amount every month. This option is ideal if you already have savings set aside but want a way to help ensure that money lasts as long as possible. Essentially, it serves as both a retirement investment and an automatic money manager. Once you activate an annuity, however, it can't be rolled back or stopped. If you aren't sure whether or not this option is right for you, consult with a financial planner first.

Cash Value Life Insurance

A cash value life insurance policy lets you build up cash value, which can then be taken out against the policy later. This option works best if you purchase a policy earlier in life, as it provides more time to accumulate the value in the policy. The cash can be taken out as a loan against the policy, or you can surrender the policy to take out the full cash value amount. You'll likely pay fees with either option, so be sure to take that into account when planning out your finances. Remember that the value of the policy can fluctuate depending on the type of policy you purchase, so be sure to discuss these different options with your insurance agent.

If you aren't sure about how to approach your retirement planning, or if you are getting a late start on the planning process, consult with a financial planner to guide you through all available options. To learn more, contact a business such as ARTAAD Financial.