With the recent losses on Wall Street many investors are wondering if the goal of achieving a higher rate of return than can be attained with a traditional risk free savings plan is worth the sleepless nights that many are now facing. While market fluctuations are a normal part of investing the huge losses suffered in retirement plans have made it clear that diversifying your retirement portfolio is now more important than ever. By choosing high quality investment securities, having a cash reserve, and seeking ways to earn a supplemental retirement income you will be able to secure your retirement future. Many people become intimidated when it comes to their retirement planning. They believe that they will need a professional investment manager to oversee their retirement portfolio. By using the K.I.S.S. principal of investing by using common sense, patience, reasonable expectations, patience and discipline you will be able to take control of your retirement future. Keep it simple should be the basis of any investment decision you make. While planning for retirement you should focus on multiple income streams. Having only one source of income in retirement is the biggest mistake many investors make. Many people have seen their retirement savings plummet and have no extra source of income. A successful retirement strategy will include income from multiple sources. Hopefully by the time of your retirement Social Security will still be available. However, it would be wise to not plan on it as a income source and if it is still around than it will be extra retirement income. Even with the losses recently suffered in all likelihood your 401k will still be your main source of income but you should begin to seek additional sources now. As the housing market has dropped and home foreclosures have increased this has opened the door for supplemental retirement income. If you have the available funds than purchasing real estate and renting it out has always been one of the best sources of income. If you do not have much in available cash than starting a home business is another excellent source of supplemental retirement income. You can start a Internet home business with very little money and over time begin to earn substantial income from it. Depending on the type of home business you choose you may even earn residual income for many years after you retire. It is important to remember that your retirement is your responsibility. The decisions you make now, regardless of your age will effect how you are able to live in the future. If you use the K.I.S.S. principal for investing you will be able to enjoy your golden years with plenty of supplemental retirement income.