Active retirements start with active retirement planning

You still have plenty of time ahead of you before you retire — but today's constantly-changing markets and economy may have you wondering if you'll be able to afford the kind of active retirement you've dreamed about.

You may be wondering:

• How can I recover my portfolio losses and get back on track toward my retirement goals?
• How can I find ways to save more for retirement?
• What can I do to protect myself from future setbacks?

Here are some smart financial steps you can take right now that could help you:

• Get back on track toward reaching your retirement goals
• Find ways to save more for retirement
• Protect your retirement savings from the unexpected

Get back on track toward reaching your retirement goals

First, reconsider your tolerance for risk
Carefully consider the amount of risk you're comfortable assuming as you invest for your long-term retirement goals. Many investors find that their risk tolerance changes in volatile markets. But despite recent setbacks, you need to maintain a long-term investing perspective. So now may be a good time to meet with a financial advisor who can help you reconsider your risk profile, and guide you toward investments that are appropriate for your feelings about risk and relatively long investing time horizon.

With time on your side, equities remain your best option for long-term return. Regular investments to a well-diversified portfolio can help address market fluctuations.

Remember: The risk of being out of the markets can be high. Why? Because when stock prices are low, missing just a few of the best days in the market can have significant impact on your long-term returns.

Here is a simple investing strategy to consider:

• Dollar-cost averaging
  Investing the same amount at regular intervals — weekly or monthly, for instance — lets you buy more shares when prices are low and fewer when prices are high. This strategy doesn't insulate you from volatility, but it can help lower your cost basis because over time the average cost per share purchased will usually be lower than the average price per share.

And some investment solutions that might be right for your situation:

• Solutions with built-in advice
  Ameriprise gives you access to a broad range of sophisticated investment solutions that simplify retirement investing. A financial advisor can help you use these products to build a portfolio that matches your risk tolerance, tax situation and investment objectives

• Variable annuities
  You may also wish to explore variable annuities, which allow a variety of investment options, offer tax deferral and the potential of higher returns, let you receive periodic payments for your lifetime and guarantee payments to your designated beneficiaries if you die before making withdrawals. All guarantees are based on the continued claims paying ability of the issuing company.

  Variable annuities are insurance products that are complex long-term investment vehicles that are subject to market risk, including the potential loss of principal invested. Before you invest, be sure to ask your financial professional about the variable annuity's features, benefits, risks and fees, and whether the variable annuity is appropriate for you, based on your financial situation and objectives.

However, if you're feeling risk-averse these days, you may want to discuss these "lower risk" savings and investment options with a financial advisor:

• FDIC-insured savings accounts, money market accounts and certificates of deposit (CDs). Savings and money market accounts offer you immediate access to your money, while CDs may offer higher interest rates. With FDIC protection, all these investments offer safety.
• Structured products, including principal-protected notes and FDIC-insured, structured certificates of deposit (CDs), offer portfolio diversification and principal protection, both with minimal downside risk.

Take advantage of the tax-advantaged opportunities available to you

• Your 401(k) or other workplace retirement plan
  Today's changing markets and economy may have you wondering if it's worthwhile to put money aside in your workplace retirement plan. If your employer offers an employee match (and even in these challenging times, most do), you should fund your account to the maximum that your employer will match. That's free money, and it can add up quickly, substantially increasing your account's growth potential.

  Even if your company does not offer a match, investments in your company's retirement plan through payroll deduction can help you take a disciplined approach to saving for your retirement goals. And, investments in a 401(k) can help build your retirement assets over time.

  Tip: If you've left retirement accounts with previous employers, consider moving these assets into a Rollover IRA. A Rollover IRA offers you the convenience of having all your retirement assets in one place making them easier for you to manage.

• Roth IRA
  A Roth IRA offers the potential for tax-free growth and tax-free withdrawals in retirement. In today's economy, the flexibility offered by a Roth IRA can be a good idea. An Ameriprise financial advisor can help you structure an effective balance of tax-advantaged investments that are aligned with your retirement goals.

  Tip: Consider a Roth IRA conversion: Starting in 2010, everyone is eligible to convert an existing IRA into a Roth IRA regardless of income. While taxes must be paid on the conversion, the tax-free growth can really pay off in retirement.

Find ways to save more for retirement

• One way to save more is to reduce or eliminate debt
  Pay down or eliminate high-interest credit cards, and consider transferring your balances to a card that offers lower interest rates. Dollars not spent on interest payments can be used to invest in your retirement goals.

  Ask an Ameriprise financial advisor about credit cards that offer low rates, no annual fee, no pre-set spending limit and rich rewards.

  Tip: Did you know you that, in some cases, you can borrow from your permanent life insurance and repay it interest free if you've held the policy for more than 10 years? Depending on your overall life insurance protection (you don't want to leave your family vulnerable), you can use these dollars to pay down higher-interest credit card debt. The interest payments you save can be put toward your retirement savings.

• Sensibly leverage the wealth in your home
  Your home is more than a place to live — it's also a tool you can use to build wealth. Talk with a financial advisor about your home's value and your current mortgage, monthly budget, and cash flow needs. An advisor can show you how "borrowing smart" — by refinancing at a lower interest rate or taking out a home equity line of credit, for instance — can play a key role in helping you find additional dollars to invest for retirement.

Protect your retirement savings from the unexpected

Layoffs, disability, health care issues and other unexpected events can be a greater threat to retirement savings than market or economic changes. Many people turn to their retirement savings to cover themselves through the unexpected, and they never recover from these drains to their retirement savings. Take a more proactive approach by building an emergency fund. A financial advisor can help you determine what size emergency fund is right for your situation, and help you find appropriate saving and investing vehicles for your emergency fund.

Tip: Contact an Ameriprise financial advisor for a complete protection review. This comprehensive review can help you uncover gaps in your protection strategies.

Contact an Ameriprise financial advisor to schedule a New Perspective review. This complimentary review will provide you with an overview of your complete financial situation and clear steps you can take right now to get back on track to reaching your longer-term retirement goals.