Active retirements start with active retirement planning

You're getting close to retirement, but today's constantly changing economic and legislative environment may have you wondering:

• Will I need to postpone retirement, or is it possible for me to recover my investment losses and retire when I want to?
• How can I protect my plans for retirement against the unexpected, including job loss?
• How can I feel prepared for health-care changes that could affect my retirement plans?

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

• Get back on track to reaching your retirement goals
• Protect your retirement against the unexpected
• Feel prepared for future health care and tax changes

Get back on track to reaching your retirement goals

Today's volatile markets may have you thinking about reducing the amount of risk in your retirement investment portfolio. And even if today's markets weren't so unstable, you might naturally be considering safer, less-risky investing strategies as you get closer to retirement.

But is a conservative portfolio right for you now? Maybe not, especially if you want to recover some of the losses you may have experienced over the last several years.

An Ameriprise financial advisor can help you take a bigger-picture view of your plan for retirement and determine the asset allocation that's right for your risk tolerance while positioning some portion of your portfolio to take advantage of shorter-term opportunities. An advisor can look at your current savings, work with you to re-evaluate your retirement goals, and determine an investing strategy that's uniquely tailored to help you reach your goals on your timeframe.

Some investments you might consider to help rebuild your retirement portfolio include:

• Single strategy mutual funds, which focus on specific investment objectives, such as growth. A well-balanced, diversified portfolio of funds can help you meet your goals.

  Remember: Diversification spreads your investment dollars into different asset classes, helping to reduce the risk of any single investment. Diversified investments can protect your portfolio against market volatility — and help you improve your returns.

• Solutions with built-in advice take the confusion out of selecting appropriate investments. Ameriprise Financial 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 are another option for people nearing retirement who are considering additional risk. Variable annuities 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.

  Before you purchase an annuity contract, be sure ask your financial advisor to explain the features, benefits, risks and fees, and whether the product is appropriate for you based upon your financial situation and objectives. Variable annuities are complex investment vehicles that are subject to market risk, including the potential loss of principal invested. Annuities are long-term insurance products.

You might also want to discuss the following strategies that can help provide balance to your portfolio as you move closer to retirement 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; CDs may offer higher interest rates. With FDIC insurance, all these investments offer safety.
• Fixed annuities can provide a guaranteed fixed rate of return on your investment and comfort knowing your original investment is protected, no matter what's happening in the market. Fixed annuities guarantee a minimum interest rate based on which annuity you purchase. A fixed annuity might be a good choice for you if:
  • You want the stability of a reliable return without the risk of market fluctuation.
  • You're close to retirement and want to protect your assets from the volatility of the stock or bond markets.

Other sensible steps you might want to take to help you get back on track to reaching your active retirement goals include:

• Catching up on your retirement savings contributions.
  If you're age 50 or older, you can make catch-up contributions to your 401(k) or IRA to help push your retirement saving plan into high gear.

• Roll over your 401(k).
  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.

  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, any tax-free growth can really pay off in retirement. Find out more.

• Explore refinancing your home.
  With interest rates at historic lows, now may be a good time to secure a low-interest, fixed-rate loan. A lower monthly mortgage payment could leave you with more money to invest for retirement.
• Save more by reducing or eliminating 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 meaningful rewards.

Protect your retirement against the unexpected

Protect your retirement savings from the unexpected
Layoffs, disability, needing to help your kids financially — unexpected events can be a greater threat to retirement savings than market or economic changes. Many people turn to their retirement savings to cover expenses during crisis periods, and they never recover from this drain 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 how to invest the assets in your emergency fund.

Feel prepared for future health care and tax changes

Health care
Are you concerned about all the health-care changes being discussed these days? You might want to consider meeting with a financial advisor for a comprehensive protection review. During this review, an advisor will take you through a series of questions that can help uncover gaps in your current protection plan. Then an advisor will offer you specific steps you can take to fill those protection gaps.

Tax
Have you taken a fresh look at your tax-management strategies lately? A financial advisor can meet with you to help you make sure you're aware of all the tax-advantaged investment opportunities available to you, and continue to alert you to changes to tax laws that appear on the horizon.

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, along with direction and clear steps you can take right now to get back on track to reaching your retirement goals.