8 ways to start rebuilding your retirement savings

You probably didn't plan on this market when you retired. So how can you rebuild your retirement savings and try to maintain your lifestyle? Stay focused on what you can control and be flexible. Then work with a professional financial advisor to determine what steps you should take. Here are a few ideas to discuss with an advisor:

1. Revisit how much you're withdrawing from your accounts.
You control the most important aspect of your retirement security: the amount of money you withdraw from your savings each year. The more you withdraw, the greater the possibility your money won't last — especially during a declining market. Consider living on less to lower your withdrawal rate, at least for awhile. Remember, there are no required minimum distributions from retirement accounts for 2009.

2. Review the timing and tax implications of your withdrawals.
Manage your taxes by reviewing your current approach to liquidating your investments. You're probably receiving income from a variety of accounts, such as 401(k)s, IRAs and annuities. How and when you take withdrawals from those accounts can greatly impact your income and your taxes. Now's a good time to revisit your approach with an advisor and tax advisor.

3. Consider working part-time.
Stretch your retirement funds by finding other sources of income, such as part-time work. If you began taking Social Security in the years before you reached full retirement age, during 2009 you can work part time and earn up to $14,160 before your Social Security payments would be reduced. Once you reach your full retirement age, you can earn as much as you like without having your benefits reduced. Keep in mind that if you have other sources of income, your Social Security benefits may be taxable. For more specific details, visit the Social Security Administration website.

4. Look at downsizing your home.
Under current tax law, you can pocket up to $250,000 in profits ($500,000 per married couple filing jointly) without paying capital gains tax from the sale of your primary residence, assuming you've owned and occupied it at least two of the five years before the sale. Plus, if you move into a smaller home, you might have lower property taxes and other expenses.

5. Look into refinancing if you still have a mortgage.
Interest rates are at historical lows, so now may be a good time to secure a low, fixed-rate loan to reduce your mortgage expenses. Refinancing could leave you with more money to meet your everyday expenses.

6. Review your investment allocation regularly.
Even though you are drawing income from your investments, you probably have a portion of your savings invested in the markets. Meet with a financial advisor at least twice a year to make sure you have the right mix of investments.

7. Protect yourself with short-term assets.
Create a buffer against market risk by investing in guaranteed, FDIC-insured products that aren't affected by market volatility. A good rule of thumb is to have enough savings to meet your income needs for three to four years.

8. Request a complimentary New Perspective¹ review today
Today's economy calls for a new conversation about your finances. Request a complimentary New Perspective review with an Ameriprise financial advisor and you'll receive a complimentary review of your financial situation plus practical steps you can take now to move ahead with confidence. There's no obligation to purchase any products or services.

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