For commercial real estate appraiser Dennis Lawton, retirement will simply have to wait.

The Snellville, Ga., sole-proprietor has recovered about 20% of the retirement savings he lost in the stock market crash, but work is slow and he s been unable to set aside much in his retirement accounts.

At the moment, his main savings vehicle is a simplified employee pension, or SEP IRA. In 2010, sole proprietors can contribute as much as 20% of their net business profit -- business income after expenses and less half of the self-employment tax -- up to a maximum of $49,000. If a company is incorporated, its owners can contribute up to 25% of their salary in 2010. In other words, even if Lawton, 65, wanted to contribute more to his SEP IRA, he is limited by his own income -- which has fallen by roughly 25% to 30% since the downturn.

To weather this predicament, Lawton who already works from home has had to cut back both professionally and personally. I now shop according to specials, he says. In addition, Lawton has put off upgrading his computer and other equipment. Who knows what is going to happen? Do I invest this today and not get enough sales to offset my purchases?

Lawton is also taking a slower, more conservative approach to investing his savings. By sticking mainly to fixed-income investments like bonds and bond funds rather than stocks, Lawton realizes that he may be missing some of the market s upside. However, he refuses to part with more of his principal. My intent is to try to grow my savings, without losing what I have today, he says. I would love to double what I have, but for someone my age, I can t afford to watch my money disappear.

Q&A

For older business owners and workers alike, regaining lost retirement savings can be tricky -- especially since the stock market has been so volatile lately. Still, rebuilding your portfolio is possible. Here are four investment strategies:

Should older or risk-averse investors steer clear of stocks entirely?

Most people over 50 should not be 100% invested in stocks, says Joe Gordon, managing partner at wealth advisory firm Gordon Asset Management in Durham, N.C. Seems like a simple enough idea, but depending on who you talk to, he says older investors who lost big during this past downturn were probably too heavily invested in the stock market. Instead, these investors should seek out a more balanced approach. They should even underweight their exposure to stocks, he says. That said, a number of companies are looking better than ever these days. Close to 75% of all the companies reporting are growing earnings and most are growing top-line revenue, he says. We ve even switched some clients into large, global blue-chip companies that issue dividends, have a good international presence and great balance sheets.

Beyond solid, blue-chip firms, what kinds of investments should an older or risk-averse investor consider these days?

Even though the bond market has shot up as risk-averse investors fled the stock market in the last couple years, Gordon thinks there is still some upside potential in bonds. In particular, he suggests looking to high-yield debt and multistrategy bond funds. In addition, he likes emerging market debt. When you look around the world and you see that western, developed countries are somewhat at risk for sovereign-debt defaults, consider alternatives, he says. Many developing countries have higher credit ratings relative to investing in developed nations. For instance, he suggests looking to Australia and Norway as those are two countries that seem to have their financial houses in order.

How about investors who want just a bit more risk?

For these types of investors, we like utilities, says Gordon. After all, you know people aren t going to quit eating and using energy, he says. Specifically, investors should look into pipeline stocks, or more specifically, tax-advantaged securities called master limited partnerships. MLPs like Kinder Morgan Energy Partners (KMP) and Enterprise Products Partners (EPD) have exchange listings, like normal corporations, but they pay no income taxes as long as they distribute more than 90% of all income directly to investors. In addition, pipelines are fee-for-service businesses that offer a pretty consistent income stream. The company s contracts tend to be longer term, as are their assets. (For more on MLPs, see our story on investing in pipelines

What about investors interested in conserving their current retirement savings?

If you re retiring in five years, and you re interested in principal protection, consider purchasing a retirement annuity that has a guaranteed minimum withdrawal benefit (GMWB), Gordon suggests. Specifically, this investment option offers to protect retirees savings against the market s downside by allowing them to withdraw a certain percentage of their entire investment each year for life, including spousal income for life. Some GMWB s compound your original investment at 6% each year until you turn on the income switch, he says. Even variable annuities, which allow investors some upside potential, can be a good option for some people, Gordon says. While these types of investment might be a good resource for some investors, it is controversial and has some downsides that investors should explore, including fees. (For more details, read our story on annuities Indeed, an annuity is not a panacea for everybody, Gordon says. But for people who can t afford to lose, a little guarantee can go a long way.