From The Wal lStreet Journal via Yahoo Finance:
Conventional wisdom usually advises older investors and retirees to balance a portfolio of bonds, stocks and annuities to squeeze the most from their savings during the third stage of life. Read more
But recent events on Wall Street and in Washington, including a booming stock market and Federal Reserve warnings about "tapering" its easy-money policy, suggest those investors may need to junk conventional wisdom and think again.
Stocks may be too expensive, while bonds are likely to fall as the Fed pulls back and interest rates rise. The best asset for many investors right now may simply be cash—money-market funds or short-term certificates of deposit. That's especially true for retirees, who rely on their low-risk investments for both income and capital preservation.
As a friend once told me, "Boring gains beat exciting losses". Ken's work offers some opportunities to earn higher rates than are generally available. If the rates don't beat inflation, at least one is preserving capital.