Can Short-Term Safe Investments Keep Pace with Inflation?

That is what you usually hear with retirement advice.  That CDs and safe investments cannot garner enough of a return by the time you retire.  The thing that is missing with these type of investments than stocks is the capital appreciation factor.  You are solely relying on interest payments with these super safe investments.  While they can follow the interest rate trends over many years, your ability to earn above the current inflation rate is virtually nil.  But if protection of principal is your main concern, then stocks just won't cut it.