This is not really an options question, but I respect the people on this forum more than any other, so here goes.... I have been asked for financial advice by a good friend. For some background, he is in reasonable shape financially. He invests in mutual funds-mostly balanced or equity/income funds. He says that since 2000, his portfolio has made 0%--not too bad, considering what has happened. He is retired and in his mid 60s, but his mom is in her mid 90s and he has no health problems at all, so I think he is likely to live a long time. He is okay with investing the more aggressive portion of his portfolio in various stock funds and foreign funds, and is willing and able to wait out the rock and roll, but he wonders what to do with the conservative portion of his funds. He is talking a bit about treasury bond funds, which I would hate to see him do, with bond prices so high and probably falling soon. Even if he bought the bonds themselves and held them to maturity, he would likely be locking in a yield that won't look very good a couple of years from now. We had this same conversation about four years ago, and after stewing about it for several months, he ended up buying some CDs --which turns out not to have been such a terrible choice. This time, though, I think it's going to be a bad idea. And yes, I hear you saying that I should talk to him about options, and I have tried to interest him in the subject many, many times. Furthermore, I think that unlike many people, he has the temperament and intelligence to understand them and use them successfully, and his wife, also a dear friend but not financially savvy, is encouraging him to listen to me. But he realizes, correctly, that it will take a considerable investment of time and energy to learn to understand and trade them. He would rather go fishing, hiking, read his books, visit his kids, etc. And I don't blame him; actually there are several things I would rather be doing that being glued to my screen each morning at 6:30. Basically, I think that how to invest conservative money is one of the hardest questions there is. There is always this trade-off between stability of principal and stability of income. You just can't have both. I'm tempted to just suggest that he optimize his asset allocation via mutual funds: get him into some bonds, real estate funds, ag commodity funds, metals, currency funds, etc.--allocate to a bunch of stuff that does not correlate with the stock market and rebalance it every year or two. He's a do-it-yourselfer, like most of us. Annuities or financial advisers are going to go over like a lead balloon, and I don't believe in those myself, anyway. Otherwise, I appreciate all responses.