That means holding at least some stocks, the only investments that historically have outpaced inflation by a comfortable margin. Stocks are too risky. Many people also shun stocks as to volatile for their golden years. But the risks of stocks historically have declined the longer the holding period. For 20-year holding periods, the chance to losing money was zero.
Bonds are the only income investments.
There are several income investments you may want to consider, including high-yielding stock funds, utilities funds, investment certificates and money market funds. Each of these investments has its own potential for risk and reward, so you'll want to learn about them before investing. You no longer need tax-advantaged accounts. Many retirees find that with Social Security benefits, a pension and investment income, their income tax is as high as it was when they were working. While your contributions aren't tax deductible, earnings are tax-free if you keep the money in the account for at least five years.