AM,I guess you have to ponder whether getting around 4-5% from a GNMA fund vs. getting 2.5-4% from a CD is worth the additional risk. The CD is insured and some (all?) you can withdraw money from early with minimum penalties. If inflation goes up a bit it certainly is possible that you could lose a few percent from your GNMA fund before you could sell it, especially since Vanguard (and most mutual funds) only allows you to sell the fund at the closing day's price (unlike stocks or ETFs).Some might recommend dividend paying stocks but the way things have gone there isn't any guarantee those wouldn't drop 10-20% in the near future.About the only good news is that inflation has been negligible so anything you are making should allow you to tread water.BTW, good job at avoiding the recent stock losses. Wish I could say the same.Rich
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