No. of Recommendations: 2

We all feel for you, it is a very frustrating time to put money to work in fixed income.

I feel like I'm between a rock and a hard place with this.

No you are not. Cash never hurts as you and your spouse found out when the stock market got funky. You are in a much better place than many, you have options. You could put 25% - 50% in the GNMA and 25% in a CD ladder and MMA the rest or any reasonable combination. This is a good place to be. The returns are less than desirable but you aren't stuck.

I apologize if I came on too hard. I really worry about people rushing out of the bad and into the next bad. It happens way to often. You mentioned the 99 00 blow up. How many people where still putting their money in funds and stocks even past the tipping point? When they finally realized they were taking a beating they ran to overpriced bond funds thinking they were safe. Their price point into bond funds was bad and they ended up losing again. It was like getting punished for doing what your coach told you to do. Many walked away feeling like they couldn't beat the system. Unfortunately they didn't understand the markets they were investing in and/or didn't understand the value/price concept.

Maybe I'll just wait a while... but I surely do feel pretty foolish (little 'f') letting it sit in the money market.

Sometimes the best decision is to wait for a better time to make a decision. As weird as it sounds choosing not to decide is an active choice, as opposed to be frozen by fear or confusion.

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