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If you are concerned about volatility, fixed income investments are probably the safest. They may fall when interest rates begin to increase, but that is likely to occur after the recovery gets fairly strong and then the effects may be small. Major interest rate increases are not likely, though an adjustment upward is expected.

The balanced fund will be somewhat more volatile. It has significant bond holdings, but usually blended with stocks. Those stocks could do very well once recovery gets started, but at the moment it looks like that will be a while yet.

The safest investment would be a fixed income investment with a fixed maturity date, such as a CD or a corporate bond. For typical IRA investments a CD is probably most attractive.

Best of luck to you.
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