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If you any dept you should probably pay that off first. For example if you have a mortgage at 6% you won't be able to get any safe investment that yields anywhere near that even after the tax considerations.

The classic answer of where to invest would be to create a ladder of short to mid term government bonds.

You might also look into creating a ladder of TIPS, which are similar to the iBonds, at;

But I suspect that inflation will not be much of a problem in the short term and I wouldn't want to lock up much money long term with the rates still being historically low.

You should also look into creating a ladder of FDIC insured CD's at your local or regional banks. Credit unions have similar protection and may yield slightly more. The rates they pay vary a lot so shop around. You probably don't want to buy CDs that are more than a few years long. There may be technically be a difference between FDIC insurance and government bonds, but I can't image a situation where the government would let the FDIC insurance fail. You may need to use more than one bank because of insurance limits, but I think that has been increased enough that it probably shouldn't be a concern.

If you talk to anyone that suggests an annuity, you need to be extremely careful. Usually they are not an appropriate investment because of their high expenses, low return, and inflexibility. The reason that they are suggested so often is that usually the salesperson gets a huge commission on the sale.

In the longer term you should spend the time to learn about other possible conservative investments that yield more since it is quite like that either one or both of you and you spouse will live well into their 90's so a couple that retires in their 60's or early 70's will need to plan on some of their money being invested for 30 years or so.


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