No. of Recommendations: 6
Like you, DH and I are risk-averse, have our expenses covered by Social Security and have no kids.

1. CDs at Discover Bank, Synchrony Bank and Purepoint Bank are yielding around 3%. I set up CD ladders at several banks, keeping the duration around 3-5 years. A lot can happen in 5 years. These CDs must be kept under $250,000 at each bank to qualify for FDIC insurance. The money can be withdrawn at need with a sacrifice of interest but no risk to principal.

2. Medicare Part G.

3. A good Medigap policy.

4. Long-term care insurance.

5. If you are concerned about inflation, you can get TIPS (Treasury Inflation Protected Securities). If held to maturity the principal is protected. However, the value can change before maturity if interest rates rise. That is why they have more risk than CDs.

6. Be sure to set up a Revocable Living Trust to prevent the risk of someone (whether family member or stranger) declaring you incompetent and taking control of your assets. Read "The Retirement Nightmare: How to Save Yourself from Your Heirs and Protectors : Involuntary Conservatorships and Guardianships (Golden Age)," by Diane G. Armstrong Ph.D.

7. You might consider a small allocation to a low-cost stock index fund, such as Vanguard's Total Stock Index Fund (VTSMX) as a "spice" to your portfolio. But there is no real need to take on this risk.

8. Always keep enough cash on hand to cover potential sudden needs, such as home or car repairs.

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