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Unfortunately, you asked a very open question without any real specifics. You did not specify how much money you want to get, nor did you exactly explain how you want to "protect your Capital".

For example, do you want to protect it only from investment risk? If so, then CDs, T-notes & T-bills are your best bet. As long as you hold them to maturity, you will get your interest and principal. Don't invest in anything more than 2-3 years out. Don't forget to ladder the maturities so you can roll them at new interest rates every few months. This will allow you to enjoy higher rates when they go up, and ease into lower rates when they go down. Don't get greedy.

If you want your Capital protected from inflation risk, you have to invest some of your money in stocks, so the Capital has a fighting chance of growing. Unfortunately, you will have some volatility in your principal and income.

Assuming that you don't need the income, except to give you an extra kick, and you want your Capital to grow, split the money. Put half into CDs/Ts, and half into FF4. This should give you about $3-4000/year income and your principal should grow about 8%/year, in the long-term.

If you want a higher income, look into REITs and utility stocks.

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