Brett Arends’s ROI: Market fears of inflation highest in over 20 years — what should retirees do?

People who are retired, or who are nearing retirement, are usually advised by financial professionals to keep a large chunk of their savings in bonds. That mainly includes U.S. Treasury bonds, state and local municipal bonds, and corporate IOUs issued by blue chip companies with strong balance sheets. Such bonds issue regular fixed payments, instead of the more uncertain returns you get from stocks.

The theory—and the mantra—behind this conventional wisdom is that bonds are better for senior citizens, because they’re “safer.”

…