Focus on cash.

When the economic outlook is this ragged, it's smart to have an adequate supply of cash. Getting a decent return on that cash is always important, but it can be critical if you're retired.

Don't panic looking for a safe haven and buy Treasuries that aren't paying you anything. An FDIC-insured or NCUA-insured CD or money market account will protect your investment and accrued interest up to $250,000 per institution.

If you have additional money that you want to keep in a bank, consider titling your accounts to qualify for more coverage. For instance, a husband and wife can each have $250,000 in individual accounts. They can each have $250,000 in a joint account. They can each have $250,000 in a retirement account. And they can each set up a $250,000 revocable trust account, payable on death, naming each other as beneficiaries.

The insurance limit's increase from $100,000 to $250,000 is temporary. Unless Congress extends it, the increased protection will end Dec. 31, 2009.

"The FDIC is a nice umbrella to carry people as long as the $250,000 lasts," says John Sestina, a Certified Financial Planner in Columbus, Ohio. "I always recommend that people do short-term CDs so they're protected when inflation comes back -- and you know it will because of all these bailouts. You want to be able to take advantage when interest rates rise."

Take advantage of high-yield CDs offered by banks that are chasing deposits and new customers. The average yield on a one-year CD is 2.3 percent, according to Bankrate surveys. In Bankrate's high-yield database there are, as of this writing, 33 banks offering one-year CDs with yields above 3 percent and one, GMAC Bank, paying 4.2 percent. All are FDIC-insured. Even the six-month high-yield CDs are significantly above the average one-year yield.

If you're skittish about locking up your money for any amount of time, consider a high-yield money market account, which is also FDIC-insured. There are 27 listed in Bankrate's high-yield money market account database that are paying above 3 percent.

The ability to beat the averages and earn more money on your cash hasn't disappeared just because the economy is struggling.

Tired of managing your own portfolio? Consider a Certified Financial Planner.