The values for TIPS and I bonds reset twice a year. Of course, the federal government fully backs TIPS and I bonds.
"It makes them a pretty safe investment," says Kresh.
3. Keep a sliver -- or more -- of stocks
Some investors may want to lower the amount of risk in their portfolio. But that doesn't mean they should shun equity investments entirely, says Richard Staszak, a financial adviser and estate planner in Pittsburgh.
Staszak advises retirees to put at least some of their money -- typically, cash they won't need for at least five years -- into stocks instead of traditionally low-yielding investments.
"If you have money that you don't plan to use for the next five to 10 years, why should you penalize yourself in an investment vehicle that pays only a half a point percent?" Staszak says.
“There's no way to get a real rate of return without taking some sort of financial risk.”
Bill Losey -- a Certified Financial Planner in Wilton, N.Y., and author of "Retire in a Weekend!" -- agrees.
"People are going to be living in retirement for 20 (to) 40 years," he says. "Even at an inflation rate of only 3 percent per year, you'd need to have about double your current income in 20 years just to maintain the same standard of living you have today."
Losey says that while there is no guarantee the market will perform as well as it has in the past, "the stock market has been the only place that has consistently delivered returns above inflation over a consistently long period of time."
Losey acknowledges that investors may need to keep some money in low-yield investments. But he adds that many people don't consider their long-term needs.
"Unfortunately, I'm seeing people who are panicking and taking all of their money out of the stock market," he says. "They're changing their entire investment philosophy to a 'preservation of capital' strategy.
"That's a real dumb move, and you can quote me on that."
Losey notes that he often meets people in their mid-to-late 70s who made similar mistakes in the past.