Insured accounts offer a safe haven for a lump-sum pension

— -- Q: My husband is being forced out in an "early retirement" and is receiving a lump sum pension. Where can we put this money so it will be safe?

A: Just two years ago, your question may have been quite different. You'd probably be wondering how you could get the maximum return on this pile of money.

Now, though, it sounds like you're like most investors — more concerned about not losing money than making money. One healthy result of this ugly bear market is that investors have gotten a big reminder of the risks of investing. You can read more about that here:.

If you can't afford to lose any money, you have one primary option: a high-yield savings account or certificates of deposit. By putting your money in an insured savings vehicle, you will get principal protection as well as the peace of mind that comes with FDIC insurance. You can see how to make sure your bank or financial institution is FDIC insured here.

But, by not taking any risk, you're still taking risk. That sounds strange, but here's how: Currently, yields on high-yield savings accounts are in the 2% range. That might sound great, as long as the stock market is plunging. But long-term inflation in the U.S. is about 3%. That means you'll be losing a percentage point of purchasing power every year. Clearly, a percentage point annual loss is manageable relative to the stock market crash. I just want you to be aware of the risk.

If you want a chance at outpacing inflation you'll need to take more risk. You might consider creating a blend of cash and savings, along with a mix of bonds and stocks. Creating an asset allocation plan, is a way to craft a portfolio that contains different types of assets to give you the best possible return for the risk you're taking.

Is there risk to owning stocks? Absolutely, as if you need me to remind you. And is there a risk to bonds, as corporate defaults are on the rise and inflation is expected to pick up.

If you can't handle the fact you might lose some money in the short-term, then yes, you'll have to stick with CDs. The good thing about CDs is that if inflation picks up, interest rates will too, so you'll get a higher return on new CDs as your old ones mature.