Clearly this couple needs to have some equity investments, otherwise their capital will shrink due to inflation. My suggestions is to pick one of the portfolios offered by 5i Research at a cost of about $149 a year.  Their balanced equity model portfolio has made 140 per cent over 4 years and is up 6.3 per cent from January 1 to May 1. It even has a 1.7 per cent yield.