What is the best investment vehicle for 401K or IRA capital in the current inflationary environment? As a retired person I can't afford to lose principal, but I do need income over and above the combination of the declining dollar and inflation. This financial meltdown had reduced the income of retired people and forced them into risky investments. Consequently many retired people have lost almost half of their principal. One has to wonder if any of our elected officials in government ever gets the big picture. What in the world are the thinking???