At the moment, most retired people who want to top up their Social Security income prefer to buy fixed-rate annuities.

ECONOMIST: Social Security reform

That security is why people on a fixed income rather put their savings in US government bonds and get 3%, instead of putting half their life savings into a bond like the 10 month old, higher yielding, Oppenheimer Emerging Markets (OEMAX) mutual fund.

FORBES: Oppenheimer's Main Street Case for Emerging Market Bonds

Susan, a former IBM employee with a music degree, cans to supplement her Social Security benefits, unable to sustain herself on a fixed income.

WSJ: Lives of 'Canners' Come Up for Oscar Moment

Now that so much of the beta has been harvested from the fixed income market, I will focus my next blog on the importance of security selection through active management.

FORBES: Bank Loans vs. High Yield Bonds And The Hunt For Safety

With a still shaky economy, pathetically low yields on fixed income, skyrocketing medical costs, the potential of rising inflation, and the looming bankruptcy of Social Security and Medicare, many of the employees we work with are rightfully concerned about their prospects for a comfortable retirement.

FORBES: A Retirement Reality Check