[quote=threadkiller]Okay, did a little more research on short term investment grade bonds and the future does look scary for them. So for us with 401K’s where is the best place to put money now? Assuming Vanguard investment options.[/quote]

It’s probably a little late, but I’ve been reasonably happy with these two

VGPMX
VGELX

What about high dividend stocks.

Royal Dutch class B is like paying 5%, and it’s not like oil and refined petrol products are going to get cheaper, right?

And folks still need cigarettes, so Phillip Morris International (PM) has been one of my favorites with 4.3% dividends (though albeit more risky if there is more anti-tobacco crap going on).