One does not want to gamble with the retirement money, nor is this the time to try something new and unproven. There are several steps one can take to figure out where to put the retirement funds. You will be wise to consider them all before you make a decision.
Despite the turmoil in the investment markets, those of us who understand how investing works will tell you that when it comes to your retirement money there is nothing that beats a diversified portfolio.
One looks at the historical returns and risk associated with the asset allocation model, and the amount of money one would need to withdraw each year. You then rebalance your account on a regular basis and stick with your long-term investment plan. One must develop realistic expectations that some years you will have better returns than other years, and view your retirement investments over the course of your life, not over the next three months or one year.
You can put your retirement money in safe investments and accept the guaranteed yet lower rate of return that they offer. Or you can choose to take a known level of investment risk and build a portfolio that offers the possibility of delivering higher returns than what the safe investments may deliver.
A diversified portfolio owns some investments that are safe, some that are designed to produce income, and some that will grow to provide income ten to fifteen years down the road.