Because of the inplied desire to achieve greater than the ~15% to 20% ROI that comes from dividend capture, AGNC Call options is a relatively safe investment (because of AGNC's predictive behavior*) that can achieve an annual ROI of 200% or more. That this is so can be seen from the posts on this BB by several members (including myself) of actual profits and % ROI achieved. Typically, each quarter one can buy Call options at-the-money after an SPO and sell them 1-3 days prior to the next XD date and achieve a profit of 40%. That compounds to more than 200% annual if all is reinvested.
* This predictive behavior has been going on for more than 3 years, quarter by quarter. The fundamental basics that drive AGNC's stock haven't changed and aren't likely to change until 2015 or later.
How can you say the Fundamentals haven't changed with QE3? I'm not saying AGNC isn't a great company, but if you start dabbling in options blindly you may get lucky once or twice, but all it takes is one bad position and you may be down far more than you were up to begin with.
It just doesn't seem like advice I'd give to someone that is retired.
Well what you're asking for is usually advice a broker/fund would give you for a hefty fee. I would suggest you look into REM, AGNC, TLT, and straight 30+ year bond buying, with a diversification of 10% 6% 40% and 44% respectfully. Talk this over with a broker and see what they says.