<prompt> Human: My parents are both over 70 and have been retired for about 10 years. They lost about 50 of their stock value when the recession hit in 2007, but have recovered most of that value. Most of their money is in stocks from stock-sharing plans from previous employers, but also in stock-based mutual funds. They earn a fair amount from dividends about 5000 per year. They cant afford to take the hit of another recession. Their goal is to put the money in a safe vehicle that will allow them to pass their money to their 3 children. Theyre concerned because interest rates are so low, they dont keep pace with inflation. They would also like to avoid having their heirs losing a large chunk to inheritance taxes. Ive heard about investment tools that keep pace with inflation, but also pay some interest. I know universal life and annuities offer some protection, but their fees are so high, you end up losing money. They would prefer to do as much as of this as possible without outside assistance. What should I tell them?Assistant: The only way they actually lost money in 2007 was if they sold stocks when they were at their lowest. If they held onto them they wouldve completely got their money back in about 2 months and doubled it as of today. Large cap growth and income mutuals funds arnt a bad idea along with bonds. Theyre only 70, and statistically should live another 20ish years. Too many bonds is no bueno. Human: They have a lot of Boeing stock. From the 2007 high, it took until April 2013 before the price returned to 105share. I understand your point though. Thanks for the advice. I wouldnt have thought of large cap growth or income mutual funds.  <response>: Sounds like they need to diversify. 