[turbo6bar]

Stay away from hot, then.

Does he have any current debt load that can reduced? If you have a mortgage at 6%, you could pay off or reduce the balance and in essence give yourself a secured 6% return on your investment.

Also, I would seriously consider a quality dividend stock. Some stocks are paying up 7% dividend, but blue chips are paying less (on order of 3-5%). Dividends have favorable tax treatment, and the dividend yield increases if you reinvest.

Yet another opportunity lies in municipal bonds, but if your friend's income is lower (due to retirement), you might not reap enough tax benefits.

My preference is removing debt. If your montly debt decreases, you don't need as much income to maintain a lifestyle.

It all comes down to managing risk vs. reward. There are other creative investing methods (yielding higher percentages), but he would need to be proactive.