@Blickers,
As a simple interest return, here's a rough idea what it will return at 2.26% with a $1,000 investment.
year
0.0226 beginning earnings ending
1 $1,000.00 $22.60 $1,022.60
2 $1,022.60 $23.11 $1,045.71
3 $1,045.71 $23.63 $1,069.34
4 $1,069.34 $24.17 $1,093.51
5 $1,093.51 $24.71 $1,118.22
6 $1,118.22 $25.27 $1,143.50
7 $1,143.50 $25.84 $1,169.34
8 $1,169.34 $26.43 $1,195.77
9 $1,195.77 $27.02 $1,222.79
10 $1,222.79 $27.64 $1,250.43
11 $1,250.43 $28.26 $1,278.69
12 $1,278.69 $28.90 $1,307.58
13 $1,307.58 $29.55 $1,337.13
14 $1,337.13 $30.22 $1,367.35
15 $1,367.35 $30.90 $1,398.26
16 $1,398.26 $31.60 $1,429.86
17 $1,429.86 $32.31 $1,462.17
18 $1,462.17 $33.05 $1,495.22
19 $1,495.22 $33.79 $1,529.01
20 $1,529.01 $34.56 $1,563.56
Rather than bonds, I would suggest you look at Morningstar.com to look at which funds had the best returns for the long-term and their current rating. Both Fidelity and Vanguard has the lowest fees in the business, so I would start there. Rule No. 1: Don't put all your eggs into one basket. In other words, diversify. Rule No. 2: Don't try to play the market's daily ups and downs. Fees alone will make you lose. When you invest, invest over several months to average out your investments; you won't pay the highest or the lowest prices. Do the same when you withdraw from you funds; do it over several months. I withdraw a given amount every month, and pay my taxes from it. Hope this is somewhat helpful.