Without knowing more about this retired person, I would disagree with your advice. To put a portfolio entirely in bonds when the equity market is near its lows is a poor move. That said, if this person can't sleep at night, then the money manager is not doing their job, as it is the person's risk preferences that are paramount.
What kind of bonds would you do here anyway? Even Muni Bond funds are losing money (if you look at NAV). Buying bonds outright might be a better play, but I would wait a bit. Hell, what do I know, but I do feel that there will be some inflation in the shorter term with the devaluation of our $. When the dust settles (4 months or so?) I think the time would be better to buy bonds. But going without sleep for 4 months is a ticket to the looney bin. :(
edit: I am basing my $ devaluation on the assumption that the House will pass this bailout.
