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Hi napavalleyfool,

I think you were on track with your first calculations. The calculators take into consideration the cost of inflation, simply dividing the available amount of money by the life expectancy doesn't do that. A 3-4% inflation rate will deplete that money quicker than you think.

IMO, I would look at a combination of approximately 50% money market funds and 50% S&P 500 index fund. Why 50/50? Your second post said she had other needs for that money, which means she should keep more than the normal 3-5 years needs out of stocks.

There are no hard and fast rules here, The money may or may not last, so you may need to think about putting some of your own money aside to help your mom out some day in the future.

Sit down with her and develop a plan. Look at options to reduce her costs - vacation every other year, for example. Tell her that you are puuting a little money aside to help her out down the road, if she needs it. If she doesn't need it, that will be part of your inheritance. If she argues about the money, remind her that she took care of you for 18 years, surely she can let you help her for a few.

Your mom is lucky to have a chlid like you.
Good Luck

Tony
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