The sum of money you decribed is not a large amount when medical and living expenses are taken into account. Do not take excessive risks with the funds. Here is the allocation I would suggest (this is my subjective opinion):30% Money Market Funds or CD's 20% Low Risk (AA rating) Bonds20% Higher Risk Bond Fund15% S&P 500 Index15% Dividend Growth Mutual FundWith a pension and Social Security income, she should be able to afford a few more years of capital growth. As she ages, and current income becomes more important, consider reducing the Stock percentages to 5 - 10% and transfering those funds into the bond allocations.My best wishes for your mothers continued health and prosperity.- Matt
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