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If your mother is in a money markey account, you may want to consider 'laddering' her money into 1 year CDs or T-bills. This is another way of generating a higher, 'guaranteed' income source, without incurring the annuity fees.

By laddering, you divide her principal into 12 equal parts. Then, each month you take 1 part and buy a 1-year CD until all the money is transferred. As each CD matures, you simply roll it over to the current rate. You can extend this method to any time period that you want, and it doesn't have to be monthly.

The advantages of laddering over the money market account are:
1) You get a guaranteed rate, for the duration of the CD, that should be higher than the current weekly rate.
2) You ease into rate changes, rather than getting them abruptly. This allows for better budgeting. Right now, that would be preferable.
3) Since each CD matures monthly, you can move it to another institution for a better rate.

The main disadvantage is liquidity, since there are penalties for early withdrawals.

Zev
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