I think an immediate annuity is a good option. You can go online and find out what rate she could get - might not be great given she is relatively young.

62, no longer working, health is fair, a few chronic illnesses, no long term health insurance. Currently applying for Social Security disability.

She will need some money every month to cover expenses. Trying to figure out whether to just deduct money each month, do the annuity, or if there is another instrument that would be better.

how old is she? is she already collecting SS?

is she employed?

how is her health? does she have long term care insurance?

Would you recommend an immediate annuity for a small amount of money (125k)? My mom is looking to supplement her social security. She is highly risk averse and has kept this money in a 3.5% fixed account for the past several years. Anything in particular we should look for? What are the alternatives?