I would inquire with the human resources department of the former employer as to whether she is allowed to leave the money there or if it must be rolled over. If she must roll it over, any decent broker can handle the entire transaction for you, should you wish to consider putting the money into some form of equity or mutual fund. Unless you anticipate going into some health facility, where you won't be able to pay and you want to give everything away while you are still healthy, maybe. It just seems that impoverishing oneself is a very dangerous thing to do. You might counter it with your trust for your children.
Unforeseen things can happen.
Divorces happen, as do liability situations. One of your kids could believe that they have ample insurance and then go out and cause several million dollars in damage and wipe out your assets. Send your questions to JWR contributor Bruce Williams by clicking here.