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Wellesley income fund would pay them the 23k, so would target retirement income. Pretty safe. Some chance of principal volatility vs a money market or cd, but a good chance of maintaining pace with inflation as well. GNMA fund paying a little more with a little more principal risk, but I own some and dont think about it when i'm worrying about investments.
You could also buy the vanguard tips fund and take the dividends and capital gains payout instead of reinvesting...by a quick eyeball that would pay between 4 and 4.5% split between dividends and gains...but check that yourself first as I'm only 2 sips into my first cup of coffee.
If they're in a high tax situation, you could roll your own "tax managed wellesley fund" by combining 60-65% state muni bond fund with 35-40% "vanguard equity income fund", which is similar to the stock component of wellesley and wellington and is managed by the same companies.
Remember that there are two kinds of 'safe' here, one that keeps the principal intact and one that makes sure they stay even with inflation.
My pick would be to go with either the wellesley or target retirement income, depending on whether you like managed funds or indexes, respectively. Both are cheap to own in 'admiral' shares.
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