actually the rule of thumb is that take what you want to live on and multiply that by 6 for an amount to invest. granted that is 16% you are making on investments over a year but you also aren't investing $10K or even $50K. Investing hundreds of thousands of dollars opens you up to many investing opportunities you just can't get otherwise....
not to mention hell... you take a good chunk of change and even get in on just one IPO, not even a good one, and you can probably pull down easily over a 66% ROI even after taxation.
so by saying $100-200K I am only supposing that she is investing even $1.2M max.. not to mention if you turn around and instantly disburse that money into tax exempt investments you can nullify much of the initial taxation of the disbursement. Everyone should know by now that whenever you receive a large disbursement of any kind (insurance etc) to divy that up between as many IRAs, or property investments or whatnot as you can...
I mean all of this is off the top of my head but based on stuff I learned in a financial class like.. ummm.. 9 years ago... I could be a bit off on some of it but it's because once I was out of the class I never pursued it anymore.