Retirement Planning: What do I do with my 401k and IRA?

Fact: My wife & I will retire at 62, won't live in USA, & will have 3 types of securities-related incomes: my 401k + IRA & her Roth IRA. We have an after-tax-dollars joint mutual fund account. When we reach 62, we'll apply for Social Security, but the money we might receive is not part of our plans; if we receive anything, that'll be a bonus! When we reach 62, what should we do with our IRAs & my 401k? We plan on not working & just living off our retirement incomes. Aside from annuities & bonds, what other choices do we have in which to put our money, so we can (presumeably) earn a modest 6% (planning target) income off the principal? I understand the RMD, but is it a decent way to draw down a 401k & IRA without going bankrupt? How about a 100% custodial transfer of IRAs & 401k into our current investment, thereby increasing our principal & living off the dividends & capital gains? Future monies: mutual funds: $877K IRA: $330K Roth IRA: $360K Suggestions? Allow me to add: I wonder how we'll be taxed (both at time of transfer & withdrawal) if we combine the 401k & our IRAs into our joint mutual funds account? Also, IF we actually receive money from Social Security, what taxes will I owe out of each month's check? Steven, by rolling over my 401k to an IRA, that will give me two IRAs, yes? OR do I roll over my 401k into my existing IRA? But then, would that rollover prohibit me from contributing my maximum yearly amount into my IRA?

Public Comments

1. Use a combination of products - With the Mutual fund account, open an annuity to guarantee income for the rest of your life and your spouse's life. Choose carefully, as there are both good and bad products out there, but you can find some great deals if you choose the right carrier. With your IRA and Roth IRA, you may want to consider Structured Notes (CD's tied to equity markets) this will enable you to guarantee your principal, but still have exposure to the equity markets. Along with those structured notes you will want to build in an asset allocation that is appropriate for your risk tolerance. I would suggest seeing a financial planner if you truly want to maximize your accounts and minimize your risk. Good luck to you.
2. best thing to do is put it in a mutual fund do your reasearch you can make 12% and year on your money and it will double every 7 if you don' t touch it you you want a guaruntee you can look at some investment company guaruntees 5% a year but i think they will keep the rest up to a certain amount but if it doesn' t make 5% they make up the differance
3. Your options are the SAME as they are at ANY age. The 401(k) should be rolled into an IRA when you leave the company. An IRA can be invested in nearly ANY investment. A GOOD stock mutual fund has averaged 12% over the last 30 years. There is no reason to expect the trend will not continue.