which $ to use 1st?

L1: which $ to use 1st?I have retired early at age 54.
My question is shouldI use all my cash/savings and taxablemutual funds before starting a 72T?
I plan onstarting social Security at age 62.I still have 2 children to put through college andI have
saved about $80000 for their education in a 529 plan and a UGMA.
I plan on deviding my rollover IRA from work into 2 parts. One to fund my 72T and the other for emergency use.
Should I save some of the cash from the accounts/brokerage money to live on, or use it first thenrely on the 72T money.
Are there any tax advantages either way. I am 100% retired with no income coming in but do have a substantial IRA to work with.
Thanks
The retire guy
2006-09-30 18:38, By: retireguy, IP: [69.133.10.157]

L2: which $ to use 1st?Much more detail will be needed, but a very general approach would call for integrating your post tax asset drawdown into your IRA distributions in order to keep your marginal tax rates on an even keel. You would draw down the after tax amounts at a faster rate than the IRA in order to retain some tax deferral, eg if your after tax amounts now total 35% of your assets, plan on still having that to be at least 1/2 of that (17%) in 8 years when you start to tap SS.
This assumes you are retired for good except for a minor part time gig, the college expenses are totally funded by the 529 (if not overfunded if they qualify for scholarships or other aid). A huge variable in your situation remains post retiree medical coverage if any and the costs of insurance.2006-09-30 20:43, By: Alan S., IP: [24.116.68.91]