Wisdom of 72T for us

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L1: Wisdom of 72T for us
I am 54, recently retired from one company after a lengthy career. However, just a short time, I took a new full-time job with adifferent employer, a position that pays equal to what I received before. Plus it offers a defined-benefit pension. My wife is 52 and recently quit her job so we are living off my income.
I took a lump-sum payout of my pension from my previous employer, plus I have a 401k and IRA. Combining these assets,we have about $1 million. One of our goals is to buy a much nicer home and our financial adviser is suggesting setting up a 72T as a way to achieve that goal. He would invest about $300-400K of the nest egg to yield an amount that would cover the mortgage payment. We live in an area where real estateremains a good investment short and long term.
Just wondering if anyone on this board has done the same thing.The 72T sounds good, but I”m a little worried because the nest egg needs to last us the rest of our lives after I stop working. I plan tostay on the jobuntil age 60 or so. I”m not even counting on social security — if it”s there when we get to that age, that would be a bonus. And the pension from my current job, though an excellent program,really won”t amount to a significant total so it”s pretty much a non-factor.
Any thoughts on the wisdom of doing this with a 72T? Are there anypotential landmines we should be aware of before committing to this plan? Thanks.2007-07-25 06:35, By: Clicker, IP: [71.117.215.154]

L2: Wisdom of 72T for usHello Clicker:
What you suggest is certianly doable from an IRC/IRS perspective and further, it is certain doable from a safe withdrawal rate (SWR) as you are effectively suggesting an annual withdrawal in tehneighborhoodof $25,000 per year against $1mm in assets or 2.5%.
All of this said, I would suggest that there is no definitive right or wrong answer here. Rather, it looks more like a life style / emotional issue.
TheBadger
wjstecker@wispertel.net

2007-07-25 07:02, By: TheBadger, IP: [72.42.67.83]