Similar houses selling for $1M so after selling including all costs should net 600-650k depending on final sale price. No more mortgage payment (2k/mo.) property tax (1k/mo.)

I will have at least 1M for dividend investment (that's what I'm working towards).

...

Yes, I'll need 50-60k for schooling for the next 10 years.

Okay. According to cFIREsim, if you, historically, invested 1MM into 80/20 stocks/bonds, 0.2% expense ratio, withdrawals of 55k/yr (adjusted up for inflation each year), you will have, after 10 years:

Average Ending Portfolio: $1,116,239

Median Ending Portfolio: $1,051,815

Highest Ending Portfolio: $2,423,923

Lowest Ending Portfolio: $166,063

So your best case scenario, even withdrawing 5.5% of the initial amount (and adjusting upward each year) per year for 10 years, is the portfolio being worth 2.5x what it started at. Worst case, you still have some money left (never, historically, would you have run out). The regular scenario, though, leaves you with all of your initial capital.

Seems pretty good to me.

[/quote]After that my pension kicks in at 30k/yr so I can quit working.[/quote]

Alright, so that solves the longevity problem, as long as it's stable. Whatever is left in the portfolio (and remember, most of the time it's 1MM+) is gravy.

I also have 401k (350k) but can't draw for another 15 years.

Sure you can!

How to withdraw funds from your IRA and 401k without penalty before age 59.5That 350k is extra on TOP of the 1MM? And that will grow over the next decade?

Sounds like you have plenty. You'll be left with likely a minimum of 500k (from the 401k + amount leftover from the 1MM) + a pension providing 30k (for an annual spend of ~50k, using a 4% WR) in a WORST case scenario. The average scenario leaves you with over 1.5MM + the pension, for an annual spend of 90k. Best case scenarios let you spend over 150k/yr in 10 years.

When even the worst case scenario is ~50k/yr spend, the average almost double that, and the best case 3x that, I think you're good.