Once you reach 62, your social security benefits becomes a possibility -- I'm assuming that'll bring in an extra 20K to 35K per year (before tax while you are not at full retirement age). So your 66K requirement before retirement becomes more like 31K to 36K per year requirement (roughly), or 2.3-2.7% withdrawl per year. With your $1,360,000 total, it should be enough to invest in 2-3% intermediate/long term general obligation municipal bond (for your taxable money) and 3-5% corporate bonds (for your IRA's). Taking unnecessary risks means reducing your financial security that you already have. I think you need to be patting yourself on the back, buy what you are convinced are safe enough bond securities, and then kick back and relax.
Using FireCalc, and setting your "Years" to 40 (since you're 55, and 95 is possible), a 4% withdrawl would result in "86% success" or 14% chance of running out of money early. 3.5% withdrawl still gets you 3% chance of failure. Can you imagine 3 out of 100 people like you running out of money? 3% withdrawl gets you "100% success" so I would keep that in mind.
Now, what I would do with that money: If I were in your place, I would not blindly put money in 'balanced funds' that random index fund managers run. There's no assurance that equities will outperform bonds. (in fact, I am expecting the overall stock market to be volatile and relatively flat compared with the last twenty years).
I selectively choose what I judge (via stock screening -> financial statements -> annual reports) to be good companies, and invest in them whenever I find a "low risk high return" opportunity. It's pretty rare, but maybe twice or three times a year, I feel confident enough to put in a big chunk of my money. And those beef up my returns. I believe Warren Buffett in his private partnership days was doing the same thing, probably with similar success (although I only have a three year track record).
But then, my opinion is that you don't need to take the additional risk, nor should you. The only thing you want to watch out for is if inflation gets out of control. If you want to hedge against that, you can consider commodities like agricultural goods (oil and gold tend to be too speculative).
