Hi, Balu.
Congratulations on having saved so much! Now you need to educate yourself more about investing in order to protect yourself.
I strongly suggest that you go to
http://www.coffeehouseinvestor.com
and read everything on the site. I also suggest buying the little book, "The Coffeehouse Investor". The essentials are very brief. Investing is not as hard as salesmen want you to believe.
It looks like your mutual funds in your IRA are not no-loads, which is distressing. It sounds like some salesman has been taking advantage of you.
I can't imagine why you should be looking at a Citicorp loaded product that is "tied" to the S&P Index when you could buy Vanguard's VFINX S&P 500 Index Fund directly from Vanguard without any load fee and with very low annual fees--perhaps the lowest fees of any mutual fund anywhere available from any company. If it has an income component (some fraction in bonds), you could also buy a Vanguard bond fund (also no-load, very low fees). But you already have more than enough bonds. It sounds as if that salesman is talking to you again.
If you retired today (and if I had your assets, I could retire today!), you would be in such a low tax bracket that municipal bonds would make no sense anymore.
In general, it is better to have the income-generating assets (except municipal bonds) inside IRA's and capital-gains-generating (taxed at lower rates than income) and capital-loss-generating (losses are deductible if not in an IRA) assets and municipal bonds outside of an IRA or other tax-deferred vehicle. This is the best for tax efficiency.
If this were my money and I were retiring today, I would
a) move the IRA to Vanguard (Vanguard will help with this),
b) have only individual bonds and bond funds in the Vanguard IRA, and
c) turn most of the bonds and CD's that are not in your IRA into Vanguard stock index mutual funds. I have several different indexes myself, but many people are only comfortable with the S&P 500.
If I were retiring today, I would have 60 to 75% of all of my assets mostly in Vanguard stock index funds (including some international funds) and the balance of 25 to 40% in Vanguard index bond funds and individual TIPS.
As I am still in the capital accumulation phase, I am 100% in equities (50% US, 50% foreign), mostly Vanguard index funds. However, the ups and downs don't bother me anymore. I am more afraid of inflation (which is a permanent loss) than the markets going up and down, even for long periods. I have already eliminated sales loads and high annual fund fees. It may be of some interest that my portfolio has more than recovered from the fall of the last 2 or 3 years, which gives me courage.
You have an excellent start. Good luck to you.
Ed