pulling 1000 from IRA monthly

Why? If your SS income is $2850/month, and your expenses are actually $2600, you shouldn't need to pull anything from the IRA.

If the 'about $2600' isn't accurate, and it's really 'about $3850' (in line with the $1000/month you are planning on pulling, plus your SS income), then you are being pretty aggressive about spending the money in the IRA, IMO. Spending your IRA too aggressively opens you up to the potential of running out of your IRA, and you (or more likely, your wife) having to survive on just SS, which will be less after one of you dies.

I think before you can make the decision of whether retiring on 1/1/13 is a good idea or not, you need to be a lot more certain about your monthly/annual expenses vs. your SS and IRA income.

AJ