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Don't forget the tax rate differences - IRA (traditional, not Roth) distributions are taxed as income. That means that on top of paying your marginal tax rate (28%?) they increase your exposure to Social Security income taxation when you retire.
OTOH, capital gains tax rates are 20% if you're in the 28% bracket and drop to 8% if you get joint income below $43850 (2002). Of course, we don't know what they'll be in 30 years either, but you have to make some projections.

I agree with the other posters - get a mortgage to buy the property. Invest the IRA in a GNMA fund.
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