trad. IRA / Roth IRA - taking money out

I retired early last year, and turned 59 1/2 a few weeks ago. I consolidated my 401k's into a traditional IRA a while back. I also have other investment accounts, but I do not have any income besides the interest, dividends and gains of these investments.

What is the best - and tax optimized - way to take money out of the IRA?

Is it worthwhile considering to transfer a certain amount from the traditional IRA into a Roth one and what are the tax implications?

Thanks!