AOM
iShares Core 40/60 Moderate Allocation ETF
stock NYSE ETF

I really like the methodology behind iShares AOA/AOM/AOR/AOK. Very "boglehead" and tax-friendly, in my opinion.
(And if you want a higher % allocation of bonds as you age, simply buy more bonds.)

Thoughts:
* Are you fully funding your own retirement? Setting your kid up for the future is great, but an even better gift would be for your kid to not worry about you being destitute and dependent on them when you're retired
* You can rollover $35K from a 529 into a Roth IRA, so you should consider doing some of that for your kid first.
* There's nothing magic about the S&P 500 (VOO/IVV/SPLG/etc.). It's done well over the last 15-ish years, but nobody knows whether it'll continue to outperform for the next decade. The decade before the current outperformance, it actually finished down.
* If you do decide to invest for your kid in conventional accounts, consider more diversified offerings like VT, a combination of VTI+VXUS or ITOT/IXUS, or an all-in-one target allocation fund like AOA. 10 years isn't that long, so you might want to do something more conservative like AOR or AOM.

That has too much risk. A 2045 fund assumes the retiree is going to live 30 more years! The OP is going to spend it all at once.
I'd go with a fixed moderate allocation ETF like AOM.

Separate from the ETF advice, if you're actually planning to stop working, look into Rule 72(t), often called SEPP, regarding how to withdraw from your 401k without penalties before 59.5. If you only have $500K liquid and the rest is in your home equity and retirement accounts, I think you'll probably need to go this route.
As for whether or not you should focus on dividends or just selling, I think just selling is appropriate for most people, so long as you understand how to mitigate sequence of returns risk (either a cash buffer so you don't have to sell when your assets are down or the ability to greatly lower your expenses, so you don't have to sell as much).
As for which funds, it's going to depend on your risk profile and how adverse you are to your principal dropping. I would probably consider one of the following: VT, AOA, AOR, or AOM. All are globally diversified portfolios, the difference is how much is allocated to bonds. VT is 0%, AOA is 20%, AOR is 40%, and AOM is 60%. This results in VT being the most volatile and subject to the largest drawdowns while AOM is the least volatile and subject to smaller drawdowns. Though, on the flip side of that, VT is expected to have the highest long-term returns while AOM would have the lowest. So the choice is largely about balancing long-term growth against short-term volatility.

Yes, that geography includes bonds... but really, the easy way to look at the exposure is to take a look at the underlying funds (FoF structure)... AOA just buys SP1500 (IVV + IJH + IJR) and IEMG + IDEV for stocks (IMHO could be IXUS, but that's Blackrock's call), trying to mimick a VT... then it balances it with bonds using IUSB + IAGG... AOR, AOM etc are the same thing, just a different % of stock/bond split