Some of the important points include:
- It's important to be mindful of sequence of return risk, especially when retiring early (thanks to all of that wealth), as the longer the time horizon, the more risk there is with an untimely early retirement market decline;
- Most pre-retirees have relatively stable tax planning because their income is consistently buoyed by annual wages, and consequently may underestimate the volatility of their taxable income in the early retirement years (and miss opportunities for tax planning to maximize tax-efficient retirement withdrawals);
- Be mindful of the timing when starting Social Security retirement benefits, especially for those who otherwise have plenty to live on, expect a long life, and can afford to bridge the early retirement years from their portfolios in order to delay Social Security;
- Beware locking in "expensive" payments and financial commitments... including not only the second/vacation/retirement home, but over-extending the "Bank of Mom and Dad" to adult children;
- and finally, remember that just because you have the financial affluence to be able to afford not working anymore, doesn't mean you will find a life without work to be fulfilling, as in the end it's much better to be retiring towards something rather than just retiring away from our current life!