Reaching your target portfolio number is a massive achievement, but pulling the plug requires careful operational planning. The final 5 years before early retirement are critical to optimize your asset structure, secure healthcare, and prepare for the psychological transition.
During this phase, begin constructing your retirement income pipeline. Build a cash reserve (Bucket 1) to cover initial living expenses, and research health insurance options. Model your tax bracket conversions, preparing to shift assets between taxable accounts and tax shelters to minimize capital gains.
Finally, test-drive your budget and routine. Take sabbaticals or practice living on your projected retirement budget to ensure it is realistic. Transitioning slowly preserves your compounding curve while giving you absolute clarity for a successful, stress-free escape from the corporate grind.