A more thorough explanation:

Investor Protection Guide: Advice to Take Early Retirement is an investment scheme where brokers may suggest that clients retire early by cashing out their retirement accounts, such as a 401(k) or pension fund, and investing in a traditional Individual Retirement Account (IRA) with high returns. However, this type of aggressive investment exposes retirement-aged individuals to a great deal of risk due to the possibility of substantial fluctuation in the value of their portfolios.

For example, a broker may promise high returns, making as much money during retirement as when working, or a never-ending stream of investment returns. These promises are red flags that investors should be wary of because they can lead to unnecessary financial losses.

The Financial Industry Regulatory Authority (FINRA) provides ten tips for avoiding an early retirement scheme:

1. Be skeptical of “free lunch” seminars
2. Be wary of early retirement promises based on tax loopholes
3. Determine your willingness to live with an unpredictable amount of retirement funds
4. Know your current retirement plan, such as a 401(k)
5. Understand the tax consequences of cashing out your current retirement plan
6. Determine what the unintended consequences of early retirement will be
7. Understand the difference between classes of mutual fund shares
8. Consider the costs associated with variable annuities
9. Investigate the credentials of the broker trying to persuade you to retire early
10. Get a second opinion

It is important to remain skeptical and understand the risks associated with early retirement plans. Investors should take the time to research and seek advice from trusted sources before making any decisions about their retirement funds.