Retiring at 35 with $1 m cash in hand

I took this from Valuebuddies.com because it's an unusually interesting post and the author Janjansen can get a spread of views from forumers here. What do you guys think about this?


By Janjansen
This is my first post but I have been lurking in this forum for a while. I have been contemplating early retirement for a while now, to get away from the greedy corporate world, and to pursue my own interests. It will be considered unconventional due to my age. Indeed, my friends think I am crazy to exit while in my prime years.

That said, I work solely to achieve financial freedom, and once that is achieved, I do not see the point going through the daily grind until 65 when I will be too old to do the activities I enjoy. About myself:
1. I am thrifty
2. I never go on holidays overseas
3. I plan to remain single
4. I stay with my parents and do not plan to buy property
5. I own a fully paid Toyota
6. I have no debt
7. My monthly expenses is about 2k, including parent allowance
8. I amassed 1 million in cash as of today

I have a modest portfolio consisting of purely government owned or government related dividend blue chips in the stock exchange, telecommunication, defense property, postage and media. The allocation has remained relatively constant over the past 3 years, and is yielding approximately 8% annually. I understand that the principle value of the portfolio will fluctuate, but these companies have historically continued paying dividends even during past crisis.

Now, if increase the size of the portfolio to 1 million with the same allocation, at today’s prices, it will yield about 6%. That translates to a yearly dividend of 60k or 5k per month. Baring unforeseen circumstances, I should be saving 3k per month to act as a buffer for inflation, and setting aside the excess for emergencies.

The problem is my close friends and parents have frowned upon my retirement plan. They keep saying that if it was so easy to retire, no one would be working after 40! In their minds, they cannot contemplate a life without work until at least 60. They also mention that it would be embarrassing for one to be unemployed at 35.

Now, all of these appear to be emotional to me. I do not care for corporate titles and the politics of the workplace. But in terms of finances, I believe that 60k of tax free dividends is enough to sustain a single individual, and support his two aging parents (who also happen to have their own savings). However, being human, I can and will make mistakes, and I am trying to gather opinions or scenarios where my retirement plan is unsound and leave me financially strapped. This is the most balanced forum I know of, and many of you are financially savvy and I have come to respect the opinions here. If you think that there is something I am missing here, I would appreciate hearing from you. Any comments or views are also welcomed. I want to consider every possible scenario before taking the plunge.

Thank you

Congrats on your financial success. How much did you start with to reach $1 m in cash?
Cash? U mean also the value of your financial assets, I suppose.

I note you said you are thrifty etc. But it's not a life to the full  IMHO. I don't really know enough about you but it seems a narrow life. Pardon me if that is not correct or acceptable.

I note you never go on holidays overseas, and you plan to remain single -- Jeez, you have never known romance and felt attracted to any woman?

Would like to hear more about yourself  in order for me to provide better-calibrated views.

His friend are all worker for the rich

CHENG HUANG LENG: 'You can retire only if you meet 4 conditions'

One million dollar is a stack of one thousand dollar note measure some 6 ins in height, if new note will be even shorter. And one million is too small, why? when you got it, you will know what i means.
 
Do not be envy of other, i know mostly people who read this type of article end up self pitying themselves for how many really can retire like the one you read. He is lucky, he got good job and well educated. But there are some unfortunate one who faces head wind in life and cannot make it.
 
If you can retire young, do it. If not it is ok. Because in that article he said some do not know what to do. Only fool say this. Life is short, before we know, we will be gone.
 
At his age of 63, his days is number, so it mine. at most we have another 7000 days of lease left on this planet. (include sleep time) if exclude 4500 days. Is that long enough for you???
 
Relax, this type of article are meant for those who are well off, not for those 90% out there struggling to make end meet. it is only a dream for most. The more u read the more u feel disapointed. I dont see this article can help those who are less well off.
 
Some times a few year of education can make lot of different, well relax, becuase all end up like that billonaire at CCK cementery.
 
Close your eye now, breath in slowly and out, 7 times, notice the in between,
 
That is the meaning of life, that is why you hear said, all man are equal, yes, we are all equal in the between.
 
all will end in a moment, all are foolishness.
 
 
 

I cannot help you to be a millionaire, but if you stay vested, i believe you see your money grow by Q4.
 
We will see higher price by then.
 
And if you join me in penny , and you are willing to risk losing some money, you will definitely make more money.
 
If you think you are bad, look around you, there are some even worse. You say, i got no job, but you have got food, you say i have got no house, but you got food. You say i got no food and no job, you got your life.
 
Go to Tanzania, or to my country indonesia poor, then you will know you are lucky in Singapore.
 
they really got nothing, just 2 old pieces of clothing on their body.