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

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Updated: 17 July 12

Thanks to all forummers who offered their views and advice.

After much thought, I have decided to stay in the workforce and bid my time until the next great market crash. Investment opportunities are limited and the yields on blue chips are not attractive at current valuations. The equity markets have rallied quite a bit and going in now does not offer the downside protection that I require. The confirmist mentality amongst my family and friends is also strong, and it seems like most people have submitted to a life of paid employment until 65 and cannot accept other alternatives. So, I will continue going to work, earning a regular income and accumulating cash.

My views on the eight to five worklife routine has not changed - it is paid slavery. Everything from the daily commute on the crowded transport system, lunch hour squeeze and unhealthy sedantary lifestyle of being stuck in a tiny cubicle for 80% of one's waking hours. And at the end of the day, you are just a statistic to the company, to be trimmed down during the next cost cutting exercise. However, having some cash buffer does make the situtation more tolerable. I no longer "need" the job to pay my next bill, it becomes a choice rather than a neccessity. This is a subtle but important difference. It does ease the pressure to perform and score a fat bonus at year end. In fact, I am quite content to be an average performer and leave work earlier everyday.

Now I pray everyday for a repeat of the 2008 Subprime, 1997 Asia financial crisis or a Great Depression. Dirt cheap valuations await the patient investor. It might be next year or it might be 10 years. It doesn't matter - good things come to those who wait. When that happens, one can easily build a portfolio with good yields and potentially significant upside valuation gains. Meanwhile, I will continue waiting and will leave it to Mr Market to decide my retirement date