How to retire in 12 years

Just wanted to show that retiring at the age of 35 is not a dream! I had some time after work yesterday so I did some easy calculations in the spreadsheet below.

Imagine this lady A who started working at the age of 23, she saves $1,800 a month, amounting to $21,600 per year. At age 24, to start she puts in $30,000 into the market and at the end of every subsequent year, she puts her savings ($21,600) into the stock market, which will earn her an estimated rate of return of 5% per annum (very achievable by investing in a mix of blue chips and REITs). Let's say she reinvests all her dividends as well. 

After 12 years at the age of 35, she will receive $17,909 per year in dividends and that is equivalent to receiving an income of $1,492.40 per month. 

Let's say she currently spends $1,000 on her living expenses every month. Assuming a 3% inflation rate, she will require $1,425.76/month to maintain the same quality of life after 12 years.

Since dividends > required living expenses, TADA! After 12 years, the dividends she receives from the stock market would be enough to cover her living expenses so she can retire! No need to have a job anymore. I'm amazed at this as well.

Here are the numbers:

However, lady A have to fulfill three conditions to be able to retire at 35:

1. Stay in HDB flat

2. No car

3. No children to support (Might have to work extra 10 years if A decides to have children)

Told my mum about lady A's plans and she kept saying lady A should not not have children in order to retire early, if not she will regret her decision. I told my mum, "If you didn't have three children, you could have invested your money in a condo and earn $3-4k/month now!" and she was like "No, no, no. If A don't have children, she will never know the joy of having children and sometimes that makes people happier than all the money in the world." Awww... True or not, it's something I don't know yet

I am not saying lady A should retire at age 35, but I feel like it's a good option for her to have! When you have an option to not work, I think life becomes happier and less stressful... If A gets retrenched by her boss, instead of being she worried, she will likely be like "Fire me lah! I don't need your damn salary anyway!" HAHA