In theory, it really isn’t that complicated to achieve an early retirement.

For this post’s sake, let’s agree that early is defined as below 45 years of age. This is reasonable and also considered pretty early for most, considering official retirement age in Singapore is currently 65. And by retirement, what I mean is that one is no longer obliged to work for a living.

Here are the three steps involved:

1. Save 50%* of your total income (inclusive of bonuses)

2. Invest in a basket of dividend stocks that returns 7%-8% (3% to cover inflation and 4%-5% returned as dividends)

3. Continue doing this for about 17* years

Then voila! If that individual continues to live on the same amount of expenses, he would no longer have to work at a job he despises just to bring home the bacon. Isn’t the steps above simple? But the problem is that simple does not mean that it is easy. Here are some reasons why I …