Eric’s uncle left him a trust fund that will provide him $50,000/year for the next 20 years. He is a 28-year-old bachelor making a salary of $4,200/month, with condo payment, fees and utilities totaling $1,750/month. Car payment, gas and maintenance average $600/month. Clothing, eating out and other expenses vary greatly depending on how active his social life is that month. He has managed to steer clear of any credit card debt but has not started putting money into savings towards any long term goals and is living paycheck to paycheck.

a) With his current windfall, how close is Eric to reaching financial independence?

b) What are two of options Eric has for achieving financial independence?

c) Does Eric have the option to quit his current job? 

d) If Eric would quit his job, what would he have to do to maintain financial independence over the long-run?