Level 1: Development Stage
Small capital invested in high dividend-paying stocks. This is an infant stage which depends largely on active income to fund the investment portfolio.
Level 2: Hybrid Stage
Increased amount of capital invested. This is a 50/50 or hybrid stage which is funded by a balance of both active and passive incomes.
Level 3: Take-off Stage
At this stage, the investment portfolio is "self-dependent". The amount of passive income generated annually is sufficient enough to be reinvested without the involvement of active income.
Level 4: Advance Stage
In the highest level, the investment portfolio flourishes with an ability to generate huge amounts of passive income which guarantee financial abundance to the investor. Not only can the passive income be reinvested, it is also more than enough for the investor to quit his job (active income) and live comfortably on passive income.
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