ACL Investment Service Inc

Date: March 28, 2015

Name: Building a passive income asset for you and your family

Presenter: Adrian Liu

Entrepreneurs are looking for ways to generate passive income. Moreover, the purpose of building passive income is to ensure their families are well protected with wealth for their next generation. This seminar invites Adrian Liu, the Founder of ACL Investment Services Inc., to discuss the strategy of his passive income investment vehicle. This presentation will benefit families who are looking for stable return with limited risks.

Adrian Liu is a Certified Financial Planner. Liu graduated from McGill University with Finance Major. After working in Freedom 55 Financial Service for 15 years, Liu decides to open his own company, ACL Investment Services Inc., to help and support families in Vancouver. Moreover, his passion is to assist families who are looking for ways to provide wealth for their second generation.

Adrian Liu shares his career journey started from a life changing event. During the incident of 921 earthquake event, his parents’ business was struggling from the impact of real estate market. Liu decided to pursue his career as a financial planner to learn the strategies that will benefit people’s financial lives. The first 8 years was a bull market and Liu build up his working income; however, he lost it all after two years. In 2008, the financial crisis crushed many families’ financial situation. Afterwards, Liu decided to figure out the reason behind the crisis and started to find ways to help people to achieve financial freedom.

Liu shares three important facts about financial freedom.

1. Passive income is not enough
2. Financial freedom is a journey
3. Too confident will ignore risks

While Liu was working in Freedom 55 Financial Service, he was considered as comprehensive Certified Financial Planner who monitors all positions. Liu wants to be different. He wants to educate his clients with the idea of passive income and also help generate significant and stable return. Therefore, Liu will concentrate on “protect asset” by improving clients’ lifestyle quality and “contribution” by donating 2% of wealth to change the world.

Passive income through life insurance

Many people still have the traditional thinking of leaving their investment in the market and expect their investment to grow in the future. Liu emphasizes the problem with the traditional thinking is that the market will fluctuate and the expected return will not be stable. Liu shares the new thinking of investment is to create passive income, provide cash flow, and no need to monitor.

Liu believes in order to achieve financial freedom, people need to generate total income greater than their total expense. The total income includes working income, investment income, and passive income. Working Income and Investment are equally important, but many people are forgetting the importance of passive income. Working income can change due to the status of people’s careers. Therefore, Liu believes it is important to generate enough passive income to cover some work income and investment income. Moreover, Liu will help people to increase passive income to improve their lifestyle qualities.

Liu indicates this is a process that will benefit people in the long term. Unless people have a large amount of assets, they should treat this as a transformation process.

Liu mentions three economic issues that are affecting the next generation.

• Low earning
• High living standard
• Loss direction

All three issues will be affected by wealth. Liu shares 6 different types of passive income generators that can generate wealth.

Real estate rental income

Investment income

Direct marketing business

Sell business

Income from well run business

Retirement

However, Liu will introduce another type of passive income, and it is called “participating life insurance”.

Participating life insurance uses the golden goose concept where people will feed the golden goose until golden goose lays golden eggs. People will invest monthly payments to a passive income vehicle to generate golden eggs, which is considered to be cash flow.

Participating life insurance can help people keep the principle investment. The concept is trustworthy and it is highly regulated by ministry. This type of investment is considered as conservative investment. Moreover, there is tax deduction benefit from power of compounding and tax shelter.

Liu emphasizes participating life insurance can generate constant growth. Based on Canada life dividend, the historical average return is 8.9%. Even with any unexpected events, the return will still be stable and positive. There is no history of negative return.

Liu mentions the concept is using the sequence of return risk from poor to strong. There is guarantee payment in retirement. Moreover, the concept is using vesting method, which means there will always have gain and no loss.

Liu shares 10 more benefits from using participating life insurance.

Life insurance policy

Creditor Proof

No maximum RRSP contribution challenge

Life time investment

Tax benefit of exempt capital gain

Able to use for different purposes

Easy to manage

Installment

Participating

Less expensive than other passive income vehicle

Liu recommends participating life insurance to create second generation retirement fund for families. Originally, people have the misconception of only successful entrepreneurs are eligible to generate golden goose. Now, people can utilize this strategy to generate their passive income and build a strong passive income vehicle for their next generation.

“Building a passive income asset for you and your family”