[00:00:00] Intro: Welcome to Private Banking Strategies Podcast with Vance Low and Seth Hicks, your secret weapon to protect your assets and never have to start over financially again. Vance and Seth help high net worth individuals, families, business owners, and investors, structure and asset protect. Tax free fortress for their families.
[00:00:21] Intro: Learn how to keep what you earn and use the velocity of money to create your own private banking system. Join us on this journey as we explore the secret strategies of the rich and political elite and help you take total control of your financial security now onto the show.
[00:00:38] Eric (Host): Hello and welcome to Private Banking Strategies with Vance Low and Seth Hicks.
[00:00:42] Eric (Host): Today we are actually, this is a part two. If you have not heard part one, you definitely need to go back and do that because the gentlemen are doing something a little bit different With these podcasts, Vance is gonna start off by telling a story story of a real client. Now, the first. The, the last podcast was the first part of this couple story, the heartache that [00:01:00] they felt when they first came into the office, because they were under a massive amount of debt, which I know Vance will recap here in a moment.
[00:01:05] Eric (Host): Massive amount of debt. Didn’t see a way out. Heartbroken. Devastated by their circumstances. And then the process in which Vance says, started to work with them. Vance tells that story, and then Seth breaks down kind of how it works, the, the meat of the issue, some of the strategies they, they use. So this is, this podcast will be a two part podcast within this podcast, so stay around for the entire thing.
[00:01:28] Eric (Host): But if you haven’t heard the first part, go hear the foundation of what we’re talking about today, Vance and Seth. So good to be with you again. Thanks,
[00:01:35] Seth Hicks Esq.: Eric.
[00:01:36] Eric (Host): It’s wonderful to be here today. Absolutely. And, and Vance, I know that we’re gonna continue the story of Mr. Cairo, right? Was it, is that what we’re calling him?
[00:01:44] Eric (Host): Right. Alright. Alright. Can you give just a, a brief recap of what we started with on the last podcast and then dive into the next part of this story?
[00:01:51] Vance Lowe: Oh yeah, absolutely. So here we have a typical family with two children. They were misdiagnosed with what’s called Lyme’s Disease. He’s [00:02:00] a chiropractor and he couldn’t practice for two full years before they found out their mistake and he.
[00:02:07] Vance Lowe: Amassed a, a critical amount of debt, and it was so high as over a half a million dollars of extra debt that when he went back to work, they, they’re practical individuals and they think they understand a little bit about money, but they. Could not ever see themselves getting above this debt. And so there was a last ditch effort out there to see if there’s something that could be done for them so they didn’t have to take out bankruptcy.
[00:02:37] Vance Lowe: Mm-hmm. So the full story here is in a video that. Uh, we’ll, we’ll show you how to acquire so that you can actually follow along and see what the, these clients did step by step, what they did month by month to overcome this issue. The comment was. I’m never getting outta debt. There’s no way even even throwing a little extra money [00:03:00] that, that we have, we’ll get outta debt at a compound average rate of return of over 16%.
[00:03:05] Vance Lowe: We can’t see our, our, our boys, uh, staying at, uh, college. We can’t hold our heads up if we have to do taxes. And so the anguish and the turmoil these folks were in was the heart throb for all of us. But. They listened and they trusted and they did exactly what they were told to do, and we’re gonna go into that in a little bit of depth.
[00:03:29] Vance Lowe: Now, they had acquired, there’s 13, 14 different debts they owed everybody, their friends, their banks, everything. So we prioritize that debt, then we ask them what? Additional assets can you come up with? And again, the tears came, listen, we’ve been through everything. Yeah. Well maybe we could sell this, maybe we could do that.
[00:03:54] Vance Lowe: Maybe we could do this. And we told them, do it [00:04:00] and show us what you can come up with. Hmm. And they quickly realized that, okay, hey we, we really could come up with about 30, $33,000. And I could afford two office patient visits. The profit I make on each two clients per day. Mm-hmm. That’s about $20,000 a year, but we’re talking about almost $500,000 of debt.
[00:04:25] Vance Lowe: Wow. 16% interest. And we’re gonna throw out at $20,000 a year and maybe $30,000 of additional assets. Come on folks. That doesn’t work. In fact, it does work and it works. Absolutely beautiful. So I want to introduce a concept right now that we immediately installed in this couple. First of all, we had to teach them, we need you to stop thinking about how you’re gonna solve your money issues.
[00:04:55] Vance Lowe: Mm-hmm. Because Americans are programmed according to [00:05:00] what banks want us to know. It’s very diabolical. There’s a system out there where we could all be financially independent, but that was stripped out of our education system in favor of the banks taking control of all of that. Mm-hmm. The banks actually see us as cattle out in the fields, going to work to feed them.
[00:05:23] Vance Lowe: We’ll all agree that banks always get the money back. And the reason they get the money back is they lend it. We missed the day that they gave free money out. Well, banks don’t give out free money. They never have. They never will. As a matter of fact, a branch doesn’t get to enjoy any fruits. Of what their office does, everything in their office is financed back to the home office.
[00:05:48] Vance Lowe: Mm-hmm. They have to make a payment on it.
[00:05:49] Intro: Yeah.
[00:05:50] Vance Lowe: They account for every expenditure. They always get the money back. So the second concept is don’t trust. Yourself. [00:06:00] It’s not so much what we don’t know about money, it’s all about what we think we know about money that’s incorrect. And we’re gonna say that over and over again.
[00:06:08] Vance Lowe: ’cause we all have in our minds the scenario. If this were to happen to us, how we would solve it. Folks, after almost 40 years in the financial arena, I’ve come to discover that almost 90% of the time above 85% of the time, it’s wrong. What you think is gonna be correct will be wrong. And most of the time it’s 180 degrees wrong, but it’s exactly what the banks want you to do.
[00:06:36] Vance Lowe: You see, we’re living a get back to zero strategy now if we have gurus, we’ve been taught that we should save up and pay cash for everything. Well, if we do that typical car, anything like that, and we pay for the car, where does that leave us? Back to zero.
[00:06:55] Eric (Host): Mm-hmm.
[00:06:56] Vance Lowe: If we go into debt now we’re below zero, we’re [00:07:00] gonna make payments, and right when we almost get ready to pay off that car, that car’s wore out.
[00:07:05] Vance Lowe: We go finance into the car. Right. Where does that leave us? All roads lead us to zero. Yeah, that’s right. We spend our monthly expenses. We have to go back and replace that. We are a slave to the system here in the United States and we don’t even know it. So rule number one, we talked about this in the last PO podcast, never spend principle, and you can start that today.
[00:07:32] Vance Lowe: We need to recognize what our assets are. They said in this illustration that they could accumulate and put to work $33,000. We’re gonna, we’ll just round it at 33. So I need to discuss what is a sleep. And what is awake because we’re taught by banks. Pay cash for everything or finance everything and all of your extra money, go put it in an accounts and [00:08:00] try to collect compound interest.
[00:08:02] Vance Lowe: Eric, would you agree with that? Uh,
[00:08:04] Eric (Host): yeah,
[00:08:04] Vance Lowe: absolutely. I’ve heard that forever. Oh, a absolutely could be a mutual fund. It could be crypto, it could be anything that we feel like we could get a return on. Mm-hmm. But in fact. Yeah, we have to keep that money in that account. And for us, it’s asleep and the only hope we have is try to collect a little bit of interest while the people take our money and put it to work.
[00:08:30] Vance Lowe: Yeah. And they’ll double it. They’ll three times it over the same timeframe. They’ll make all kinds of income on that money because it’s actively at work. In our universe, the law is all about motion. If this earth stops spinning, we don’t exist. Mm-hmm. If air and water doesn’t flow through us, we die. If fruit sits, it rots, if water sits, it stagnates.
[00:08:57] Vance Lowe: If cars aren’t sold at the dealership, [00:09:00] the dealership loses money. If groceries aren’t sold at the grocery store, they lose money. Mm-hmm. Motion is critical, but yet our banks and we’re taught to go put money in accounts. And put ’em to sleep for us, we deserve what we get. We’re never gonna get ahead. Maybe one person does here or one person does there for a little while, but the banks will always end up with all that money.
[00:09:25] Vance Lowe: So we’re gonna wake up this money. Where’s the best place to invest money where you don’t have any risk whatsoever? No market risk, no economy risk, nothing. The very place you can put it is to buy and to finance your own debt. The person in the mirror is the only risk you have, so evaluate that. If the guy looking back at you in the mirror is a shady character.
[00:09:55] Vance Lowe: Guys, we all have problems, but I’ll betcha you trust that guy. [00:10:00] But we’re gonna make and carve that guy out as a separate individual. And we’ve never been taught this, that in our own personal life, our personal family’s life, we have to run our financial affairs just like an economy where money flows. So to get money back, we have to do it the way the banks do it.
[00:10:22] Vance Lowe: We have to lend the money. Who’s the best person to lend money to the guy in the mirror? He’s getting a freeload right now. He gets to, he gets to just freeload off of what we’re having to pay for not any longer. He goes to work to earn a nuke income and he spends it, well, he spends it on all of his bills.
[00:10:42] Vance Lowe: So if we outside the mayor, buy one of those bills when he makes that payment. Where’s that money going to end up?
[00:10:52] Eric (Host): Hmm.
[00:10:52] Vance Lowe: See, that’s the game, is the end game. Where’s the money gonna end up? If we own the bill and he [00:11:00] makes the payment, or if we have someone else that borrows money, we’re gonna expect them to make the payment.
[00:11:06] Vance Lowe: It’ll end up back in our hoppers. And how much return would you like on that money? Do you want to beat taxes and inflation? Yeah, well, we can easily beat taxes ’cause there are no taxes in this game. Mm-hmm. This is a private world that is not public. There is no tax. It’s all advantaged for us. In addition, we want to beat inflation, so we charge ourselves if we wanna make a return of 10, 15, 20, 20 4%, we actually have clients.
[00:11:39] Vance Lowe: Making over a hundred percent annual return on some of their loans. We’ll actually introduce that here as we discuss line item loans. But what I’m trying to get at and where I’m going with this, just with this one concept alone, it changed their lives. Okay, I [00:12:00] need to wake up my money. I’m gonna first go buy a little bit of debt.
[00:12:04] Vance Lowe: So how much will that $33,000 buy me? Well in the plan we can go through the numbers and show you exactly which debts it bought. Notice that I didn’t say pay off. Mm-hmm. That’s because you don’t want the guy in the mirror to catch wind. Yeah. He’s agreed to make those payments. All he’s gonna find out is, oh, somebody else bought those loans.
[00:12:27] Vance Lowe: Okay, got it. Just so happens to be you, the owner, and that money starts flowing back to you. And now we get to use it over again. And so the volume of return is where money is made. So that’s the next concept. The volume that we get back in those payments is additional power, which means additional capital that we can put to work to go buy more debt without having to come up with new money.
[00:12:53] Eric (Host): Hmm.
[00:12:55] Vance Lowe: Wow. And that is called exponential compounding. So to see the effect [00:13:00] of how this worked with this client, they never had to work harder. They never changed the way they spend money. All they changed was who ended up with it, and they put a little bit of their money to work, so $33,000 upfront, and then they added to their banking system $20,000 a year.
[00:13:21] Vance Lowe: When they ask about that, they ask, well, how much should we be putting in our banking system? I was literally shocked when my mentor, Nelson Nash answered that question the very first time to some of my clients. He said, I’ll answer that question. How much do you make annually? How much do you take home annually?
[00:13:41] Vance Lowe: Well, when this guy asked that question, there was 72 other people in the room. You don’t wanna divulge your yeah, your income, but he said, no, I’m trying to figure out how much premium or how much I wanna put in this policy. And he said, I’m trying to tell you folks. You’re, you’re putting a hundred percent of your annual income in someone else’s bank right now, aren’t you?[00:14:00]
[00:14:00] Vance Lowe: Hmm. Your goal is to put a hundred percent in your bank, but start where you’re comfortable and get there as fast as you can. So that’s my take on this right now. And there’s a lot of concepts and a lot of principles that we need to dissect.
[00:14:17] Eric (Host): So right now, we’re gonna just take a quick break and we’ll come right back with Seth jumping in and, and really kind of breaking it down.
[00:14:27] Midroll: Do you see yourself in that story? Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like? Are you ready for help? Please call private banking strategies at (817) 200-4777 or visit us at www.privatebankingstrategies.com. Are you ready to talk? Click on the link in the show notes and schedule an exploratory call today.[00:15:00]
[00:15:00] Eric (Host): Alright, welcome back. Thank you so much for still being here. I’m glad you’re listening. You will be too. Seth is about to break down some of these concepts and get into it a little bit more. I know there’s gonna be some good discussion here. So Seth, take it
[00:15:11] Seth Hicks Esq.: away. Thanks Eric. So there are seven pillars of private banking strategies, and Vance is describing an example for a family that, that became rock stars.
[00:15:22] Seth Hicks Esq.: Mm-hmm. And our, uh, repertoire of clients, one of the. The pillars that Vance is accentuating is called the velocity of money. Multiple touches on the same dollar. And I don’t know how many times people say, well, you can’t use the same dollar twice, and we, we kind of chuckle and laugh and you, you absolutely can, you’ve heard Vance say in, in this series.
[00:15:47] Seth Hicks Esq.: The banks always get the money back, meaning they’re lending money and rather you pay the grocery store or a contractor or your utilities, it’s going back to a centralized bank and it’s all going back [00:16:00] through a centralized system. We want to teach you how to get the money back in your own private banking strategy.
[00:16:07] Seth Hicks Esq.: That’s the velocity of money and how you create multiple touches on the same dollar. That’s how you get tailwind lift. Mm-hmm. And that’s how you begin to accelerate. And into financial freedom. Let me, let me break it down like this. So you capitalize your own private bank with a dollar, you use that same dollar theoretically, not literally, but theoretically to go and purchase debt, your debt.
[00:16:33] Seth Hicks Esq.: Or to make an investment, but we’re working on purchasing debt right now because of the chiropractic family. So they went and they capitalized their own bank with a dollar. They took that same dollar out of their bank and they went and purchased their own debt. They were earning money and they continued to capitalize their bank and they continue to go and purchase their, their own debt.
[00:16:56] Seth Hicks Esq.: Now, from the outside world, they would say. You’re just [00:17:00] paying off your debt. Well, no, that’s, that’s an ignorant paradigm, and you’re actually purchasing that debt through your family bank where you create an arm’s length contract where you’re obligated to pay the entity your family bank back with the rate of interest on a specific term, albeit your terms, because you’re the banker and the borrower, so you’re never gonna be.
[00:17:27] Seth Hicks Esq.: Deprived financing. You’re never gonna be foreclosed upon. Your car’s never gonna be repossessed because you can renegotiate the terms with your banker. You go in the mirror, you make a good deal, shake hands, and start a new term. It’s called the loan modification. Anybody who went through the real estate cycle in 2007, 2008 should understand modifications.
[00:17:51] Seth Hicks Esq.: Mm-hmm. So loans can definitely be modified. When you’re the banker and the borrower, you can modify the loans and that is perfectly acceptable. [00:18:00] You set the interest rate, you set the terms, and you, you sit back and the only person that you have to, uh, keep accountable is the person in the mirror. Like Vance said, if you’re a shady guy and you don’t pay your debts, then you’re gonna have problems with this system.
[00:18:15] Seth Hicks Esq.: But if you can. Use the discipline and the strategies that we’re providing. You’ll find your your way to financial freedom out of debt in quicker time than you realize. So this chiropractor used the this dollar to capitalize his bank in the form of premiums. He then used that money to purchase his own debt, his preexisting debt, whether it was home mortgages, HELOCs, private loans, car loans, credit, car loans, personal loans or otherwise, and began to hammer those out.
[00:18:47] Seth Hicks Esq.: And every. Debt that he purchased, and every dollar that he cycled through a premium into the life insurance policy and out through a policy loan to purchase that debt and then got a form [00:19:00] of repayment back to his bank, that that is what we’re talking about with. Always getting the money back. Mm-hmm. The ba, the getting the money back, the, the money that dollar ended up back in his account multiplied, multiplied with interest, multiplied with tax free growth multiplied through the entire process.
[00:19:21] Seth Hicks Esq.: And that’s just a very simple example of multiple touches on the same dollar. There’s some folks out there getting. Many, many touches on the same dollar, and it’s really only limited by your ability to creatively structure and strategize transactions. Now we get this question a lot, and I’ll let Vance chime in for a moment, and you probably, uh, have thought this too well.
[00:19:44] Seth Hicks Esq.: Which, which loans did he focus on first and why Vance?
[00:19:50] Vance Lowe: Well, the easiest answer to that question is what you can purchase at that time. The payments won’t transfer from headwind. To tailwind [00:20:00] until you can actually take over the loan and stop the payments going to someone else. The whole purpose here, I just wanna mention, and then Seth continue, is the fact of the incentivized ability to make those payments in such a way that it creates that tailwind.
[00:20:20] Vance Lowe: Mm-hmm. That tailwind’s really gonna help make those multiple touches. So I hope that answered the question.
[00:20:29] Seth Hicks Esq.: And I’ll add a little bit to it with, for a little sauce and a cherry on top. It sometimes it depends on the personal situation. In, in this chiropractic example, he had a personal loan to, uh, a, a friend, and we’ve had other clients that have had personal loans to friends.
[00:20:46] Seth Hicks Esq.: They may not be the highest interest rate loans that they’ve got, but for personal reasons, they want to knock. Those out for the perception that we talked about. Mm-hmm. In, in the first part of the podcast. Fear of failure in front of their friends, [00:21:00] fear of failing financially in front of their friends and family.
[00:21:03] Seth Hicks Esq.: So you might wanna knock that one out first, but my, my personal, uh, opinion is to take the highest interest ones out first. Or ones that have the most strategic purpose from a tax planning perspective. Mm-hmm. But we get that question a lot. So that’s a small sidebar. Another pillar that that is exemplified in this example is the guaranteed financing in the, the private banking strategies.
[00:21:29] Seth Hicks Esq.: He’s never gonna be. Turned down fi from financing ever again because he’s gonna finance things through his own bank. And he had, at the end of this 73, uh, month a success story. These folks had hundreds of thousands of dollars in their bank providing them with the liquidity to go and invest in other real estate.
[00:21:50] Seth Hicks Esq.: To finance other chiropractic office acquisitions. And they even got into lending to other chiropractors to acquire their businesses. So they began to [00:22:00] see that it was more profitable to be a bank than to simply use their own bank. And we’ve seen that happen over and over again where people go out and begin to lend to friends and family and third parties and continue to that that system out there with other people.
[00:22:19] Seth Hicks Esq.: Now there’s another pillar that I want to accentuate, and I’ll bring Vance in for some of his comments. It’s the second pillar of private banking strategies, tax free growth. Now. We’re telling you once you’ve got this money in your whole life insurance contract and you take the money out and you put it to work, and then you pay those loans back, those are all non-taxable events.
[00:22:43] Seth Hicks Esq.: They’re carved out in the internal revenue co code on purpose because the same banksters politicians and wealthy folks running our country use these same systems. The biggest. Clients of insurance companies are centralized banks, [00:23:00] Wells Fargo, bank of America, they have literally billions in life insurance on their employees because they understand these principles, and especially tax-free growth.
[00:23:11] Seth Hicks Esq.: This is where you get that tailwind. This is where it pays to move money out of a retirement account. Pay the penalties now and get them into a system where you’re not paying any taxes ever, whether you take it out now. Later or never. There’s no tax implications whatsoever. So in contrast to a 401k where the government’s going to get their taxes, mm-hmm, mm-hmm.
[00:23:35] Seth Hicks Esq.: They’re gonna get their taxes. Now, if you pull it out early, they’re gonna get their taxes later. If you pull it out, then there’s always going to be a tax event, but that is not. So with private banking strategies and these policies that we structure, there’s no. Taxable event Vance.
[00:23:52] Vance Lowe: Absolutely. That was a beautiful explanation right there.
[00:23:54] Vance Lowe: I I, I can hardly expound on that, but picture the perfect investment folks. [00:24:00] See, if you’re in this boat, how would you like your investments to earn a high rate of interest non-taxable, but better yet, wouldn’t that be a better investment if you could use that money? And purchase debt or put it to work somewhere else and still get the original interest.
[00:24:18] Vance Lowe: And now add to it the interest that you’re gonna charge for, for, for lending money on the loan. That would be two separate interests, wouldn’t it?
[00:24:27] Eric (Host): Hmm.
[00:24:28] Vance Lowe: Okay. And again, this all part of that exponential compounding and it’s all tax advantaged.
[00:24:35] Eric (Host): Wow. That’s powerful. A absolutely powerful. Alright, guys, A any other closing thoughts for today’s podcast?
[00:24:42] Eric (Host): We’re running low on time. This, it goes by so fast. I mean, this is, this is crazy. Anything that we need to close with today?
[00:24:48] Seth Hicks Esq.: Eric, we’re talking about a lot of different, different things here with these pillars, but one, one thing that we’re, we’re gonna lay seed for that I wanted to lay seed for and then I’ll, I’ll hand the mic to Vance, is we haven’t even [00:25:00] scratched the surface on asset protection and financial privacy that this provides.
[00:25:05] Seth Hicks Esq.: And when you faced bankruptcy. And you faced complete financial devastation. Once you begin to crawl outta that hole in amass assets again, the last thing you want to do is ever stare that loss in the face again. Yeah. And so that’s one of the first pillar of private banking strategies is asset protection.
[00:25:25] Eric (Host): Yeah. That’s
[00:25:26] Seth Hicks Esq.: fantastic.
[00:25:28] Vance Lowe: Yeah, I really don’t have that much more to say other than the time goes by so fast. There’s so much to detail out here. We could, we literally could spend a half a year in these podcasts just going over this family and everyone of our listeners would go away. F much more educated and understanding how money
[00:25:48] Eric (Host): works well, and the beauty of it is, is that for those listening, this will not be a six month podcast.
[00:25:53] Eric (Host): I promise that we’re gonna wrap it up here. But the beauty is that there is more information, there are more resources that the these guys [00:26:00] have, and they’re willing to give it away for free. There’s a loom video that we talked about a little bit earlier in the show, and that is something that we will be.
[00:26:07] Eric (Host): Putting into the show notes. So it’s about a 30 minute video, if I’m not mistaken. That really breaks things down, gives you the numbers, walks you through. It’s a visual so you can see that. And that will be in the show notes. So you can go ahead and click on that. It’ll take you right there and that is given to you by these guys for free.
[00:26:22] Eric (Host): Take advantage of that. Seth and Vance. Again, thank you so much for your time today. Great information. I know that we’re gonna. We’re gonna do part three just on this family as well. So we’re gonna, we’re gonna come back and break down more of the strategies. Thanks,
[00:26:33] Seth Hicks Esq.: Eric.
[00:26:34] Eric (Host): Sounds great, Eric. We really appreciate it.
[00:26:37] Eric (Host): And of course, our last thank you goes to you, the listening audience. We wouldn’t be here without you. Thank you so much for tuning in and listening to the Private Banking Strategies podcast with Vance Low. And Seth, if you have not subscribed to the podcast yet, please click the subscribe now button below this way.
[00:26:48] Eric (Host): When Vance and Seth come out with a new podcast, it’ll show up directly on your listening device. This makes it much easier to share these podcasts with your friends and family. Again, thanks for listening today. For everyone at private Banking Strategies, this is Eric Johnson [00:27:00] reminding you to live your best day every day, and we’ll see you next time.
[00:27:05] Midroll: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals? Do you feel stuck? Let us help you get unstuck. Are you ready to take action and get your own private bank? Please call private banking strategies at eight one seven two hundred. Four seven.
[00:27:27] Midroll: Seven seven or visit us at www.privatebankingstrategies.com. Are you ready to talk today? Click on the link in the show notes to schedule an exploratory call.
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[00:27:51] Intro: The information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of private banking strategies. [00:28:00] The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice professional.
[00:28:08] Intro: Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.
