[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 protected tax-free fortress for their families.
[00:00:22] 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.
[00:00:42] Eric (Host): Hello and welcome to Private Banking Strategies with Vance Low and Seth Hicks. Listen here. Audience, I gotta tell you, I’m gonna speak directly to you right off the bat. The more of these podcasts I’m involved in, the more excited I get because I’m understanding more and more about private banking strategies.
[00:00:57] Eric (Host): I’m understanding more and more of the power of what [00:01:00] these guys are talking about, and it’s gonna take a few podcasts. Don’t give up on us. Don’t give up on these guys. They have so much information. Uh, it’s crazy how much information they, they’re bringing to the table. Today is actually a continuation from our last podcast, and Vance was telling us a story about, uh, a nephew, wonderful gentleman that kind of turned Seth and Vance onto this strategy and what he did with financing heavy equipment and how it changed his perspective on everything he was doing, Vance and Seth.
[00:01:29] Eric (Host): I’m so excited to be back with you guys.
[00:01:31] Vance Lowe: Hi, Eric. We are so excited to be here.
[00:01:34] Eric (Host): Ah, it, I’m just, I’m, I’m blown away by all the information you guys are giving and, and Vance, I’m just gonna let you go because I know that you’ve got more to this story of this young, this young man, the nephew of Mr. Nash, if I’m not mistaken, and, and how it changes life.
[00:01:49] Vance Lowe: We really do, and what’s really important, Eric, is that everybody needs to understand, you have to watch the first. Uh, segment of equipment financing [00:02:00] to catch up because we don’t have time to go over mm-hmm. And bring everybody up to date. So I’m just going to pick up some of the things where we left off.
[00:02:10] Vance Lowe: We are discovering, or this young man is discovering that if he changes the flow of money. Yes, by self financing, leasing to his company, each one of his trucks, he’s gaining a half a million dollars over a lifetime of work with the company. Where I want to pick it up today is that he was so excited as Nelson went through all of the equipment financing.
[00:02:38] Vance Lowe: He wanted to finance everything. Today and he couldn’t, he actually had to wait as far as the illustrations. So we’re gonna provide these illustrations and numbers to the people who, who want to dial down into ’em. But he started with a policy of $40,000 in a retirement program, [00:03:00] and Nelson told it’d pay $40,000 a year every year for four years and stop.
[00:03:06] Vance Lowe: And he was questioned, why should I stop? You know, I can afford 40,000. He said, well, I’m gonna show you why you can stop. And then he laid out this beautiful retirement program. Then he introduced equipment. Let’s use the money while it’s sitting there. Let’s use the, the money that’s building up in the retirement plan, put it to work, and self-finance a lot of things that we’re giving away.
[00:03:31] Vance Lowe: So. This whole process is about an individual who doesn’t have to work any harder. He’s not changing his cashflow, but he’s changing who is ending up with the money and has the opportunity to reuse that money over and over again and get new. Value for it. So I wanna pick it up where this, he discovers that he has to wait till year 13 and he can finance four [00:04:00] of his, uh, logging trucks and one tree share his monthly leasing that he’s turned from outflow to a, a leasing company to himself.
[00:04:10] Vance Lowe: Leasing, he’s, he was able to turn $9,000 a month. And his income went up to, uh, tax free, by the way, 225,000. He is got $3.5 million in his account starting at age 65. There’s a problem here that I need to point out. He’s been so diligent in everything that we’re talking about, paying himself back $108,000 a year every year through this last example.
[00:04:43] Vance Lowe: And folks, I want you to, to dig this out and find it, because this is pretty exciting. Except for years 65, the last year, he is supposed to pay himself back $108,000. He only pays back $79,384. [00:05:00] And so I asked the question if he, so, you know, gung-ho and, and used to that, why didn’t he make the full payment that last year?
[00:05:09] Eric (Host): Mm-hmm.
[00:05:10] Vance Lowe: Well, here’s the reason. It’s how we start. He started a $40,000 annual premium policy that kind of was paid up in essence in a four year period of time that last year his policy became full. Once he put in $79,384, that policy was full, and it put him on a fence, which is called and known as the mec or uh, modified endowment line, where the government came in back in the seventies and said, look, if you guys cross this line, we’re gonna tax everything.
[00:05:51] Vance Lowe: All the gains are gonna be taxable, and it’s reportable. Geez. Well, he’s now, that’s no good. He’s, yeah. It’s no good at all, is it? He’s now on the fence. Hm. If he [00:06:00] pays one dime more, he’s gonna fall over on the left side of the fence and be taxable. If you had that choice, would you pay that dime, Eric? Nope, I would’ve, of course
[00:06:10] Eric (Host): not.
[00:06:11] Eric (Host): That would be in, in my fist. That would be in my fist as tight as possible. Good
[00:06:14] Vance Lowe: lord. But that’s, he was studying this. As, as Nelson. See, it’s a, it’s a point of discovery here, folks. He, he sees a problem. Well, well, holy cow, I’m only 60% efficient in converting my outflow to inflow. I’ve only converted $9,000 and my policy’s full.
[00:06:34] Vance Lowe: Does he have to quit? No. All he does is add a second policy guys. Oh, okay. Alright. Alright. He has a second policy, you know, funds more premium. He can even take money from the existing policy, you know, to fund that premium. And this is exactly what he did early on. Once he, the lights came on and he converted the full [00:07:00] 16,000, that full 16,000 equated for him.
[00:07:04] Vance Lowe: And we’re literally living that today. You know, I don’t know that for sure because I’ve lost track of him, but over $450,000 income tax free, and over five, somewhere between five and $6 million in the two accounts, totally income tax free, so, wow. Eric and, and Seth is gonna come in and, and, and give me some fine, us some fine points here, but one of the things we have to understand what becomes logical when a small bank starts and becomes very successful, they kind of outgrow their walls, don’t they?
[00:07:46] Eric (Host): Mm-hmm.
[00:07:47] Vance Lowe: And it’s called expanding. One of the things Nelson Nash teaches in his book is that this system is multiple policies, and I had to learn that. The hard way. ’cause my mentor, [00:08:00] he wasn’t a nice guy, but he was very, very successful at taking this private banking strategy to the max. And he, it astounded me how many contracts he had.
[00:08:11] Vance Lowe: He said, Vance, if I can’t put the money to work as the, as the payments come in, see he’s got $16,000 a month coming in as long as he owns this business and it’s tax free to him now. So if he can’t put the money to work, he expands his bank. He gets branches, he gets more policies.
[00:08:34] Eric (Host): So let me, let me ask you a question.
[00:08:35] Eric (Host): I’m, I’m obviously, uh, I’m, I’m sitting here with the audience. I’m very new to this. You’re, you’re saying that he has multiple policies and he started that second policy when he kind of hit that wall or hit the, the, the do not cross line on his first policy. But that was many, many, many years after he started it.
[00:08:52] Eric (Host): Correct? Well,
[00:08:53] Vance Lowe: what I’m saying is he got to see all of these illustrations up front. But mm-hmm. He was taught, Nelson [00:09:00] had to feed him one step at a time. And this is what’s important for the audience to understand. Seth and I have have placed an elephant on the table and we’ve gotta dissect this whole thing.
[00:09:10] Vance Lowe: Mm-hmm. But we have to start here at one leg and. And then go all the way through. Yeah. So he’s introducing this and the guy’s catching on this, this young man’s catching on, well, if I do two, if I do three, if I do four, oh, I can’t do four here, but, and he follows the numbers down. Well, look, I got a problem here.
[00:09:29] Vance Lowe: Well, if I wait all this time and I see this problem here, I’m gonna be outta luck because I’m gonna be 65. I don’t wanna start a policy then, uncle, can you solve that for me now? What do you think Nelson did? Yeah,
[00:09:42] Eric (Host): that’s
[00:09:42] Vance Lowe: what I was wondering. Absolutely. Yeah.
[00:09:44] Eric (Host): Yeah, lemme, so another
[00:09:46] Seth Hicks Esq.: context for Eric to answer your, your question.
[00:09:49] Seth Hicks Esq.: It, it could be year, it could be the same year that you need to expand your bank policy based on, uh, projected income earnings. Let’s say that you have a windfall and for example, [00:10:00] you buy a piece of raw land that you’re gonna develop. Mm-hmm. And you pay. X for that raw land in year one. And you’ve set out a bank, a strategy where you’re gonna fund your bank with $50,000 a year.
[00:10:14] Seth Hicks Esq.: That’s what your income supports at this current time. But in nine months, a buyer comes along and says, I’m gonna offer you five X for that land if you just bring water and sewer to it. Mm-hmm. And so you think. Well, absolutely. You know, so you put that minimal infrastructure in and that guy pays you five x.
[00:10:36] Seth Hicks Esq.: Well, where are you gonna put that money? Think about the seven pillars of private banking strategies, asset protection. That means you don’t want your cash just sitting in a centralized bank because it’s not asset protected. And your $250,000 FDIC insurance is worth about 1.30 cents on every dollar.
[00:10:55] Seth Hicks Esq.: When you do the math on what they can actually guarantee pay, so [00:11:00] you’re looking for other options right out of the the gate to put that money into a safe warehouse. A vault, as I like to call it, that has ultimate liquidity. It’s tax free, grows and compounds year after year and is financially private so that that’s a scenario where you need to expand your bank.
[00:11:19] Seth Hicks Esq.: Bank immediately. Or you could sell a business. Mm-hmm. Or we have clients in crypto, for example, that have been, uh, laboriously, trudging through a bear market until, uh, 2021 and now it’s going parabolic and they’re taking profits and they’re going, my bank’s too small. And that means they need to expand their policies and expand the size of their banking capacity so that they can capture these seven pillars.
[00:11:48] Eric (Host): Alright, hang on. Now I’m, I’m gonna ask a question, but we’re gonna take a break right after the question because audience, here’s the thing. Vance alluded to it earlier. He has created loom videos of these [00:12:00] different, the, the different stories that you’re hearing. So this story specifically about the, the young man who was financing equipment and.
[00:12:06] Eric (Host): Like you said, go back and listen to that last podcast. But also there are loom videos that, that these gentlemen are providing free of charge for you, and you’re gonna find out how to get those, uh, in just a moment. But before we do, I’m gonna ask a question and then when we come back, guys, I need this question answered.
[00:12:21] Eric (Host): All right. So. From my understanding, again, I’m working on a very small brain here for this, this, this topic so far. Wouldn’t it be better to start multiple policies while you’re younger? Because I, I, I understand through our conversations that this is based on, uh, a life insurance type policy. I’m, I’m healthier now than I will be in 20 years.
[00:12:40] Eric (Host): So that was, that was where I was going with that question. Wouldn’t it be smarter or better to start these policies with the, with the, uh, policy? Premium amount be smaller because I’m healthier. I just don’t know. So I’d love to hear the answer when we get back.
[00:12:57] Midroll: Do you see yourself in that story? [00:13:00] 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 dot. Private banking strategies.com.
[00:13:29] Eric (Host): All right. Welcome back. I hope you wrote down that contact information. If not, the beauty of a podcast is you can rewind it and, uh, get that contact information, watch the loom videos, get a better understanding of what these guys are talking about. It is fascinating. It is absolutely fascinating. Alright, Vance, I challenged you before we, we broke for that small break.
[00:13:46] Eric (Host): What do you got for me? What, what’s, what’s the answer to that question?
[00:13:49] Vance Lowe: Well, Eric, first of all, I wanna make a comment as I teach people, all right, and explain the banking, uh, strategy. I’m looking for questions. And [00:14:00] Eric, your question is right on point. Right. I, by that, I mean, it’s right where your head should be at this time of the game.
[00:14:09] Vance Lowe: Yep. You know, because now we’re discovering, oh, okay, what? What’s this world of multiple policies?
[00:14:16] Eric (Host): Yeah.
[00:14:16] Vance Lowe: Okay. Nelson mentions that in his book, and I had a hard lesson to learn that years ago, but every individual is different. Uh, your starting points are different. The money you have on hand is different.
[00:14:30] Vance Lowe: So what we do with people is we help them identify what they have available. We show them, you know, what that could look like, you know, several years from now, and then. Through this process of discovery, they start at a certain level, and you know what, Eric? Most people start conservative. Mm-hmm. They test it out and usually within six months, you know, they’re dumping in, you know, trying to push in as much as they can.
[00:14:59] Vance Lowe: The next [00:15:00] secret. You don’t have to have policies. On your own individual life. Lemme tell you a story about myself. I, I now have 14 policies. I thought in the beginning I could handle it and set it all up with one perfect big contract. Oh, was I wrong? Okay. And so it took, it took a, a series of policies. I decided to skip my kids.
[00:15:27] Vance Lowe: I have four children, Uhhuh, and I have 10 grandkids. Well, my. Children, you know, still feel like they’re smarter than I am. I don’t know, you know, grandparents are in that road. But I went straight to the grandkids and I put contracts these, these contracts with all of my grandkids, and I started teaching my grandkids and said, you’re part of the family bank.
[00:15:48] Vance Lowe: I went to my kids and said, kids, just so you know, you’re disinherited.
[00:15:56] Vance Lowe: Oh my. And they raised their eyebrows and I said, look, all the [00:16:00] money is in the family bank.
[00:16:01] Seth Hicks Esq.: Mm-hmm.
[00:16:02] Vance Lowe: And you need to use your, the family bank, and you need to be inside of it, you know, borrowing money, paying it back with interest, that increases your own interest and your own ownership in the family bank.
[00:16:15] Vance Lowe: Hmm. But the reason I didn’t put policies on you is I want you to go put policies on yourselves.
[00:16:20] Eric (Host): Hmm.
[00:16:21] Vance Lowe: That reminds me of one other story, and I want Seth to come in and really come into some of the, the details here, but I had a guru out there that Nelson pointed me to and he said, this man has perfected, as far as we know, he, he’s committed to taking this private banking strategy to the ultimate in his lifetime.
[00:16:41] Vance Lowe: And he had been practicing 14 years ago when I first met him. He had been into the strategy for just over 25 years. And he was in his early seventies. He had 11 children, two sets of twins. I guess that’s how you get that high. Okay. Yeah. [00:17:00] But it just absolutely shocked me when he told me, Vance, I have over a hundred policies that I own.
[00:17:12] Vance Lowe: What? And that I am the beneficiary of, and just so you understand, Vance. I’ve been uninsurable almost my entire life.
[00:17:23] Eric (Host): Wow.
[00:17:23] Vance Lowe: So I just set me back. Yeah. Can you believe that? I thought 14 was life. So here’s secret. You don’t have to have policies on your own life yet. You want to probably to begin with.
[00:17:34] Vance Lowe: Mm-hmm.
[00:17:35] Eric (Host): But
[00:17:35] Vance Lowe: this man made an art of being able to create partnerships to be able to insure his partners. As well as his extended families and on and on and on. I’ve told Seth a little bit more about that. This let’s kind of maybe really drill down. There’s some reasons that you want [00:18:00] and some purposes for multiple policies instead of just trying to make one by itself.
[00:18:05] Seth Hicks Esq.: One we were kind of alluding to Eric was, and that is to manage cash inflow or windfall events. Mm-hmm. Like the gentleman who developed the raw land and then got a, you know, a multiple X offer to sell. Yeah. Uh, he’s gotta put that cash somewhere. And let’s say that you add, uh, a number of zeroes and a few commas and that.
[00:18:29] Seth Hicks Esq.: You can’t still get that in one policy. Mm-hmm. That’s, that’s what Vance is referring to with the gentleman who had policies on multiple members in his family and his grandchildren. That’s what Vance is also doing in his, his family, is you’re spreading the insurable interest across multiple relationships, and that’s, that’s what the insurance company requires for you to own.
[00:18:52] Seth Hicks Esq.: And this insurance policy is you have to have an insurable interest in the life. That’s being insured. Mm-hmm. That can come through [00:19:00] a business partnership, that can come through a family relationship, a blood relationship. It can come through a number of different structures and the the reason is because you’ve got cash sitting there that you want.
[00:19:14] Seth Hicks Esq.: To put in the perfect asset, which is private banking. So that’s, that’s the, the, the high level look at why you do that. And for folks that just need predictability and what their premiums are gonna be, you can structure that with, with precision just the same. Wow. Wow.
[00:19:36] Vance Lowe: Yeah. So Eric, what we really wanna do is go into that in a little more detail and, and.
[00:19:42] Vance Lowe: Actually people, it’s not us going to people saying, oh, you need another policy. No, it’s, it’s people calling saying, Hey, my, my bank is too small. I can do this much more in another contract. Can you make that happen? Mm-hmm. [00:20:00] Okay, so what I would like to get into, and I don’t know if we’ve got enough time, you know, ’cause our podcasts are, are limited to time, but I want to get into why, what the difference is of having your money in.
[00:20:15] Vance Lowe: The policy or this structure, this contract first versus, because I made a mistake at the beginning as well, and I’d like to tell that story at some time of having money, pretending the money was there and then putting it to work. We also want to talk about being able to identify and understand money at work.
[00:20:37] Vance Lowe: Versus money asleep because a lot of people, you know, it’s not so much what we don’t know about money that hurts us. And I say this over and over again. I know you’re probably sick of this, but it’s all about what we think we know about money that’s incorrect. And that’s one of the things about our investments.
[00:20:54] Vance Lowe: Is that money working or is that money
[00:20:57] Eric (Host): asleep? Yeah, well [00:21:00] the more, more I spend time with you and, uh, you have said that over and over, but the more I spend time with you, the more that makes sense because of, of the things that I’m learning. So keep saying it. Alright, Vance, you just, you just said something that, that again, I’m interested in.
[00:21:16] Eric (Host): You said money asleep versus money or money working versus money asleep is, I think is how you phrased it. What do you mean by that?
[00:21:23] Vance Lowe: Oh, yes. Uh, a lot of people have taken what we’ve learned from bankings, uh, and mistakenly think that if we have money in a, our 4 0 1 Ks, stocks, mutual funds, whatever else, that our money is working for us.
[00:21:38] Vance Lowe: Mm-hmm. When in fact it’s not, in order to get compound interest, your money has to sit there in that account. Correct. True. Yeah. Okay. So if we pull it out, it stops earning. Correct? Yep. Now who’s got the money? The people who take the money are the people who are running the business and have put the money to [00:22:00] work and think of that side of things, doubling money every couple of years.
[00:22:05] Vance Lowe: That’s what the banks do. That’s what these companies do. They take this money, put it into production, all while we think we’ve got it at work, when in fact it’s sleep, which is absolutely contrary. To the universal laws that we live in. Eric, what would happen if this earth stopped spinning?
[00:22:25] Eric (Host): We’d all fall down.
[00:22:27] Vance Lowe: We’d begin. We wouldn’t be here. Or air and water doesn’t flow through us. Yep,
[00:22:31] Eric (Host): yep, yep.
[00:22:32] Vance Lowe: You see what I’m saying? Yeah. What would happen if cars aren’t sold at the car dealership or groceries sold at the grocery store? If water sits it stagnates. Mm-hmm. If fruit isn’t eaten. It rots. So motion is absolutely critical in this universe, but we’re taught take all your spare money and go put it in an account, you know, and try to get compound interest on it.
[00:22:59] Vance Lowe: [00:23:00] So there’s a lot more to this, but that’s one of the rules. You want to take a look, just look at what you’re doing right now and decide, is my money really working for me? Or have I got it in a sleep and account taking risk, trying to get an interest rate return.
[00:23:17] Eric (Host): Yeah. I want, I wanna hear more about this and I know that we’re running out of time on this podcast, like you had said.
[00:23:22] Eric (Host): Seth, do you have any closing thoughts for today that can kinda lead us into that next podcast, what we’re gonna be covering?
[00:23:28] Seth Hicks Esq.: Sure. What Vance is describing is getting multiple touches on the same dollar It. It’s pillar number four of, of the seven pillars of private banking strategies. And, and just like Paul bunion our, in our equipment financing, did he, he funded his bank with a $40,000 premium annually, and then he pulled a policy loan out from his bank.
[00:23:50] Seth Hicks Esq.: Mm-hmm. Began to purchase trucks. Logging equipment and strippers and uh, then pay himself back. So he paid [00:24:00] a premium with it. He pulled the same dollar out and as a loan, he went and financed heavy equipment. And then as his business made money, he paid his bank back. He’s getting multiple touches on the same dollar.
[00:24:12] Seth Hicks Esq.: Yeah, and that’s what we’re gonna drill down in on the next podcast a little bit further.
[00:24:17] Eric (Host): Yeah. That is fantastic guys. This, this is beautiful, beautiful, uh, picture that you’ve painted here. Again, audience Loom video is, is going to be a huge resource for you, especially because you can visualize exactly what these guys are talking about because listening to it.
[00:24:32] Eric (Host): I know you’re getting excited when you see it in motion, when you see what they’re, you know the numbers as they’re, they’re talking about ’em, it’ll blow you away. So please take advantage of that. Uh, again, Seth and Vance, thank you so much for your time today and of course, always our last thank you goes to you, the listening audience.
[00:24:46] Eric (Host): Thank you for tuning in and listening to the Private Banking Strategies Podcast with Vance Low and Seth Hicks. If you have not subscribed to the podcast yet, please click the subscribe now button below this way. When Vance and Seth come out with a new podcast, it’ll show up directly on your listen device.
[00:24:58] Eric (Host): This makes it much easier to share these [00:25:00] podcasts with your friends and family. Again, thanks for listening today. For everyone at Private Banking Strategies, this is Eric Johnson reminding you to live your best day every day, and we’ll see you next time.
[00:25:15] 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. 204 7. Seven seven or visit us at www.privatebankingstrategies.com.
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[00:26:01] Intro: 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. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.
