[00:00:00] VoiceOver: Welcome to private banking strategies podcast with Vance lo and Seth hits 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, an asset protected tax-free fortress for their families.
Learn how to keep what you wear and use the velocity of. 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 helping take total control of your financial security now onto the show.
[00:00:39] Aric Johnson: Hello and welcome to private banking strategies with Vance Lowe and Seth Hicks.
Gentlemen, how are you today? All right. I’m so pleased to be back with you. Uh, for those that have not heard the podcast right before. Uh, that they released two weeks ago. Uh, it was really, really interesting. It’s something that I hadn’t heard a whole lot about before these guys do such a great job of explaining it, but it [00:01:00] was really about 401ks IRAs, Roths, and I believe the title was something to the effect of why you should dump your 401k as fast as possible.
And is there something better? Well, this podcast, is that something better. This is the good news that is now. We’re continuing from that last podcast. And, uh, I’m, I’m curious, do you mind if I share a story with you? Oh,
[00:01:21] Vance: absolutely.
[00:01:22] Aric Johnson: Yeah, I haven’t, I, I made mention to this at the end of that last podcast, but we actually had a situation in our family, uh, that I, I know that there’s some good news, uh, at the end of this one.
Uh, but we tried to, uh, help a family member out and you know, my wife and I were working at the same place and we had a 401k. And so we took a loan off that 401k to help a family member out. That was the best advice that we had. And it was substantial, uh, around $20,000 or so, and loaning it to the family member.
They were, they were paying it back to us. It wasn’t that big of a deal. However, uh, we [00:02:00] were put on a repayment plan, just like Vance, I believe you described in the last, uh, podcast. Uh, but what we didn’t know is that if we left that employment, that they would want all the money back. Within, I think it was 30 or 60 days.
So what ended up happening is my wife and I moved on to other jobs. She actually continued with the same employer. However, it was, she had to restart her 401k because it was a different department. So that’s a whole nother story. But what we ended up finding out was about $17,000 was due back, right. That within 30 days.
And we did not have that to put back in our 401k, uh, right. And so we ended up getting penalized the, you know, the penalty for early withdrawal on 17 grand. Uh, we also had to pay higher taxes because at $17,000 immediately became income. It was a nightmare. And that followed us around for a couple of years, trying to pay off the debt and, and deal with, you know, all the, all the [00:03:00] complexity that that caused us.
Cause we just didn’t know. Um, we thought it was a good idea and it was a terrible. So, I, I know that’s one of the reasons you guys said you don’t have access to your money in a 401k and boy, we lived it and it was tough.
[00:03:13] Seth: That’s a great example, Eric. And it’s, it drives home the point that, that we made in the last podcast.
And with 401ks, you don’t have. Access or control of the money that you’ve deposited. And people think that they’re getting free money because their is making a contribution, which Vance explained is shrinking and shrinking and shrinking. And frankly, uh, they’re not doing it for your benefit. That is the employer they’re doing it for their own benefit.
And, uh, the government sponsored accounts. They’re not really doing it for. Uh, consumers and concerned citizens benefit. They’re doing it for their own benefit. And we outlined a few things, which I’ll just recap [00:04:00] really quickly in case someone hasn’t had the benefit of hearing the last episode, but the 401ks are fraud.
With penalties when you, uh, are forced to take distributions, you are penalized. If you take an early distribution or a late distribution, uh, many times the 401ks are tied to the stock market in which you bear the risk of loss. So retirement strategies shouldn’t have, um, the, the retiree. Shouldering the burden and the, and bearing the risk of loss.
Um, they want to, you need a predictable, planned, expected amount that you can count on when you need to retire. And that’s not the case with these, uh, government sponsored accounts. And then thirdly, tax. The taxation issue. You mentioned you’re getting tax because you took a distribution and it became income and that’s, and that’s a minor.
I mean, I’m not meaning to diminish your [00:05:00] pain, but that’s, that’s minor compared to some of the things that are coming down the pipeline and there’s going to be increased taxation and the government is going to be reaching for the $7 trillion that baby boomers. Socked away and government sponsored accounts.
So I say that to preface the fact that there is an alternative and there’s a lot better alternative and the solution comes with private banking strategies and you don’t have to play in a government sandbox where they create all the rules and they control all the toys. You actually can have complete liquidity and complete control with no tax on, on your growth.
And what we’re talking about is, is a whole life policy structure properly that creates, uh, an asset protected. Where you’re financially private and you’re not subject to taxation or penalties when you’re depositing the money or when you’re taking money out for your purposes. [00:06:00] So you have absolute control over your cash to be able to do with, as you need when you need it.
And moreover, Eric, you’ve got predictability, unlike bearing the risk of loss with something that’s tied to the market with this, you’ve got to predict. Guaranteed return that you know exactly what you’re going to have on a precise day and you’ll know what’s available for yourself. So that’s the contrast.
[00:06:30] Vance: Yeah, Seth, let me jump in here. I’m just chomping at the bit. I’m so excited to talk about the good news, the good information that we’ve got here to share. I hope everybody in the world can hear this because there is a light at the end of the tunnel picture, a town that you own and that you control, you know, in your town, you don’t have to pay any tax.
You’re attracting dollars in from work or from investments or whatever else. There’s no [00:07:00] outside intervention. You get to control the way you want. How would you like to be able to introduce a dollar into your town and watch it go from store then to the next door, then to the, you know, grocery store to the dentist or whatever else, that same dollar traveling around town.
And every time it stops, it creates. Uh, new dollars worth of service or products, the same dollars, and you are in control of that whole environment. And there’s no taxable events on the growth folks. This is the good news. And so we want to go through and just totally outline. For you, this can happen in your lifetime and you can benefit from it right now.
So I think, um, the next thing we’re going to talk about and I’ll turn it back over him and we want to give specific examples. So he’ll jump in [00:08:00] or I’ll jump in and give each example when it comes to control, what does owning or having. Total control over your financial future mean. So Seth, go ahead and start that process here with the first.
[00:08:15] Seth: Bullet point. Well, Eric let’s take, for example, um, the scenario that Vance mentioned in the last episode whereby I had a client who had an opportunity in the form of a business coming his way and had, uh, a sum of money. Let’s call it $200,000, locked up in a 401k, and I say locked up because they tried to get it out and they couldn’t get it out to take advantage of that business opportunity, which would have given.
An X-Factor on that $200,000. Now contrast that with having $200,000 in a private banking strategy and where you have complete control and this business opportunity comes along and creates an opportunity [00:09:00] that that is well worth. The $200,000 investment and creates. Uh, a sizable return whereby they’re creating a cash flow in their business, and they’re able to replace the $200,000 that they took out of their private banking vault.
And they’ve got money at work for themselves and they, they don’t miss the opportunity. Um, I myself have had numerous rules. Opportunities come my way and been already fully leveraged or fully invested and not had the dry powder to take advantage of something that was a cash only type of situation. And many of the real estate investors in our audience will, will understand this in the last 2007, 2008 mortgage crisis when the real estate values tanked and, and the mortgage industry stopped loaning.
And bank Starks lending money cash was king, and [00:10:00] you could pick up opportunities and cash flowing properties. If you had dry powder cash to go invest in, in, in those deals. Well, if you had your money locked up in a 401k, it’s, that’s exactly where it is. It’s locked up and you’re handcuffed from taking advantage of those opportunities as you got it in a private banking strategy and it’s ready for deployment.
You’re able to take advantage of those and increase your wealth with a, uh, an X factor that others won’t be able to take advantage of. Now go ahead. Advance.
[00:10:33] Vance: Yeah, there’s just many examples. Picture this folks. How would you like to have that 200,000 Seth just mentioned in your own private bank? Uh, strategy and you need to use some of that to capitalize on an opportunity in your private banking.
If you had your wish, wouldn’t you like that to continue growing [00:11:00] at the guaranteed rates that it’s in, when it’s, you know, in, uh, an investment account, as well as pulling it out, putting it to work and earning those assets. Okay, Eric, you might, you might want to, uh, yeah, I’ll go through that. For instance in these cash vaults that Seth has talked about these, uh, instructed or constructed.
Uh, whole life contracts that we, that actually formed the absolute perfect private bank there’s guarantees in there and, and profits, because you also get ownership of the insurance company and they always pay profits. Those things always come into the accounts. So let’s say we’ve got $200,000 in. And we’re earning 4% and the dividends or the profits are 3%.
So that’s a 7% net return. Cause there’s no talk tax on that. And you have [00:12:00] an investment that comes by and you need to pull out a thousand or a hundred thousand dollars because you know, you’re going to double that in two years. So I take a hundred thousand dollars and I go by the investment. The question is, does my hundred thousand stop earning that guaranteed interest and the dividends.
This is the good news folks. It doesn’t stop any other investment. If you pull the money out, interest stops. Doesn’t it. Okay. Not here, not here. This is your world and not attachable. Hmm. So I thought I’d just interject that, you know, so, um, we want to talk about, you know, putting our assets to work, you know, in all different levels, without giving up, you know, some of the, the absolute iron cloud guarantees, we don’t have to take the risks that people normally would have to take to get the type of return.
When I mentioned 7%. If we got that in, [00:13:00] in these accounts that beats the market hands down long-term market has never given us that amount where these accounts do at best over a 40 year period that I managed assets was a 5% gross return that was before tax. Single gears. Yeah, you can beat that, but not long-term, let’s get into your IRA.
A lot of things we could say. So go ahead and talk about doubling assets
[00:13:31] Seth: before I do let’s. I want to just drill down for a second. What Vance is talking about and taking money out of your private banking vault. Which is a carefully constructed whole life insurance policy and not having the value diminish while you put that a hundred thousand dollars, uh, at work and a real estate investment or a business investment, it’s called a non-direct recognition policy.
And the insurance company treats it as if it’s the money’s still there and it’s growing. [00:14:00] And creating dividends on that principle amount as if it were there. And, and in effect, you’re getting two uses out of that dollar with one with one swipe, but here’s really where I can drive home the point a little bit more further about velocity of money.
Let’s give it a real estate investment example. Let’s say you’ve got a private banking, uh, through your whole life insurance policy and you pull a hundred thousand dollars and, and, uh, cash value out of that to invest and a real estate, uh, apartment complex. And. That’s your down deposit and you leverage in with third-party financing because that’s, that’s what you’re able to construct.
And you’ve got a cash flow on that apartment complex, which is, uh, spinning off $25,000 a month. And you’re quickly able to replenish. Your, uh, private banking loan, and you’re able to recycle that same money that you put back in your vault to a [00:15:00] second apartment complex. And you’ve got a cash flow in the second apartment complex, and you likewise repay your, your private bank, uh, rather quickly because you structured a good deal.
And you’re able to replay that money again on yet another. Apartment complex. And so you’re quickly building wealth and able to leverage your own private banking funds into these real estate deals that I’ve described and, um, and knock the ball out of the park. You can’t do that with 401ks and IRAs, Roths, and other qualified plans.
Now, let me give you a story about one of our clients who, uh, is a very hard. And central Texas and started off with a, uh, very minor, uh, amount to privatize. Her, uh, bank is $5,000 contributions, annual contributions. Well, I had a discussion with. A week ago and she told me she had [00:16:00] a million dollars and total value, fair market value of five properties of real estate that she’d acquired through using the technique that I just described.
So whether it’s apartment complexes or little rental properties or whatever, the opportunities may be, where even if it’s not real estate, this principle is really illustrated by the fact that you get multiple uses. Out of the same dollar and you’re able to create a velocity of money, which increases your wealth.
And all of that cycled back into your bank is growing tax free, Eric, and without any limitations, uh, from the government. In fact, these strategies have been in place for over a hundred years and been used by. Politically elite in the rich and famous Kennedy, Nixon, uh, Ray crock, the, uh, franchise or of McDonald’s and on and on and on, uh, people that have acquired great wealth and put this strategy to use, [00:17:00] uh, have illustrated the concept far better than I’m describing.
And it’s, it’s available for the folks out there. Like I mentioned, with a single mom working hard. As well as it is for those who’ve already established a high net worth. It’s, it’s really the best strategy out there to protect your assets, be financially private and pay as little taxes, legally possible.
[00:17:25] Aric Johnson: So what’s the process of taking money out.
I mean, it sounds great. Um, but what, how do you do that? If you want to take advantage of an opportunity like this and how long does it take, are there fees involved with that?
[00:17:38] Vance: I can, I can explain that. I think we’ve got a break coming up here, so why don’t we, we do that and then I’ll get right into Vance.
[00:17:47] Aric Johnson: That sounds fantastic. We’ll take a break guys. I know that during this break, uh, the audience is going to hear some contact info from. Uh, that they can reach out and contact you and get some more resources from you. So I, I appreciate everything you’re putting forward and audience, here you go. Here’s [00:18:00] contact information for seven bucks.
[00:18:02] Seth: 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 set eight one seven two hundred four seven seven. Or visit us at www.privatebanking, strategies.com.
[00:18:32] Aric Johnson: all right, man. Let’s continue that conversation. I asked before we left for the break. Um, what does it look like to withdraw that money, to take money out of your private banking strategy to, to use for investment purposes or, um, you know, opportunities that.
[00:18:47] Vance: All right, Eric, you want more light at the end of the tunnel?
Come on, listen to this contrast, trying to get a loan to the bank. They want you to literally devolve every [00:19:00] financial asset of your entire life, correct? Yeah,
[00:19:03] Aric Johnson: it’s
[00:19:04] Vance: arduous. How would you like to be able to, since you’re an owner of this company, you get preferential. All it’s gonna take is a phone call with, with a signature on a, you know, a form saying they want the money.
Two questions will be asked. Question number one, Eric, how much do you want? Okay. That’s easy question number, question. Number two. Where would you like it sent super easy. Now, Eric, is there anything else we can do for. No,
[00:19:40] Aric Johnson: I’m good. I think
[00:19:42] Vance: that’s all there is folks. They don’t have any type of repayment schedule for you.
This is your. And, you know, putting it back in is totally up to you. You’ll want to do that. Like Seth was saying earlier, you know, to, to replenish self, that was an [00:20:00] absolute fabulous job on explaining multiple use of the same dollar folks. Did you catch that every time you replenish and then you use it out again for the same thing?
It’s a second and a third and a fourth youth of the same dog. It’s wonderful. This, this stuff. I wish, you know, it wasn’t taken out of our education system. That’s probably one of the biggest crimes government ever did to us.
[00:20:27] Aric Johnson: All right. So let’s, let’s go back again. I want to, I want to give you an opportunity to, to explain a little bit more, but, uh, Seth, you, you brought up the fact that if you take this money out, the policy or the private bank feels, it acts as though the money is still in there.
So you’re still making money on that money, even though the money’s not in there, you’ve, you’ve used it for other purposes. Are you saying that there’s no timeframe for you to have to pay that back into where the private bank then realizes it’s gone? Or, or how does that work?
[00:20:55] Vance: Eric, let me explain that to you.
Uh, first, before Seth jumps in, [00:21:00] you are not actually accessing your money as an owner and preferential treatment, you borrow against that cash value that money in your vault, and you borrow the cash reserves of the life insurance. Hmm. And so they’re not worried about being paid back because it’s fully collateralized by your cash value.
You’ll pay it back when you want to. That was easy,
[00:21:28] Aric Johnson: Seth. He stole your thunder man, but that answered the question.
[00:21:32] Seth: No, no, it’s fine. It’s and that that’s it. That’s right on point. The, the term in the, a term of art is non-direct recognition policy. And, uh, we don’t want to get too far off in the weeds, but the way the insurance company treats that as if the money is, is still there and they’re paying a dividend and, uh, um, the benefit and the value as if it was not.
Uh, taken out, which is [00:22:00] not like a traditional bank or any other type of account. Now really the beauty of this comes with multiple touches of the same dollar. And I’ve, uh, would like to illustrate that just, just a little bit further, let’s say that you capitalize your your whole life insurance policy with X amount and you have a hundred thousand dollars in cash value and you take that a hundred thousand dollars in cash value and you, you put it out and an investment and put it to work.
So you’ve, you’ve now you’ve paid a premium with the same dollar. You’ve pulled the same dollar out to put it in an investment. Now you’ve got an S investment and asset on your balance sheet, which is producing cashflow and has appreciation value. And once you’ve got. That cashflow back within your control.
You put it back in your private banking, vault, the life insurance policy and your cash value immediately is available to use. Again, that’s something that really [00:23:00] needs to be understood. It’s not like we’re waiting and there’s no lag time and you can turn around, like in my example, and buy that second apartment complex, as soon as you’ve.
And appropriate apartment complex to buy and enough of a deposit in your private bank to go out and execute on that. And so that’s how our client who started with a $5,000 policy, uh, accumulated a million dollars worth in real estate value rather quickly. Um, by leveraging into appropriate opportunities and taking the cashflow from those real estate investments and putting it right back into her private bank and to her life insurance policy, and then putting it right back out when the best opportunity came along for property two and property three and property four and in a conceptual 30,000 foot overview, uh, that’s the same dollar at work.
She paid the premium. She pulled the dollar off. And put it to work in real [00:24:00] estate investment one, she bought the property. That dollar came back to her in the form of rents. Then she made a payment. Back to her bank, where she borrowed the money from her own private family bank, and that increased her cash value.
She took the same dollar back out again and bought property. Number two, that dollar came back to her and rents from property. Number two, she put it back into her. The cash value increased. You took the same dollar out, put it to work and investing in property. Number three. So conceptually that’s the same dollar at work.
That’s the velocity of money. That’s multiple touches on the same dollar. It’s not the same dollar in the sense that you’re tracking a serial number on that dollar, but it’s this conceptually the same dollar at work over and over again. And she. Always making sure that she gets the money back. She gets the money back and puts it into her private bank, which as I’ve explained, and people that [00:25:00] have listened to some of these podcasts to understand is an asset protected vault.
Is that brilliant or what? No, that’s, that’s,
[00:25:08] Aric Johnson: that’s a beautiful picture and that that’s it. Um, guys, we’re getting low on today’s podcast. I mean, this was a podcast of good news and I know that we already did the, you know, the, the mid. Add, uh, we’re where there’s a gentleman who tells us how to reach out to you.
But I want to ask you again, you know, for those that are listening to the end of this podcast, and maybe they were driving, they didn’t have a chance to write it down. How do they get ahold of you to have this conversation to say, Hey, look, I really like to be able to use that same dollar over and over again.
Or I’d like to find a better alternative to my 401k or IRA or Roth, or maybe they already have them and you guys can help them figure out how to get out of them, uh, in a. The most efficient way. I have no idea, but if they want to have this conversation, how do they get ahold of you?
[00:25:50] Seth: The best? The best way Eric is to visit our website is www dot private banking, strategies, dot com and therein.
[00:26:00] You can access a number of resources. We have a red pill book. I like to call it, which shows. Uh, things they may not understand about our banking industry and how they can beat the bank and how they can increase their wealth and grow rich. And that’s a free ebook, or it’s also an audio form for those who have, uh, to digest content on the go.
Uh, so it’s audio or ebook, and we also have a robust file of. Uh, podcast that they can listen to on the website and in various other media. We’ve also got a very robust email nurturing campaign, which helps to educate the audience issue after issue after issue. And so that’s, that’s really where we ask people to start take a look at our book.
It’s easy to digest. You can read it pretty quickly, uh, listen to some of the podcasts. Uh, look at the emails and if these things resonate in these concepts make sense to you and you want to learn more [00:27:00] than you can schedule an exploratory call with Vance, where you dig in to how this would work for you.
[00:27:06] Aric Johnson: Seth advanced, thank you so much again for your time. I appreciate it. I know the audience appreciates it. Um, and we also want to say thank you to you to 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 fans, low insight.
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, that’ll show up directly on your listening device. This makes it really easy to share these podcasts with your friends and family. And if you want to start a good discussion with your friends and family about this kind of stuff, this would be wonderful to share and then get together and talk about it.
And maybe you guys can have a group meeting with one of these guys and really dive into what that. Again, thank you so much 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.
[00:27:51] Seth: Did that story. It feels like it was about you.
Do you feel you should be making more progress toward your financial goals? [00:28:00] You feel. Let us help you get unstuck. Are you ready to take action and get your own private bank, please call private banking strategies at (817) 200-4777. Or visit us@wwwdotprivatebankingstrategies.com. Thank you for listening to the private banking strategies.
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