[00:00:00] Vance Lowe: 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 learn 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 helping take total control of your financial security. Now onto the show.
Hello, and welcome to private banking strategies with Vance lowe and Seth Hicks right off the bat audience. I’m going to tell you, this is a two-part podcast and this one is incredibly important to make sure that you’re listening to both parts. As we were talking before we hit the record button, Vance and Seth are both telling me kind of how this is going to [00:01:00] roll.
And from my understanding, investment Vance is going to correct me if I’m wrong, but. Podcast is really going to be about, uh, kind of setting up the story, setting up the example what’s happening in it in there, talking about putting equity in your home to work for you. And so we’re going to have that. And then the second podcast is really diving deep into the numbers and the mechanics.
So you don’t want to miss that one. Vance, did I miss anything? No, I don’t think so. I think one of the very best things that, uh, our audience could do right now is to literally make sure they have maybe a small calculator and pen and pencil because they want, might want to follow the math. One of the things that we’re going to do is literally prove to all of us that it’s not so much what we don’t know about money.
That’s hurting us. It’s all about what we think we know about money. That’s incorrect is really stopping us from, uh, succeeding. And so the title of [00:02:00] what we want to do today comes from Uh, an example and a client who didn’t think they had any money at all to start the banking and, and start the process.
And one of the things that we go through, go through and ask the clients to do is to fill out an intake request form. And put their numbers in. Seth maybe you could explain kind of that, that process, a little bit of what it takes even before we get to that. Uh, and then just, what they can expect, uh, how long it’s going to take them to fill that out.
Sure
[00:02:38] Seth Hicks: w I mean, one of the great values, Aric, that, that, uh, comes to people using private banking is how they can wipe out debt. And so it’s really critically important when we start to analyze a client by client, that we get their specific facts. So it’s a, it’s a simple balance sheet on our intake requests.
Assets on [00:03:00] one side liabilities on the other. We want to know what assets you have to put to work. We want to know what your debts are. Uh, credit card, debt, mortgage debt, auto debt, uh, student debt. And then here’s where the magic comes in is when Vance gets those numbers and is able to analyze those. He presents an eight year roadmap with, uh, a proprietary algorithm that helps.
Analyze how to use your bank and attack your debt. If you have any or how to best invest it, to grow your wealth with the most rapid, uh, PO safe, possible way that you can. And, um, the great thing about it. I This asset intake form takes. Three minutes, probably. I mean, some people, depending on how much you have, so
[00:03:50] Vance Lowe: it’s really easy. okay.
Well, let’s just, um, you know, put our seatbelts on and start this process. We’re going to go give out a few facts, uh, with this [00:04:00] clientele. Um, again, this client came in, she, uh, uh, is married, got two kids, cars. Uh, she’s paying Uh, expenses on our cars. Uh, they bought a boat, they have a mortgage and they have credit card debt, and they’re bringing home a, roughly around $5,000 per month.
And her father set her up in the system. I just happened to be a branch president at one of the local banks and set his daughter up. He had five children. Uh, the daughter here was I think number three or four, but seemed, according to her was his favorite. They come across Nelson Nash’s book becoming your own banker.
And they went to the NNI, which is the Nelson Nash Institute, found somebody here locally in Texas, and they called me. [00:05:00] And as the, we went through everything, they were a little, um, depressed because all their money was going out. They really didn’t have much. Well, we actually have that sheet and people are welcome to, uh, to get that.
I’ll let Seth, uh, uh, tell us, uh, everybody how they can acquire what we found on this intake request form for them. And it was actually quite simple. They had a house that was worth $300,000. Their existing mortgage on it was at 195. That’s how much they owed on it. They had two automobiles. Um, one was worth 18.
One was worth 21 and the remaining balance was 9600, 15,000 and some change. They had a boat. Boats are kind of lost leaders [00:06:00] anyway, they don’t hold much value. So they thought the boat was worth 17,000. They owed 10,000 on it. So. The house payment was around 800, the, um, um, automobile payments, uh, 360 8, 400 boat payment, $400, the credit card payments about $500.
But the minimum on the credit card was 2 39. So Aric asked me the question, why I want to know what the minimum was on the corporate card. Yeah, I I’m, I’m kind of curious about that myself. Why would you want to know the minimum? One of the secrets about success with money is following correct principles.
And we all have heard most of the correct principles, but what. Physically and mentally choose not to follow them. One is never spend interest or excuse me, principle never, ever, ever spent principle. And the [00:07:00] second row right next to it, don’t even contemplate breaking rule number one. Okay. But all around us, everyone around spends principle.
So we’ve allowed ourselves into thinking it’s okay to spend principle on one. Why we can’t succeed. And then we go on, you’re supposed to have a financial plan and you live by it. You set your goals, you live by it. You try to reach them many, many things to lead toward financial success with the average person decides not to do well.
Here’s one of them with this credit card, if we’re never supposed to get back. Um, give up principle, why would we let go more principal than we would need to, if we can keep it in production. So we like to know what the minimum is because. It doesn’t go plus or negative, whether you pay a debt off early or late, [00:08:00] or, earlier than, than the normal time, you can do that anyway, but much more powerfully and much more quickly.
If you hold on to the principle. Okay. Another big philosophy is, uh, being able to get the money back where we show people all the time, how to get back a hundred percent of their monthly expenses and people right off the bat. And some of our listeners are they oh, yeah. Right. Yeah. But it’s true, but it’s not the way you’re thinking today.
And if you kill it and if you believed you could get it back. You would never be spending principle that point. Right? So all these things come into play when we’re trying to accumulate and capture money to start up a banking system and a new strategy to convert to that. We’ll never look back on. So I’ve outlined.
The [00:09:00] home, for instance, uh, we look at that because all of a sudden we S we see that the value of the homes 300,000, we owe 195,000, therefore there’s $105,000 worth of equity in that home. Right. So there’s a process and, uh, setting up or being able to access the equity in your home. Cause right now, Um, south.
Tell me how much, um, do we make on the equity in our home each year? Well, it depends on
[00:09:35] Seth Hicks: if you put it to work or not.
[00:09:38] Vance Lowe: If it’s just sitting in our home, you know, zero. Okay. Most people are under the Mistaken, um, value systems that are home. It is an asset. Let me give you the pure definition of asset. An asset will put money in your pocket, a [00:10:00] liability we’ll take money out of your pocket equity.
And the value of the home has nothing to do, whether um, you don’t have any, anything to do with the value of the home. It’s either going to go up or down, um, depending on the market. But if we could access that money and get more than 0% return, we could make an advantage of that. So it’s a very, very powerful tool.
And the tool I’m talking about is a home equity line of credit. So, um, South define for the audience out there, uh, instead of a home equity loan, what’s the difference? What is a home equity line of credit? Well,
[00:10:47] Seth Hicks: a line of credit is, uh, an instrument that allows a homeowner to tap into the equity. And, you go down to your, uh, your local bank or you can go down to a local bank or [00:11:00] credit union and.
Appraise your house and they give you a certain percentage of that and equity based on your ownership percentage. And you simply, uh, tell them, send the money here when you want to pull out equity of your, in your home.
[00:11:16] Vance Lowe: Okay. That’s a perfect example. It’s like getting a checkbook on the equity in your home.
So let’s say the equity, a line of credit is $50,000. In this situation, that means it doesn’t cost anything to set up a home equity line of credit, or maybe, you know, sometimes I’m hearing banks continually, always get greedy. So maybe they’ll charge for the appraisal, but there’s no cost to it. And there’s no expense on the ongoing.
A line of credit unless you actually borrow money. And here’s a tool now that you can borrow principle, pay it back, borrow it again, pay it [00:12:00] back and borrow it again. So lines of credit, as well as credit cards are very powerful. Financial tools. Number one for emergencies. Number two for opportunities. So with that background, we’re going to go forward here.
And we identified that we’re going to take a home equity line of credit, and we’re going to use some of that Along with some other little assets, they did have $10,000 in savings. Again, she was following her dad’s instruction for emergencies. You keep $10,000 in the family bank. And, um, he was gifted some mutual fund, um, stock, and it was $10,000.
It had grown to $10,000. So. We earmarked that he had an IRA and there was $25,000 in that. [00:13:00] And we’re going, he was contributing to his 401k $600 a month. And we’re going to earmark the overpayment with the credit card, which the overpayment part was six, um, 2 61 or $260. So now we have all the figures and the numbers for this client situation.
Let me tell you a little bit about how we’re going to put this to work, but before we do that, I want to lay out where we’re headed and some missing education, which has been denied to the average AmArican on purpose. 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.
Are you ready for help [00:14:00] please call private banking strategies. You (817) 200-4777. Or visit us@wwwdotprivatebankingstrategies.com.
okay. This education has been withheld because the banks want the power. Um, South. Tell me normally, in the average AmArican’s life who ends up with the money, the bank centralized banks, do they always end up with the money? Sure. Because that’s where most people house the money. I heard a nasty rumor, that there was a day that banks give away free money.
Aric, do you know about that? I knew about free toasters, but I don’t know about free money. You know, I can’t find it either. I can’t find out where the banks give away money. Now let’s turn their economy, [00:15:00] their strategy into our everyday life. Here’s here’s a phenomenon. We, we don’t know that we’re supposed to be running our family units either.
Whether we’re individuals, we’ve got we’re married, we’ve got kids, whatever else, just like an economy. Another word for that, or example is just like a small town money has to flow in town and there has to be an economy there. Right? It does. So money has to flow pitcher a little town and it’s attracted new money, gas stations, bakery, whatever else people come through, they’re famous for a couple of things and people stop and they buy and that attracts new money.
Well on the family side, we go to work every day. We work hard for the money and we want to end up with our fair share of the problem is everybody else is ahead of us, the [00:16:00] government taxes, everything else. And we end up with what we call principle. The problem is, are we going to act like a bank or are we going to give the money away?
A town that loses more money than it gets in Aric, what would happen to the town over time? Okay. And what would happen to a town if money doesn’t flow from store to store to store? It goes bankrupt. Yeah, it goes bankrupt. It’s the same thing, but pitcher. We just, you know, this month, town got $5,000 in it.
And this five thousand dollars started bouncing all over town and stayed in town. It went from, from the grocery store over to the car dealership, over to the doctor’s office, over to the laundromat, over to, um, restaurants or whatever else. And every time a dollar of that 5,000 [00:17:00] stopped one of those stores, it generates.
Another dollars worth of product or services. That is what’s missing in our life. We have to move money. So we need to look at our own affair. And this is what I want to bring up here and feel free you guys to, uh, to comment, uh, because I have to generalize just a little bit here. What would it take let’s picture something that.
Our listeners share. This is something you can literally picture in your minds that. You’ve got a friend or me or, or south or, or Aric. Um, we come across an idea that we think we can really expound and make money on. So we do all the math. We do the homework, we do all the studying of what it’s going to take to put a brand new little company together and run it.
And so we do the budget and we decide in this instance, [00:18:00] That this business is going to take from our own personal assets that we’ve got to put into the business $10,000 a year to keep the doors open. So this is a small business. Um, normally, um, Seth, why don’t you run, uh, through this? What, how long it takes for a normal.
Uh, startup company to make a profit, correct? Yep. I think statistics show. And you said four or five after that first year, $4,000 in profit. If we had a return of $5,000, yeah. Go ahead and start that piece over, get it going. Right. So the first year that we put in $10,000, would you say, what would you say a kind of year that we had for a startup here?
If we were able to pull it back 5,500 or $6,000 worth of profit. It sounds pretty good. We have a pretty good start up here first. Good year. Not too bad. And the second year we put $10,000 in, if we could pull out [00:19:00] 7,500 or we headed in the right direction. Yeah. Yeah. It’s better than going backwards. You’re right.
And the third year, about 85%. And then the fourth year, depending on how effective we are, anywhere from 90 to a hundred percent. Okay. That’s how we need everybody to picture setting up their own bank. We use a special life insurance contract. If put together correctly, it forms the perfect private bank and that set up with different components in order to make that happen.
Because government tried to intervene back in the late seventies and put in some mandates and some laws because the banks were afraid. People were rediscovering how money works. Because so many people started taking their pensions, although the, in lump sums and immediately doing a [00:20:00] single pay life insurance policy and living off of the income, the, the dividends and the guarantees income tax free for the rest of the law.
And it was far better than any other way of doing things. So they had to literally changed the rules and they called that a modified endowment and they put percentages. So we follow those percentages right up to that. We’re going to call it a modified endowment. Wall. Okay. Cause that’s what it is that if you break the law or that rule, then everything is going to be taxable and traceable.
If you don’t break the rule, everything is taxed, advantaged and private, not traceable. So it’s usually about a 60/40 split, uh, in order to get there. And what’s really interesting is that ordinary whole life insurance, the south, that Dave Ramsey, Susie [00:21:00] Orman, and these people. Say our worthless follows the average business model.
You know, cash value starts about the third year and become, and then grows and becomes popular at that time. People don’t want to wait that long. So we put a, a small percentage in there as small as we can in what’s called ordinary, uh, life insurance. And then we supercharge that with what’s called a single premium, writer.
Just like the old days, so that single premium. And instead we’re going to use this $10,000, $6,000 would single pay life insurance, pay it right up. And we wouldn’t own another penny on that. And that is immediately converted into cash now. Okay. So we’re [00:22:00] doing this background because I want you and everyone, all of our listeners to understand.
How this mechanism is going to work, how we’re going to get the unbelievable returns, on investments that you can have without any risk whatsoever, using your own money and using yourself as the client. Van’s let me ask you a question. You talked about that 60/40 split, and I understand that first year is that 60/40 split something that you do every year?
We do that. Yes. Um, most, uh, Practitioners we’ll have you do that throughout. We found an advantage of doing that for four years, and then we literally dropped that paid-up additions rider because the base. Is now mature enough that every dollar you put in, let me put it this way. Aric, if I could show you an investment that in your five, every dollar you put in what [00:23:00] automatically and immediately turned to a dollar 10 or a dollar 20, how many of those would you like a lot?
So we’re trying to, yeah. As many as we can get, we’re trying to turn a life insurance contract into a more than a hundred percent efficient. Strategy, but I can’t get there with that paid up additions writer because there’s a load, a little bit of load against it. So we can only get around 92 to 93, 95%.
So if we strip it out, We can use that money for this a second contract to expand our bank and get more and more contracts into those 50 years. So the premium little rig goes down by 60%, uh, starting year five. And every time you put $4,000 in, how would you like your cash router to grow by five then?
Okay. So that’s why. And so, uh, uh, we’re, we’re probably getting pretty close to the, to the end here of this first [00:24:00] podcast, but I want to set up before we close and then, we can do any, um, makeup, uh, south that we might need to the total amount that these people that we showed these, uh, this client that they had to start their banking with these assets was $80,000.
Okay. And so we’re going to come back and we’re going to show you what $80,000 that was sitting idle can do for somebody if we wake it up. So that’s, I hope now if you’ve written your little notes down and you’re taking some of the. The numbers that we’re using, we’re going to literally follow that and show what to do first, second, third.
And this is what that, uh, eight year analysis does. It’s a month by month roadm map. And can we just
[00:24:51] Seth Hicks: summarize for a second, just to kind of help focus the audience. We’re talking about a family who thought they didn’t have anything to start private banking with. [00:25:00] They pulled 10,000 from savings, 10,000 from mutual funds, 25,000 from IRAs.
35,000 from equity in their home. And then the, uh, they paid the minimum on their credit card, which gave them an extra 260 bucks. And they had another $600 about 80,000 of total capital, uh, that they, that, that they were able to identify that could be put into the private bank and put to work for them.
So that’s what we’re talking about here in this scenario.
[00:25:29] Vance Lowe: All right. Well, I know that this is going to be really, we’re going to dive into it on the next podcast, but before then you guys have a ton of resources on your website, ton of resources that you personally use with folks. What’s the best way to get ahold of some of these resources or reach
[00:25:42] Seth Hicks: out to you.
Thanks, Aric. It’s a www.privatebankingstrategies.com, and there we’ve got, uh, all sorts of resources from a one page, uh, circumstance scenarios on blog articles. To, uh, email campaigns that [00:26:00] they can, uh, Ben, John to podcast to, uh, all the way through, down to the intake form, where if they’re ready to schedule a call they’ve, they’ve done all these things with us.
And they’re, they’re saying, this is the way I want to take it. Then they schedule a call with.
[00:26:16] Perfect gentlemen, thank you so much. I’m really looking forward to that next podcast. You’re welcome. We’re looking forward to it too. And of course our last thank you goes to your listening audience. Thank you so much for tuning in and listening to the private banking strategies podcast with Vance lo and Seth setbacks.
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 listing. This makes it really easy to share these podcasts with your friends and family. And think about sharing this with somebody that may be in a similar situation to you financially.
Maybe you see yourself in this story that they’re going through right now, and this could be a possibility for you and maybe one of your friends, because if you both get on the website, get a bunch of good information before that next podcast sits, then listen [00:27:00] to that one together and see if this is going to change your life again.
Thank you so much for listening. For everyone at private banking strategies. This is Aric Johnson reminding you to live your best day every day. And we’ll see you next time. 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 (817) 200-4777. Or visit us@www.privatebankingstrategies.com. Thank you for listening to the private banking strategies. Click the subscribe button below to be notified when new episodes become available, the information covered in post-it represents the views and opinions of the guest and does not necessarily represent the views or opinions of private banking strategies, but [00:28:00] content has been made available for informational and educational purposes.
Only the content is not intended to be a substitute for professional. And 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.
