[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.
[00:00:48] Host: Welcome back to another episode of Block Hash, exploring the Blockchain episode 353. Back again for part three. We have Seth Hicks with private banking strategies here to talk about [00:01:00] those strategies and how they may apply to crypto. Preserving and saving your wealth and privacy strategies. Seth, welcome back to the show.
[00:01:07] Host: I wanna throw up the US National Debt Clock Rule here since you sent it over to me. Absolute. It is wild how high the, the national debt is. I think it’s currently sitting at almost $33 trillion. And credit card debt is over a trillion dollars. Now. Student loans are in a crisis. I think housing is entering another crisis.
[00:01:32] Host: You know, it’s across the board. It’s an absolute disaster. You know, curious what your thoughts are on this and, you know, can, is this sustainable? Like, can we keep going in this direction in the us Like, I feel like something’s gonna break pretty soon.
[00:01:46] Seth Hicks Esq.: Absolutely. And you’re hit the nail on the head. You, you can’t, this is not a sustainable curve.
[00:01:52] Seth Hicks Esq.: It’s become parabolic at this point. I, I believe you and pointed out before we started recording, just the rapid [00:02:00] multiplication of, of the national debt. Probably doubled in in a decade. And I believe when Bush came in, we were to office the Bush Junior, in the early two thousands, we were in single digit trillions.
[00:02:13] Seth Hicks Esq.: So it, it’s, it’s rapidly and parabolically increasing and it, it probably, you know, need, doesn’t need to be said, but that obviously devalues your, your dollar and your purchasing power. And people have seen that at. The gas pumps at the grocery stores and housing property. For example, when I was in law school, I went to Pepperdine in Malibu and there were some great palatial estates.
[00:02:40] Seth Hicks Esq.: I graduated in 1998, so I was there in the mid nineties, and these palatial estates would be 10 million, 15 million. I was, I had a friend, his family was the caretaker for Brad Pitt and Jennifer Aniston at the time of a property on in Malibu that had like awesome estate [00:03:00] style property, private. It was worth about 20 million bucks at that time.
[00:03:04] Seth Hicks Esq.: Those type of properties now are, have 10 xd. I mean it’s 200 million for that property, and you look around and just the dollar. It doesn’t purchase near what it did even a decade ago, yet alone, two decades or three decades ago. And so it’s not sustainable as, as we all know. The question is what do you do?
[00:03:24] Seth Hicks Esq.: How do you protect yourself? You know? And, and sometimes people may start making more money and they, it gives ’em a false sense of security. Like they’ve got, you know, they’re thinking that the three times the money they were making a decade ago actually has three times the. Purchasing power, which it doesn’t, it probably has half the purchasing power.
[00:03:43] Seth Hicks Esq.: So there are absolute ways to protect yourself, and I think most of our audience that’s in crypto, the, the type of protection, you know, is diversifying, having crypto, having perhaps metals, other hard assets that are going to [00:04:00] appreciate at, at the same or greater type of growth.
[00:04:05] Host: Yeah, I wanna talk about some of those options.
[00:04:07] Host: You know, what, what strategies might be out there for people because this, the national debt looks so unsustainable at this point. I don’t think it’s ever gonna get paid down, it’s ever gonna get rectified any kind of way. So, you know, the best thing that people can learn to do is prepare themselves accordingly and protect their money and, and, and learn to have a little bit of sovereignty over it, privacy over it, and, and learn some of those methods.
[00:04:31] Host: And, and also and pertaining to crypto too, you know, are are there avenues where people can utilize crypto and potentially also protect their money? Hold it privately, obviously. I know it was one of them, but is there some strategies there that maybe you’ve pondered and explored?
[00:04:46] Seth Hicks Esq.: Absolutely. There. Sure.
[00:04:47] Seth Hicks Esq.: Are. We, we touched on this a bit in the last recording about where you purchase and where you liquidate your crypto and this gets off into. Places where we have to kind of analyze people’s [00:05:00] conceptual ideas and obligations with the IRS and most people have been brainwashed to think that, that they’ve got to comply with every notice of the the IRS sends and so on and so forth.
[00:05:12] Seth Hicks Esq.: And we, we’ve discussed that a little bit, but I would invite people to really investigate what the law holds. And, and here’s a, a primary question is show me the law. That pertains to the payment of taxes as a citizen and who is a citizen of the us? Is it a person of every state? And, and this might be a, a red pill for a lot of folks, but a citizen is defined in the Internal Revenue code as a, as a, a resident of the wa, the District of Columbia.
[00:05:43] Seth Hicks Esq.: Which is Washington DC or other territories outside the contiguous us. So there are avenues about where like I think that you can effectively maintain privacy in your purchases and liquidations of crypto and how you handle. [00:06:00] The reporting of those is really up to your knowledge and your understanding of the law.
[00:06:06] Seth Hicks Esq.: And so I’m not, obviously, we’re not giving anybody advice on any specific situation because we don’t know their specific situation. But I would encourage people to choose carefully where they purchase and where they sell. And we have brokerages with and relationships with certain boutiques that are.
[00:06:26] Seth Hicks Esq.: Maintain financial privacy. I mean, most people probably know that Coinbase was subpoenaed by the IRS and they effectively negotiated the disclosure of their client base a above a certain threshold, which is pretty low. It was like $20,000, I believe. Mm-hmm. So, uh, I mean, that’s an invasion of your privacy to the nth degree.
[00:06:48] Seth Hicks Esq.: And people are in crypto because they want to maintain privacy. And that’s another common attribute with private banking strategies is that the way that we bank our, our fiat and the way that [00:07:00] we protect those cash assets are also financially. Private insurance companies don’t raise their hand and file any forms or report to the government when you’ve got ins and outs.
[00:07:11] Seth Hicks Esq.: And in fact, this is one of the. Cool things about private banking strategies is that once your money is in that, that system, that structure, which we use a supercharged whole life insurance policy, it is actually exempted in the internal revenue code. It’s section 77 0 2 if folks wanna look that up. So internal Revenue code 77 0 2, which actually.
[00:07:37] Seth Hicks Esq.: Exempts and carves out the growth, the ins and outs of the money into the, in the private banking system. So they don’t have to report anything, and you don’t have to disclose anything because there’s no taxable event. So that’s one of the good things about that. And it’s also asset protected, unlike banks, which we discuss [00:08:00] some as well with.
[00:08:01] Seth Hicks Esq.: Bank failures and dominoing things and insolvency with banks. Where would you wanna put your cash? You know, some people taking it out, putting it under their mattress. There’s been bank runs and some people get left with no chair to sit in when the music stops. But you can also have it in, you know, you don’t have to have it under your mattress or buried and, and treasure chest.
[00:08:21] Seth Hicks Esq.: You can actually keep it in the, in your private banking system where it is totally liquid. Completely accessible and free from taking free from insolvency. So,
[00:08:34] Host: yeah, I, I think the problem is just holding cash in the bank period. I mean, the FDIC only has a certain amount of money, like I think like 24 billion or so to cover what, 20 trillion in American deposits in total that are in the US banks.
[00:08:49] Host: Like that threshold is so low, it’s less than. Yeah, if you have a crisis even close to what we had like this spring, you know, then, then that’s when problems come in. The FDIC can’t [00:09:00] actually insure all those accounts, and so why, so why would you hold your dollar in the bank? You know, aside from the fact that there’s inflation, your dollar is becoming less all the time, right?
[00:09:08] Host: The bank’s loaning it out. It’s not actually there now, it’s not actually insured. You know, holding a dollar is way more riskier than actually holding
[00:09:16] Seth Hicks Esq.: an asset at this point. Absolutely. I think, I mean, you hit the nail on the head very succinctly. Your bank could be the villain who. Scoops in all your cash to maintain solvency.
[00:09:28] Seth Hicks Esq.: And that comes through the Dodd-Frank Act, and it gives them the right to effectively take depositors’ money to shore up their solvency. And then the next level of argument is people go, well, what about the F-D-I-C-I? I don’t have $250,000 in there. I’m, I’m safe. You’re not, for the very reason you just pointed out there’s, you know, 20 trillion in deposits and we’re using rough numbers.
[00:09:50] Seth Hicks Esq.: And let’s say that even on the. Best day that the FDIC is worth a hundred billion, 20 trillion versus a hundred billion, not even comparable, not even close. I [00:10:00] mean, you don’t, you don’t even have a penny’s worth of insurance on those dollars. So if you’ve got multiple institutions failing like Domino’s, the FDIC can’t shore up all that money they make.
[00:10:12] Seth Hicks Esq.: Shore up the first one or the second one. You know, it’d be better to be in one of the first banks that fails if you, if, if you’re counting on FDI assurance, but FDIC insurance. But if you actually think through it, just like you said, man, there are other assets that are gonna hold value, keep pace with inflation.
[00:10:29] Seth Hicks Esq.: And for example, I mean some people hate on the metals, but metals for thousands of years have held value. I mean, you know, 50 years ago you could. Buy a very fine suit for an ounce of gold. Same thing today. For an ounce of gold you can buy a very fine suit, $2,000 or $200. It’s the same trade exchange. So I, you know, I believe in, in hedging with metals.
[00:10:56] Seth Hicks Esq.: And, but I’m also a big believer in crypto for [00:11:00] all the same reasons. We’ve highlighted. Also believe in real estate, certain types of real estate. And so those are three major asset classes I think that people should consider to diversify. Then we have some, you know, particular strategies that, that are, are somewhat proprietary that we utilize with the private banks that we set up to acquire other assets such that your own bank is actually lending funds to a purchasing entity in an arms length transaction.
[00:11:33] Seth Hicks Esq.: That means the parties are not the same, they’re separate parties. It’s an arms length transaction and the bank. Actually collateralize and secures its investment to that in that asset with liens so that the lender, your private family bank, has first rights, effectively lien rights on the asset class.
[00:11:57] Seth Hicks Esq.: And that’s very important for numerous [00:12:00] reasons, but for the main, you know, reason is there, it’s an asset protection.
[00:12:06] Host: I If someone came to you and they said, I have a few real estate properties I have. Maybe six figures in crypto or six figures in metal, and they want to set up a structure. What, what does that process kind of look like that you would take someone through and what does a structure kind of look like?
[00:12:24] Host: Does it consist of setting up like corporate structures? Is it, you know, setting up with a boutique brokerage like you mentioned before, or a private banking partner, or a combination of those things? Or do you have to tailor it to the individual or the company? Give us like a little bit of like an idea of how that kind of gets set up?
[00:12:43] Seth Hicks Esq.: Yeah, that’s a great question, Brandon. Um, it, it is definitely narrowly tailored that it specific to a particular family office or a particular family that has. Particular goals. So they, oh, I mean, there’s a general strategy, [00:13:00] but it’s kinda like surgery. I mean, you’re gonna go in with scalpels and, and actually tailor the structure to the person’s particular or the family’s particular needs.
[00:13:10] Seth Hicks Esq.: So, for example, let me kind of give you a, a hypothetical example. We’ve got multiple clients that are heavy in real estate, and they have their, their very, they have cash surplus and so they fund their private. Banking entity, which is a separate entity that we structure with. The capital to acquire, expand, restructure other debt, any one of those things or other things to utilize their cash instead of leaving it out in the open subject to risk.
[00:13:44] Seth Hicks Esq.: And so that bank effectively finances, let’s say a new acquisition, new apartment building, a new raw land development structure, and that. Purchasing entity generally is an LLC, so it may incorporate the, the formation of LLC or multiple [00:14:00] LLCs, one that might manage an operation, one that might own an operation.
[00:14:05] Seth Hicks Esq.: And the their banking entity, which is a separate entity, finances those, those transactions and collateralize the loan with, you know, with, with, with securitized liens, and. Yeah. On the flip side of that, I mean the, the borrowing entities, you know, they have to pay back the loans and there’s a cycle.
[00:14:29] Seth Hicks Esq.: There’s a velocity of money there. That’s one of the seven pillars of private banking strategies that we talk about some, and where it gives you multiple touches on the same dollar you funded your bank with a dollar, the dollar is utilized to. Acquire other assets. That asset produces income. That income flows back into the bank with a profit and a delta and, and then it’s just completely cycled through again.
[00:14:54] Seth Hicks Esq.: So back to the, the question at hand is narrowly tailored. Focused [00:15:00] on particular needs and and interests. But the general strategies are, are, like I described now, that same formula will apply with crypto purchases. We may form a bank, that bank capitalizes an entity which purchases crypto and. Likewise. I mean, some folks are staking, you know, so I’ve got clients that, that like HA, they eat a t fuel then for the staking aspects and others as well.
[00:15:25] Seth Hicks Esq.: And so they, they’ve got that built into the plan, and their debt service includes liquidating stakes at certain interim places or in some other, some other times they have cash flow that they service the debt themselves and they let the stakes acquire because they’re waiting for the right price Target.
[00:15:43] Seth Hicks Esq.: You know, and that, and that can effectively, they can, you can get a 10, 20, 30, 50, sometimes a hundred x on some of these stakes that are, you know, that are rolling out things at, at low price points that appreciate in the future, which is, that’s really [00:16:00] exciting. And I think, so that’s another aspect or another way that, that you can overlay this strategy.
[00:16:07] Host: Are these things jurisdictionally within the United States still, or are they taking advantage sometimes of other countries or territories outside the us?
[00:16:18] Seth Hicks Esq.: Yeah, it’s primarily the private banking strategies is a a a US. Structure. However, we do have some high net worth individuals in various countries that have a nexus to the United States, meaning they have business in the United States, they have property that they own in the United States.
[00:16:37] Seth Hicks Esq.: They have, uh, business partners in the United States, which they can have an insurable interest on their business partner’s life like Kiki Man policy, if their business partner happens to pass, they need to replace that person, and so they have, you know, high. High cash value, uh, insurance policies on a key man that gives them the ability to fund their structures in the [00:17:00] us.
[00:17:00] Seth Hicks Esq.: Take advantages of the laws like we described with internal revenue code 77 0 2, and a tax free economy there, and utilize that same thing. But those are generally higher net worth folks and people that have business interest property or other nexus to the United States that they can show. Those type of things because premiums need to be paid into your bank through US banks.
[00:17:28] Seth Hicks Esq.: But I’ve also had clients that didn’t have those things, but they were high net worth. So they come and they buy us a vacation home in Florida and they open up bank accounts in Florida and they start this structure and they’re an international, but yet they’ve got the ability to do that because of the nexus in their.
[00:17:45] Seth Hicks Esq.: They’re high net worth. So it, it doesn’t, we can make it work for internationals, but it’s the higher net worth folks. It’s not a guy that’s just starting at a, at, you know, lower level. Whereas in the United States, it’s [00:18:00] effectively applicable for. Everybody from, I mean, some of our best testimonies are f like single mom, widowed mom, five kids.
[00:18:08] Seth Hicks Esq.: Starts out with like a $10,000 policy, and she’s managed that over a decade into over a million dollars in real estate. That’s cash flowing for her and just a real success story. So we love. You know, rags to riches type of story. But for the internationals it’s, it’s primarily high net worth.
[00:18:26] Outro: Did that story feel like it was about you?
[00:18:30] Outro: Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like? 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.
[00:18:53] Outro: 204 7. Seven seven or visit us at [00:19:00] www.privatebankingstrategies.com.
[00:19:04] Host: I wanna talk a little bit as well about taxes with, with crypto and maybe some potential strategies there. ’cause I know we’ve chatted about that quite a bit. And what’s, what’s very fascinating with crypto, especially in the US, is one, there’s no legislation yet.
[00:19:21] Host: It’s not specifically in the tax code. Like there’s open letters, there’s suggestions, there’s what the IRS considers what the CFTC considers. The SEC considers what the, what fin send considers. And you know, those agencies regulate, you know, certain parts of the US market, but. For an individual that owns crypto, you know, you get all these opinions on, you know, what you should do with it if it’s considered X, Y, or Z, if it should be taxed like this or that.
[00:19:48] Host: You know, is it income, is it a capital gain or capital loss? Is it property? Is it a security? Like it’s a nightmare. And I’m, and I’m someone that’s in crypto every day and, and I love this industry, but when it [00:20:00] comes to taxes around crypto, it’s impossible to know what to do. And then on top of that. You know, there’s, there’s people that have owned crypto for many, many years.
[00:20:10] Host: There’s people that, you know, make crypto as a form of income. They get paid in crypto. They get crypto airdrops that stake their crypto and earn more in the form of like a dividends. There’s a million different ways to, to accumulate it, to buy, sell it. Whatnot. And, and, and then when it, at the end of the day, when it comes down to, to taxes and the IRS, it’s, you know, it’s impossible to know what, what to do.
[00:20:35] Host: And the IRS, you know, they’re, again, you know, they’re always lynching somebody and holding them up and being like, this is John Doe. And John Doe didn’t give us his money for his crypto, and if you don’t do it too, we’re coming after you and we’re hiring X thousand agents to, to the agency. But. The reality is they don’t have the tools.
[00:20:55] Host: They don’t have the tech, they, their technology is still probably a decade [00:21:00] backwards. They don’t understand it. What, what do you do if you’re in that situation? You have a bunch of money, let’s say, sitting in crypto, regardless of how long it’s been there, is there a strategy in place that someone could apply and implement?
[00:21:15] Host: To mitigate a lot of those taxes in, in regards to crypto in particular or to, you know, understand better what to do in that kind of a situation?
[00:21:24] Seth Hicks Esq.: Yeah, I think so, but for most people it is a total red pill with the matrix reference, so to speak. So, mm-hmm. You watch that movie, Neo had a option, red pill, blue pill took the red pill, went down the rabbit hole, and his eyes were open to a total new.
[00:21:40] Seth Hicks Esq.: World. Well, it’s kind of like that with the Internal Revenue Code in my mind because I think that there are options and I think one has to educate themselves and become comfortable with the the law. That pertains to taxation and, and it, [00:22:00] it really, it’s more the absence or the omission of the law that applies to most people in the United States.
[00:22:07] Seth Hicks Esq.: But they don’t be, they don’t believe that they’ve been brainwashed and strong armed, intimidated, bullied into believing that they’ve got to comply with these nonsensical extortions. So, I mean, that probably. It pokes some people the wrong way, right when you hear it, because when I first went down this rabbit hole, the red pill, I thought, these folks are crazy.
[00:22:32] Seth Hicks Esq.: You know, these folks are absolutely crazy as to what their. Proposing. I don’t, you know, want to get blasted. You know, you don’t, no one wants to go to jail for tax evasion, but the reality is the statistics are showing that filers versus non filers, the overwhelming majority of prosecutions come on filers because they’re signing returns under penalty of perjury, that everything is teed up perfectly according to their.
[00:22:59] Seth Hicks Esq.: [00:23:00] Internal revenue code, which no one completely understands, not even CPAs. You go to different CPAs, you get different opinions, you get different strategies. And so it’s a mess. And effectively, I mean, you can start at the top layer, what is a citizen and, and who, how does that apply to the payment of taxes?
[00:23:17] Seth Hicks Esq.: And so that’s kind of where we, we start. But as far as practical strategies you can use. Lack of the brokerage I’ve talked about, we have a relationship with that doesn’t have any reporting requirements because they’re not us domiciled and you can effectively purchase and liquidate crypto without any financial disclosure you’ve got that happens in complete privacy.
[00:23:41] Seth Hicks Esq.: And, and whether you decide to disclose that or not is up to you and your own understanding of the law or absence of the law as it applies to you and your own risk tolerance. So, but the overwhelming majority of prosecutions and internal revenue code come with filers people who are signing [00:24:00] returns under penalty of per perjury, not non non filers.
[00:24:04] Seth Hicks Esq.: And they’re generally not the ultra rich. In fact, there’s statistics showing ultra rich non filers. Or, you know, don’t, don’t come under scrutiny. And there may be very many reasons for that. One of which the IRS goes after low hanging fruit. And the people that they can absolutely win on, they know they’ve got them on something they’ve filed under penalty of perjury and they’re, it’s kinda like a layup.
[00:24:31] Seth Hicks Esq.: They don’t go after high, you know, high hard. Cases, they don’t go after folks that have tons of cash. I mean, you may recall, maybe you don’t recall, but I, I recall when Trump was debating Hillary Clinton. She goes, he doesn’t pay us taxes. He doesn’t pay us taxes. And he, he says, I don’t pay taxes ’cause I’m smart.
[00:24:52] Seth Hicks Esq.: I remember that that’s his reply. You know, I don’t pay taxes because I’m smart. You know, more $10 billion. I don’t pay taxes. And people kind of shake their head and they [00:25:00] go, how is that possible? It, it is possible because he is smart and there’s a lot of people out there that I think are waking up and taking that red pill and they’re saying that it’s a broken system.
[00:25:11] Seth Hicks Esq.: And that tax dollars don’t go to infrastructure. They don’t go to the improvement of our country. They don’t, they don’t make one single bit of difference. And if they did and there was a, a common good, people may feel differently. But, you know, it’s, it’s an extortion, not, you know, more than anything, but the, the payment is still a voluntary system.
[00:25:32] Seth Hicks Esq.: It’s voluntary, and so it’s, it’s a broad discussion and we can get off in, in the weeds and it will definitely provoke people. It’s a polar topic, man. Oh yeah. Why? You know, but as far as crypto goes, if you’re our, our audience is if they’re crypto holders, they want to trade in privacy. They can, they can do so.
[00:25:55] Seth Hicks Esq.: There are, there are brokerages that can do that and we have relationships with some. They can keep their [00:26:00] fiat in financially private storehouses and asset protected storehouses in tax free storehouses, and it’s very possible.
[00:26:09] Host: Yeah. And for people listening that are curious, you know, why they’re rich and wealthy, don’t pay as much in taxes.
[00:26:17] Host: When, when you have that much money and you that have, you know, that much at your disposal to, to apply the tax system for an ordinary person is very much a linchpin. It is, it’s something that’s punishing and it, it feels like they’re taking advantage of you, that they’re extorting you and you know, they’re just.
[00:26:37] Host: Taking X amount, percentage of of dollars every single year out of your account. But again, when you’re wealthy and you have that money, that same system evolves a bit more into an incentivization system. And that, this is something I’ve learned from experience because they put things deep into the tax code.
[00:26:54] Host: All these politicians, they’re always, you know. Amending the tax code they’re putting [00:27:00] in their own take on it. They’re like creating opportunity zones for real estate. They’re creating tax credits for, for energy. Like there’s lots of ways where you can choose if you’re wealthy enough because you have the, the CPAs and accountants to find it for you and to really understand the code.
[00:27:17] Host: You know, instead of me paying a hundred thousand dollars in taxes this year, because I made a lot of money. I could instead reinvest a hundred thousand dollars and not pay anything in taxes. Right. And, and there’s lots of options like that. Again, the whole IRS code becomes an incentivization system for people that have.
[00:27:36] Host: That kind of wealth and that kind of money. ’cause they can afford to look into those things. And it’s something that unfortunately isn’t accessible to the ordinary person. One, because they don’t have the know-how to find it, and two, they don’t have the capital to deploy because oftentimes they’ll say you have to invest X amount of dollars into automobiles or into houses, or into land, or into solar power or into [00:28:00] X, Y, Z neighborhoods or certain investment vehicles.
[00:28:03] Host: You get those write-offs, you get those credits, you get tax deferment for, for years down the line for capital gains. You get forgiven for certain income. So it, it’s interesting and I’ve seen both sides of that coin and the flip side of it being very fascinating, you know how deep that tax code goes and.
[00:28:24] Host: And it’s, it’s very thick. Like I can’t imagine an ordinary person ever sitting down and, and understanding it. But there’s a lot of opportunity there too for those that are, you know, playing around that are in the US system that are kind of stuck in the US system that are trying to navigate it. Also kind of wanna talk about, you know, the seven pillars that kind of make up private banking strategies.
[00:28:44] Host: I know we’ve covered it before, but I just, from a top down perspective, we’d love to cover all seven of those, just briefly to remind people, you know, what those are and, and how they play into kind of what you do for people.
[00:28:58] Seth Hicks Esq.: Sure. Yeah. Well, [00:29:00] the, the number one. Pillar is asset protection. So we want you to set up structures that keep what you make.
[00:29:08] Seth Hicks Esq.: I mean, there’s nothing like making something and having it fall through your hands like sand. Mm-hmm. And you wonder where your money went. Well, these structures and systems help you keep it asset protected. Unlike a bank, a fiat money in a bank account, unlike, you know. Other places. And it also creates a system where you’re, like I said, cyclically paying your, your, your banking entity back.
[00:29:32] Seth Hicks Esq.: The money that it loans for acquisitions. And so you’re getting this multiple cycle. I mean, banks make a ton of money off of our deposits. In fiat, I mean, and fractionalized lending, they can take a 10% reserve and that’s giving them credit. Some, some can take, even keep less on reserve. They loan out 90% of your money.
[00:29:53] Seth Hicks Esq.: You put a hundred thousand bucks in, they take 90,000 and they loan it out and they make money on money that they didn’t ever earn and they [00:30:00] keep 10,000 in reserve. So you can create your own system whereby. Your bank is effectively getting that cyclical payment. So asset protection is one tax free growth.
[00:30:11] Seth Hicks Esq.: So we’ve talked on that. The thing about these structures as well, Brandon, is that. You can, you don’t have to be a millionaire to set up the private banking structure and you’ve got the tax free economy and system by the internal revenue codes, own writing 77 0 2. Mm-hmm. So. That money in and out, you capitalize the bank.
[00:30:34] Seth Hicks Esq.: There’s no taxable event. You take the money back out. There’s no taxable event. That’s, but if you put money into an IRA or 401k, you can’t get it right back out. If you, and you’re gonna pay taxes at some point? Well, not, so with the private banking structure, you don’t pay taxes when you take it out. You don’t pay taxes on a death benefit when the insurance policy pays on the death of the insured, it’s all tax free.
[00:30:59] Seth Hicks Esq.: [00:31:00] So those are. Major differences. Financial privacy, we’ve touched on some is like the insurance company’s not raising their hand reporting transactions and you’ve got the ability to fund and withdraw without any financial disclosure. The velocity of money we mentioned, that’s pillar number four. We, we’ve, we talk about capitalizing the bank.
[00:31:25] Seth Hicks Esq.: The bank capitalizing acquisitions or refinancing or expanding a company. And then that cash flow spinning off of from those assets comes back into the bank. Then the bank rents and repeats with another asset, another business, another refinance, restructure, and you’ve got that what’s called the velocity of money, getting the same dollar cycling around in your own economy.
[00:31:49] Seth Hicks Esq.: Then number five is where you never go backwards. Unlike stocks, unlike other investments which have risk, the life insurance structure [00:32:00] that we use, it never goes backwards. It’s only increasing and the guaranteed rate of returns, about 4% plus dividends, so it’s about 7% or so. Then we’ve got, you’ve always got the ability to access your money.
[00:32:16] Seth Hicks Esq.: So you’ve got complete liquidity. It’s guaranteed financing. You’re never going to go to a bank and have the Euro own bank and have the bank go, sorry, we can’t loan you the money. So you’ve always got that complete liquidity. And then the seventh pillar is legacy value. You got tax free transfer to your heirs when someone passes and then there’s an insurance policy on their life that death benefit passes to the beneficiaries tax free.
[00:32:42] Seth Hicks Esq.: So it’s a tax free system. But those are the seven pillars that are real cornerstones of this foundation. And you can find that on our website as well and read, dig into some of those. And they have a lot of content that drill down. In those.
[00:32:57] Host: Yeah,
[00:32:58] Seth Hicks Esq.: absolutely.
[00:32:59] Host: And, and you [00:33:00] have other content too. You have a book, right?
[00:33:02] Host: I think we talked about that last time on the podcast.
[00:33:05] Seth Hicks Esq.: Yeah, we sure do. It’s a, it’s a, it’s a free book that we offer to prospects, and it’s what the banks don’t want you to know, and it’s, it’s on our website as well. All you do is you just put in your contact information and it becomes available to you both in an PDF version and an audio version, so you can take it on the go, listen to it as you’re jogging or on a treadmill.
[00:33:25] Seth Hicks Esq.: You don’t have to. You don’t have to bother with it. So it, it’s, and that’s kind of, that’s kind of a, a, a starting place for, to introduce some of these issues that get people thinking and then if that resonates with them, they can dive into podcast and other content and, and stay on the journey with us.
[00:33:43] Host: Are you doing other podcasts, other audio, video content at the moment? With, with anyone else or with your, with your own business? What, what are you doing in terms of vocalizing right now?
[00:33:54] Seth Hicks Esq.: Yeah, totally. We’ve, yeah, we’ve been doing podcasts, producing our own podcast for about three years. Nice. I think we [00:34:00] probably got 60 or 70 in the can that they can all access for free.
[00:34:04] Seth Hicks Esq.: Right. Right out right through our website. We’re often guests on other folks, either in real estate industry, also into the crypto space, and some of these spaces that we’ve talked about that are great. Partnerships with private banking, like, you know, hand in glove type of relationships, and where we think that private banking strategies really shines, it shines in real estate.
[00:34:29] Seth Hicks Esq.: It shines in crypto where you’re funding your bank and then acquiring these assets, and you’ve got assets that spin off a return like staking or like cash flow on real estate. So. Those are places, entrepreneurs, business owners, that have the ability to cycle the cash. Great, great candidates for utilizing this structure at a premium level.
[00:34:53] Host: How can someone get ahold of you if they want to, you know, start the conversation. They want to figure out, you know, what, what needs they need [00:35:00] to address. If they want to relay and get some ideas from you, work with you, you know, what’s the best route to get in contact and set something up.
[00:35:07] Seth Hicks Esq.: Sure. Yeah. The, the best way is to hit that website, man, and take a look at that red pill book we like to call it, what the banks Don’t Want you to know.
[00:35:15] Seth Hicks Esq.: It’s a quick, it’s a quick read and, or you can listen to it, like I said. Uh. Even faster. Speed it up and, and bust through it. And then if that resonates with you, check out some of the podcasts. ’cause we’ve got them pretty well organized and we, you can start in a certain place or if a certain title or topic resonates with you, jump in there.
[00:35:36] Seth Hicks Esq.: And if, if those things are resonating with you, then you can schedule an exploratory call with us. And my partner Vance, who’s been a, a wealth manager for over 40 years, he was managing, you know, hundreds of millions of dollars in, in Texas. A lot of. Oil and gas money and, and when he found private banking strategies 20 years ago or so, and he, he, he’s got a story that he tells people why he left [00:36:00] traditional wealth management for this private banking structure and system.
[00:36:04] Seth Hicks Esq.: And it’s a, it’s quite a, quite a story man, quite a journey of, of what has transparent in his life. And, and he’s got the background to explain why traditional money management is inferior to, to managing your own family banking system.
[00:36:21] Host: Awesome. Yeah, I, I wanna meet this guy too. I haven’t, I haven’t talked to him yet, but I’ve had a number of conversations with you.
[00:36:27] Seth Hicks Esq.: Yeah,
[00:36:27] Host: he’s a great guy. We should have him on, man. Yeah, totally. Guys, for those listening in the audience, we will have all the links in the description for the episode below, including the website. So please go click on that to, you know, check out the book, check out the podcast, check out the website, get in contact with Seth and you know, fi find some help for what you’re doing and prepare accordingly.
[00:36:47] Host: ’cause the world is getting. Crazier and crazier every single week. I can’t stress that enough. So, you know, prepare accordingly. Be smart. Seth, thank you for coming on the podcast again [00:37:00] today. It’s, it’s, it’s always a pleasure. We always have a really good conversation and I, I think there’s a lot of value here that people can take out of this.
[00:37:07] Seth Hicks Esq.: Awesome. Yeah. Thank you for having me, Brandon. Likewise, really enjoy our conversations and hopefully bring some some value to your audience that that piques interest and helps ’em to go down some places that’ll help protect them and their families. Absolutely. Take care, Seth.
[00:37:23] Outro: Did that story feel like it was about you?
[00:37:27] Outro: Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like? 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 at [00:38:00] www.privatebankingstrategies.com.
