[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 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.
[00:00:37] Seth Hicks Esq.: Hello. Welcome to the Private Banking Strategies Podcast, advanced Loan and Seth Hicks.
[00:00:42] Seth Hicks Esq.: This is a secret weapon to protect your assets and never have to start over again financially. Hey, Vance, how you doing?
[00:00:50] Vance Lowe: Hello. Hello. Hello. It’s nice to see you again, Seth, and it’s great to get back in the saddle and get another podcast for our listeners.
[00:00:57] Seth Hicks Esq.: Likewise. Yeah, absolutely. It, it’s [00:01:00] exciting. I mean, we’ve got so much content to share with folks that it’s, it’s always like trying to take a drink out of a fire hydrant and us getting people information is, is always a joy.
[00:01:10] Seth Hicks Esq.: So today I think we’re gonna talk about financial planning versus. Financial self-reliance, and it’s something that people don’t often consider, but something that they should and understand the differences and the pros and the cons. Financial planning is not financial. Self-reliance and private banking strategies is not financial planning or simply an investment strategy.
[00:01:35] Vance Lowe: Yeah, I, that’s right. In my former life when I was doing financial planning, I thought I was independent and working for the client when in fact, once my eyes were open to, uh, private banking, I realized that I was a puppet of government. And banks under a strict format or a limited format, and that’s why this came out, not only myself, but past [00:02:00] financial planners who moved over to the private banking, discovered that there was a limit.
[00:02:06] Vance Lowe: Plus possibility in self-financing, self-reliance, or whatever else. And so we’d like to go down a list and identify the two simply because you get all of these financial planning shows on the radio. We actually did one of those for about two and a half years. Very expensive. Everybody thinks that if you’re on the radio then you must be good.
[00:02:29] Vance Lowe: And that’s might not be the case, Seth, right. Right. So yeah, let’s go through this. We’ll talk to the audience a little bit about the differences, get both of our points of view since we’ve got both a little bit of a different background. So, Seth, why don’t I start off with financial planning. It meets needs and goals only in a limited format.
[00:02:52] Vance Lowe: You take the information from a client and you build a format around what they can [00:03:00] perform versus. What is self-reliance? How would self-reliance take that and make the difference?
[00:03:06] Seth Hicks Esq.: Yeah. Well, I think with our strategies, it’s pursuing wants and dreams and it’s more based on limitless ideas, what’s possible and what can you build a bank for your family to create, and what type of legacy can you create generation after generation and in prior.
[00:03:25] Seth Hicks Esq.: Podcast. We’ve gone through illustrations that show legacy waterfall where death benefits flow from, let’s call it a grandfather to a son or a grandson, and how those stack up. So very different in that aspect For sure.
[00:03:42] Vance Lowe: Well, yeah. One of the things that really caught my eye in seeing that you don’t have to be limited was the ability to get the money back, like banks.
[00:03:54] Vance Lowe: You know, we live around banks, do everything with banks. We try to take every advantage. We [00:04:00] always complain that the banks aren’t treating us right, which is correct, by the way, but the banks are doing something right that we or the public doesn’t do. And I’ve, I’ve got a theme that I’ve adopted here, a, a last couple of weeks, uh, Seth, and it’s called, we are Going, we are switching people.
[00:04:18] Vance Lowe: We’re teaching people and switching people from spending money to using money. And then we go in and we talk about what the difference is when people realize they can get the money back. And they can use that, do money over again, but get a brand new dollar’s worth of product or services and then get the dollar back again.
[00:04:39] Vance Lowe: As well as getting new inflow of money from work. The whole world changes for ’em. And that’s what this first one means. It’s the possibilities open up for us. And it’s evident. No one thought that they, they couldn’t. Or they could live without spending principle. Everyone out there thinks I gotta spend my [00:05:00] principle in order to survive.
[00:05:02] Vance Lowe: As soon as we teach ’em, no, you don’t. All of a sudden their eyes open up, they smile, and now there’s a world out there in front of ’em and all of us, you, me, everyone said, you know, I sure wish I knew about this 10, 20, 30 years ago, but it’s still not too late. So let’s continue down this list a little bit and we’ll keep on talking and putting our 2 cents worth in.
[00:05:24] Vance Lowe: Minimizing requirements. How much do you have to save? So, uh, here we’re, we’re looking for a protocol maybe to replace a person’s income. And so based on assets and everything else, what do I have to do from today on. To when I retire so that I can replace my income. One of the things that we’ve got to understand and and know is that retirement is a government socialistic myth, and nobody likes to hear that.
[00:05:56] Vance Lowe: Every, the, the public out there feel [00:06:00] entitled that I’m entitled to retire and and try to live comfortably. Well, we don’t have any of that today. People are outta work. They are trying to spend down their nest egg. They’re in all kinds of risky investments trying to make up this, this goal, this, this gap, and it’s not working ’cause they’re not following correct principles.
[00:06:22] Vance Lowe: This is where this leads to and it leads to, okay, we’ve gotta invest money and put money at risk in order to reach your goals. So it’s just based on what can you afford on a monthly basis to be able to do that. They’re tying money up. They’re putting money in accounts, and Seth, you and I have discovered that’s putting money to sleep.
[00:06:43] Vance Lowe: In other words, we’re handing money over to someone else and letting them make all the profits and they pay us on interest rate. As little as they can get away with. So what was, what would be the counter to that? What did we find is, is much more lucrative than that? Minimizing [00:07:00] requirements.
[00:07:00] Seth Hicks Esq.: Yeah, absolutely.
[00:07:01] Seth Hicks Esq.: I think that we talk about this and it’s one of the seven pillars of private banking strategies is the velocity of money putting it to, to work and an economy and getting a return and being able to use that dollar again and again. Um, and optimizing those opportunities to effectively cycle your cash and have.
[00:07:21] Seth Hicks Esq.: It growing inside your policy and also at work in an investment, and you’ve got some type of return on that investment. We’ve had various opportunities like oil and gas opportunities. We’ve had real estate opportunities. We’ve had private hard money lending opportunities, and I think when you are able to create that velocity of money, it’s not a matter of saving or squirreling.
[00:07:45] Seth Hicks Esq.: It really shows you how you can expand your banking system and your banking value.
[00:07:50] Vance Lowe: Another, I think, misleading. But what was focused on, and what is focused on in financial planning is product-based investments. In other words, [00:08:00] you need to get your money in one of these products, one of these investments managed by someone else, managed by an expert, you know, or this company.
[00:08:08] Vance Lowe: Or that company. And so you lose control of that money. You’re hired a money manager, or you’ve done this. Now they have that money. And they’re gonna put it to work versus what, what’s the next step here? You know? Why is that not a good thing?
[00:08:25] Seth Hicks Esq.: Well, I think there’s a lot of risk involved with that. Clearly when you, and you’ve also got fees, you’ve also got a no control.
[00:08:34] Seth Hicks Esq.: Most of our clients, and especially business owners and entrepreneurs, they want control of their cash and they want to be able to take the opportunities that come before them, not lock their money away in a prison, have liquidity, and have the ability to ultimately execute on the opportunities that come their way.
[00:08:53] Seth Hicks Esq.: And so using other people to make your investment decisions is giving away your control and doesn’t always [00:09:00] turn out well.
[00:09:00] Vance Lowe: It doesn’t, the SEC, the FINRA and all these government organizations step in and want to monitor and control everything. Uh, one of the hideous things that people need to understand is there’s a lot of good investments out there that cannot be.
[00:09:17] Vance Lowe: Presented to the everyday family because they’re not sophisticated enough. That’s really exactly what it means. These folks cannot make an educated decision whether they should be in this or not, so you can’t show ’em this, and that’s totally regulated. It’s one of the things that was really discouraging for me to keep my ears.
[00:09:38] Vance Lowe: An eyes open for something else so that we could have, or I could have an opportunity to, again, service clients but in a much better and easier. Atmosphere. Seth, one of the things that we found out that goes to the strategy orientation versus buying products is [00:10:00] we can put our own money to work and we can make the gains that they’re making running their businesses or their portfolios or their hedge funds or whatever else.
[00:10:10] Vance Lowe: Lemme give you a good example. If you bought out your remaining car payment, and because I did this. As we train the people, I go in and open up my books and show ’em exactly what I did. Over a lifetime, I spent over a half a million dollars buying new cars, way over a half a million dollars, and working with the experts in the private banking field.
[00:10:33] Vance Lowe: I came up with a plan how to get that money back. But anyway, those loans were with Bank of America and I think there were approximately eight and a half percent interest at the time. When they got down to 10,000, they were both coming down right at the same point. I bought the note, so I had to come up with $10,000.
[00:10:51] Vance Lowe: I was paying for my automobiles. Each one. $500 a month or a thousand dollars for the two vehicles. It was really, the payment was like [00:11:00] 4 95 and I just rounded it to 500. ’cause I like even numbers and at eight and a half percent. So folks, here is an investment opportunity for a lending company. When they see they’ve gotta come up with $10,000 to buy the debt, they can see that the payment is $500 a month and they can see the interest is eight and a half percent.
[00:11:21] Vance Lowe: They’re gonna jump all over this opportunity. So Seth, I’ll put you on the hot seat for a little bit. Why are they so interested in that loan? ‘
[00:11:30] Seth Hicks Esq.: cause of the cash flow. The cash flow on the loan servicing that debt. It’s a consistent monetary flow. It’s not interest rate driven. I mean, as a banker, we wait, yeah,
[00:11:40] Vance Lowe: wait a minute.
[00:11:41] Vance Lowe: You know I isn’t the interest rate they’re gonna easily make 8.5%.
[00:11:45] Seth Hicks Esq.: Well, that’s not the total volume. On the rate of return, as we both know, but it’s the overall cash flow on that $10,000 outlay and what comes back to them over the term at $500 a month in 8% is a [00:12:00] lot more than 8% on 10,000. And so it’s.
[00:12:02] Seth Hicks Esq.: Cash flow, and it’s the same thing that real estate investors look for. And the same thing that we talk about when people want to take out real estate debt, you’ve got a, a massive overall rate of return because of the cash flow.
[00:12:16] Vance Lowe: So that’s really important folks, we’ve got to get off of chasing interest rates.
[00:12:20] Vance Lowe: Interest rates are out there for the common people to get off the mark, that they chase interest rates and avoid looking at the real problem or the real. A money maker. Lending companies aren’t in business. Just to make interest rate. Yeah, we’re gonna take it ’cause it is a risk equalizer, but let’s just do the numbers here.
[00:12:41] Vance Lowe: Just see how lucrative this is. If I use 10,000 and I get a volume of return, that’s $6,000 per year. If I were to divide my annual volume rate of return by my money at work, that’s a 60% volume rate of return. Is that high enough?
[00:12:57] Seth Hicks Esq.: Right,
[00:12:58] Vance Lowe: right. Then I [00:13:00] asked, how long would you like it to last? It was about getting all the money back, and I stayed on that system for the first 10 of 20 years.
[00:13:08] Vance Lowe: I had a problem at 10 years because I ran outta debt to buy, and we all face that in this strategy. In 10 years with two vehicles, I got back my half a million dollars. That’s all it took because of the volume rate of return plus the velocity. When you control the money and when you put it to work, these are the returns you’re gonna get instead of the eight and a half percent.
[00:13:34] Vance Lowe: We’re looking at opportunity cost loss. When we spend money, what is the opportunity that we could have put that money to work for the rest of our life? What would it have earned?
[00:13:47] Midroll: Did that story feel like it was about you? Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like?
[00:13:57] Midroll: Do you feel you should be making more [00:14:00] 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 visit us at www.privatebankingstrategies.com. I used to
[00:14:19] Vance Lowe: show examples at kids. I used to do a lot of youth meetings and try to teach kids a little bit about money.
[00:14:25] Vance Lowe: And back in the day, you could go to a movie, get a pizza and a drink for $15. Now it’s probably 30, I don’t know. But I asked them and they came up with the numbers and that. That’s usually what they came up with. I said, do you have any idea if you took that $15 and put it to work for yourself at even 5% rate of return, what that would be at age 65?
[00:14:49] Vance Lowe: And people came up with a few numbers. Okay. When they understood that was over 3000 to $6,000. Just that amount. How many of you [00:15:00] gonna do a little bit of that? Pay yourself a little bit of this money. So it’s the opportunity that we’re looking for. We don’t wanna be limited. We need to have our assets with, they need to be liquid so that we can go after that opportunity and capture the reward.
[00:15:16] Vance Lowe: And
[00:15:16] Seth Hicks Esq.: I think that that’s part of the, you know, traditional financial planning that focuses on 4 0 1 Ks and IRAs and 4 0 3 Bs, which are ultimately locking your money up into prison. You don’t have access to it until you hit an age requirement, and then you have to take it out before you reach another age requirement, and you’re gonna pay taxes on it no matter.
[00:15:40] Seth Hicks Esq.: When you take it out and if you take it out before that sweet spot, after you’ve reached 59 and a half and before you’re 74, you’re gonna pay a lot of penalties. So I think that also helps to focus. ’cause if you go to traditional wealth management, they, or you know, financial planners, they’ll probably try to incorporate.
[00:15:59] Seth Hicks Esq.: 4 [00:16:00] 0 1 Ks and 4 0 3 Bs and IRAs and talk about tax deferment. And you’re not paying any taxes now, but you know, we discuss this all the time. Would you rather pay taxes on the seed or the harvest?
[00:16:11] Vance Lowe: I had a thought a little earlier. I wanted just to share with people about retirement, the understanding of how to run your own private personal economy.
[00:16:20] Vance Lowe: Back in the day when this concept was in full swing in America, because we didn’t have banks. Branch banking, these life insurance contracts, and they would fund from their self-finance back and forth. There’s no such thing as retirement. Does any town have a retirement date? The answer is no. So you can’t go out of production.
[00:16:43] Vance Lowe: It’s what the banks want us to do, or government wants us to do. Number one, to keep control and to get what nest egg they haven’t gotten yet. They want control of that money back. If you don’t. Go out of production. We’re seeing our clients who have a lifestyle change. I mean, [00:17:00] there is a change. You’re gonna stop working from one thing and start doing what you wanna do, hopefully, and you have X amount of dollars and by the time you check off this planet, you’ll probably have three times that amount.
[00:17:11] Vance Lowe: It won’t be less. It’ll be a lot more. And this is what Seth, you were saying, that this is a perpetual plan. This is actually passed down from generation to generation. This is what the wealthy people do.
[00:17:23] Seth Hicks Esq.: Exactly.
[00:17:24] Vance Lowe: So, you know, I think like we’re saying, the control, the institutional money is where people make the mistake.
[00:17:32] Vance Lowe: The herd mentality makes the huge mistake. Well, everybody’s doing it, so it must be the right thing. My employer’s gonna do this, my employer’s gonna add X amount. You know, most people don’t even add that up. By the way, they don’t even understand that they, they don’t even add it up. They pour what they can into it, and yes.
[00:17:53] Vance Lowe: This is one thing that, um, a lot of people won’t do is save money. [00:18:00] So they set up one of these controlled situations, it forces ’em to put money in, and now they’re under the control of that institution and, you know, on government option and faced with all those restrictions. So they’re worse off than they were before in over 40 years.
[00:18:18] Vance Lowe: I’ve never had a client or a person when I ask, do you think you’re gonna be in a lower tax bracket when you retire? Always higher. Okay. And why are you doing the 401k? Here’s the thing, Seth, and it’s funny, people would much rather fail financially with company than succeed alone. Now it’s a proven fact.
[00:18:40] Vance Lowe: It’s just, it blows me away. But they’re more comfortable with their friends about failing. Oh, we’re, but we’re failing together, so everything’s okay rather than succeeding alone. The next thing, and everybody was big on this, I think it’s still big today, it’s called macro or vacuum based. Planning, it’s portfolio planning where [00:19:00] they go in and they set up, uh, a wheel, so to speak and say, okay, you got so much here.
[00:19:05] Vance Lowe: You got so much here. You got so much here. And, and a lot of ’em are opposites and, but they’re all investments with someone else. You’ve got to buy their stock, mutual fund, bond, whatever it is. And. Somebody’s managing that portfolio. Well, this one is good. Now that one’s not so good. This one’s not so good.
[00:19:24] Vance Lowe: Seth, I think we need to tell ’em when you have a portfolio with a stock broker or everything else, you’ve got to ask the correct questions. So we’ve gotta let you know. Everybody knows Warren Buffett. The guy just as Midas touch everything he touches, almost turns to gold because he does it correctly. He knows more about the company he’s going to invest in than the company does itself, because he can tell that company where it’s gonna be in 10 years.
[00:19:54] Vance Lowe: They can’t. The CFO. The CEO, the president, you know, all the [00:20:00] financial gurus come in and he has a meeting with him and he sits down and says, you know, we wanna do some investing ’cause we think your company’s gonna go here. You’ve got this, you’ve got this. We can leverage this and take it here. And he stops and he pauses and he says, every time.
[00:20:14] Vance Lowe: Everyone’s jaw is wide open. Where did you get this information? How do you know about this? Well, I did my homework. What everybody does is they look at the average rate of return, and that’s fictitious. Lemme give you a a a good example here. If I was a money manager for you and you gave me a hundred thousand dollars to manage the first year, I double it in year two, I lose 50%.
[00:20:41] Vance Lowe: In year three, I gain 25%. In year four, I lose 12 point a half percent. At the end of four years. Now, this is probably unfair to everybody, how much is in your account, right? If you’re a good math wizard, you’re gonna be very close to a hundred thousand dollars, right? But [00:21:00] guess what? I legally get to put in the prospectus for that four years.
[00:21:03] Vance Lowe: That fund averaged a 25% annual rate of return because mathematically that. That’s the number that comes up, and people will invest in that all day long, but they ask the wrong question, the correct question to ask folk. And, and this will really throw your brokers in a tizzy. Ask, what is the yield on this account?
[00:21:24] Vance Lowe: Yield means money put in the account that cannot be returned. They can’t reverse. It cannot be reversed. Banks were very big at the beginning on yield, especially savings accounts. Everything, you know, everything’s in your account and nothing can be taken outta your account. Life insurance is that way.
[00:21:42] Vance Lowe: It’s all based on yield, okay? Everything that all the profits, you know, they could have a big profit one year and a loss the next year. Nothing comes outta your account, everything’s there. All the guarantees are there. So yield is important because if you would’ve asked me. What’s the yield on that? Four years?
[00:21:59] Vance Lowe: I [00:22:00] would’ve had to say zero. Now how likely are you gonna be to buy that investment? Yeah, you can do that with stocks, bonds, mutual funds. They’re gonna tell you, you can’t. Well, we don’t have any of that information. Well, then why would I wanna make a decision on false information on a mathematical number that doesn’t equate to what I’m actually going to get?
[00:22:18] Vance Lowe: Right. That’s one of the biggest faults and problems with financial planning. Right. So what’s the counter to that? South.
[00:22:28] Seth Hicks Esq.: Well, I think at viewing the big picture and looking at your whole personal economy and, and focusing on yield, obviously with your investments and where you’ve got your money at work also, I mean, there’s elements of keeping control, having, you know, the decision making power at being smart with your own decisions.
[00:22:48] Seth Hicks Esq.: But that’s, that’s kind of a tangent, but I think it’s basically looking at a big picture rather than small picture. Right. Small picture.
[00:22:56] Vance Lowe: So here, the, the first thing I saw [00:23:00] on this topic was the, I now own the debt. I woke up my money and I actually bought my debt, right? I bought my mortgages, I bought my automobiles, I bought everything I possibly could my other companies, and now I am receiving all that third party profit is coming into me.
[00:23:22] Vance Lowe: But guess what, Seth and folks, it’s totally tax free. All the money I got back on my, for my automobiles, that half a million dollars, totally income tax free. Talk about a macro picture. This is wide open. You open this up to your extended family. Hey, we got a family bank. We’re gonna sell finance. We’re gonna charge a good interest rate.
[00:23:43] Vance Lowe: Interest rate’s gonna be turned around and it’s just gonna multiply like crazy. So good difference between the micro and macro.
[00:23:51] Seth Hicks Esq.: Rather than managing or measuring rather in a total portfolio value and creating bigger portfolios, it’s more about [00:24:00] cash flow is the measurement, especially when you’re buying debt and you’ve got cash flow streaming back into your banking system.
[00:24:07] Seth Hicks Esq.: Like you had mentioned, the more debt that you purchased on automobiles and real estate, the more cash flow you’ve got coming into your banking system. That’s really the measurement.
[00:24:17] Vance Lowe: When I started this, I received the training from the very best people out there. R Nelson Nash himself really tutored me on this concept, so I immediately sold my company and received quite a bit of money, and Nelson Nash and his books and everything else set up a process of funding your bank.
[00:24:38] Vance Lowe: Funding your company, your lending company first. You know, so it’s profitable and then start the money process coming out. Well, I figured right off the bat if we used what’s called a paid up editions writer, we could go back or do a big portion in single premium, which is cash valuable immediately, and I could start [00:25:00] banking almost on day.
[00:25:02] Vance Lowe: But I had all this cash back in my control. I was worried where I was gonna put it, so I decided right now my monthly overhead for all my stuff back then 20 years ago was $10,000 a month. I could buy that debt, but did I wanna wait five years to get that into my life insurance policy? So the math at $10,000 a month is $120,000 a year, times five.
[00:25:29] Vance Lowe: That’s 600,000 bucks, right? I don’t think I could make that up had I waited. So I bought the debt and I reversed the cash flow of $10,000. To inflow. That’s literally a $20,000 difference from depletion to addition every month, folks. That’s what we’re talking about here.
[00:25:51] Seth Hicks Esq.: Yeah, and Nelson describes that in his book with regards to drag versus lift.
[00:25:58] Seth Hicks Esq.: Or, or maybe he didn’t describe it [00:26:00] in his book, but he certainly taught the principle of an airplane heading into a headwind, which creates a drag or a sheer down, and that’s what that $10,000 going out and you losing control of it and you losing the ability to put it to work. Versus having, buying the debt, having that 10,000 coming in and creating lift and a tailwind that accelerates your wealth curve.
[00:26:22] Vance Lowe: That’s beautifully said guys. Yeah. If, if any listeners out here haven’t ever read Nelson Nash’s book, becoming Your Own Banker, you need to.
[00:26:30] Seth Hicks Esq.: Absolutely. Yeah. So I mean, I think it, it, it definitely, uh, clarifies the difference between a financial planning paradigm and what we do at private banking strategies.
[00:26:41] Seth Hicks Esq.: And if folks wanna learn more, you can find us at www dot private banking strategies. Com, that’s private banking strategies.com. And on our website you’ll be offered a free book that Vance and I wrote entitled, what The Banks Don’t Want You To Know. [00:27:00] And that book highlights some of these issues and many more that act as a red pill to folks who are new to these ideas and these concepts.
[00:27:10] Seth Hicks Esq.: And also we’ve got all of our. Podcast there on the website that you can listen to for free. There’s content on every type of subject matter that you could want to understand with private banking strategies. We’ve got other resources and materials and articles and, and if you’ve done that, if you’ve, you know, read some of the emails that we send and these things are resonating with you, you’ve listened to some podcasts, you can schedule an exploratory call with Vance and ultimately.
[00:27:37] Seth Hicks Esq.: Create an eight year plan to see how private banking strategies will work, particularly for you and your family. So that’s our roadmap. That’s our process.
[00:27:46] Outro: 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.
[00:27:58] Outro: Are you ready to [00:28:00] take action and get your own private bank? Please visit us at www.privatebankingstrategies.com. Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become available.
