[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.
[00:00:48] Host: Hello and welcome to Private Banking Strategies with Vance Low and Seth Hicks. Gentlemen, so good to see you. How are you? We’re good, Eric. Great. Yeah, I mean, it’s, it’s been a little while. I’m excited to get [00:01:00] back in the saddle, if you will, if you wanna call it that, of the podcast. And you guys have been telling me that there’s been a lot of questions.
[00:01:06] Host: You’ve had some meetings and, and different types of webinars and things with clients, and they’ve brought up some questions that you really want to address. There’s a little bit of confusion out there. Once you get it one-on-one, they’re clear. However, there’s a lot of people that probably have these same kind of questions, so you wanted to address those and you’ve given me a list of about 10.
[00:01:23] Host: Are you guys ready to tackle that, Stuart? We are. Okay. And, and kind of what spurred this from my understanding is what banking policy is the very best one for me. That’s kind of the, the first question, and that’s, that’s what people have been wrestling with. So kinda set the foundation for this.
[00:01:40] Vance Lowe: I’ll start with this and Seth, you can kind of kick in on holes that maybe I leave off.
[00:01:45] Vance Lowe: But when we deal with insurance, everybody has preconceived ideas, you know, past experience, what they’ve been told, everything else, and they’re, they’re dealing with what they think is very professional [00:02:00] people who know what they’re doing. But in the life insurance world, most agents. Or among the lowest paid people, you know, in job, different job industries.
[00:02:11] Vance Lowe: Um, and they’re taught what to say. And one of the things they try to do is they’re taught how maybe an illustration w. Shows their company to be an advantage. And so they sell the importance of you need to look at these numbers, you need to look at this picture and these illustrations, when in most cases it doesn’t have anything to do with what a person’s goals are.
[00:02:36] Host: Hmm.
[00:02:37] Vance Lowe: And so everybody gets lost trying to figure out which one is the best for me. So that’s why we, we’ve come up with this topic. Seth, you might have another couple of examples or something of, of why, you know, people kind of get lost in this.
[00:02:56] Seth Hick Esq.: Sure. Uh, um, and we point back to the seven pillars of [00:03:00] private banking strategies.
[00:03:00] Seth Hick Esq.: Eric, there are seven cornerstones for which we provide. These services, asset protection, financial privacy, tax-free growth, legacy transfers, and so. Uh, like Van said, each person has their own individual motivations. Mm-hmm. And a lot of times when we compare one life insurance company to another life insurance company, it’s illustrations we’re way off in the weeds.
[00:03:30] Seth Hick Esq.: And they don’t, that doesn’t necessarily match someone’s motivations for why they’re structuring this, this plan. In the first place. So that’s kind of a general overview and something that we have to keep in our awareness is that each person’s individual needs is, is going to vary person to person.
[00:03:51] Seth Hick Esq.: Their motivations are gonna vary person to person. Yeah. Are you using your private banking strategies as a retirement strategy? Are you [00:04:00] using it as a asset protection technique? Are you using it for both? So there’s, those type of questions are litmus tests for each family’s structure.
[00:04:13] Host: Okay. So let, let’s, let’s take a step back.
[00:04:15] Host: Considering all that you’ve already said seven pillars, how it’s all incorporated. Let’s break it down to the basics. First, explain to folks what is a banking policy.
[00:04:27] Vance Lowe: Alright, I think that’s a great place to start because we need to understand and focus on what we’re trying to accomplish. Uh, banking policy is an old time contract that used to solve the banking equation in the United States.
[00:04:45] Vance Lowe: I mean, today we can hardly even imagine that the United States didn’t have branch banking, you know, a, a bank on every corner. Okay? But it didn’t. As a matter of fact, when I was growing up, they didn’t even have a [00:05:00] bank in our town. We had to go almost 30 miles to a bank in order to to use that bank. So where did Americans park their money?
[00:05:11] Vance Lowe: They parked them in these contracts with life insurance carriers, because that’s where the beginning started. That’s where all the money was put. And it was under a strategy of being independent, self aware, self reliant back then when our country was being settled. People could cross, you know, the country go out into the wilderness and they would survive.
[00:05:36] Host: Mm-hmm.
[00:05:37] Vance Lowe: That’s a lost art today. That could not happen today with, you know, over 90% of the people, they would perish within the thi first 30 days. So let’s explain the, the contracts, the policy today, they’ve evolved a little bit and they evolve all the time. So we’ve gotta talk about the contract, not. As [00:06:00] what everybody thinks life insurance is, but more that this contract will work as a money warehouse.
[00:06:07] Vance Lowe: Okay? It’s a safe place to store money until we can put it to work. The people that we teach understand that money has no value unless it’s moving and working for us. People are shocked when they say, well, I’ve got 4 0 1 Ks. I’ve got portfolios and stocks and bonds and mutual funds. I’m sorry to say your money is asleep, 100% asleep.
[00:06:36] Vance Lowe: You’re trying to earn interest, but you have to keep that money in those accounts. It’s the people who have the money that are going to make the money. And we use a doubling factor that they’ll double money so fast, but they’ll only pay the investor what they can get away with. And the investor takes all the risk.
[00:06:57] Host: Yeah.
[00:06:58] Vance Lowe: So the components, we, we want to [00:07:00] talk about that a little bit because these are specially designed today. They have to be put together correctly and it’s all over the board. Everyone, uh, is out there now, uh, thinking about, Hey, maybe I can sell more product. Using the infinite banking, you know, idea or private banking strategy idea when in fact, what’s critical?
[00:07:23] Vance Lowe: This is only the money warehouse. Okay? It comes along with the strategy of how do we bank, how do we use money, how do we get the money back?
[00:07:34] Host: Okay, so let’s stop there for a minute because that, that’s a great point. I, since learning from you guys. I was shocked, and, and I hate to admit that I like TikTok, but I’m on TikTok, not, not me personally.
[00:07:47] Host: I just like to watch things on TikTok and I’ve heard more and more people saying, oh, you can be your own bank and blah, blah, blah, but it’s, it, I feel a hundred percent like you, you were just saying it feels like a sales tactic. So let’s, let’s [00:08:00] talk about how that banking policy is put together because as, as important as is for all the strategies, let’s talk about how that’s put together so we know how it’s different than.
[00:08:10] Host: What people are just, you know, that 62nd snapshot on TikTok that is gonna change someone’s life forever.
[00:08:16] Vance Lowe: Alright, let’s do that. Uh, Seth, be uh, sure to chime in on, on something if I’m leaving a hole. Okay, sure. Yeah. Um, make sure that, uh, we, we have an open mind here. So the contracts are put together, they are life insurance, but we reverse engineer them.
[00:08:35] Vance Lowe: It’s not about solving your death benefit needs, um, you’re told right up front we are not gonna solve any death benefit needs.
[00:08:44] Host: Mm-hmm.
[00:08:44] Vance Lowe: But it will come with some insurance, but it will be the absolute minimum we can get away with without it causing a modified endowment We call the Mex. MEC would be an an [00:09:00] instrument that is taxable and traceable by government.
[00:09:03] Vance Lowe: If it is a non mec, then you know, we get all the tax, you know, favored treatment on these contracts. So sometimes that bar moves a little bit. They move a little bit different with each company because government is not organized and they’ve come up with the MET numbers independently for each. Company.
[00:09:25] Vance Lowe: And so it’s, it, it’s very hard. And that goes into looking at numbers and things like that. Every company is, is very hard. And when you’re told to look at the illustrations, we’re not even qualified to look at it. We don’t even know what we’re looking for. We, we see a number and we assume that, oh, that’s a good number and therefore it’s better than the other companies, so let’s make a decision on that.
[00:09:50] Vance Lowe: And it’s like. The difference of yield versus average rate of return, if you ask the right question, you get the right information. Mm. If you ask the wrong one. [00:10:00] So the first part is ordinary base, premium, ordinary, whole life designed to be paid throughout a lifetime. Can we need some of that? Our commitment to our clients is to build this contract so efficient that it will go over a hundred percent, which means like in year five, if you knew that you had an investment that was guaranteed for a minimum amount of performance.
[00:10:33] Vance Lowe: That in year five, every dollar you put in, you’re gonna make a dollar five or a dollar 10 or a dollar 20. How many of those do we want? Mm-hmm. Especially if it’s tax advantaged. So putting one of these contracts together is like setting up a company and we actually use all companies. All American history of business is stemmed from the experience of life insurance and base premium base, whole life [00:11:00] insurance.
[00:11:01] Vance Lowe: A premium or a, a new co startup company usually is not profitable until five years, three to seven years. Okay. And it’s that cash value in the base premium that appears somewhere between three and and five year period. Well, that’s only one component, and that’s a small component. But the father of this idea, r Nelson Nash.
[00:11:28] Vance Lowe: He did a lot of Experian, uh, experimenting, and he came up with, you know what, we’re gonna buy one of these high cash value policies and we’re gonna pay premiums for five years. And after five years, then we’ll start the banking process because then there’s cash value and we can start using the money in our bank to self-finance things.
[00:11:54] Vance Lowe: Well, 20 years ago when, uh, guys like me came on the scene, [00:12:00] we wanted to speed that up. Mm,
[00:12:02] Host: I bet.
[00:12:03] Vance Lowe: And so there were, because we dealt with so many different companies and we knew insurance law and, and the advantages inside and out of different strategies for life insurance, we easily came up with, you know what, if you attach to that policy, what’s called a paid up editions writer.
[00:12:23] Vance Lowe: You can speed up the process. A long story short is that the proper mix would be a 60 40 split, 60% into a paid up editions writer for only a short period of time, and then the 40 in the regular whole life and our successful clients. Wish that that would be reversed. And the reason is we cannot get the paid up additions writer to a hundred percent efficiency.
[00:12:57] Vance Lowe: You know, it taps out about 92, [00:13:00] 90 4% in every case, no matter where you go, no matter what the percentage is, it’ll never, you know the amount that you have access to, but it is that writer means it will reach out. Purchase life insurance in one payment and you own it outright, never any more expense from that time forward.
[00:13:21] Vance Lowe: So if we were to have a $10,000 premium, 4,000 would be base, 6,000 would be paid up additions, writer, and it’s that writer that creates immediate, upfront. We’re gonna call business profit or cash value. No. You know, any startup company, if they could pull 50 to 60% out in year one is gonna say, Hey, we had a great startup here.
[00:13:46] Host: Hmm.
[00:13:48] Vance Lowe: Well. Uh, the market out there has picked up on that and they figured out a way to change those splits. But it takes you away from banking and it puts you in the, [00:14:00] the, to the now moment. And so you’ll see things on the internet that go, you know, 90 10 splits. Oh, you, you need to put more into the paid up editions.
[00:14:10] Vance Lowe: Rider. You’re getting ripped off. Well, there’s, there’s no money in there. You know, it just, it is just effective for the first year. First year or two, but hopefully people are setting up these strategies for a long term lifetime. Mm-hmm. And these contracts, if they’re good, all come out to be the same. I have all the different companies we represent, you know, so I don’t get lost in the weeds.
[00:14:38] Vance Lowe: I can’t tell the difference between between them really as far as the performance goes. So then we might add a little bit of term writer. The term writer, the effective is buying more permanent and it allows, like the first contracts I, I did on [00:15:00] myself. I had a little bit of term writer in there, and when I borrowed money out, I could pay it back.
[00:15:07] Vance Lowe: Plus the interest that I charge so I could actually add back more into the policy that I borrowed out because it acts like it’s permanent, the, the term writer, and it gives you that upfront boost. We only need that for like four years, and then we leverage off that. We, we go down to the uh, uh, lower amount what the permanent or base premium in year five.
[00:15:33] Vance Lowe: Now, in year five, it’s the BA base can go over a hundred percent. And now we’ve got a policy that’s rocking along at above a hundred percent. And so the cash value, if it’s not caught up yet, it will, it’s just a mathematical equation.
[00:15:48] Host: Mm-hmm.
[00:15:49] Vance Lowe: But that has, let’s, let’s stop for to do thinking. Yeah.
[00:15:52] Host: Okay, so you were talking about the components needed for the, the banking policy, and so far I’ve heard whole life.
[00:15:58] Host: Right? And then you get the paid up [00:16:00] editions writer and then a term writer. Are, are those the components you’re talking about or are there additional components as well?
[00:16:05] Vance Lowe: Those are the main components. In special instances, there are additional components. You may need waiver of premium, you may need a, a guaranteed growth RI writer.
[00:16:16] Vance Lowe: So it’s all individualized, like you said, right? Uhhuh. Okay.
[00:16:19] Host: Okay. All right. Well, I mean, it it, obviously, you guys have covered a ton of stuff before, and this is a great breakdown, and I’ve heard you say this before. I already know this, but I know this is a question that has come up. Will the contract make you an owner of the life insurance company?
[00:16:33] Vance Lowe: Seth, you’re qualified to ask that one. Answer that one.
[00:16:36] Seth Hick Esq.: Sure. Yeah. We, we, we focus on companies whereby you, you are an owner, mutual. Companies and as opposed to stock companies. And there are a multitude of reasons for that. But ultimately, I mean, the, the companies that we’re, that we’re utilizing, they’re all similarly situated.[00:17:00]
[00:17:00] Seth Hick Esq.: And as Vance said, over the long term, they’re pretty much gonna perform in the same. Type of trajectory. Some may outperform initially, but ultimately years 10 and ongoing, they’re pretty well leveled out.
[00:17:17] Vance Lowe: Yeah, and, and the advantage of being owners is that you get profits, you get at the head of the line, you get preferential treatment.
[00:17:26] Vance Lowe: In, in all these cases, when you go to borrow money, there’s only two questions asked ever. It’s how much do you want? Where do you want it sent?
[00:17:35] Host: Hmm.
[00:17:35] Vance Lowe: There’s no payback, there’s no reason as to why do you want this money?
[00:17:39] Host: Mm-hmm.
[00:17:40] Vance Lowe: If you, if you borrow your own money out of a real bank, that’s the first question they’ll ask.
[00:17:45] Vance Lowe: And if they don’t like the answer, they don’t have to give you the money. Even if it’s in your account. Yeah. So, so that’s, that’s why an advantage. So all of our companies will produce [00:18:00] the ownership. So in addition to the guarantees, these are high guarantees. These guarantees pretty much track realistic market growth after taxes.
[00:18:12] Vance Lowe: So we’re, we’re right there in the guaranteed market. This whole strategy and these policies are based off of the guarantees. So when we project, we don’t project the profits that are coming in.
[00:18:24] Host: Mm-hmm.
[00:18:25] Vance Lowe: But the key and everybody needs to know, we deal with companies that have never not paid an annual profit and they’re called dividends.
[00:18:33] Vance Lowe: Okay. And they can be added in or increased death benefit or whatever else.
[00:18:38] Host: Okay. You brought up death benefit. Earlier you said that you’re not solving for death benefit. Mm-hmm. And we’ve talked about that a little bit before, but break that down a little bit for me because. The insurance has a death benefit, right?
[00:18:50] Host: But you’re not solving for death benefit needs.
[00:18:53] Vance Lowe: Let’s say we’ve got an average 45-year-old, you know, they wanna do $25,000 into their bank each year. [00:19:00] The minimum death benefit, you know, if they’re really good and healthy, might be half a million dollars, okay?
[00:19:06] Host: Mm-hmm.
[00:19:07] Vance Lowe: And so that’s the minimum that we can’t go below that, or we break this MEC rule and things are taxable also.
[00:19:14] Vance Lowe: You can’t put more. Then when you started, when you set the contract, you never can put additional premium in. So if it’s 25,000 a year, that’s it. Can’t put 26,000 or you can’t put $25,001, we’re that tight up against the Mac wall to be more efficient. Okay? So we went back right up there. We don’t leave any unnecessary expense.
[00:19:40] Vance Lowe: Annualized is absolutely critical. Life insurance deals with annualization. So everybody else pretty much deals in the rear. You know, you invest everything, you get your profits at the end of the year, not life insurance. When you pay the annual premium, you get the profits and the cash value upfront at the beginning of the year.
[00:19:59] Host: Mm,
[00:19:59] Vance Lowe: everything [00:20:00] is upfront. But when you borrow loans, they’re gonna charge you a year’s worth of interest upfront. The advantage. Is that as you make payments back into your bank, you want to pay yourself back. For those loans, they have to pay back the unearned interest. So there’s no difference in the money you’re putting back in.
[00:20:21] Vance Lowe: You have a hundred percent access, whether it’s going for loan interest or wherever it’s going. You have re-access to exactly, you know, the same amount, if not more so. The dividends, the way we set it up at the beginning is we have it by paid up additional insurance, one-time payment, because that adds to the cash value and that increases the death benefit.
[00:20:48] Vance Lowe: I just looked at a 28-year-old, I just did one on on on these guys, and they’re doing $20,000 a year. You know, he’s close to a a million dollars of of death benefit. Wow. [00:21:00] But if he just keeps track, he’ll have closer to $5 million at death. Death benefit because of the paid up additions. You can switch those anytime to cash, you know, or cash value or whatever else, but this seems to be the best bang for the buck, and that’s why we do it.
[00:21:17] Vance Lowe: Did that story
[00:21:18] Outro: 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? 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?
[00:21:40] Outro: Please call private banking strategies at (817) 200-4777 or visit us. Us at www.privatebankingstrategies.com.
[00:21:55] Host: Well, I wanna go back to the policy illustrations question because everybody is gonna [00:22:00] paint the best picture that they possibly can. Right? And you, you already touched on the fact that it’s individualized.
[00:22:06] Host: How much can somebody expect, or let’s talk a little bit about what. Will make that picture fluctuate. Right? Because you, you can do a picture one day, but then Seth, before we even started recording, you were talking about how things can change and all of a sudden that picture’s gonna change drastically.
[00:22:21] Host: So let’s, let’s talk about that.
[00:22:23] Vance Lowe: Yeah. Seth, go ahead and get into that for us. Would you.
[00:22:26] Seth Hick Esq.: Sure. So the illustrations are based on a particular person’s health and their premium amounts that they’re putting in, and they’re doing calculations on a spreadsheet forecasting if things are made, you know exactly according to the illustration.
[00:22:44] Seth Hick Esq.: But if. Uh, money is borrowed out of the policy. You’ve taken pol policy loans out at a certain date that affects the calculations. When you pay them back, how much you pay them back at what time you pay them back all affects the [00:23:00] calculations. Whether you pay the paid up additions, rider, or you don’t. One year, we call them flexible.
[00:23:06] Seth Hick Esq.: So let’s say that cash flow’s tight one year, you’ve got a hundred thousand dollars premium, 40,000 is in base. Which is a required premium. Mm-hmm. And 60,000 is paid up edition and all you have is the 40,000. Well, that’s going to affect the illustration as well. So all those variables affect the calculus of what’s on that spreadsheet.
[00:23:26] Seth Hick Esq.: And I don’t think we have a single client that has fall followed. Precisely exactly to the T. You know, the premium payments and dates and times that are on an illustration, they’re more of a roadmap, a guidepost mm-hmm. That help people kind of analyze things. But where they, where sometimes folks get off into the weeds is they want to compare illustrations and they’ll say, well, we have this illustration.
[00:23:54] Seth Hick Esq.: From X, Y, Z, and it’s, you know, it, it shows me a, a far better [00:24:00] value and benefit than a, B, C. But if you recall in my past comment, you know, 10 years and beyond, they’re all leveling out with consistent. Application of your variables so people can get caught up in that. You know, what’s the best for me? You have to go back to the fundamental cornerstones and motivations for why you’re choosing these structures and, and that’s, that’s really what you’re building on, not an illustration.
[00:24:29] Seth Hick Esq.: Yeah. Even,
[00:24:29] Host: even, like you were saying X, Y, Z, A, B, C, you’re talking about between two different companies. Correct. Company A, B, C looks great with these variables, but you change some of those variables, all of a sudden the other company would be better because of those different things. And so I can see that this would be like kind of just chasing your own tail by, by having to try to compare these things all the time.
[00:24:49] Host: That doesn’t make much sense.
[00:24:50] Vance Lowe: Yeah,
[00:24:51] Host: precisely.
[00:24:52] Vance Lowe: Exactly. And we have a practice, but we. Are going to go, you know, when a person says, yes, I’m in. I [00:25:00] want to start the strategy. We’re going to get a policy issued. And so we subscribe to several companies simultaneously.
[00:25:08] Host: Mm-hmm.
[00:25:08] Vance Lowe: To get quotes from all of them. And this is where the confusion comes in.
[00:25:12] Vance Lowe: Usually one company falls in love with you and there might be a company that has a heartburn because of the color of your hair. You know? Mm-hmm. Whatever it is, you know, so we, we need to know that, and we like to know what the limits are. We, we like to know, you know, what the flavor is of the companies wanting to do business.
[00:25:31] Vance Lowe: Put a policy on this person. And that also is information for future growth, you know, other strategies once we implement the program. So that’s. One of the most confusing things is that people, they want to do the right thing, and so they fall back on what they’ve either been taught or they’ve been told.
[00:25:54] Vance Lowe: And as I do research in some of the other areas and some of my hobbies. [00:26:00] We’re everything is being, being told or taught on the internet, and it’s not necessarily true. Some of it’s just downright wrong. Yep. And so we all have to test that out and we all have to do it. But this is where the advisor also comes in.
[00:26:16] Vance Lowe: You have to have faith in the ones you’re doing. Your homework should be more on what that individual’s doing, what the background is, what the success rate is, and what the income rate is. If you’re dealing with someone who makes half the income, you do, you’re in the wrong place. First off, you know, there’s, there’s no reason we teach, you know?
[00:26:40] Vance Lowe: People how to rank advisors, how professional people. The nice thing about the strategy, you don’t have to do that anymore because you don’t need a professional person anymore when you’re dealing with your money. But normally when you’re dealing with someone, we do a, a scale of one to 10, a one and [00:27:00] don’t, doesn’t even know the topic.
[00:27:02] Vance Lowe: A 10. There are no tens. That guy would walk on water. Mm-hmm. With that gal. Okay. So starting getting paid for your efforts, learning enough so that you can share some knowledge is about a five.
[00:27:16] Host: Hmm.
[00:27:17] Vance Lowe: And the, and there’s good sides and bad sides of, uh, of, of some of that. A five thinks there’re a nine. A nine When asked that scale.
[00:27:30] Vance Lowe: Oh, I’m probably a six. It is just the reverse. Yeah. The eights and nines are the gurus, you know, where you see other, um, professionals going to for mentoring and those are the people you wanna deal with because they’ll take the time to find out about you mm-hmm. And solve the issues for you. Most the fives are taught what to say and you know, ha have a program they gotta go through and if they get outside that they’re [00:28:00] lost and you have to fit their program and therefore he’s gonna convince you that you fit their program.
[00:28:07] Vance Lowe: So you gotta be a little bit careful of that.
[00:28:09] Host: So again, a lot of this can be, be muddy water, if you will. There there’s so much to, to think about and deal with for those that are listening that are, are just starting this process maybe with you or. Are thinking maybe I should start it. And they’ve never, never even approached the question.
[00:28:25] Host: We’re gonna get some contact information here at the end of the show, but I think the, the question we need to wrap up with is what should you be focusing on? What should the listener or the, the, the person who’s just starting to work with you, what should they focus on during the initial setup and, and the learning phase of banking strategy without all that other information, bogging ’em down?
[00:28:45] Vance Lowe: Well, Seth hits the nail on the head when we talk about the seven pillars. Okay, this is a complete strategy, but it’s an unknown strategy. It’s it, it was on purpose left out of our [00:29:00] education so that the, the banks and government would have control over our lives. This gives us the control and it makes us independent.
[00:29:09] Vance Lowe: So we have to learn, we have to be willing to learn the strategy. It’s not focused on a product. Yes, we need a contract, you know, to have our money in a safe place. Okay? That’s why we have that contract, is that we get control, we get tax advantage. Okay, but the strategy of of using money, being able to put it out there, our principle, and getting back all our principle, never spending it again, being living the laws of money, the 10% rule, never spending principle, working off of well-designed plan are things that are consciously decided upon.
[00:29:51] Vance Lowe: People who do it win by default. They’re not gonna fail, but the people who don’t. Complain, you know? Mm-hmm. Why? Why am I where [00:30:00] I’m at? Why am I so rusted? Why is this Nelson Nash in his book, becoming Your Own Banker has five laws? Those are laws that need to be defeated on, on a regular basis. You be are, if you’re able to do that, you win by default ’cause nobody else can.
[00:30:15] Vance Lowe: And then the banking equation, people just are flabbergasted that, you know, when we say, look, how would you like to get back a hundred percent of your monthly expenses every single month? If you got it back, would you then be spending your principle when they say no? And can you really do that? Mm-hmm. We don’t even have to be present.
[00:30:34] Vance Lowe: And it’s not even gonna take 20 minutes and you’ll have no shadow of a doubt, but it’s not the way you’re thinking today.
[00:30:43] Host: Yeah.
[00:30:43] Vance Lowe: We wanna end up with Eric. We, we gave them a pro, uh, a promise and we’re gonna tell it to ’em. Now what banking policy is the very best one for you? We’re gonna share that with you before we end.
[00:30:57] Host: Okay?
[00:30:58] Vance Lowe: But Seth, uh, tell [00:31:00] them I just touched on why this is so important with the seven pillars. Give, give us a little bit more.
[00:31:08] Seth Hick Esq.: Sure. Well, Eric, you’ve got, you know, certain high net worth individuals that are flush with cash and they’re feeling very unsafe with bank failures, potential bail ends, which we’ve discussed extensively, but it bears.
[00:31:22] Seth Hick Esq.: Constant discussion and repetition. They don’t want their cash sitting in potentially failing bank institutions. They want ’em in a, a bulletproof fortress. That guy’s motivations are much different than the single mom. Who’s got $5,000, you know, a year for a premium that she wants to parlay into real estate investment.
[00:31:45] Seth Hick Esq.: So we have to analyze each person’s needs case by case. Mm-hmm. And the seven pillars are pretty much a 360 degree paradigm. Uh, and, uh, you know, people ask me, well, is it, you know, is this for everyone? I [00:32:00] think it fits for everyone no matter whether you’re 80 or 20, whether you’re rich or poor, that these.
[00:32:06] Seth Hick Esq.: These pillars, these seven pillars and motivations will fit within every person’s motivations. And then how you structure it, we tailor it towards that person’s needs.
[00:32:18] Host: Yeah.
[00:32:18] Seth Hick Esq.: So yeah, I mean, but, but just to continue on that, and just to give kind of an example, like we talked just briefly about term riders.
[00:32:25] Seth Hick Esq.: Well, one of the reasons we’ll have term riders is for those folks that have windfall opportunities. A term rider is something that you can, you sell a business, you have a crypto investment that parabolically cashes you in, like the lottery. Well, where do you put that cash? We just told you that the bank’s not a safe place.
[00:32:45] Seth Hick Esq.: Mm-hmm. But the term rider gives you the option without having to requalify medically or financially to just convert. That term rider into your, your whole and live policies. And so you can take that windfall, convert it straight in, [00:33:00] and, and you’ve got a safe place for your cash. So that’s just a kind of an idea or an example of, of one of the ways it might fit one of those people that we’re talking about.
[00:33:11] Host: Yeah. Well, I, I, I wanna share just a little bit of a story, Vance, you said earlier, and, and Seth, you were just talking about, about the. Unsafety of banks or the questions that they ask. I, I actually belong to a, a small chat group that is about watches. I love watches, I like to collect watches. I don’t have any high, super high end watches.
[00:33:33] Host: Someday, right? Someday I might, but I just love to see the posts. I love to see the conversations and, and learn more. So I was on that just last week and there’s a couple guys on there that are constantly buying and selling watches. They, and they, they’re, they’re collectors. They have huge collections, but they also do a lot of buying and selling and, and bringing watches to the, to the forum.
[00:33:56] Host: And one of ’em brought up the fact that he goes into his bank and he’s had issues before [00:34:00] when he’ll try to pull out cash. He wants to make a cash purchase and he doesn’t like to use his cards and things like that. For that, he’ll go to a show or whatever and he’ll purchase a watch with cash because it’s the, the thing that does it instantly.
[00:34:12] Host: And he’s had issues going in and asking for $20,000 or, or you know, $15,000. ’cause they ask those questions. And so there was an entire thread on. What, how to answer if the bank answers or asks you questions. Right. You know, what are you gonna use this money for? They, they, they can’t say watches, right, because that doesn’t, the, the bank could flag that.
[00:34:33] Host: Well, that seems suspicious. Kinda like you were talking about before. So they said, tell ’em you’re buying some appliances for your home. Tell ’em, you know, uh, anything but certain things. Don’t say A, B, or C. And if you don’t answer, one of the guys said, I tried not to answer. I said, it’s none of your business.
[00:34:48] Host: And they wouldn’t let him get his money out. They called a supervisor over. It was a big to do. It took him like three hours to explain what he does, and then finally he just kinda had to divulge this is I’m, I’m making some purchases for resale. And they’re like, okay. [00:35:00] And I, I thought that was, it was incredible that, that that’s actually currently happening, that they would withhold his own money, but they do.
[00:35:08] Host: So the points that you’ve made today are, are golden. What closing thoughts do you have for today’s podcast besides the fact that we’re gonna give out contact info?
[00:35:16] Vance Lowe: Okay. Well, I just want to end with the reason as far as your explanation, it’s the Dodd-Frank Act. Mm-hmm. Folks, you don’t own your your accounts at the bank anymore.
[00:35:30] Vance Lowe: You are not the owner. You’re just an equity investor. The bank owns your money because of the Dodd-Frank Act, and they can seize it and take it and do anything they want with it. For now, they’re accommodating you until they seize it. Or if they should, that’s why it’s unsafe. Okay. As far as closing goes, we want to talk to people and tell people what is the very, very best policy for you as far as banking goes.
[00:35:58] Vance Lowe: Here you go. Now you [00:36:00] need to open your mind and think, okay, because that’s what this process is all about. The policy that is absolutely very best for you and Seth, you tell me if you back this up, is the policy that you put in force. Yesterday
[00:36:19] Host: makes sense. Oh,
[00:36:20] Vance Lowe: I don’t have a policy to, I don’t have that policy. Oh, second. Best will be the policy that you put in force on August 30th, 2023. What day is that, Seth?
[00:36:35] Seth Hick Esq.: Today.
[00:36:36] Vance Lowe: Today. That’s second Beth. Oh, you don’t have it Ready to do today. Then let’s go to third Best. We do it tomorrow. Mm-hmm. Or fourth or fifth or sixth.
[00:36:47] Vance Lowe: Best. See folks, the thing is we trick our minds all the time and into the weeds, so to speak. You know, we, we put off making, you know, good decisions. I have people [00:37:00] say all the time, yeah, I’m sold on this, blah, blah, blah. But you know, I wanna get all my answers, everything first, you know? How do you describe water being wet?
[00:37:10] Vance Lowe: Unless you jump in.
[00:37:13] Host: Yeah.
[00:37:13] Vance Lowe: Then you can tell if it’s cold or not, or experience everything else. So folks, it’s just noise until you pull the trigger and you have it enforced. If you lose a year, you’ll never get a, a, a, a policy anywhere close to what that older policy would’ve done. Okay. In our little book, we show how a penny doubled.
[00:37:38] Vance Lowe: Or 30 times equals over $5 million. What happens if you lose one day? You just lost 200, $2.5 million.
[00:37:51] Host: Yeah.
[00:37:51] Vance Lowe: Okay. The same thing with investing. It’s the back end that counts. But you have to start today. That’s the very best policy [00:38:00] for you. You can always add, you can always diversify. But you can never go back.
[00:38:08] Vance Lowe: You can never reclaim, you know what you have. So hopefully, you know, we have our clients listening. They’re smiling. I got that one. Okay. Because the future, they’ll change since I’ve been doing this, since Seth has been doing this and they’ve changed these contracts and each time they’re a little bit worse.
[00:38:29] Vance Lowe: But they still work. Beautiful. Okay. They don’t go back to what’s in Nelson Nash’s book. You know, Nelson Nash’s book really showed a lot of high cash value, where we’re very close to those numbers, especially doing the banking. We can’t, you know, the policies are a little more restrictive. They put a little bit less in there.
[00:38:48] Vance Lowe: So folks. It’s important that you understand as you learn and you listen, that you act upon what you do and you leave the old behind. You leave the falsehood, the [00:39:00] noise behind, and you go and you just go forward.
[00:39:04] Host: All right, Seth, let’s give ’em some contact information so they can get that policy today.
[00:39:10] Seth Hick Esq.: Sure.
[00:39:10] Seth Hick Esq.: Yeah. If you’re gonna find us@privatebankingstrategies.com, that’s private banking strategies.com. And there, when you hit our website, you’re gonna have, uh, an offer for our ebook that’s called What the Banks Don’t Want you to know. Uh, that comes to you in a, in a PDF or an audio version. Your choice. If you like to listen to things on the go, we’ve made that available for you.
[00:39:33] Seth Hick Esq.: And if that resonates with you, we invite you to listen to some more podcasts. We’ve got a whole portfolio of podcasts available to you on the website. You can subscribe in your favorite platform and go through some of that content and listen to things that catch your eye. And if our ebook and our podcast resonate with you, then we invite you to it.
[00:39:52] Seth Hick Esq.: Take an exploratory call with Vance where you begin to dig into how this might apply for you. Ultimately, that that [00:40:00] results in an eight year analysis where there’s quite a bit of work done for you, particularly with your, uh, financial circumstances, your family goals and motivations where we’ve roadmap this out and tell you exactly what to do, step by step and get you, get you rocking and rolling.
[00:40:16] Seth Hick Esq.: That’s, that’s our
[00:40:16] Host: process. All right. Fantastic. Gentlemen, great information. Thank you for answering questions. Those that are listening, you can always email in questions, get to the website, find some contact info there for emails, email some more questions if you’ve got more. Uh, and then I just encourage you to, to reach out and make the phone call to, to talk to these guys in person.
[00:40:35] Host: Uh, gentlemen, always a pleasure. Thank you so much.
[00:40:37] Seth Hick Esq.: Thanks, Eric.
[00:40:38] Host: Thank you so much, Eric. You bet. And our last thank you. We’ll always go to your listening audience. Thank you so much for tuning in and listening to the Private Banking Strategies Podcast with Vance Low and Seth X. If you have not subscribed to the podcast yet, please click the subscribe now button below this way.
[00:40:50] Host: When Vance and Seth come out with a new podcast, it’ll show up directly on your listening device, and we humbly ask that you share this podcast, rate it and leave a review. This actually does help others find the show. Again, thank you [00:41:00] so much for listening today. For everyone at Private Banking Strategies, this is Eric Johnson reminding you to live your best day.
[00:41:05] Host: Every day, and we’ll see you next time.
[00:41:08] 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. Are you ready to take action and get your own private bank? Please call private banking strategies at eight one seven.
[00:41:28] Outro: 204 7. Seven seven or visit us at www.privatebankingstrategies.com.
