[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 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.
[00:00:39] Host: Hello and welcome to Private Banking Strategies with Vance Low and Seth Hicks.
[00:00:43] Host: Gentlemen, how are you today? Absolutely. Wonderful. Doing great, Eric. Thank you. Oh yeah, no, I’m excited. Uh, audience, if you’ve been with us for the last couple podcasts, the format is gonna be a little bit different. I, I think this is fantastic. So this podcast and the next one are gonna deal with the same story.[00:01:00]
[00:01:00] Host: Fans is gonna give us a bit of that story, talk about it, and Seth is gonna come back after a quick break and tell us what strategies they implemented to help these people out. So today we’re gonna be talking about some twins, right? Vance. You bet. Alright, so what about these twins? What’s going on?
[00:01:17] Vance Lowe: Well, we’re gonna talk about one of the, uh, things that we all have to face in life, and usually that’s automobiles if we’re gonna drive.
[00:01:27] Vance Lowe: So we’re gonna share a story with you that actually happened in the past. And show you how you can not only finance your own vehicles, but how that might prepare you for retirement later on, as well as teach us a lot of different principles. And so what we want to do over these next two podcasts is just be able to dissect, uh, one of the sections in Nelson Nash’s book on page 45.[00:02:00]
[00:02:01] Vance Lowe: Where he shows financing a vehicle over a lifetime. Alright, so the story begins with a set of identical twins. His nieces who when they graduate from high school, they get jobs and they know they need to be saving some money. So Nelson worked with them to a point that they both agreed that they would save from their earnings $5,000 a year with a goal of being able to self-finance their cars as soon as possible.
[00:02:43] Vance Lowe: But all of us have choices in life. Mm-hmm. And so these two sisters, this is probably the only thing that they varied on. Everything else they did identically. So one person is going to use a well-known [00:03:00] strategy called the CD method. This is where we put money in a CD and we collateralize it, borrow some money to finance things and come back.
[00:03:11] Vance Lowe: So the first thing I want to get out of and declare here is whether or not the private banking strategies is a long-term strategy. Or short term. Eric, what do you think?
[00:03:25] Host: Oh, it’s long term. I mean, we’ve talked a little bit about this before on previous podcasts. I know it’s a long term strategy.
[00:03:30] Vance Lowe: Okay. So long term strategies, they don’t pick up and go right out in front right at the beginning.
[00:03:37] Vance Lowe: Mm-hmm. And the best way I can show you and share this with you is if you’ve had a chance to read Rick Warren’s book called A Purpose-Driven Life. If you haven’t read it, it’s a great book. It, it sets a, a life up. He sets it up as a marathon. When a marathon starts, it’s absolutely crowded, but it thins out [00:04:00] quickly.
[00:04:00] Host: Mm-hmm.
[00:04:02] Vance Lowe: And since we’re running a marathon, do the question is, do we care if our competition is ahead of us at mal marker 1, 5, 10, or even halfway? As long as we know we’re gonna pass him and win the race. Do we care, Seth, what do you think? Absolutely
[00:04:19] Seth Hick Esq.: not classic hair. Hair and tortoise.
[00:04:22] Vance Lowe: Right? Because it, it’s the end results that’s gonna count here.
[00:04:26] Vance Lowe: So I want to go through some, some live verbal exchanges between what I call the herd mentality. Versus a different way of thinking and doing things. So one of the sisters is gonna use the CD method. You’ll have to look in the book or get this chart from us so you understand what we’re talking about.
[00:04:49] Vance Lowe: But they’re going to invest $5,000 a year for seven years into their strategies, and then they’re gonna quit [00:05:00] investing new money. They don’t have to invest any new money. After seven years. Seven times, so five times. Seven is 35. If it’s $5,000 a year that they’re putting in, that’s a total of $35,000. At the end of the first year.
[00:05:16] Vance Lowe: The CD sister, after she’s paid tax on the earnings of her cd, she has $5,200 in her account. She invites the IBC sister over to launch who has the long-term strategy. And asks her how much is in your account? The CD sister says, oh, 1933. And the CD sister gets this incredulous look on her face and says, I told you those guys were gonna rip you off.
[00:05:45] Vance Lowe: You need to get over here to US Bank and let us take care of you. Well, this goes on, and the next year they have lunch and Well, how much is in your account this year? Sister? Oh [00:06:00] $6,359 as compared to $10,608. And so that CD sister says, you know what? You must really be crazy or dumb or something. And we probably had not to see each other anymore because it could be contagious.
[00:06:17] Vance Lowe: Hmm. Well, what I’m trying to depict here, here, Eric, and with all of our listeners out there, is that there are short term strategies out there that pick up and go really quick, but they fade. They start this marathon way too fast. And everybody knows if you’re gonna run a marathon, you can burn yourself out if you go too fast, right?
[00:06:39] Vance Lowe: Mm-hmm. So all through those seven year period of time, that CD sister is always ahead, and you can imagine how she picked on the other person, but the other person had faith and trusted in her mentor, Nelson Nash that things would turn out to her favor. [00:07:00] Well, starting year eight, they. Have enough in their accounts.
[00:07:04] Vance Lowe: One’s got 41, the other one’s got uh, 36,000. So they start financing $10,550 of their next car, and they both buy identical cars for exactly the same price. Mm-hmm. Now I’ve been taught in order to get the money back, we have to set up. A payment schedule, a repayment schedule. Even though we’re gonna borrow from these accounts, we want to put the money back in and use it over and over again solely to finance our vehicles.
[00:07:37] Vance Lowe: So they set up a repayment schedule that will get them completely paid back over a four year period of time. In order to do that at 8.5%, I think was the factor that they put. They’ve gotta pay themselves back a total of $3,030 a year, and I think that equates out to like $267 and some change or something.
[00:07:59] Vance Lowe: Mm-hmm. [00:08:00] So he shows on page 45 financing the same amount over a lifetime. What that will do for someone, so it isn’t based on any, any age factor, it’s based on years of activity. And year in and year out, every four years they’re going to finance the vehicle and I think over a lifetime every four years, it’s 11 vehicles that they finance.
[00:08:30] Vance Lowe: Incidentally, at year 15. We can look on the charts, and year 15 is the year or the mile marker, we’ll call it that. The IBCs sister goes ahead and now all of a sudden the CD sister has to shut up. She can’t complain anymore because all of a sudden the other sister goes ahead and the results is [00:09:00] 51 years later.
[00:09:04] Vance Lowe: From the time they started to invest money to save their money, let’s take a look at what the account balances are. The account balance in the CD’s account CD sister’s account is $258,927. Let’s just round it to 259,000. Okay. And she was able to finance cars and look how this account grew just by simply paying herself back and reusing the same money over and over again.
[00:09:40] Vance Lowe: Getting a little bit of interest and growing forward. So that’s a pretty good plan until. You look and see what the IBC sister has in her account. There’s just under $1 million, 965,000. Wow. So guys, [00:10:00] and, and Seth, you know, I want you to comment here. Why, Eric, do you think, why is there a 700,000 plus difference when these two sisters.
[00:10:11] Vance Lowe: I borrowed exactly the same amount on the same day. They paid back in payments exactly the same amount. So there’s no change. Why does, is there $700,000 difference? I have no
[00:10:23] Host: idea.
[00:10:24] Vance Lowe: I’m hoping you’re gonna tell me. Okay, well, I’ll say it and then I want, this is, this is where we wanna dissect a little bit.
[00:10:33] Vance Lowe: Okay. The easiest way to do this is right up front. We know that the CD sister is with US Bank, right? Mm-hmm. Does this sister who has an account there, does she, is she an owner of the bank, do you think? No. No. She’s just a client, right? Yeah. The IBC sister has a special contract with the life insurance company.[00:11:00]
[00:11:00] Vance Lowe: It’s designed to create the perfect private bank. Hmm. And that contract, Eric allows her ownership of the life insurance company and every single year, these companies pay out profits to their owners. And it’s a mandate. Mm-hmm. And the companies that, that we use have never missed. You know, and that dates back to the beginning of our country.
[00:11:28] Vance Lowe: I mean, this is the strategy that was the main banking strategy before banks even existed in our country. And that’s the difference, is those profits. Were paid into the account, reinvested and compounded the guaranteed rates. So it’s the profits of the company made over this period, or, uh, the IBC sister was, was paid.
[00:11:53] Vance Lowe: And the growth. This is incidentally yield not [00:12:00] interest rate. Interest rate. We can get into that a little bit later, but the definition of yield is money that’s put in the account. That cannot go backwards. It cannot be affected by market or any other risk. This is money in the account and it cannot be taken out.
[00:12:17] Vance Lowe: Hmm. So Seth, let’s go into this a little bit in more detail between the two of these. The other one, you can’t, they couldn’t get any profit for the bank and, and I’m telling you, the banks probably made a lot more than the IBC sister did because of the fractionalized banking. Why do we want to tell everybody what, um, about.
[00:12:41] Vance Lowe: Setting up their own bank and receive the benefits of that. Let’s go into that a little
[00:12:44] Host: bit. Before Seth comes in, I want to actually just take one, just quick break because I want everybody to think about this. Do you finance a car? Do you have a bank? Do you have a bank account? I would assume you’re gonna answer yes to those.
[00:12:57] Host: So put yourself in these people’s shoes, and that’s what we [00:13:00] really want to have happen before Seth comes on and breaks us down for us. Let’s take a listen to some contact information.
[00:13:08] Midroll: Do you see yourself in that story? Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like? Are you ready for help? Please call private banking strategies at (817) 200-4777 or visit us at www.privatebankingstrategies.com.
[00:13:35] Host: All right, Seth, we’re back. This has, this has been fantastic. I know you’re gonna break it down for us. Where do we start?
[00:13:41] Seth Hick Esq.: Okay, so this is the classic hare in the tortoise, whereby the hare jumps off to a fast early lead, but the tortoise ultimately overtakes. The hare and, and ends victorious. And that’s because of the dividend paying and compounding nature of the growth in the [00:14:00] IBC private banking strategy policy.
[00:14:03] Seth Hick Esq.: Vance, you and I have a, a kind of a funny story whereby you challenged me to, to study the nature of a penny compounding, doubling. Daily for a month. And so I, I started that process and at about day 15 I started to object and I said, Vance, it’s, this is never gonna get to the millions of dollars that you’re promising.
[00:14:23] Seth Hick Esq.: And you chuckled and said, just keep going. So I did and I kept doing the math and my head and, and on day 30 on about the last three or four days. The light bulb started to come on for me and I realized, yeah, we were gonna get to 5 million bucks in 30 days. And that’s exactly what happens. And, and that illustration that that story that you and I went through is probably something that everyone should do.
[00:14:47] Seth Hick Esq.: That’s an illustration in our book, and we’ll make it available to our listeners, uh, in a link attached to the podcast. If you haven’t read it, go ahead and read it. And this compounding growth. Is the, the, [00:15:00] the secret sauce of what you’re being, uh, taught here with these two twin sisters. One had the compounding reinvesting growth tax-free, and one didn’t.
[00:15:12] Vance Lowe: There’s just so many principles here to go forward with, if that’s the case. Folks, what we’re trying to share with you, we all understand compounding growth, right, Eric? We we’re taught if we’ve got excess money put in an account and try to get compound interest. Mm-hmm. Mm-hmm. A problem is, is that we can’t sustain that very long, can we?
[00:15:34] Vance Lowe: It’s always interrupted. Yeah. The other thing, and what, uh, Seth was just talking about in our book is we show you if it’s interrupted. What happens? There’s, there’s no money in there because all the growth happens in the last 5% of time. This is uninterrupted. We can borrow money out, we can put it back. It doesn’t interrupt the total compounding [00:16:00] great secret here.
[00:16:01] Vance Lowe: Okay. Eric, if you were to name the perfect investment, the one that you thought was absolutely perfect, what do you think some of those features would be? Guaranteed
[00:16:14] Host: return. That, that’s, I just want to hear those words. Okay. But I don’t know if we can do that. Okay. What else? Uh, it would pay high interest.
[00:16:23] Host: Okay. What else? Those two? I’m happy Vance. You know, if I can get those two, I’m, I’m happy as a client. What about if there’s risk? Uh, right now at, at my stage of life, I’m okay with a little bit of risk, but I know as I get closer to retirement, I’m gonna be, I want, I want a lot lower risk. For me, maybe I
[00:16:43] Vance Lowe: might add, I don’t want to pay taxes on the game.
[00:16:46] Host: Oh yeah, that’s a good one.
[00:16:47] Vance Lowe: Isn’t that a good one?
[00:16:48] Host: Yeah, I didn’t think about that.
[00:16:50] Vance Lowe: That’s why I’m here with you guys. Okay. I gotta learn. There’s actually a list of 16 preferred perfect parts. [00:17:00] Perfect components are components of a perfect investment. Did you know that this contract meets every single one of them?
[00:17:09] Vance Lowe: Nope. And how do I find
[00:17:11] Host: out what those 16 are?
[00:17:14] Vance Lowe: Well, we’ve got different articles that we can share with people. Nice. A a again, this was all done by survey over and over again with, with clients and people. What do you think a component would be of the perfect investment? So our listeners out there, they have their reasons too.
[00:17:31] Vance Lowe: Man. If, if it had this, I would like that. Mm-hmm. If it has all what I I’ve been hearing so far, that would be good. So. This product has been abused by marketing and every other type of sophisticated analy. Istic comparisons forever, but yet it still remains extremely solid. Why hasn’t this [00:18:00] contract disappeared, and why do the banks.
[00:18:04] Vance Lowe: Use this very contract. Tell ’em about the banks, Seth, and, and how they feel about this.
[00:18:11] Seth Hick Esq.: Well, the banks are the biggest life insurance clients. There’s literally billions of annual premiums parked in life insurance companies from Wells Fargo, bank of America, all of the big centralized players. Hmm. Have life insurance policies on there.
[00:18:27] Seth Hick Esq.: Not just key employees, but down to the tellers and some such that they’re funding those into the billions of dollars. It’s the, it’s the most capitalized account used because they’re no dummies, Vince.
[00:18:40] Vance Lowe: They are no dummies, and they’ve known about this strategy. When they came into existence, they had to compete against this strategy.
[00:18:50] Vance Lowe: Banks didn’t have any money, they didn’t have the people’s money, the life insurance companies did, and so they had to, number one, try to set up a system to [00:19:00] eradicate this strategy out of the American mind by controlling education. So folks today. Is there any level of education that talks about how money works and how money grows?
[00:19:16] Vance Lowe: There’s absolutely nothing out there from kindergarten to master’s degree in college. The only thing we know about money is what the banks have let out and taught us. They don’t want us to know this strategy, which I think is diabolical.
[00:19:34] Seth Hick Esq.: When I was five, my, my mom took me to the local, uh, credit union and helped me set up a, a bank account, and I was indoctrinated into a system that she was indoctrinated in.
[00:19:46] Seth Hick Esq.: Mm-hmm. And that her parents were indoctrinated in, and it wasn’t the life insurance contract, it was put your money in this thing called the bank. Which they can then multiply and fractionalize and create money outta [00:20:00] thin air and use your money to make a lot more money. And it was not teaching me about using a life insurance contract for my own private banking, which provides all of the key features that we’re talking about and more, and taking financial freedom back into my own, uh, hands.
[00:20:19] Seth Hick Esq.: And so that’s what we’re trying to do, Eric, with this podcast is help educate our listeners to the fact that they can actually obtain financial freedom quite easily and climb that out of that ditch and that hole, which the centralized banks and, and others have indoctrinated them to, to believe through lies.
[00:20:40] Host: Yeah. No, absolutely. And, and when you’re, I mean, your example with the twins is, is financing a car? I can only assume that this will also work with larger ticket items if you wanna finance something different, would this work with a, a home or a, a purchase like an rv? A lot of people that are getting closer to retirement, if they’re using this strategy, could they purchase an RV and have [00:21:00] this still work for them
[00:21:01] Vance Lowe: in Nelson Nash’s book?
[00:21:02] Vance Lowe: I mean, that question is right on point, Eric. It’s, it’s right where people who start. This journey of, of discovering that there might be a better way. It’s where their mind takes ’em, because we’ve gotta ask these questions so that we can make sense of it, because we have to weigh it. Mm-hmm. Against what we know.
[00:21:21] Vance Lowe: And if we’re questioning what we know, we don’t have a firm foundation. But in his book, he talks about that we finance every single thing we purchase.
[00:21:32] Host: Hmm
[00:21:33] Vance Lowe: that a lot of people would disagree. No. My parents and my mentors told me that if I paid cash for everything, that’s the cheapest way through life.
[00:21:42] Vance Lowe: Seth will agree with me here that it is not, it’s 180 degrees opposite. We finance everything we pay cash for because we give up all the future earnings we could have made on that money. Again that Eric, you’re touching on [00:22:00] just this one illustration about financing cars, how many things it could open up for us in the future.
[00:22:09] Host: And I know we’re running low on time on, on this part of the podcast. This is a two-parter from my understanding, just our chat before we even started recording. I think on the next podcast, you guys are gonna. Dive in a little bit deeper to these twins and talk about not only just the financing and, and I know that you kind of gave the bottom line number, but also being able to take retirement income from this same account, correct?
[00:22:32] Vance Lowe: Oh, absolutely. We just touched, you know, the tip of the iceberg here.
[00:22:36] Host: Okay. Well, I’m, I’m looking forward to that, Seth, any closing thoughts for today’s podcast before we, we cut out and, and have a part two next time?
[00:22:44] Seth Hick Esq.: Sure. Vance has referenced a, a schedule, cited some numbers. We’re gonna make that available to the listeners through a link.
[00:22:50] Seth Hick Esq.: He has done a loom video whereby he walks through some spreadsheets in greater detail that would help and aid those who want to dive into [00:23:00] these numbers with a little bit more drill down. And so we’re gonna make that available to, to our listeners at the end of this podcast, free to them as a gift for listening and just want to help point that out.
[00:23:11] Seth Hick Esq.: Fantastic.
[00:23:12] Host: Alright guys, thank you so much for your time. I, I’m really looking forward to part two. I know that it’s, it’s, uh, in the works and this is something that we’re gonna be, uh, expanding on a little bit more. Vance, how about you? Any closing thoughts?
[00:23:25] Vance Lowe: Well, just the fact that folks, there’s probably something else out there that we can learn about money and I hope we’re, we’re putting together some, some ideas for you to question the way you’ve been doing things.
[00:23:39] Vance Lowe: We want to always. Improve and do things better. I hope this is helping. I hope you can see yourself in this situation.
[00:23:46] Host: Yeah, absolutely. It, it, it sparks a lot of questions and that’s what I’m hoping, uh, that the listeners are gonna take those questions and say, you know what? I need to ask these guys, or, or email ’em and, and find out some answers.
[00:23:57] Host: So Seth and Vance, always a pleasure. Thank you so much. [00:24:00] I’m looking forward to part two. And of course, the last thank you always goes to the listening audience. Thank you for tuning in, 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.
[00:24:11] Host: When Vance and Seth come out with a new podcast, it’ll show up directly on your listen device. This makes it much easier to share these podcasts with your friends and family. Again, thanks for listening today. For everyone at Private Banking Strategies, this is Eric Johnson reminding you to live your best day every day, and we’ll see you next time.
[00:24:29] 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 (817) 200-4777 or visit us at www.privatebankingstrategies.com.[00:25:00]
[00:25:00] Outro: Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become available. The information covered in posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of private banking strategies.
[00:25:16] Outro: The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.
