[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.
[00:00:38] Seth Hicks Esq.: Hello and welcome to Private Banking Strategies with Seth Hicks and
[00:00:41] Seth Hicks Esq.: Vance Low Vance.
[00:00:43] Seth Hicks Esq.: How are you?
[00:00:44] Vance Lowe: I’m doing great. I’m ready to get into the next part of this series here on the grocery store story. Absolutely.
[00:00:51] Seth Hicks Esq.: Like we said in the last section, you guys, this is a fundamental principle and an absolute necessary discipline to [00:01:00] succeed in your wealth management and your wealth growth. We’re using Nelson Nash’s book where he describes our banking strategies as like a grocery store, like the ownership of a grocery store and managing your inventory and whether you and your family purchase your inventory and your groceries through the retail register, paying full price or go out the back door.
[00:01:24] Seth Hicks Esq.: And we answered that question in the last part, Vance. But let’s summarize that there and then dig down even
[00:01:30] Vance Lowe: a little deeper. Okay, so we summarized that is that all business operate on a procedure and everybody chooses what that procedure is. The problem is a lot of people choose wrong and their businesses fail.
[00:01:44] Vance Lowe: And so the philosophy here with whether we take food out the front or the back, we’re gonna dissect that a little bit more, means the difference between making great profit versus little or no profit or even failure of the business. [00:02:00] So we want to encourage, always finding the most profitable way of doing things.
[00:02:07] Vance Lowe: Nelson Nash, he would always ask the audience a question about a grocery store. When your wife comes in, buys her groceries, says you’re the owner, what’s she gonna do? Is she gonna go out the front door or the back door? He makes the people answer the question. So guys, if you didn’t answer it in the first podcast, answer it now.
[00:02:27] Vance Lowe: Most people are gonna say they take it out the back door because it’s an advantage and it’s a perceived false advantage. It’s a false assumption. If they would go through the cash register, they would take home, quote, the most profit. Possible and they would succeed. So let’s get into this, Seth. The other thing that we mentioned last time was the theory that he put in here, one stolen can of pea, and he really analyzes that in this story.
[00:02:57] Vance Lowe: How are we gonna relate that, Seth? What does that [00:03:00] mean to somebody who’s thinking about setting up and putting their own banking equation in their life?
[00:03:05] Seth Hicks Esq.: Well in the grocery store ownership example, at the time Nelson wrote this book, you could sell a can of pea for 60 cents at a competitive rate, and it actually cost the grocery store owner 57 cents, 3 cent profit margin on that sale of pea.
[00:03:21] Seth Hicks Esq.: So if your wife steals the can of pea out the back door, you have to sell 20 cans of peas with that three. Sent profit to actually pay for the one she just stole. And in, in our private banking strategies, it’s the same thing. We have a warehouse of money that is our capital and that is our inventory. And what do banks do with money?
[00:03:42] Seth Hicks Esq.: They lend it and they keep lending and every dollar that comes in, they fractionalize and create a derivative lending situation where they create money out of. In there, that’s a whole nother topic, and, and they lend that money out. We’re talking about centralized banks, and that’s why we [00:04:00] teach you how to take your money outta centralized banks and put it in a private banking strategy.
[00:04:04] Seth Hicks Esq.: But we want to capture that same mindset and that tool, that key that we see from centralized banks, and that’s keeping the money moving in a lending environment. So it’s like the peas, the more peas that you sell, the more can of peas that you sell, the more profitable you’ll be. You need. Nelson writes in his book, 15 Cells of a Can of Peas to break even 17 cells of a can, of peas to be profitable, and 20 cans of peas will be super profitable and you can retire early.
[00:04:33] Seth Hicks Esq.: It’s the same thing in the banking system that we utilize the private banking system. The more that you can put your money into motion with good loan. Purposes and repayments. It’s like selling your PS over and over again. We call that the velocity of money and also the volume rate of return.
[00:04:53] Vance Lowe: Seth, let me give a good hard example that I use many times as people go through the process of learning this.
[00:04:59] Vance Lowe: There’s [00:05:00] certain laws about running a grocery store. We have to follow laws on any discipline that we pursue. It could be in sports, it could be banking, it could be raising families, whatever it is gonna be, there’s a proper process and there’s a way to excel at it. The difference between profit and retiring early is three cans a piece per year.
[00:05:24] Vance Lowe: Okay. Or three turnovers of inventory. Let me relate that now to banking. There’s one of the laws out there that’s called the 10% law, and it goes back biblical. It’s designed to make sure and guarantee that we’re better off than we were the month before. So it says that we should pay ourselves off the top, a minimum, absolute bottom minimum of 10%.
[00:05:50] Vance Lowe: And I warn the people. And I tell them, I’m going to stop you right here, and we’re not gonna go forward if you’re not gonna do this because your plan will fail. It’s that [00:06:00] critical. But what is left unsaid is that if you can do 20%, you need to do 20. If you can do 30%, you need to do 30, because that much more volume of money coming in creates that much more opportunity and exponential growth is almost unimaginable.
[00:06:17] Vance Lowe: So that law relates to this stolen can of pea and the turnover and the productivity. Seth, you’ve been in sports. I’ve been in sports. I’ve been in a lot of competitive competition. The difference between a top world class producing individual versus the common person, and you told me Seth, when we were actually talking about this, it’s all about.
[00:06:42] Vance Lowe: The mindset. And there’s a little book out there that I recommend everybody read if you have any type of competitive bone in you, and it’s called with winning in mind. And it was all about what you bring to the table mentally. That makes all the difference. Yes, you have to have the muscle [00:07:00] memory. Yes, you have to take it all in banking.
[00:07:02] Vance Lowe: And related to this story here. It’s the same thing. It’s how much effort are we putting in. If I relate that to the 5%, 85% rule, people quit 5% too early. Only 5% more effort is proven to produce 85% more results. It’s huge. We just finally stop too early. The game here is we don’t stop. If we’re trying to run a business store, it’s the volume of the inventory turnover.
[00:07:34] Vance Lowe: The more we turn over, the much more successful we are putting a dollar to work the velocity, how many times can we get that dollar to touch down folks? How important is it to do that? Well, if the banks won’t let a dollar even sit overnight, it must be pretty darn important because they’re the best masters of money on the planet next to the insurance actuaries.
[00:07:56] Vance Lowe: I think they have the actual better minds because they don’t get to [00:08:00] Fractionalize, they don’t get to create excess money and cause problems. They have to do it correctly. So velocity here is critical. So I’m gonna change that volume and turnover in the grocery store to our banking, which is economy. A town is run by an economy, so we need to do some thinking.
[00:08:20] Vance Lowe: We need to understand how a town operates because it’s all about money. It’s all about attracting new money coming in, and then the town needs to be set up with enough services so that it doesn’t lose more money out the back. Then it brings. If that’s the case, it will prosper and really grow and the town will be booming and it’ll be a fun place to be at.
[00:08:41] Vance Lowe: But if it starts losing more than it brings in, the reverse happens and it soon becomes a ghost town. So let me give a great definition of the velocity of money, and I do this when we’re doing this test drive. But a lot of you aren’t there yet, but you need to sample this and understand how [00:09:00] money actually works.
[00:09:01] Vance Lowe: I’m on a business trip. I take that business trip and I look at my gas gauge and I’m calculating because it’s getting pretty close to empty, and I see a town up here in the next few miles, and I’m just trying to decide should I stop at this town or can I make it 10 more miles to the next town? I take the safe route, I decide to stop, fill up with gas, and then I’m gone.
[00:09:21] Vance Lowe: I’m out of town, but I paid $50 for gas and I took $50 worth of gas with me. Well, theoretically now, because I don’t wanna get into the tons of details here. 50 Town theoretically has a new $50. That gas station owner, he take that $50 across the street and he can buy groceries with that $50 and he can bring back $50 worth of food.
[00:09:42] Vance Lowe: Well, now my money’s sitting over at the grocery store. Grocery store has it. He sold inventory, so he takes that $50 across town to the warehouse. He buys $50 worth of inventory and brings back $50 worth of inventory, and now my $50 is at the warehouse. Well, he [00:10:00] has some dentist work he needs to be done, so he takes that $50, gets $50 worth of work done at the dentist.
[00:10:05] Vance Lowe: The dentist needs to go to the doctor and get $50 worth of work done. The doctor takes it to the mechanic. The mechanic turns around and takes his family out to a restaurant for one of his kids’ birthday dinners. So what just happened here, folks? It’s only one $50, but what happened, Seth, can you maybe describe that a little bit?
[00:10:25] Vance Lowe: What just happened?
[00:10:27] Seth Hicks Esq.: The exchange in value traded hands numerous times based on various people’s needs, and that money turned and brought value to every person that you described. The mechanic, the dentist, the warehouse, the gas station, the shop owners. It circulated in a way that brought value to each of them, and that prospered their economy.
[00:10:51] Vance Lowe: So what’s critical here that you take away folks, is that we have to be able to be in a situation to use a dollar [00:11:00] more than one time and not lose control of it. Would you be surprised if I told you this goes on even much more in one day in a town, you know that single $50 produces in product and services thousands and thousands of dollars.
[00:11:16] Vance Lowe: Things can move. But now Seth, what would happen if I decided, oh, guess what? I can make it 10 more miles and I just blow through town. What happens,
[00:11:25] Seth Hicks Esq.: they have no economic benefit at all. It’s just the next town that you stop at that has that cycle and velocity and volume
[00:11:33] Vance Lowe: going on. So folks, again, the takeaway here is money has no value unless it is a exchanged.
[00:11:42] Vance Lowe: Money has to be in motion, and as many times as it bounced in town is called velocity.
[00:11:50] 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? [00:12:00] Do you feel you should be making more progress toward your financial goals?
[00:12:05] Midroll: 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. Velocity
[00:12:22] Vance Lowe: is critical in making growth and accumulating wealth. It has to be in motion. How many of your dollars are sitting in accounts idle thinking?
[00:12:33] Vance Lowe: We have it working for us. We don’t. If you’ve got IRAs, if you’ve got stock portfolios. If you’ve got money here or there in accounts, you have to leave that money in those accounts in order for you to get the returns and the interest you’re gonna take. But you, the investor, take the risk, not the people who have your money.
[00:12:56] Vance Lowe: The people who have your money can double your money on the [00:13:00] average every two and a half years because they’re working with it. They’re doing this that I just described in town. And they’re getting rich and they’re paying you as little as you can get away with. So it’s absolutely the reverse of what you think your money’s doing.
[00:13:16] Vance Lowe: You think it’s working for you. It’s not. It’s totally asleep to you. That’s what we’re taught is to do that. It’s called herd mentality and it’s absolutely the wrong thing. What if we woke it up and we got multiple touches? On a dollar. That’s what this banking equation is all about. That’s why he’s explaining this can of peas and the devastation if we don’t replace it.
[00:13:40] Vance Lowe: What happens if one of those guys put that $50 in his pocket and stole it? It couldn’t continue to circulate in town. What happens if we don’t make a payment back? Now that may come up, but now we’re the bank. We can postpone it where normally we couldn’t with somebody else’s bank and then make it up a little [00:14:00] later.
[00:14:00] Vance Lowe: That type of delay affects things right.
[00:14:03] Seth Hicks Esq.: It does. That modification also assumes that there’s a repayment discipline in place. You’re not stealing the PS out the back door. You’re just pushing pause for a minute, and that’s one of the great. Benefits of private banking strategies compared to centralized banking loans is that you can do loan modifications without penalty, without foreclosure on real estate assets, without repossession of automobiles, and one of the many fundamental.
[00:14:33] Seth Hicks Esq.: Values and benefits of private banking. So turning your peas. Selling 20 cans of peas gives you an early retirement position, making good loans with repayments that create a volume of interest in your banking system creates. Supercharged wealth strategy, and there’s another important aspect that I think we might want to touch on that dealt with the 5% versus 85%.
[00:14:59] Seth Hicks Esq.: [00:15:00] 5% more effort will lend 85% more benefit and value. And we talked about this with the competitive sports and competition. If you’ve competed at high levels of. Competition. There’s a mental component of mental discipline and pressing forward when other people mentally quit, whether it’s a marathon or whether you’re a professional soccer player or a competition shooter, or a Phelps type Olympic swimmer.
[00:15:26] Seth Hicks Esq.: There’s a mental aspect of it that you have to push through pain points and levels where it doesn’t seem like you’re gonna make it or you’re gonna break through until you do. And those who push through have that volume of return. And so Nelson has a great example, Vance, that I’d like to just touch on with you in the book that’s there regarding heating up water and the power of heated up water.
[00:15:50] Seth Hicks Esq.: And at 210 degrees, you have some hot water, right? Yep, that’s right. But with two degrees more Fahrenheit [00:16:00] 212, you don’t just have hot water anymore. You have what Steam and that Steam has gives you a steam engine, gives you locomotion, gives you power. It gives you all sorts of valuable power that you didn’t have with just two degrees less.
[00:16:16] Seth Hicks Esq.: And how does that relate in our private banking
[00:16:19] Vance Lowe: economy? You’re trying to solve life’s problems, okay? We’re gonna get hit with problems every day, sometimes worse than others, and it’s always a juggle, and I’m trying to figure out how I’m gonna do this in the day. When we first started and I had some really powerful thinking clients switch to this system, it was always, Hey, I need to talk to Vance.
[00:16:42] Vance Lowe: And it was, I wonder if I can do this. I wonder if I could do that with this banking. I wonder if I can do this. At the beginning, I didn’t have the answers, but I found out I had Nelson and the staff and everything there. So we would call and we would find out, oh, you have experience in that. So we [00:17:00] solved it this way, and then we teach the rest of the clients that.
[00:17:03] Vance Lowe: That’s why on our client side, we have these live podcasts and things that will help them get in a little bit deeper and a little bit further. So it’s always a little more, are we doing everything we can do in our banking? At this point, we need to mention Seth, that. We are running a private economy. In our next episode of this grocery store, we’re gonna talk about the tax effects.
[00:17:28] Vance Lowe: Remember, there’s a thief out there in Nelson Nash’s book. He has five laws, and one of ’em is called the Willie Sutton Law. Seth, what is that? Willie Sutton Law. Willie
[00:17:38] Seth Hicks Esq.: Sutton was a famous bank, Robert. He ultimately got caught and was asked Willie, why did you steal the gold from the banks? And he said, well, that’s where the gold is.
[00:17:47] Seth Hicks Esq.: That’s where the money is. That’s where I’m gonna steal it from. And the point was, is that there’s always gonna be someone trying to take valuable things from you. And in our culture and context, it’s generally government [00:18:00] confiscation, government control, whether it’s taxes or you’ve got federal taxes, state taxes, you’ve got.
[00:18:06] Seth Hicks Esq.: Fica, you’ve got all these involuntary takings, and when it was initially proposed in 1913, income tax was supposed to be 1% of people’s income. Well, now it’s grown. You know, the tax brackets are becoming insane, and you pay sales tax on everything you buy. The government can make more income on transfer of automobiles than the value of the automobiles if it’s sold five times.
[00:18:31] Seth Hicks Esq.: So it’s become ridiculous with the type of. Taxation. So the Willie Sutton law is one that says you need to be aware that if you have something valuable like your private banking, that there’s gonna be other outside forces that try to invade and take those resources and assets.
[00:18:49] Vance Lowe: And that’s what we’re gonna talk about in the next episode here in the next podcast, is all the tax effects that you’ll gain by setting up your own economy and your [00:19:00] private banking.
[00:19:01] Seth Hicks Esq.: And I, and I just want to tie this together with our example that we mentioned with boiling water and 210 degrees versus 212 degrees. Sometimes people don’t see the growth and the immediate effect in private banking in year one, and they don’t see it in year two. And it may start to see it fuzzy or cloudy in year three and, and then the policies actually become more efficient in years four and five and six at that level, whereby the money that you put in, you actually get more than a hundred percent back in the cash value that you can use.
[00:19:38] Seth Hicks Esq.: And they become more efficient in year six and seven. If you’re looking at it on a graph, it starts to take a hockey stick curve and begin to go up and up. And in the years that you have your policies in effect, these contracts, and you’ve been implementing private banking strategies in years 20 and 21 and 25, the parabolic growth and [00:20:00] value that’s created from compounding.
[00:20:02] Seth Hicks Esq.: Non-taxed wealth increase is phenomenal. It goes absolutely parabolic, and that is the same concept of water at 210 degrees versus water at 212 degrees as it starts to produce such a power that it absolutely parabolic in growth. That’s the 5% mentality, 5% extra effort leads to that parabolic, 85% return.
[00:20:28] Seth Hicks Esq.: So these are disciplines that you create, just like Michael Phelps doing his strokes day after day after day after day for four years until he gets to the Olympics and then blows everybody away. That discipline and mental focus. And strategy is what’s necessary. And you do the same thing with private banking.
[00:20:46] Seth Hicks Esq.: You put that money to work, you get it moving in your economies. You put it to good work and good use, not consumptive purposes. And that money and volume rate of return creates that parabolic growth. And we have [00:21:00] seven pillars of private banking strategies, folks, and we outline those on our website@privatebankingstrategies.com.
[00:21:07] Seth Hicks Esq.: These seven pillars are crucial and fundamental. To your success, and they show you what private banking strategies does for you and your family’s wealth preservation and growth. We like to say we help people keep what they make and grow what they make. In a simple tagline of what this is doing for you, but we invite you guys to visit our website and there you’ll have an offer for a free book.
[00:21:31] Seth Hicks Esq.: If you put in your name and email and we’ll drop our book that Vance and I drafted and authored for you. What the banks don’t want you to know, they keep you from building your wealth. That’s available on A PDF or an audio version, and it’s crucial that you pay attention to the emails because if you like that book and you like this content and these podcasts, you’ll wanna schedule a free exploratory call with Vance, where you begin to work through your own personal strategies, and ultimately you’ll receive an eight year [00:22:00] roadmap.
[00:22:01] Seth Hicks Esq.: It tells you exactly what to do with where your finances are, whether you’re loaded down with debt or whether you’re a mega wealthy entrepreneur, anywhere in that spectrum. These strategies will apply to you and blast you into another level. So we are offering that to you as a free gift for staying with us on this podcast as we do for all of our guests.
[00:22:25] Seth Hicks Esq.: And Vance loves to teach new people how to implement these strategies and walk you through the eight year roadmaps and teach you how to do this, Vance. Any closing remarks?
[00:22:36] Vance Lowe: I just think it’s a great opportunity and a great chance to improve upon where you’re at now. If you are not happy at this point in life, it’s not gonna change until you change something, and I think this is the change that is necessary.
[00:22:51] Vance Lowe: Awesome.
[00:22:51] Seth Hicks Esq.: Well folks, thank you for being with us and we look forward to you on this next segment where we’re gonna dig even deeper onto part three. So we look [00:23:00] forward to seeing you there, and we’ll see you on the backside.
[00:23:03] Outro: Bye-bye. Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals?
[00:23:12] Outro: 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. Thank you for listening to the Private Banking Strategies Podcast. Click the subscribe button below to be notified when new episodes become available.
