[00:00:37] Seth Hicks Esq.: Hello, welcome to the Private Banking Strategy Podcast with Vance Low and Seth Hicks Vance. How are you?
[00:00:43] Vance Lowe: I’m doing great. Hello, everyone out there. How are you doing, Seth?
[00:00:47] Seth Hicks Esq.: Doing well, doing real well. We are gonna jump into why people choose private banking strategies, why people implement the private banking strategies, what they are and, and why it’s so different than [00:01:00] anything people have ever used with traditional financial planning, financial wealth management, traditional banking, and hopefully we will take people on a journey that changes their lives.
[00:01:13] Seth Hicks Esq.: For years to come. We’ve all experienced trying to go to your, your bank and having them ask questions about why you’re withdrawing cash or why you’re depositing cash, or just running into all sorts of red tape.
[00:01:25] Seth Hicks Esq.: That totally in invades the financial privacy of, of what we were used to enjoy. Decades ago. That’s a thing of the past.
[00:01:34] Vance Lowe: There is hope though. That’s one of the pillars is that we say you can still have financial privacy compared to what’s out there. If any of you have listeners have gone to the banks and tried to qualify for a loan this year, especially a mortgage, it is absolutely amazing and draining to listen to the amount of information that they want.
[00:01:56] Vance Lowe: Years of. Tax returns the [00:02:00] day was, is that nobody could get your tax return. Isn’t that right Seth?
[00:02:04] Seth Hicks Esq.: Right. I mean it’s a constitutionally private and privileged information and people pass it around like it’s, you know, a business card sometimes, and when you’re going in for financing, they always want tax returns.
[00:02:19] Seth Hicks Esq.: Yes.
[00:02:20] Vance Lowe: And that is because today we’re brainwashed enough that we just follow and do what we’re told to do. And that’s where I think, uh, they want us to get us to another level. We should fight back when the bank asks us for information. Why do you want that information? And I’ve been doing that, uh, for the last several years on everything they’re asking me.
[00:02:43] Vance Lowe: I had a problem on a credit card, uh, the other time, and they blocked the payment, and when I said, look, this is a legitimate bill, they asked me, well, what is this for? What are you purchasing? I says, absolutely none of your business, I’m telling you to approve. The deal. Well, we have to put that [00:03:00] on our records.
[00:03:01] Vance Lowe: Well put that I told you it’s none of your business now. That’s just me guys, but I, I, I’ve played a lot with the banks and some of the things I know I can get away with and others I can’t. Other times when I’m trying to go in for. Home equity line of credits. ’cause I always, uh, preach, if you’ve got equity in your home, you need to be able to access it quickly for opportunity and emergency.
[00:03:25] Vance Lowe: Well, they want to go in and they wanna qualify you exactly the same way. Bring us all your tax records, you know, if you’re in business, bring us all your business records, your inventory, and we’re gonna make you sign over as collateral. All of that stuff. Well, I only need a $10,000 loan. And you want a million dollars worth of collateral, they’ll say yes.
[00:03:46] Vance Lowe: Because it isn’t about, you know, just the money, it’s about control. So financial privacy is absolutely critical. Am I going down the wrong trail here? As, as, as an attorney for [00:04:00] client protection. People should never give their tax return out. I guess if you’re qualifying on a mortgage, that’s just the way it is now.
[00:04:07] Vance Lowe: They’re gonna throw you out if you don’t. But what are some other traps people can get in?
[00:04:13] Seth Hicks Esq.: Well, the difference between private banking strategies and using carefully structured whole life insurance contract is that those contracts are private. They’re not disclosed, uh, to third parties. And the money that is put into these, uh, policies and taken out of the policies is not a reportable event by the.
[00:04:36] Seth Hicks Esq.: IRS’s own, uh, internal Revenue Code 77 0 2. It bears repetition, uh, and driving home the point. The financial privacy is a key feature that life insurance companies possess. They’re not required to, uh, report when you pay a premium or they’re not required to report when you take money out to go purchase whatever you, you’re gonna purchase, whether it be an investment, a home, an automobile.[00:05:00]
[00:05:00] Seth Hicks Esq.: For whatever purposes at all, there is no questioning about why you’re taking the money out. And when you have that cycle of money in and out of your policies and your banking system, it’s completely private. And that’s why the politically, elite and the ultra wealthy. Folks like the Kennedy’s and the Rockefellers and JC Penney’s and Ray Crock who made McDonald’s. They all use these tools for the very same purposes that we’re describing, the same reasons that we’ve outlined asset protection, tax-free growth, and financial privacy.
[00:05:31] Seth Hicks Esq.: So it’s a fundamental feature and benefit of. Private.
[00:05:38] Vance Lowe: Many families carry on these traditions. They teach within the family their own success about money. Money is attracted. To correct principles that are, a cosmic law or whatever it is. You follow all the generic laws and rules about whatever you’re doing.
[00:05:58] Vance Lowe: It attracts a [00:06:00] positive results with money. You follow all of those rules. Money you opportunity finds you people who need money, people who have opportunities, find you. I get notices at least once a year that some account that I have has had a security breach and all of my information got out. I hate that and so I’ve even applied for loans with banks and not gone through with the loans and have asked, I want that paperwork back and with banks, it is denied.
[00:06:36] Vance Lowe: We don’t have to give it back to you. I thought they did. So since it’s not their loan or anything else, why would they keep confidential information that isn’t pertaining to ’em? Again, it’s part of the system, you know, and the control of banking. And
[00:06:51] Seth Hicks Esq.: ultimately, I mean, the banks nowadays are, agents of the federal government.
[00:06:55] Seth Hicks Esq.: They act upon as an agent. Of the government they’re doing, [00:07:00] they call it know your customer due diligence to fight terrorism. This isn’t fighting terrorism. This is actual control over the American people. Mm-hmm. And such a demonstrative power play that it just reeks of communism and socialistic tendencies and take from the rich and give to the poor.
[00:07:17] Seth Hicks Esq.: And the government is requiring these banks to effectively do their dirty work.
[00:07:22] Vance Lowe: Oh yeah, they really are. So what can we do with, with privacy? These type of contracts with the insurance carriers give you a safe haven to store money without others knowing or finding out about it. Okay? We still have to use our banking system, you know, to flow money.
[00:07:40] Vance Lowe: In and out, but to store it, we can store it with insurance companies that do not come under the Dodd-Frank Act a lot of people will argue with me because they don’t wanna be wrong when it comes to market rate of returns, but as a money manager for almost 40 years. These accounts, even though they’re [00:08:00] lower today than they were 20 years ago, have a guarantee that pretty much matches the market after taxes.
[00:08:06] Vance Lowe: Only here it’s private and once it’s in the system and you actually apply banking principles, we show people how to double money every couple of years. On a regular basis, and that doubling is not taxable. There’s no taxable events because of the privacy. They can’t tell what’s going on in your own private system.
[00:08:27] Seth Hicks Esq.: And that those are key fundamental differences between creating your own private family banking system versus using, traditional wealth management. We’ve done some episodes in the past that kind of distinguish what traditional financial wealth management is versus private banking strategies and how the world’s apart.
[00:08:45] Seth Hicks Esq.: you cannot make 30%, a year in markets year over year. And we talk about this with like the tortoise and the hare illustration and how the slow and steady. Actually wins over the long term. And these policies actually pick up the most speed [00:09:00] at the end, and that’s where your compounding curve goes.
[00:09:02] Seth Hicks Esq.: Parabolic in the latter years of the curve. and we talk about that in our book, some about the power of compounding interest and those things are all incredibly important and there’s no risk involved with that situation. So we’re, we’re kind of sidetracking onto. Other aspects of what private banking strategies does, but it all ties together.
[00:09:53] Vance Lowe: velocity of money is how money grows. It isn’t from interest rates. We’ve been taught to chase [00:10:00] interest rates negotiate based on the interest rate. You want to pay as little as possible, Or you want to make as much as possible. Well, when you’re negotiating a loan and you are concerned about the interest rate, you’re ignoring the problem, which is the volume of interest you’re having to pay.
[00:10:18] Vance Lowe: It has nothing to do with the interest rate. People think on a mortgage, Hey, I’ve got a 3% mortgage today. No, you don’t. There’s only one month out of 360 months that you’ll ever pay down to 3%, and that’s the last payment. You’re gonna start in the high 90% and then you’re gonna refinance and you’re gonna lose all that prepaid interest because the note says they can keep it.
[00:10:41] Vance Lowe: So the velocity of money is how many times they can put a dollar to work in one year. Folks, you’ve never experienced that. If you’re not doing the private banking strategy, and this is why people really get into it, you mean I can get money back and I can reuse it and get another dollar’s worth? We absolutely say you can do that.
[00:10:59] Vance Lowe: [00:11:00] We show people how to get back 100% of their monthly expenses every single month. Everybody goes, wow. And they envision it. But your envision, your, your vision of that is wrong. It isn’t the way you’re thinking today because you’re thinking the way the banks want you to think, not the way the banks play with money.
[00:11:18] Vance Lowe: This is called putting the banking equation back in your life. We don’t have it. Therefore, we can’t do this. We can’t get the money back, and we’re forced to spend our money. We put the banking equation back in. We change. To using money like banks. The banks Always get the money back. Well then they can’t give it away. They can’t spend it because they have to get it back. There’s a way of doing that and it’s this simple, folks, all you have to do is the same strategy the banks are doing to get the money back. We’ll teach you how to set that up and do that.
[00:11:48] Vance Lowe: And so let’s say if we’re $10,000 on a debt and we have money in an account trying to earn us interest thinking. That it’s working for us. A lot of people think that all of their [00:12:00] assets, all of their investments are working for them. They are not only the people who have the money are making the lion’s share of the money.
[00:12:10] Vance Lowe: You have to keep that money in that account in order to be credited any interest rate whatsoever. Mostly in CDs. It was very hideous. The banks required you to keep that CD all the way to the very end. ’cause they would not credit into that account the CD interest until you kept it full term. If you broke it, you lost all of that interest.
[00:12:34] Vance Lowe: Okay, so we set that up and it’s, again, we put a dollar to work. We get it back with interest. We put a dollar to work again and get it back, and then we’re adding the interest to it. And so this volume increases. How much more can I put out there to work that’s bringing more dollars back in, The volume, how much it’s growing because I’m adding more debt or buying more debt or whatever it is. [00:13:00] Velocity means how many touches, how fast during a year, and then volume is again, the total amount out working for us versus money coming back in under our control. That control is critical.
[00:13:14] Vance Lowe: The banks, it’s absolutely critical to them. All those payments coming in. Think about this guys, that in one day they get a million dollars worth of payments in on all the loans they have. well that’s again, more money they can immediately lend out, and a percentage of that is theirs right off the bat.
[00:13:32] Vance Lowe: Then they get to factor, they get to factor again and lend out a whole lot more money. So it’s absolutely corruption and that’s where we get our inflation from. Inside your own economy. Think of this. Inside your town, you can have money bounce all around from the grocery store to the dentist, to the doctor, getting gas all over your little town and never create a taxable event.
[00:13:55] Vance Lowe: Well, how fast can we get that dollar to move? That’s what we’re talking about [00:14:00] here, Seth. I’ve done a lot of talking on that. Why don’t you give us some of your comments?
[00:14:04] Seth Hicks Esq.: Sure. Yeah. Well, I think one of the things that drives home, you know, the velocity of money is it’s about those cash flow payments. And we do an example, a pretty simple example of.
[00:14:13] Seth Hicks Esq.: Buying, debt. Let’s say that someone has a, credit card that they’re servicing with high interest rates and you’ve got a volume of interest versus the interest payment example that I think would be good to illustrate for the audience to help them understand that cash flow is what we’re focusing on, the volume of interest.
[00:14:33] Seth Hicks Esq.: And just to mention, you mentioned mortgage payments and mortgage. When you purchase a home on one of the documents, it’s called the Truth and Lending Disclosure, a Tela Disclosure, and they’ll show you a million dollar home and you’re gonna pay back $1.5 million in interest plus the million dollars that you borrowed.
[00:14:49] Seth Hicks Esq.: And that’s supposed to be a 3% loan. How is 3% of 1 million? A million and a half. It makes no sense. That’s what we’re talking about. And that truth and lending disclosure [00:15:00] tells the story. So folks, if you’ve got a mortgage and you bought a piece of real estate, look through your mortgage documents and pull out the truth and lending Disclosure, and look at the amount of interest you’re going to pay over the term of that loan. But banks have brainwashed people into thinking that that interest rate is what you should focus on. It’s not, you should be focusing on the volume of interest that you’re paying and who do you wanna be paying it to?
[00:15:23] Seth Hicks Esq.: The banks or yourself. You can pay to yourself in your own private banking system.
[00:15:28] Vance Lowe: And Seth, the reason you just said that people don’t understand. We’ve been brought up thinking that if we pay cash for everything, it’s the best way to get through life. It’s not because you’re still financing. When you give up principle, you finance the rest of your life on that money.
[00:15:46] Vance Lowe: The money you could have earned. Putting it to work, getting return from it, five, six, 7% over a lifetime. It’s 20 times the cost. Of the item that we, paid cash for. I will give a, an [00:16:00] illustration This actually happened to me and I did it on two vehicles. I was waiting for the strategy to work.
[00:16:05] Vance Lowe: I have two vehicles that I financed through Bank of America. I waited for the loan to get down to $10,000. Now my strategy was to get back all the money I’ve ever, ever spent on vehicles, and this is how I did it when that got down to $10,000. I bought the loan or my, company, my little lending company bought that debt.
[00:16:26] Vance Lowe: Me. I still have to make my payment. All I did was get notice that the payment changed someplace else. So from outflow to inflow, now I’m paying that $500 a month to a different place, which happens to be what I own. So I’m now making back into my hopper that $500 I received the money in order to make the payment.
[00:16:45] Vance Lowe: I make the payment. That’s another touch. And now. The place that it ends up has $500 and they get to use it to buy $500 worth of stuff. So what does that mean? The interest on that loan was eight and a half percent. I had to come up with $10,000 to [00:17:00] buy the loan, and the payment was $500. I asked the question, why am I so excited in buying this debt?
[00:17:07] Vance Lowe: Everybody says it’s the interest rate, and yeah, that’s 8.5%. And if you’re doing it for yourself, that’s tax free. So that’s a pretty good retain. It’s much higher than the market, but even if it was zero guys, it wouldn’t dampen my enthusiasm. Here’s why. I got $10,000 out there working for me now. I bought the debt, so that’s at work, but I’m receiving $500 a month over a year.
[00:17:29] Vance Lowe: That’s $6,000. To find the volume rate of return, you take the 6,000 and divide it by the money at work, you come up with a 60% volume rate of return. And I ask you, is that high enough? You got $6,000 back in hand. What are you gonna do with it? You’re gonna go put that to work and buy more debt so that the second year you’re gonna get 6,000, plus you’re gonna get the money off of the first 6,000 that you got.
[00:17:53] Vance Lowe: That’s volume of return, folks. It’s this simple and people love it.
[00:17:59] Seth Hicks Esq.: [00:18:00] Great illustration that Drives home The point that you want to Turn your expenses and the things that you’re paying other banking and financing institutions into inflow and pay your own banking system and watch the parabolic growth year over year.
[00:18:14] Seth Hicks Esq.: You can find more information about what we’re talking about@privatebankingstrategies.com. It’s private. Banking strategies.com and they’re on our website. You’ll be given an offer where you can exchange your email for a book that Vance and I have written called What the Banks Don’t Want You to Know, and the book will Red pill you on certain topics like we’re describing now, that may just blow your mind.
[00:18:36] Seth Hicks Esq.: Most people haven’t been introduced to a lot of the things that we’re describing, and so we’ve got that offer for you. It’s completely free to you and if the book resonates with you and our. Podcast resonates with you. You’re gonna be receiving emails that will give you a link to schedule a call and ultimately come into learn how this plan will work for you.
[00:18:57] Seth Hicks Esq.: We do an eight year analysis that shows you step [00:19:00] by step over an eight year period how you can apply private banking strategies to your family’s financial life and wealth management. That’s basically our process, folks, and so we hope that you continue to educate yourself with the content we’ve built and and schedule a call with Vance.
[00:19:16] Vance Lowe: Yes. I’m so excited about discussing these issues and giving back. People need a chance to win. This is a chance, folks. This is why Seth and I are here is because we are dedicated into helping people understand about money and turning that advantage to themselves instead of always giving it away to the banks.
