[00:00:00] Intro: Welcome to Private Banking Strategies Podcast with Vance Low and Seth Hicks, your secret weapon to protect your assets and never have to start over financially again. Vance and Seth help high net worth individuals, families, business owners, and investors structure and asset protected fortress for their families.
[00:00:21] Intro: Learn how to keep what you earn and use the velocity of money. To create your own private banking system. Join us on this journey as we explore the secret strategies of the rich and political elite and help you take total control of your financial security now onto the show.
[00:00:37] Seth Hicks Esq.: Hello. Welcome to the Private Banking Strategies Podcast with Vance Low and Seth Hicks.
[00:00:43] Seth Hicks Esq.: This is a secret weapon to protect your assets and never have to start over again financially. Hey, Vance, how you doing?
[00:00:50] Vance Lowe: Hello. Hello. Hello. It’s nice to see you again, Seth, and it’s great to get back in the saddle and get another podcast for our listeners.
[00:00:58] Seth Hicks Esq.: Likewise. Yeah, [00:01:00] absolutely. We’ve got so much content to share with folks that it’s, it’s always like trying to take a drink out of a fire hydrant and us getting people information is, is always a joy.
[00:01:09] Seth Hicks Esq.: So today we’re gonna talk about financial planning versus. Financial self-reliance, and it’s something that people don’t often consider, but something that they should and understand the differences and the pros and the cons. Financial planning is, is not financial. Self-reliance and private banking strategies is financial planning or simply an investment strategy?
[00:01:34] Seth Hicks Esq.: One correct.
[00:01:35] Vance Lowe: Yeah, I, that’s right. In my former life when I was doing financial planning, I thought I was independent and working for the client when in fact, once my eyes were open to private banking, I realized that I was a puppet of government and banks under a strict format or a limited format, and that’s why this came out.
[00:01:57] Vance Lowe: Not only myself, but past the financial [00:02:00] planners who moved over to the private banking discovered that there was a limitless possibility in self-financing, self-reliance, or whatever else. So Seth, why don’t I start off with the financial planning meets needs and goals only. In a what’s called a limited format, you take the information from a client and you build a format around what they can perform versus what is self-reliance.
[00:02:28] Vance Lowe: How would self-reliance take that and, and make the difference
[00:02:32] Seth Hicks Esq.: with our strategies? It’s. We’re pursuing wants and dreams, and it’s more based on, you know, limitless ideas, what’s possible and build a bank for your family to create, and what type of legacy can you create generation after generation. And in prior podcasts, we’ve gone through illustrations that show legacy waterfall, where death benefits flow from, let’s call it a grandfather to a son or a [00:03:00] grandson, and how those stack up.
[00:03:02] Seth Hicks Esq.: So very different in that aspect. For sure.
[00:03:06] Vance Lowe: Well, yeah. One of the things that really caught my eye in seeing that you don’t have to be limited was the ability to get the money back. Like banks, you know, we live around banks, do everything with banks. We try to take every advantage. We always complain that the banks aren’t treating us right.
[00:03:24] Vance Lowe: Which is correct, by the way, but the banks are doing something right. That we or the public doesn’t do. And I’ve got a theme that I’ve adopted here, a, a last couple of weeks, Seth and it, we are switching people. We’re teaching people and switching people from spending money to using money. And then we go in and we talk about what the difference is when people realize they can get the money back.
[00:03:50] Vance Lowe: And they can use that money over again, but get a brand new dollars worth of product or services and then get the dollar back again. As well as getting new [00:04:00] inflow of money from work. The whole world changes for ’em. And that’s what this first one means. It’s possibilities open up for us. And it’s evident.
[00:04:11] Vance Lowe: No one thought that they. They couldn’t, or they could live without spending principle. Everyone out there thinks I gotta spend my principle in order to survive as soon as we teach ’em. No, you don’t. All of a sudden their eyes open up, they smile, and now there’s a world out there in front of ’em and all of us, you, me, everyone said, you know, I sure wish I knew about this 10, 20, 30 years ago.
[00:04:42] Vance Lowe: Right. Okay. But it’s still not too late. How much do you have to save? So here we’re, we’re looking for a protocol maybe to replace a person’s income. And so based on assets and everything else, what do I have to do from today on [00:05:00] to when I retire so that I can replace my income? One of the things that we’ve got to understand and and know is that retirement is a government socialistic myth.
[00:05:14] Vance Lowe: And nobody likes to hear that every, the, the public out there feel entitled that I’m entitled to retire and, and try to live comfortably. Well, we don’t have any of that today. People are outta work. They are trying to spend down their nest egg. They’re in all kinds of risky investments trying to make up this, this goal, this, this gap.
[00:05:38] Vance Lowe: And that’s not working ’cause they’re not following correct principles. So, but that, this is where this leads to and it leads to, okay, we’ve gotta invest money and put money at risk in order to reach your goals. So it’s just based on what can you afford on a monthly basis to be able to do that. They’re tying money up.
[00:05:59] Vance Lowe: They’re [00:06:00] putting money in accounts, and Seth, you and I have have discovered that that’s putting money to sleep. In other words, we’re handing money over to someone else. And letting them make all the profits and they pay us an interest rate as little as they can get away with. So what was, what would be the counter to that?
[00:06:21] Vance Lowe: What did we find is, is much more lucrative than that? Minimizing requirements.
[00:06:27] Seth Hicks Esq.: Yeah, absolutely. I, I think that we talk about this and it’s a, one of the seven pillars of private banking strategies is the velocity of money putting it to, to work in an economy and, and getting a return and being able to use that dollar.
[00:06:42] Seth Hicks Esq.: Again and again, and optimizing those opportunities to effectively cycle your cash and have it growing inside your policy and also at work in an investment and you’ve got some type of return on that investment. So we’ve had, we’ve had various opportunities [00:07:00] like. Oil and gas opportunities. We’ve had real estate opportunities, we’ve had private hard money lending opportunities, and I think when you are able to create that velocity of money, it’s not a matter of of saving or squirreling.
[00:07:15] Seth Hicks Esq.: It really shows you how you can expand your banking system and your banking value.
[00:07:20] Vance Lowe: Exactly, exactly. So another. I think misleading, but what was focused on, and what is focused on in financial planning is product based investments. In other words, you need to get your money in one of these products, one of these investments managed by someone else.
[00:07:39] Vance Lowe: Managed by an expert, you know, or this company. Or that company. And so you lose control of that money. You’re hired a money manager, or you’ve done this. Now they have that money. And they’re gonna put it to work versus what, what’s, what’s the next step here? [00:08:00] What, you know, why is that not a good thing?
[00:08:04] Seth Hicks Esq.: Well, I think there’s a lot of risk involved with that.
[00:08:07] Seth Hicks Esq.: I mean, clearly when you, and you’ve also got fees, you’ve also got no control. And, and most of our clients, and especially business owners and entrepreneurs, they, they want control. Of their cash and they want to be able to take the opportunities that come before them, not lock their money away in a prison, have liquidity and have the ability to ultimately execute on the opportunities that come their way.
[00:08:38] Seth Hicks Esq.: And so using, I find using, you know, other people to make your investment decisions is giving away your control, and it doesn’t always turn out well.
[00:08:50] Vance Lowe: It doesn’t, the SEC, the FINRA and all these government organizations step in and want to monitor and control everything. [00:09:00]
[00:09:00] Midroll: Did that story feel like it was about you?
[00:09:04] Midroll: 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? Please visit us at www.privatebankingstrategies.com.
[00:09:31] Vance Lowe: One of the hideous things that people need to understand is there’s a lot of good investments out there that can cannot be presented to the everyday family because. They’re not sophisticated enough. That’s really exactly what it means. These folks cannot make an educated decision whether they should be in this or not, so you can’t show ’em this, and that’s totally regulated.
[00:09:57] Vance Lowe: Seth, one of the things that we found out that [00:10:00] goes to the strategy orientation versus, you know, buying products. Is we can put our own money to work and we can make the gains that they’re making running their businesses or their portfolios or their hedge funds or whatever else. Lemme give you a good example.
[00:10:19] Vance Lowe: If you bought out your remaining car payment, because I did this, you know, and I, I, as we train the people, I go in and open up my books and show ’em exactly what I did. Over a lifetime. This guy tell you guys how old I am. I spent over a half a million dollars buying new cars or you know, on other cars, I love cars, I like ’em, and way over a half a million dollars.
[00:10:46] Vance Lowe: And working with, uh, the experts in the private banking field, I came up with a plan how to get that money back. And the way I did it was when my. [00:11:00] I had two vehicles. I had a Toyota Tacoma and an FJ Cruiser. Kinda like four wheel drives here. But anyway, those loans were with Bank of America. And I think there were approximately 8.5% interest at the time when they got down to 10,000.
[00:11:18] Vance Lowe: They were both coming down right at the same point. I bought the note, so I had to come up with $10,000. I was paying for my automobiles, each one, $500 a month or a thousand dollars for the two vehicles. It was really, the payment was like 4 95 and I just rounded it to 500 ’cause I like even even numbers.
[00:11:40] Vance Lowe: And at eight and a half percent. So folks, here is an investment opportunity for a lending company. When they see they’ve gotta come up with $10,000 to buy the debt, they can see that the payment is $500 a month and they can see the interest is 8.5%. They’re gonna jump [00:12:00] all over. This opportunity. So Seth, I’ll put you on the hot seat for a little bit.
[00:12:07] Vance Lowe: Why are they so interested in that loan? ‘
[00:12:11] Seth Hicks Esq.: cause of the cash flow, the, the cash flow on the loan servicing that debt. It’s a, it’s a consistent monetary flow. It’s not interest rate driven. I mean, as a banker we, well, yeah,
[00:12:21] Vance Lowe: wait a minute. You know I isn’t the interest rate, they’re gonna easily make eight and a half percent.
[00:12:27] Seth Hicks Esq.: That’s, well, that’s not the total volume on the rate of return as, as we both know, but it’s the overall, you know, cash flow on that with that $10,000 outlay and what comes back to them over the term at at $500 a month. And 8% is a lot more than 8% on 10,000. And so it’s, it’s cash flow and it’s the same thing that real estate investors look for.
[00:12:53] Seth Hicks Esq.: And the same thing that we talk about when people want to take out real estate debt. You know, you’ve got, [00:13:00] you, you’ve got a, a, a massive overall rate of return with, because of the cash flow.
[00:13:07] Vance Lowe: So that’s really important folks. We’ve got to get off of chasing interest rates. Interest rates are out there for the common people to get off the mark.
[00:13:18] Vance Lowe: They chase interest rates and avoid looking at the real problem or the real money maker. Lending companies aren’t in business just to make interest rate. Yeah, we’re gonna take it ’cause it is a risk equalizer. But let’s just do the numbers here. Just see how lucrative this is. If I use 10,000 and I get a volume of return, that’s $6,000 per year.
[00:13:42] Vance Lowe: If I were to divide my annual volume rate of return by my money at work, that’s a 60% volume rate of return. Is that high enough?
[00:13:52] Seth Hicks Esq.: Right?
[00:13:53] Vance Lowe: Right. Then I ask, how long would you like it to last for me? It wasn’t about getting the [00:14:00] 10,000 back, it was about getting all the money back. And I stayed on that system for the first 10 of 20 years.
[00:14:09] Vance Lowe: I had a problem at 10 years because I ran outta debt to buy, and we all face that in in this, this new strategy. But I, in 10 years with two vehicles, I got back my half a million dollars. That’s all it took because of the volume rate of return plus the velocity. So velocity is something else. I, I don’t know if we’ll get into it today or not, but folks, when you control the money and when you put it to work, these are the returns you’re gonna get instead of the eight and a half percent.
[00:14:46] Vance Lowe: So yeah, we’re, we’re looking at opportunity cost loss when we spend money. What is the opportunity that we could have put that money to the work for the rest of our life? What would it have [00:15:00] earned? Do you have any idea if you took $15 and put it to work for yourself at even 5% rate of return, what that would be at age 65?
[00:15:10] Vance Lowe: Okay. When they understood that was. Over 3000 to $6,000, just that amount. How many of you gonna do a little bit of that? Pay yourself a little bit of this money. So it’s the opportunity that we’re looking for. We don’t wanna be limited. We need to have our assets with, they need to be liquid so that we can go after that opportunity and capture the reward.
[00:15:34] Seth Hicks Esq.: I think that that’s part of the, you know, traditional financial planning that focuses on 4 0 1 Ks and IRAs and 4 0 3 Bs, which are ultimately locking your money up into prison. You don’t have access to it until you hit an age requirement, and then you have to take it out before you reach another age requirement and you’re gonna pay taxes on it no matter when [00:16:00] you take it out.
[00:16:00] Seth Hicks Esq.: And if you take it out. Before that sweet spot, after you’ve reached 59 and a half and before you’re 74, you’re gonna pay a lot of penalties. So I think that’s, that also helps to focus. ’cause if you go to traditional wealth management, they are, you know, financial planners, they’ll probably try to incorporate 4 0 1.
[00:16:21] Seth Hicks Esq.: Ks and 4 0 3 Bs and IRAs and talk about tax deferment, and you’re not paying any taxes now, but you know, we discuss this all the time. Would you rather pay taxes on the seed or the harvest, right? Yeah.
[00:16:33] Vance Lowe: Yeah, exactly. You know, I had a thought a little earlier, I wanted just to share with people about retirement.
[00:16:41] Vance Lowe: What we have been left out in our education system is. The understanding of how to run your own private personal economy. Back in the day when this concept was in full swing in America, because we didn’t have banks or branch [00:17:00] banking, we had these life insurance contracts and they would fund from their self-finance back and forth.
[00:17:07] Vance Lowe: There’s no such thing as retirement. Does any town have a retirement date? And the answer is no. So you can’t go out of production. It’s what the banks want us to do or government wants us to do. Number one, to keep control. And to get what nest egg they haven’t gotten yet. They want control of that money back if you don’t go out of production.
[00:17:33] Vance Lowe: We’re seeing our clients who have a lifestyle change. I mean, there is a change. You’re gonna stop working from one thing and start doing what you wanna do, hopefully. And you have X amount of dollars and by the time you check off this planet, you’ll probably have three times that amount. It won’t be less.
[00:17:51] Vance Lowe: It’ll be a lot more. And this is what Seth, you were saying, that this is a perpetual plan. This is actually passed down from generation to generation. [00:18:00] This is what the wealthy people do.
[00:18:02] Seth Hicks Esq.: Right. I think it, it, it definitely clarifies what we do at private banking strategies and on our website you’ll be offered a free book that Vance and I wrote entitled, what The Banks Don’t Want You To Know.
[00:18:15] Seth Hicks Esq.: And that book highlights some of these issues and many more that act as a red pill to folks who are new to this. These ideas and these concepts, and also we’ve got all of our podcasts there on the website that you can listen to for free. There’s content on every type of subject matter that, that you, you could want to understand with private banking strategies.
[00:18:40] Seth Hicks Esq.: We’ve got other resources and materials and articles and, and if you’ve done that, if. You know, read, read some of the emails that we send, and these things are resonating with you. You’ve listened to some podcasts. You can schedule an exploratory call with Vance and ultimately create an eight year plan to see how private banking strategies will work, [00:19:00] particularly for you and your family.
[00:19:01] 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 visit us at www.privatebankingstrategies.com. Thank you for listening to the Private Banking Strategies Podcast.
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