[00:00:00] Intro: Welcome to Private Banking Strategies Podcast with Vance Lowe 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.
[00:00:38] Seth Hicks Esq.: Well, hello and welcome to Private Banking Strategies Podcast with Vance Lowe and Seth Hicks.
[00:00:43] Seth Hicks Esq.: Vance, how are you?
[00:00:43] Vance Lowe: Well, I’m doing fantastic today. Today’s a great day to talk about some more financial matters on how money works. Absolutely. And maybe those, a few fallacies that people believe in is actually hurting them instead of [00:01:00] making ’em feel better.
[00:01:02] Seth Hicks Esq.: Right, right. And we’ve been talking about the private family bank and creating a hundred year family bank and and prior podcast, and we highlighted in the last episode some of the traditional financial planning where it falls short and some of our thoughts on that.
[00:01:20] Seth Hicks Esq.: And you have some specific. Expertise and knowledge actually coming out of the traditional financial wealth management world. And you actually did that successfully in the Dallas-Fort Worth metroplex for a couple decades before discovering a better mousetrap.
[00:01:37] Vance Lowe: We were very successful in what we did during the historic loss years, 2008, 2012.
[00:01:45] Vance Lowe: We didn’t lose even 50% of what the losses were. But you know what? And I told this to you, Seth, and to other clients, how do you think someone would feel if you’ve spent a career thinking you are [00:02:00] doing everything you possibly can for your clients and then to read a book? Actually, a client gave me a book to read and to discover.
[00:02:10] Vance Lowe: Everything you were doing was wrong and not the right thing you’d be doing any of the time for clients. It’s a lifestyle change. But you know what? As we dug into it, we were in a position to understand and pick up really good sound money that we could pass on to agents. So we’re gonna talk about traditional.
[00:02:31] Vance Lowe: Mm-hmm. Financial planning.
[00:02:34] Seth Hicks Esq.: Let’s take a 30,000 foot overview of traditional financial planning and what that typically entails and where does it fall short, just from a high level.
[00:02:46] Vance Lowe: On a high level, what you try to do is you establish risk tolerance with your client. Do they have, depending on age and structure.
[00:02:56] Vance Lowe: They have a, a tolerance that they want to be [00:03:00] involved in, and it’s our job to take their excess money. And what we thought at the time was put it to work for ’em in a portfolio. And so we would put a portfolio of all kinds of different things, stock portfolios, mutual fund portfolios. We would even go into things like variable annuities, laddering, all kinds of different sophisticated stuff to meet the needs of the client, depending on when they came in, what their goals and their strategy was, and what the timeframe was, is what dictated what we could provide for them.
[00:03:35] Vance Lowe: Well, then you have the government issue. The government only allows you to present certain things to certain clients. They’re what’s called qualified clients and non-qualified clients. And we all should find out in government size what they think we are as individuals. And I think it would surprise us.
[00:03:56] Vance Lowe: But there were certain things we could show. There’s certain things we [00:04:00] couldn’t, but we would design these things and we would actually use portfolio. Money managers to look after that, make the trade, especially when we were talking about variable annuities. And there’s so many choices in those. We would do that on a mutual fund or a stock portfolio.
[00:04:22] Vance Lowe: We would either do that ourselves, or in some cases if a person was more aggressive or less aggressive, we would hire institutional money managers to manage those things. The whole thing was risk, though. It was all about risk. And thinking that we were putting our people’s money to work, when in fact, in the financial planning world, we don’t, it’s just the opposite.
[00:04:48] Vance Lowe: We put our money to sleep. The money has to be in those accounts to earn anything. We don’t have access to it. We don’t get to use it. Many times if we’re talking about qualified [00:05:00] erisa, government owned trusts, 4 0 1 Ks, Ross IRAs, SEPs, you know, all kinds of different tax qualified trusts, that totally ties up the funds according to the regulations that government.
[00:05:15] Vance Lowe: Sets and is retroactive whenever they change their minds. And that’s what we dealt with at the time. And we were still quite successful we thought. But in comparison, 20 years later from doing that to what we’re doing now. All of our clients would have more than doubled, probably more than quadrupled their assets that actually grew under their own control in private banking than they do putting their money to sleep in financial planning.
[00:05:45] Seth Hicks Esq.: Right.
[00:05:45] Vance Lowe: That’s a high level look. So
[00:05:47] Seth Hicks Esq.: I think also one of the things that we continually run into with folks is. Even if they believe in market risk and equities and stocks and bonds and the [00:06:00] types of traditional financial instruments we just talked about, although they may say we’re thinking long term, they’re really thinking short term.
[00:06:08] Seth Hicks Esq.: Let me give you an example of what I mean. Properly structured, whole life insurance contracts with the companies that we use are going to grow and compound four to 7%. Annualized tax-free growth or more. Okay. And so when you present that to someone who’s saying, oh, well this financial advisor, he did 30% last year in equities, or, you know, he did 25% over the past.
[00:06:35] Seth Hicks Esq.: Three years. We talk about that and the comparison of yield versus return and the fallacies that financial wealth advisors sometimes manipulate data with. But bottom line is, is that historically the life insurance growth and expansion in that tax-free economy outperforms the volatility of market risk and overall.[00:07:00]
[00:07:00] Seth Hicks Esq.: Let’s call it a 30 year curve, let alone a hundred year curve if you’re gonna take it out that far. The life insurance far surpasses the other so-called traditional financial instruments.
[00:07:12] Vance Lowe: It really has, since everybody looks at the stock market, for instance, life insurance has been around far before the stock market, and it’s the philosophy of the grass is greener on the other side of the fence, a bell and a whistle versus the mundane.
[00:07:26] Vance Lowe: I’m already used to thinking that the bell and whistle will be better. The short term versus the long term. It’s just human nature to always wanna go to the new craze, the new popular thing that’s out there, and they pass up a huge structure. You mentioned something earlier, Seth, that I want to bring. To bear for people.
[00:07:47] Vance Lowe: You don’t get caught up in performance reports with mutual funds, stocks, bonds, even in the variable annuities, they all report [00:08:00] X returns. These are average rates of return. Average rates of return do not relate to what people actually receive. That’s a different term. That’s called yield. Yield is a banking term money put in the account that can never be reversed because of a bad year or this or that.
[00:08:21] Vance Lowe: Any product that will. Penalize somebody for returns, puts risk in the system. Yield does not do that at all. So long term, yeah, you’re talking 10 years, a hundred year legacies, multi-generational. If you really want the growth in that, you can’t do it short term, it cannot be done. You can get maybe lucky.
[00:08:46] Vance Lowe: Short term and pull some winnings out. But if you don’t have a long term structure or structure to get you where you want to go, it’s never gonna happen. It’s never happened in our financial career, which has been a long time now. So people need to [00:09:00] understand that the existing financial planning out there today.
[00:09:05] Vance Lowe: Has not changed for decades. Most of them are taught what to say, how to do it. When they do due diligence on their mutual funds or their investments, they’re. Told how to say it, what to do, but it still doesn’t relate to the financial security that a person thinks he’s hearing or she’s hearing. So learn the difference, folks.
[00:09:30] Vance Lowe: Understand what money really is. Understand and learn how money really works because that’s power that gives you and puts you in control. Instead of someone else. You don’t have to be sophisticated. You don’t have to hire what’s called financial gurus out there. You can do and reach the goals and results.
[00:09:52] Vance Lowe: Very simplistic, all by yourself, but you need to understand how money works. If you understand how money works, you’ll understand [00:10:00] how to get it to grow.
[00:10:01] Seth Hicks Esq.: Right. Let’s drill down a little bit on some of the structural failures of traditional. Financial planning. One of the things that you’ve highlighted before is that there’s really no unified uniform system and strategy working on all cogs and pistons firing efficiently.
[00:10:22] Seth Hicks Esq.: Traditional financial planning generally offers different products and not a system, so you’ve got retirement accounts and 4 0 1 ks, brokerage accounts, IRAs, annuities, like you said. Term life. Sometimes, as our friend likes to say, erroneously, buy term, invest the rest, Dave Ramsey, who’s couldn’t be more wrong, but that that type of planning, that general planning that we’re talking about is isolated in silos, doesn’t work together.
[00:10:51] Seth Hicks Esq.: It wasn’t designed to connect or coordinate or support one another. Whereas with the system of. Properly structured whole [00:11:00] life insurance. We’ve got a confluent focused strategy where there’s one similar synchronicity. There’s a single unified strategy that compounds all in a tax-free economy. That’s what we’re saying, will effectively outperform any other type of financial instrument over the long term, and also create a lot less stress and a lot less.
[00:11:24] Seth Hicks Esq.: Need for expertise,
[00:11:26] Vance Lowe: Seth? One of the things people need to realize if they switch to self banking or putting a banking equation back in their life, they eliminate all risk except themselves,
[00:11:36] Seth Hicks Esq.: right?
[00:11:37] Vance Lowe: There is no risk out there. So this safest thing I’ve ever seen on this planet, it’s where banks put their safe money.
[00:11:46] Vance Lowe: It’s everything that could be beneficial.
[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 [00:12:00] like? Do you feel you should be making more progress toward your financial goals? Do you feel stuck? Let us help you get unstuck.
[00:12:09] Midroll: Are you ready to take action and get your own private bank? Please visit us at www.privatebankingstrategies.com.
[00:12:21] Vance Lowe: Seth, I think you said that we did a podcast one time and I think it’s in our, uh, portfolio somewhere, the perfect investment. What does the perfect investment look like?
[00:12:31] Seth Hicks Esq.: Right?
[00:12:31] Vance Lowe: It’s these old banking contracts that still exist.
[00:12:35] Vance Lowe: So in the traditional financial planning, they have to scatter things. Because it’s called not putting all your eggs in one basket. So you’ve got to go one area and then maybe move some over in another area, some over in a more secure area. The risks are not accurate. There’s low risk, there’s medium risk, and there’s high [00:13:00] risk.
[00:13:00] Vance Lowe: Well, in the high risk category is where all the money is. This is where people salivate and say, wow, I want those type of earnings, but I want the lowest risk possible. So the market got smart. They took the high risk and divided it into three. The low, the medium, and the high. So the high is way out there.
[00:13:21] Vance Lowe: Okay? The medium is still high risk and the low is still in the high risk category, but because they split that out. You’re in the low risk thing. You think you’re in a low risk portfolio and you are not. Not at all. So that’s important for you to understand. Many investments are highly susceptible to markets and economies.
[00:13:46] Vance Lowe: Just look, every day you get to hear, you know, the Dow went up or the s and p 500 went down, or this went up and down and everybody says their watch to that. Bankers don’t. Mortgage companies [00:14:00] don’t. Mortgage companies have their own philosophy of why their interest rates go up and down, and it’s not the reason everybody thinks.
[00:14:07] Vance Lowe: It’s not based on economy, it’s based on greed. And so all these factors play into financial planning. Like I said, the reason I really loved it is because every single family, every single financial plan was completely independent all by its own. You have to take into so many different factors, and it was great and fun to work out the structure and then to manage that and manage those assets for a gain was very rewarding.
[00:14:36] Vance Lowe: There’s one more thing in financial planning and that’s where. The financial planners and the money managers get paid. See, they’re gonna get paid either way. Whether you make money or lose money. There were contracts out there where you only paid the money manager if you made money. If you lost money, you didn’t have to pay his bill.
[00:14:59] Vance Lowe: [00:15:00] Well, government kind of, I don’t know if that’s still available now or not, but it was pretty much completely gone before I left. And stockbrokers, they have had to put in churning laws. Years ago because dog brokers would get you in one and then move you to another one and move you to another one. And there’s a fee involved both on the sale and on the buy.
[00:15:25] Vance Lowe: And a broker could literally break you, spend all of your money making trades for you. He ends up with all the money, so they had to put laws in to stop that, but only to a point. And on the day that that timeframe is up, you are going to get switched into a different account. Same thing with variable annuities.
[00:15:46] Vance Lowe: They usually have surrender penalty periods. There are some that don’t, and those are not very well sold because the commission and the income off of a an annuity isn’t very high if there’s [00:16:00] no. Surrender penalty period. But you better believe on the day that that surrender penalty is over, you’re gonna get, you know, pitched a new annuity or a new something else because they want more money.
[00:16:14] Vance Lowe: We don’t have to deal with that. Here you are doing everything you want to do outside. A private family banking strategy than you could ever do inside a financial planning portfolio where someone else has all your money. You never lose control in the banking side versus the financial planning. Five. You have no control.
[00:16:37] Seth Hicks Esq.: And one of the things that always jumps out to me that people will sacrifice for their so-called. Security with traditional financial planning is that they’ll sacrifice their liquidity and their money becomes so locked down that it’s really just a, a mental position that has a false sense of hope [00:17:00] and reality.
[00:17:01] Vance Lowe: Yeah, that’s, you know, either being liquid or non-liquid, right? Either working for you or not working for you. If it’s non-liquid, it is not working for you. It’s working for the people who have the money. Those people are doubling your money on the average of every five years, per se. Okay. Where you are getting as low as interest as they can get away with in your accounts, if anything, okay?
[00:17:28] Vance Lowe: You though take all the risk, not them. Oh, we didn’t make enough money to pay you. We were able to pay ourselves, but we, we don’t have enough to pay you, or we’re only gonna pay you 1%, you know, which isn’t even the cost of inflation. You have no control over that because they are using your money. What if you got to use the money without any risk and could still double it just like they do and we’ll say every five years?
[00:17:55] Vance Lowe: That’s the difference we’re talking about here.
[00:17:58] Seth Hicks Esq.: So we, we’ve [00:18:00] highlighted this before, but it bears repetition with traditional like, you know, 401k and other government sponsored programs, you’ve got forced. Imprisonment of your money. You’ve got early withdrawal penalties. You’ve always got taxes on the gains and the distributions.
[00:18:19] Seth Hicks Esq.: You’ve got forced distributions, and you’ve got a constant dependence on money in the psychological sense that you can’t access.
[00:18:32] Vance Lowe: Well say in the private world, you control all of your assets. You store your money in a place that is not affected by ups and downs. It only goes up. You have access to that money whenever you need to in the market.
[00:18:49] Vance Lowe: All the economist has to do is just come on and make an announcement and it’ll tank the market. Something could break out, something could go bad. You know, a war [00:19:00] could happen. Import problems could happen. It will affect, affect the market. So if you have market risk, you’re gonna feel that. You made a statement that I feel like a lot of people rely and always think the market is going up.
[00:19:15] Vance Lowe: That’s a fallacy. Our market would’ve crashed years ago had they not put in as much as a billion dollars per day. Our government soaked into the market for years, much money in order to keep the market from crashing. So where the market is today. You know, whether the government pulls that money out or what they do with it could definitely affect what’s going on in the stock market.
[00:19:43] Vance Lowe: It’s not all what we see. Rates of return, average rates of return. I give an example all the time of managing a hundred thousand dollars for four years, doubling it, losing half, growing it by 25%, losing it by 12.5%. And we ask if [00:20:00] you could do your math, how much money would be in the. Account virtually a hundred thousand dollars, but the prospectus and the math shows a 25% average rate of return over that four year period of time.
[00:20:12] Vance Lowe: If that was correct, there should be somewhere around 250 to $300,000 in that account instead of a hundred. So what went wrong? Well, nothing went wrong. It was the math, but it had nothing to do with what? On individual banks in an investment in the banking, everything is yield. It’s your money. Okay?
[00:20:34] Vance Lowe: Everything you even know, future, there’s part of the banking, which are the profits of the bank. Life insurance carriers have never lost money that we deal with. ’cause that’s one of the qualifications that we use. And we’re talking a hundred plus years through all these financial issues that our country has faced.
[00:20:52] Vance Lowe: They’ve always paid out profits. So in addition to the guarantees. They pay out profits. Profits, I can tell [00:21:00] you for 2025 and 2026 are somewhere between five and a half and 7% paying paid directly into accounts on mature contracts, plus the guarantees long term. You mentioned lifetime. Since the stock market has been in life, insurance has outpaced and out gained the stock market long term.
[00:21:24] Vance Lowe: I think any 10 year period of time. I haven’t done that in recent 10 years because the market’s been manipulated, and I don’t trust these numbers currently anyway, because when government gets in and interferes and it still means nothing to what people make. So I think those are some, I guess we drilled down a little bit.
[00:21:44] Vance Lowe: It’s still high level comparisons between banking and financial planning. Financial planning. You have to rely on someone else’s expertise. Banking, you rely on your own expertise because it’s simple.
[00:21:59] Seth Hicks Esq.: Well, I [00:22:00] think that that’s part of the verifiable contrast between the two different systems. And you talked about a money insertion of a billion dollars a day into the market and people go, ah, you know, how do you prove that?
[00:22:13] Seth Hicks Esq.: Well look at the national debt calculator over the last 25 years. And there’s just been this massive money supply insertion into the economy, and it’s the fundamental flaw in the concept that you can print more money and somehow prosper ultimately and financially. And that’s a flawed economic model.
[00:22:37] Seth Hicks Esq.: Lemme
[00:22:38] Vance Lowe: tell ’em what that is. There’s the kenson economic. Which we are under, which states you can create more money as you go, but the banking strategy is under Austrian economics. So there’s a finite number of dollars and that value grows on [00:23:00] demand. So those are the two different, when you’re under Kenan.
[00:23:04] Vance Lowe: This guy, you gotta know his history and I don’t know why it’s been adopted and stays. It’s because of corruption. The only reason Kenzie and Economic still exists in countries like ours is because of greed and crime.
[00:23:22] Seth Hicks Esq.: Yeah, that’s the ultimate policy behind those two different competing strategies. And you’re right, unfortunately, they’ve spent their way into oblivion and printed money into oblivion, and now have a compounding national debt that is almost insurmountable, you know?
[00:23:42] Seth Hicks Esq.: And so that’s another highlighted contrast between the. Private banking strategies versus the traditional financial planning is with the attrition of your earning power, and one of the financial planning [00:24:00] flaws is tax inefficiency. Let’s talk about taxable gains and required minimum distributions, or how about this absurd events tax on social security benefits?
[00:24:15] Seth Hicks Esq.: Is that not ridiculous? But it’s disguised.
[00:24:18] Vance Lowe: Yeah, and, and we put up with it, folks, you know, government has no power unless we give it to ’em. But if we’re ignorant and we don’t understand the system, then we have to rely on somebody and we’re giving our freedoms away every single day.
[00:24:38] Seth Hicks Esq.: Those are some great points.
[00:24:39] Seth Hicks Esq.: Vance, at this time, folks, I think we’re gonna. Transition into our book, offer to you if this information is resonating with you. If it’s intriguing, Vance and I have authored a book called What the Banks Don’t Want You to Know, secrets the Banks Don’t Want You to Know That will help you create wealth for your family, and that book [00:25:00] is available to you in a PDF version or an audio version to listen to on the go on our website.
[00:25:05] Seth Hicks Esq.: Private banking strategies.com. so@privatebankingstrategies.com, you’ll find that book offer folks. And also you’ll find, uh, a tremendous amount of resources that we have compiled to educate, uh, you, our audience. Uh, and the resources tab. We’ve got over 150 podcasts. We’ve got. Article after article explaining concepts.
[00:25:28] Seth Hicks Esq.: And so we hope that you’ll, you’ll dig in there and if that content resonates with you, and if you wanna learn more in the emails that we send you, there’ll be an opportunity for you to schedule a call with Vance, an exploratory call with Vance, and learn how private banking strategies can work for you and actually dig in.
[00:25:47] Seth Hicks Esq.: To how you will actually apply it, and that’s in a multi multilayered meeting process. But we like to call it the eight year analysis. And that eight year analysis will help you walk through every [00:26:00] decision that you can make for your family and that eight year period. Vance, any closing remarks?
[00:26:06] Vance Lowe: It’s like coming to the end of a dark tunnel and just always walking out in the light.
[00:26:11] Vance Lowe: It’s a breath of fresh air. It’s absolutely fun because everything here, it just resonate. It’s just truth. It’s just, wow, you know, this, this rings, this is right. No stretch of an imagination or anything. So again, thanks for listening. Um, really appreciate it.
[00:26:30] Seth Hicks Esq.: Absolutely. Thanks for joining us, folks. We look forward to seeing you on the next podcast.
[00:26:35] Seth Hicks Esq.: Until then, thank you from private banking strategies.
[00:26:39] Vance Lowe: Bye-bye.
[00:26:40] 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.
[00:26:57] Outro: At [00:27:00] www.privatebankingstrategies.com.
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