[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 an 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 podcast with Vance Lowe and Seth Hicks.
[00:00:43] Seth Hicks Esq.: Vance, how are you today?
[00:00:44] Vance Lowe: I’m doing really well. Some of the topics we’re into now, a lot of the clients and new people who are thinking about this banking strategy are interested in, one of them is the protection side of things. If I structure it, if I happen [00:01:00] to set it up and I become successful at being my own private banker and start accumulating assets, how do I protect it?
[00:01:09] Vance Lowe: How do I stop government from taking it all in taxes, and how do I stop the lawsuits and stuff like that?
[00:01:16] Seth Hicks Esq.: Critical. It’s absolutely critical that people consider not just how to make money and wealth, but also how to protect it, how to keep it, and that’s one of the things that we like to explain to people.
[00:01:30] Seth Hicks Esq.: We help you learn how to keep and grow your wealth, not lose it. And one of the ways that you increase is by not wasting, not having gaps and holes in your pockets, not having things slip out of your, your hands and fingers because you didn’t structure things properly. So asset protection principles when it comes to life insurance contracts are key.
[00:01:54] Seth Hicks Esq.: And it was interesting, Vance, because when I first learned of the life insurance contract [00:02:00] values and the banking when you and I first met each other 10 years ago or so, I was absolutely floored and shocked at the law that protects life insurance contracts in many states, and that includes 100% creditor protection in many of these states.
[00:02:19] Seth Hicks Esq.: So if you have life insurance contracts and then have some type of liability, lawsuit, a creditor coming after funds owed, all of that 100% protected inside a policy in numerous states. And that really floored me to know that the law protects these contracts carte blanche, and there’s nothing else you have to do.
[00:02:42] Vance Lowe: That opens up such a wide opportunity for people to save and accumulate assets inside the contracts. Term insurance is not gonna do that for you. Term insurance is really gonna take care of a death benefit, which I think is critical, but what we involve [00:03:00] ourself in is the accumulation of assets. Money, storing money, storing money in a, a vault that it, that doesn’t just sit there, it still grows with guarantees, with profits in a tax-free or s- tax advantage structure that rivals anything else.
[00:03:21] Vance Lowe: A lot of people have come up with these, what are the perfect investments? And the type of insurance contracts that we put together for our clients fit e- every single one of those needs. It’s amazing, but it’s a long-term strategy. It’s not a six-month strategy or even a five-year strategy. It’s a lifelong strategy, 10 years plus, to see all the huge benefits.
[00:03:44] Vance Lowe: Always, 100% of the time outperforms short-term strategies.
[00:03:49] Seth Hicks Esq.: One of the easiest ways to step into the protection with the life insurance contracts is storing your cash in the [00:04:00] contracts as opposed to other places.
[00:04:02] Vance Lowe: Yeah. Better than the banks. I guess the banks are a good lead in, Seth. You can tell us about where they store their safe money.
[00:04:10] Seth Hicks Esq.: And we talked about this, that larger top-tier banks, they have company-owned insurance policies on their employees, and there’s, by the last time that I looked at, I believe 20- north of $20 billion in annual premiums from Wells Fargo and Bank of America. It’s higher than that, probably now between 20 and 30 billion annually on life insurance contracts for employees.
[00:04:34] Seth Hicks Esq.: And so th- and that cash value that they’re storing in the life insurance contracts, and obviously enjoy the same laws that protect all contracts. So those are huge cash value protection. And it’s interesting because we’ll have clients that have come and say, “We’ve got all this cash in banks,” and it’s completely at risk of creditors, at risk of [00:05:00] lawsuits, at risk from any type of attack there, and not just solvency of a bank, which is a whole nother issue.
[00:05:08] Seth Hicks Esq.: Are the banks solvent with derivative lending and fractionalized banking? And with the FDIC guarantees, are those actually solvent? Are they something you should rely on? And spoiler alert, no, they’re not the safe place for money, and they have no legal protection from creditors or lawsuits. They have no e- real protection against insolvency, and the FDIC is not able to insure all the deposits that are on-hand in America without just the treasury printing money and bailing out the FDIC.
[00:05:42] Seth Hicks Esq.: So that’s not a safe place to store cash, and you can easily get it into the life insurance contract system, have it growing and compounding annually in a tax-free system, and enjoy complete creditor protection and lawsuit immunity
[00:05:58] Vance Lowe: Folks, if you’re [00:06:00] business owners out there and you’ve got partnerships, it’s a great way to store at company assets inside these contracts on each other and build up a tremendous amount of retirement buyout potential.
[00:06:13] Vance Lowe: If, if there’s a death, there’s immediate money there to buy out that partner from the spouse so that the remaining partners own everything. Just a lot of opportunity in these type of contracts to store large volumes of money and not give up future growth under tax advantage circumstances
[00:06:35] Seth Hicks Esq.: That’s right.
[00:06:36] Seth Hicks Esq.: And it’s as simple as the stroke of a pen, as opposed to complex structures. Like I’ve seen other asset protection structures where people have offshore international trust and have institutional trustees controlling assets and very expensive structures to set up, and sometimes they’re appropriate. But $50,000 structures to [00:07:00] set up that can be accomplished with even better protection and much superior structure with life insurance contracts, and you don’t have to have any complex documentation and structure.
[00:07:12] Seth Hicks Esq.: You’re not giving your assets to institutional trustees. It’s simply a matter of law, and that’s a great benefit
[00:07:20] Vance Lowe: Seth, one of the things is that life insurance is an expense. It’s something that’s frowned upon as far as value and worth, and it’s just the opposite. When our country didn’t have banks, we still had to use and have a banking equation.
[00:07:34] Vance Lowe: We had to be able to borrow money, pay and pay back, and it was all set up under an education system where we be- were our own bankers, and the life insurance companies handled the banking equation, not the way we have our banks today. And so that education could really help in the fluency of money, being able to control it, being able to keep it private, being able to keep [00:08:00] taxation away from it, and running your own system, family system, extended family system totally privately.
[00:08:07] Vance Lowe: That’s been going on since our country became a country, and we have many families privately doing this. It’s just been handed down. So I think it’s important that we understand that if it’s private, assets are not personally held, and we’re in a big structure where we could legally be liable, we’re gonna have to take caution to make that part safe.
[00:08:30] Vance Lowe: But I don’t think, like you said, the actual strategy that we do for clients is so simple, so easy, so cost-effective. It really doesn’t even cost anything to get it set up and operating
[00:08:43] Seth Hicks Esq.: It’s costing people nothing out of pocket. We often have folks ask us, “What are you going to charge us?” And we don’t charge them anything.
[00:08:51] Seth Hicks Esq.: We bring our expertise and structure to their benefit, but that’s always a great benefit to them as well. I’d like to shift tracks a little [00:09:00] bit and talk a little bit about business owners and asset protection needs with business ownership and structures. And we have numerous business owners that have policies structured in their companies that protect not just their family and individual policies, but the policies that are in their company.
[00:09:21] Seth Hicks Esq.: And one of the things that does, and we talk about this in a private family economy, if they have a resource of cash that they can pay payroll, tax liabilities, all sorts of financial servicing That they can effectively replace third-party banks within their own business. And prime example of that, we’ve done a podcast on Paul Bunyan, and that’s a kind of a code name for Nelson’s nephew who ran a forestry business and effectively took exactly what we’re talking about and turned it into a very lucrative long-term banking business.
[00:09:59] Seth Hicks Esq.: He [00:10:00] was a forester and he became a banker.
[00:10:02] Vance Lowe: Absolutely, yeah. When people catch on, when they learn this strategy, when they’re able to see and take control of the banking equation, sky’s the limit. Where do you wanna take it? How ambitious are you? Where do you want the legacy to end up for you, your family, your extended family?
[00:10:18] Vance Lowe: Or we’ve talked about in some podcasts, foundations, charities. What impact do you wanna have with your efforts when you’re gone to multi-generation stuff?
[00:10:30] Seth Hicks Esq.: Nelson set that up for his nephew and began to finance equipment purchases originally. Heavy equipment that has high-ticket pricing. And he began to finance one piece of equipment at a time until he had all, effectively purchased all of his equipment and decided that he was gonna begin to help other foresters complete the same type of equipment leasing themselves and finance their, their business expansion.
[00:10:57] Vance Lowe: Look at that podcast, because when he [00:11:00] did a single piece of equipment over his working lifetime, it meant $50,000 of tax-free income to him every year from the time he sold the company on. If he did the financing versus someone else, that’s the only change. There wasn’t any additional money he had to use or anything else.
[00:11:19] Vance Lowe: That’s what people don’t understand. How, what’s this gonna cost? What’s this gonna do to me? It’s not gonna do anything. What it’s gonna change for you is who’s gonna end up with the money. Right. This whole thing is all about who controls the asset so that it can return and be used again, and returned and used again.
[00:11:37] Vance Lowe: Yeah. So principal is not spent, it’s used and returned.
[00:11:42] 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? Do you feel you should be making more progress toward your financial goals? Do you feel stuck? Let us help [00:12:00] you get unstuck.
[00:12:01] Midroll: Are you ready to take action and get your own private bank? Please visit us at www.privatebankingstrategies.com.
[00:12:13] Seth Hicks Esq.: In those episodes, those podcast episodes where we break down the Paul Bunyan forestry to banker system, as in episodes 12 and 13, and your business cash flow catapult you into financial freedom, and the answer is yes, and Nelson’s nephew illustrated that really well.
[00:12:33] Seth Hicks Esq.: And the other thing about that is, is that if you’ve got your loan structures collateralized and you’re the lender in first position, you have priority rights as opposed to any other creditors. You’ve got any other subsequent end time attacks on assets are junior in priority. And so it’s a great way to effectively create a system that is [00:13:00] self-feeding and continually flowing in itself
[00:13:03] Vance Lowe: So the motivation has to be there, folks.
[00:13:05] Vance Lowe: You have to understand what we’re talking about here. These contracts, these life insurance contracts, the product is not the solution. Executing the strategy and setting it up and operating it is the solution. The contracts hold the money, grow the money safely so that it’s inside your control and you never lose the control.
[00:13:30] Vance Lowe: One of the biggest advantages that I’m here to do today is to make this information available, teach it, make it successful in people’s lives so that story is successful, and people can always win in setting this structure up and operating it correctly and never look back. But they don’t have to work harder.
[00:13:52] Vance Lowe: They don’t have to spend more money or dedicate more assets. They just have to do it correctly so that it [00:14:00] returns to them, just like a real bank.
[00:14:02] Seth Hicks Esq.: That’s exactly right. I think, Vance, let’s talk a little bit about key strategies when we’re implementing some of the business protections. It’s important as we set the loan structures up that you don’t commingle, and you’ve got things that are lined out properly.
[00:14:20] Seth Hicks Esq.: So if a policy is owned in a, a certain entity or capacity, let’s say your business, you need to keep strict governance with regards to the ownership and the loans and the collateralization of those, and keep it separate from any other type of non-company owned policies. Just if you were a real estate investor and you’ve got partners in various properties, you’re gonna have structure that’s separate, and you’re gonna keep that governance in place for everyone’s protection.
[00:14:51] Seth Hicks Esq.: That’s a protection need.
[00:14:53] Vance Lowe: You know, Nelson Nash broke that down very simply. For us, we’ve got to do it a little more [00:15:00] individualized, categorized. He said it’s all about spilling the peas, and he gave a great story about owning a grocery store. What we’re talking about here, the key strategies here in not commingling and avoiding those types of things, is that if we use money to accomplish something over here, is the money going to be replaced?
[00:15:22] Vance Lowe: Is it going to stay there? Is it going to develop the way it should, or is it going to influence or benefit an individual on a private basis? A good example of that is the savings and loan industry. Do we even have one today? No. But I remember a very thriving savings and loan industry Until these five guys got together in Texas and destroyed the whole industry because they lent themselves, it was five million dol- five times five, that’s twenty-five out of their savings and loan, and they never paid it back.
[00:15:55] Vance Lowe: And the cascade effect from that just destroyed the whole industry because they [00:16:00] stole from themselves. Maybe I’m taking a little bit of a different angle here on the strategies that we set up, but it’s very critical that we follow the proper protocol in everything we do in this strategy. So if we’re gonna keep the family banking separate from business, it has to be that way.
[00:16:18] Vance Lowe: It, it can’t disappear. It’s absolutely critical. The avoidance of commingling makes things legitimate, easily traceable, trackable, but still totally private
[00:16:30] Seth Hicks Esq.: And I think those are the, some of the key strategies that make this a rock solid policy. Another thing that we should discuss is common errors that are made sometimes are naming the wrong beneficiary structure.
[00:16:46] Seth Hicks Esq.: One of the things that i- is really helpful in a legacy and 100-year plan is using trust to own policies such that, that they’re, that the death benefits are paid [00:17:00] into an entity which is governed by the family structure that’s in place, and making sure that it’s not going to a beneficiary that they didn’t change or, for example, something that doesn’t tie together.
[00:17:14] Seth Hicks Esq.: You need to have- Horror
[00:17:15] Vance Lowe: stories of that. Again, that 85% effort, folks, make sure. The nice thing about beneficiaries is that they can be changed, unless you eventually go into an irrevocable beneficiary. Ir- irrevocable cannot be changed, and I’m pretty sure. But don’t … I’ve watched the siblings have a death benefit come in, and all of a sudden it all went to one bene- sibling because they influenced the, the deceased last, and they got everything changed, and they don’t care about the rest of their siblings.
[00:17:48] Vance Lowe: There’s all kinds of horror stories there. So on the other end, do we want a business entity to own it? Who’s gonna control that business? All that has to be thought out. We say this [00:18:00] because we see complications, but it’s not hard to solve as long as you address the issues, as long as you get there so that you can set it up.
[00:18:08] Vance Lowe: And as things evolve, you gotta stay with it.
[00:18:11] Seth Hicks Esq.: Yeah. You coordinate the generational planning and succession with addition of children, and you have to have consistent reevaluation in how that you’re implementing the major plan. I think that when you’ve got structure that’s in place that you’ve put in place from the beginning, and you’re aligning your succession with those policies and that structure, and you’ve got a council with your family that’s governing loans and s- and having long-term governance in place, you’re at that 100% level, and you’ve gotta stay with that.
[00:18:44] Seth Hicks Esq.: It’s not like you, we did that and it’s done. You stay with it. You reevaluate on a biannual or a quarterly basis, and you make sure that, like we’ve talked about in the past, loans are operating, that things are being paid, people are participating, or if there’s something [00:19:00] that a loan’s in default, why, and what do we need to modify with that loan?
[00:19:04] Seth Hicks Esq.: It’s thinking like a banker.
[00:19:06] Vance Lowe: Absolutely. You can’t have failed loans out there ’cause the bank will collapse, and so everything needs to be protected on a business structure. The nice thing about a family bank is that a family bank will work with family members Should there be a problem, they can do that on the outside, nobody else will.
[00:19:23] Vance Lowe: You can’t go to Honda Finance, for instance, say, “Hey, I got a problem here. Will you restructure my loan?” They’ll say no. Right. You can’t go to your mortgage company and say, “Hey, I got a problem over here. Will you restructure my loan?” In a family bank, they’ll do it in a heartbeat, okay? As long as that family member who owes that money is doing things correctly to the best of their ability, and circumstances beyond their control has caused the change.
[00:19:50] Vance Lowe: They’ve not somebody that’s derelict, that decided they’re gonna go on drugs or have a bad attitude and quit their job and just say, “Hey, you know, I borrowed all this money. [00:20:00] Family, you can eat it.” That’s not gonna happen because there’s still collateral. Autumn’s gonna be sold. The bank’s gonna be made whole.
[00:20:07] Vance Lowe: Okay? The member may be out until he makes restitution.
[00:20:12] Seth Hicks Esq.: The rules that they set in place, that ensures the policy’s longevity and compounding integrity, and that everybody plays within the framework that’s been set up. That policy health is crucial to maintain and implement so that you’ve got the right health in your policy.
[00:20:31] Seth Hicks Esq.: So folks, if this content is resonating with you and you’d like to hear more, go to our website, privatebankingstrategies.com, bankingstrategies.com. Put your name and email in and we’ll provide a book that Vance and I authored, Secrets the Banks Don’t Want You to Know, and that’ll come to you in a PDF or an audio right then.
[00:20:52] Seth Hicks Esq.: But more importantly, you’ll get access to Vance’s ca- calendar to schedule an exploratory call. And Vance, tell them what happens in the [00:21:00] exploratory call.
[00:21:01] Vance Lowe: We just go through the expectation timeline. If this strategy resonates with you, what happens? How does everything ramp up? We have two stages, the first half and the back half.
[00:21:12] Vance Lowe: We pride ourselves because we bring to the table the back half We wish all the competitors out there would do something like that. The front half is getting everything set up correctly, getting the contract up, getting the contract funded. The back half is living, making it work, making it successful live.
[00:21:34] Vance Lowe: So we evaluate that. We get you set up. We get you doing a little bit of homework because this is you learning. It’s not relying on us. It’s you learning the system and being able to eventually take it completely independent. So we’re gonna set up a test drive for you right off the bat with the very first actual meeting we have.
[00:21:55] Vance Lowe: Those are usually about 45 minutes to an hour long. They’re recorded. And you’re gonna [00:22:00] be able to see with your own numbers exactly what this could do middle of the road. We don’t project high. We don’t do the bare minimum. Something that we know easily will happen within your structure, and you can see for yourself if this strategy is right for you.
[00:22:16] Vance Lowe: Folks, this is what we offer, and I, I get excited about that. I call it the goosebump factor. That’s why I do it, because you’ll be able to see, wow, how on earth could I own my home this fast and all my other debt? I didn’t change anything. I only paid the bills. The difference is you got the money back, and you got to use the money to pay down more of the bill and more of the bill.
[00:22:37] Vance Lowe: Pretty soon you own it. That’s the long version of why you want to maybe meet with me and go through to see if this might work for you.
[00:22:45] Seth Hicks Esq.: Yeah. That, that’s awesome. I think, folks, you’ll be floored as you begin to actually connect the dots and see how the private banking strategies will benefit you and your family in the long-term growth in your wealth position.
[00:22:59] Seth Hicks Esq.: We thank [00:23:00] you for joining us today and sharing this time with us. We hope you’ve received some value out of that, and we look forward to seeing you on our next podcast.
[00:23:07] Vance Lowe: Thanks very much. I appreciate your time.
[00:23:10] Outro: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals?
[00:23:18] 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.
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