[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.
[00:00:39] Eric (Host): Hello and welcome to Private Banking Strategies with Vance Low and Seth Hicks.
[00:00:42] Eric (Host): This is a part two. If you have not heard part one, you definitely need to go back and do that because the gentlemen are doing something a little bit different with these podcasts. Vance is gonna start off by telling a story, a story of a real client. Now, the last podcast was the first part of this couple story, the heartache that they felt when they first came into the office because they were under [00:01:00] a massive amount of debt, which I know Vance will recap here in a moment.
[00:01:03] Eric (Host): Didn’t see a way out. Heartbroken, devastated by their circumstances. And then the process in which Vance Inces started to work with them. Vance tells that story, and then Seth breaks down how it works, the meat of the issue, some of the strategies they use. So this podcast will be a two part podcast within this podcast, so stay around for the entire thing.
[00:01:22] Eric (Host): But if you haven’t heard the first part, go hear the foundation of what we’re talking about today, Vance and Seth. So good to be with you again.
[00:01:28] Seth Hicks Esq.: Thanks, Eric.
[00:01:29] Eric (Host): It’s wonderful to be here today. Absolutely. And, and Vance, I know that we’re gonna continue the story of Mr. Cairo, right? Is that what we’re calling him?
[00:01:36] Eric (Host): Right. Alright. Can you give just a, a brief recap of what we started with on the last podcast and then dive into the next part of this story?
[00:01:43] Vance Lowe: Oh yeah, absolutely. So here we have a typical family with two children. They were misdiagnosed with what’s called Lyme’s disease. He’s a chiropractor and he couldn’t practice for two full years before they found out their mistake, and he amassed a critical amount of debt, and it [00:02:00] was so high.
[00:02:00] Vance Lowe: Is over a half a million dollars of extra debt and they could not ever see themselves getting above this debt. And so there was a last ditch effort out there to see if there’s something that could be done for them so they didn’t have to take out bankruptcy. So the full story here is in a video that will show you how to acquire so that you can actually follow along and see what these clients did step by step, what they did month by month to overcome this issue.
[00:02:28] Vance Lowe: The comment was, I’m never getting outta debt. There’s no way even throwing a little extra money that we have, we’ll get outta debt at an average rate of return of over 16%. We can’t see our boys staying at college. We can’t hold our heads up if we have to do taxes. And so the anguish and the turmoil these folks were in was the heart throb for all of us.
[00:02:49] Vance Lowe: But they listened and they trusted, and they did exactly. What they were told to do, and we’re gonna go into that in a little bit of depth now. They had acquired [00:03:00] 14 different debts. They owed everybody, their friends, their banks, everything. So we prioritized that debt. Then we asked them, what additional assets can you come up with?
[00:03:11] Vance Lowe: And again, the tier came, listen, we’ve been through everything. Yeah, well maybe we could sell this, maybe we could do that. Maybe we could do this. And we told them, do it. Show us what you can come up with. And they quickly realized that we really could come up with about $33,000 and I could afford two office patient visits.
[00:03:33] Vance Lowe: The profit I make on each two clients per day. Mm-hmm. That’s about $20,000 a year, but we’re talking about. Almost $500,000 of debt. Wow. 16% interest. And we’re gonna throw out at $20,000 a year and maybe $30,000 of additional assets. Come on folks. That doesn’t work. In fact, it does work. So I want to introduce a concept right now that we immediately installed in this couple.
[00:03:58] Vance Lowe: First of all, we had to teach [00:04:00] them. We need you to stop thinking about how you’re gonna solve your money issues, because Americans are programmed according to what banks want us to know. It’s very diabolical. There’s a system out there where we could all be financially independent, but that was stripped out of our education system in favor of the banks taking control of all of that.
[00:04:20] Vance Lowe: The banks actually see us as cattle out in the fields going to work to feed them. We’ll all agree that. Banks always get the money back, and the reason they get the money back is they lend it. We missed the day that they gave free money out. Well, banks don’t give out free money. They never have. They never will.
[00:04:37] Vance Lowe: As a matter of fact, a branch doesn’t get to enjoy any fruit of what their office does. Everything in their office is financed back to the home office. They have to make a payment on it. They account for every expenditure. They always get the money back. So the second concept is don’t trust in yourself.
[00:04:56] Vance Lowe: It’s not so much what we don’t know about money, it’s all about what we think [00:05:00] we know about money that’s incorrect. And we’re gonna say that over and over again. ’cause we all have in our minds the scenario if this were to happen to us, how we would solve it. Folks, after almost 40 years in the financial arena have come to discover that almost 90% of the time above 85% of the time it’s wrong.
[00:05:18] Vance Lowe: What you think is going to be correct will be wrong, and most of the time it’s 180 degrees wrong, but it’s exactly what the banks want you to do. You see, we’re living a get back to zero strategy now if we have gurus, we’ve been taught that we should save up. And pay cash for everything. Well, if we do that typical car, anything like that, and we pay for the car, where does that leave us back to?
[00:05:41] Vance Lowe: Zero.
[00:05:41] Eric (Host): Mm-hmm.
[00:05:42] Vance Lowe: If we go into debt now, we’re below zero, we’re gonna make payments and right when we almost get ready to pay off that car. That car’s worn out. We go finance into the car, right? Where does that leave us? All roads lead us to zero. We spend our monthly expenses. We have to go back and [00:06:00] replace that.
[00:06:00] Vance Lowe: We are a slave to the system here in the United States, and we don’t even know it. So rule number one. We talked about this in the last podcast, never spend principle, and you can start that today. We need to recognize what our assets are. They said in this illustration that they could accumulate and put to work $33,000.
[00:06:21] Vance Lowe: We’ll just round it at 33. So I need to discuss what is a sleep and what is awake because we’re taught by banks. Pay cash for everything or finance everything and all of your extra money, go put it in an accounts and try to collect compound interest. Eric, would you agree with that? Uh,
[00:06:38] Eric (Host): yeah,
[00:06:38] Vance Lowe: absolutely.
[00:06:39] Vance Lowe: I’ve heard that forever. Ab, absolutely. It could be a mutual fund, it could be crypto, it could be anything that we feel like we could get a return on. But in fact, we have to keep that money in that account. And for us, it’s asleep and the only hope we have is try to collect a little bit of interest while the people [00:07:00] take our money and put it to work.
[00:07:02] Vance Lowe: Yeah. And they’ll double it. They’ll three times it over the same timeframe. They’ll make all kinds of income on that money because it’s actively at work in our universe. The law is all about motion. If this earth stops spinning, we don’t exist. Mm-hmm. If air and water doesn’t flow through us, we die. If fruit sits, it rots, if water sits, it stagnates.
[00:07:26] Vance Lowe: If cars aren’t sold at the dealership, then the dealership loses money. If groceries aren’t sold at the grocery store, they lose money. Mm-hmm. Motion is critical. But yet our banks and we’re taught to go put money in accounts and put ’em to sleep for us. We deserve what we get. We’re never gonna get ahead.
[00:07:43] Vance Lowe: Maybe one person does here or one person does there for a little while, but the banks will always end up with all that money. So we’re gonna wake up this money. Where’s the best place to invest money where you don’t have any risk whatsoever? No market risk, no economy risk. [00:08:00] Nothing. The very place you can put it is to buy and to finance your own debt.
[00:08:06] Vance Lowe: The person in the mirror is the only risk you have. So evaluate that if the guy looking back at you in the mirror is a shady character, guys, we all have problems, but we’re gonna make and carve that guy out as a separate individual. And we’ve never been taught this, that in our own personal life, our personal family’s life, we have to run our financial affairs.
[00:08:30] Vance Lowe: Just like an economy where money flows. So to get money back, we have to do it the way the banks do it. We have to lend the money. Who’s the best person to lend money to? The guy in the mayor, he’s getting a freeload right now. He gets to just freeload off of what we’re having to pay for not any longer. He goes to work to earn a nuke income and he spends.
[00:08:50] Vance Lowe: Well, he spends it on all of his bills. So if we outside the mayor buy one of those bills when he makes that payment, where’s that money going to end up? See, that’s [00:09:00] the game is the end game. Where’s the money gonna end up? If we own the bill and he makes the payment, or if we have someone else that borrows money, we’re gonna expect them to make the payment.
[00:09:10] Vance Lowe: It’ll end up back in our hoppers. And how much return would you like on that money? Do you want to beat. Taxes and inflation? Well, we can easily beat taxes ’cause there are no taxes in this game. Mm-hmm. This is a private world that is not public. There is no tax. It’s all advantaged for us. In addition, we want to beat inflation, so we charge ourselves if we wanna make a return of 10, 15, 20, 20 4%.
[00:09:36] Vance Lowe: We actually have clients making over a hundred. Percent annual return on some of their loans. We’ll actually introduce that here as we discuss line item loans. But what I’m trying to get at and where I’m going with this, just with this one concept alone, it changed their lives. Okay, I need to wake up my money.
[00:09:58] Vance Lowe: I’m gonna first go buy a little [00:10:00] bit of debt. So how much will that $33,000 buy me? Well, in the plan, we can go through the numbers and show you exactly which debts it bought. Notice that I didn’t say pay off. Mm-hmm. That’s because you don’t want the guy in the mirror to catch wind. Yeah. He’s agreed to make those payments.
[00:10:16] Vance Lowe: All he’s gonna find out is, oh, somebody else bought those loans. Okay, got it. Just so happens to be you, the owner, and that money starts flowing back to you. Now we get to use it over again. And so the volume of return is where money is made. So that’s the next concept. The volume that we get back in those payments is additional power, which means additional capital that we can put to work to go buy more debt without having to come up with new money.
[00:10:45] Vance Lowe: Wow. And that is called exponential compounding. So to see the effect of how this worked with this client, they never had to work harder. They never changed the way they spend money. All they changed was who ended up with it, and they put a little bit of [00:11:00] their money to work. So $33,000 upfront, and then they added to their banking system $20,000 a year.
[00:11:07] Vance Lowe: When they ask about that, they ask, well, how much should we be putting in our banking system? I was literally shocked when my mentor, Nelson Nash answered that question the very first time to some of my clients. He said, I’ll answer that question. How much do you make annually? How much do you take home annually?
[00:11:24] Vance Lowe: Well, when this guy asked that question, there were 72 other people in the room. Mm-hmm. You don’t want to divulge your Yeah. Your income, but he said, no, I’m trying to figure out how much premium or how much I wanna put in this policy. And he said, I’m trying to tell you folks, you’re putting a hundred percent of your annual income in someone else’s bank right now, aren’t you?
[00:11:40] Vance Lowe: Mm-hmm. Your goal is to put a hundred percent in your bank. But start where you’re comfortable and get there as fast as you can.
[00:11:47] 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 [00:12:00] more progress toward your financial goals?
[00:12:02] 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. Alright, welcome
[00:12:19] Eric (Host): back. Thank you so much for still being here. I’m glad you’re listening. You will be too. Seth is about to break down some of these concepts and get into it a little bit more.
[00:12:26] Eric (Host): I know there’s gonna be some good discussion here. So
[00:12:28] Seth Hicks Esq.: Seth, take it. Thanks Eric. So there are seven pillars of private banking strategies, and Vance is describing an example for a family that became rock stars in our repertoire of clients. One of the pillars that Vance is accentuating is called the velocity of money.
[00:12:47] Seth Hicks Esq.: Multiple touches on the same dollar. And I don’t know how many times people say, well, you can’t use the same dollar twice, and we kind of chuckle and laugh. You absolutely can. You’ve heard Pance say in this series, the banks always [00:13:00] get the money back, meaning they’re lending money and rather you. Pay the grocery store or a contractor, or your utilities, it’s going back to a centralized bank and it’s all going back through a centralized system.
[00:13:12] Seth Hicks Esq.: We want to teach you how to get the money back in your own private banking strategy. That’s the velocity of money and how you create multiple touches on the same dollar. That’s how you get tailwind lift. Mm-hmm. And that’s how you begin to accelerate into financial freedom. Let me break it down like this.
[00:13:29] Seth Hicks Esq.: So you capitalize your own private bank with a dollar. You use that same dollar theoretically, not literally, but theoretically to go and purchase debt, your debt, or to make an investment. But we’re working on purchasing debt right now because of the chiropractic family. So they went and they capitalized their own bank with a dollar.
[00:13:49] Seth Hicks Esq.: They took that same dollar out of their bank and they went and purchased their own debt. They were earning money. They continue to capitalize their bank and they continue to go and purchase [00:14:00] their own debt. Now, from the outside world, they would say, well, you’re just paying off your debt. Well, no, that’s an ignorant paradigm.
[00:14:08] Seth Hicks Esq.: You’re actually purchasing that debt through your family bank where you create an arm’s length. Contract where you’re obligated to pay the entity your family bank back with the rate of interest on a specific term, albeit your terms because you’re the banker and the borrower. So you’re never gonna be deprived financing, you’re never gonna be foreclosed upon, your car’s never gonna be repossessed because you can renegotiate the terms with your banker.
[00:14:36] Seth Hicks Esq.: You go in the mirror, you make a good deal, shake hands, and start a new term. It’s called the loan modification. Anybody who went through the real estate cycle in 2007, 2008 should understand modifications. Mm-hmm. So loans can definitely be modified. And when you’re the banker and the borrower, you can modify the loans and that is perfectly acceptable.
[00:14:58] Seth Hicks Esq.: You set the interest rate, you set the [00:15:00] terms, and you sit back, and the only person that you have to keep accountable is the person in the mirror. Like Vance said, if you’re a shady guy and you don’t pay your debts, then you’re gonna have problems with this system. If you can use the discipline and the strategies that we’re providing, you’ll find your way to financial freedom out of debt quicker time than you realize.
[00:15:21] Seth Hicks Esq.: So this chiropractor used this dollar to capitalize his bank in the form of premiums. He then used that money to purchase his own debt as preexisting debt, whether it was home mortgages, HELOCs, private loans, car loans, credit card loans, personal loans or otherwise, and began to hammer those out. And every debt that he purchased and every dollar that he cycled through a premium into the life insurance policy and out through a policy loan to purchase that debt, and then got a form of repayment back to his bank, that is what we’re talking about with always getting the money back.
[00:15:56] Seth Hicks Esq.: Getting the money back. That dollar ended up back in his [00:16:00] account multiplied. Multiplied with interest, multiplied with tax-free growth multiplied through the entire process. And that’s just a very simple example of multiple touches on the same dollar. There’s some folks out there getting many, many touches on the same dollar, and it’s really only limited by.
[00:16:19] Seth Hicks Esq.: Your ability to creatively structure and strategize transactions. Now we get this question a lot and I’ll let Vance chime in for a moment, and you probably have thought this too. Well, which loans did he focus on first and why?
[00:16:32] Vance Lowe: Well, the easiest answer to that question is what you can purchase at that time.
[00:16:37] Vance Lowe: The payments won’t transfer from headwind to tailwind until you can actually take over the loan and stop the payments going to someone else. The whole purpose here is the fact of the incentivized ability to make those payments in such a way that it creates that tailwind. Mm-hmm. That tailwind’s really gonna help make those multiple touches.
[00:16:59] Vance Lowe: [00:17:00] So, I hope that answered the question.
[00:17:01] Seth Hicks Esq.: And I’ll add a little bit to it with for a little sauce and a cherry on top. It sometimes it depends on the personal situation. In this chiropractic example, he had a personal loan to a friend, and we’ve had other clients that have had personal loans to friends. They may not be the highest interest rate loans that they’ve got, but for personal reasons, they want to knock.
[00:17:23] Seth Hicks Esq.: Those out for the perception that we talked about in the first part of the podcast. Fear of failure in front of their friends, fear of failing financially in front of their friends and family. So you might wanna knock that one out first, but my personal opinion is to take the highest interest ones out first, or ones that have the most strategic purpose from a tax planning perspective.
[00:17:44] Seth Hicks Esq.: Mm-hmm. But we get that question a lot. So that’s a small sidebar. Another pillar that is exemplified in this example is the guaranteed financing in the the private banking strategies. He’s never gonna be turned down from financing ever again because [00:18:00] he’s gonna finance things through his own bank. And he had at the end of this 73 month a success story.
[00:18:05] Seth Hicks Esq.: These folks had hundreds of thousands of dollars in their bank. Providing them with the liquidity to go and invest in other real estate to finance other chiropractic office acquisitions. And they even got into lending to other chiropractors to acquire their businesses. So they began to see that it was more profitable to be a bank than to simply use their own bank.
[00:18:29] Seth Hicks Esq.: We’ve seen that happen over and over again where people go out and begin to lend to friends and family and third parties and continue that system. Now, there’s another pillar that I want to accentuate, and I’ll bring Vance in for some of his comments. It’s the second pillar of private banking strategies, tax free growth.
[00:18:46] Seth Hicks Esq.: Now we’re telling you once you’ve got this money. Your whole life insurance contract and you take the money out and you put it to work, and then you pay those loans back. Those are all non-taxable events. They’re [00:19:00] carved out in the internal revenue code on purpose because the same banksters politicians and wealthy folks running our country use these same systems.
[00:19:09] Seth Hicks Esq.: The biggest clients. Of insurance companies are centralized banks, Wells Fargo, bank of America, they have literally billions in life insurance on their employees because they understand these principles, and especially tax-free growth. This is where you get that tailwind. This is where it pays to move money out of a retirement account.
[00:19:30] Seth Hicks Esq.: Pay the penalties now and get them into a system where you’re not paying any taxes ever, whether you take it out now. Later or never. There’s no tax implications whatsoever. So in contrast to a 401k where the government’s going to get their taxes, mm-hmm, mm-hmm. They’re gonna get their taxes. Now, if you pull it out early, they’re gonna get their taxes later.
[00:19:50] Seth Hicks Esq.: If you pull it out, then there’s always going to be a tax event, but that is not. So with private banking strategies and these policies that we structure, there’s no. [00:20:00] Taxable event Vance.
[00:20:02] Vance Lowe: Absolutely. That was a beautiful explanation right there. I can hardly expound on that, but picture the perfect investment folks.
[00:20:09] Vance Lowe: See, if you’re in this boat, how would you like your investments to earn a high rate of interest Non-taxable, but better yet, wouldn’t that be a better investment if you could use that money and purchase debt or put it to work somewhere else? Still get the original interest and now add to it the interest that you’re gonna charge for lending money on the loan.
[00:20:31] Vance Lowe: That would be two separate interests, wouldn’t it? Okay. And again, this all part of that exponential compounding and it’s all taxed advantaged. That’s powerful.
[00:20:40] Eric (Host): Absolutely powerful. Alright guys, any other closing thoughts for today’s podcast? We’re running low on time. This, it goes by so fast. I mean, this is crazy.
[00:20:48] Eric (Host): Anything that we need to close with today?
[00:20:50] Seth Hicks Esq.: Eric, we’re talking about a lot of different things here with these pillars, but one thing that we’re gonna lay seed for that I wanted to lay seed for and then I’ll, I’ll hand the mic to Vance, is we haven’t even [00:21:00] scratched the surface on asset protection and financial privacy mm-hmm.
[00:21:04] Seth Hicks Esq.: That this provides. And when you faced bankruptcy and you faced complete financial devastation, once you begin to crawl outta that hole and amass assets again, the last thing you want to do is ever stare that loss in the face again. Yeah. And so. That’s one of the first pillar of private banking strategies is asset protection.
[00:21:23] Vance Lowe: Yeah, I really don’t have that much more to say other than the time goes by so fast. There’s so much to detail out here. We could spend a half a year in these podcasts just going over this family and everyone of our listeners would go away, much more educated and understanding
[00:21:40] Eric (Host): how money works. Well, and the beauty of it is, is that for those listening, this will not be a six month podcast.
[00:21:44] Eric (Host): I promise that we’re gonna wrap it up here. But the beauty is that there is more information, there are more resources that these guys have, and they’re willing to give it away for free. There’s a Loom video that we talked about a little bit earlier in the show, and that is something that we will be putting into the show notes.
[00:21:58] Eric (Host): So it’s about a 30 minute [00:22:00] video, if I’m not mistaken, that really breaks things down, gives you the numbers, walks you through. It’s a visual so you can see that. And that will be in the show notes. So you can go ahead and click on that. It’ll take you right there. And that is. Given to you by these guys for free.
[00:22:12] Eric (Host): Take advantage of that. Seth and Vance. Again, thank you so much for your time today. Great information. I know that we’re gonna do a part three just on this family as well, so we’re gonna come back and break down more of the strategies. Sounds great, Eric. We really appreciate it. And of course, our last thank you goes to you, the listening audience.
[00:22:27] Eric (Host): We wouldn’t be here without you. Thank you so much for tuning in and listening to the Private Banking Strategies podcast with Vance Low and Seth Ethics. If you have not subscribed to the podcast yet, please click the subscribe now button below this way. When Vance and Seth come out with a new podcast, it’ll show up directly on your listen device.
[00:22:40] 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 at [00:23:00] www.privatebankingstrategies.com. Thank you for listening to the Private Banking Strategies podcast.
[00:23:07] Outro: Click the subscribe button below to be notified when new episodes become available.
