[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 protect. 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] Eric (Host): Hello and welcome to Private Banking Strategies with V Low and Seth Hicks.
[00:00:42] Eric (Host): If you’re joining us for this podcast, I’m hoping that you listen to the last one because this is part two. Vance started to to tell the story about twin sisters who used two different strategies to finance cars throughout their lifetime. And man, they’re just, just some amazing benefits that happen.
[00:00:58] Eric (Host): Vance, thanks [00:01:00] for coming back, man. I know that we’re gonna pick up this story kinda where you left off a little bit.
[00:01:05] Vance Lowe: Oh yeah. So I’m, I’m excited to get into this. I know Seth is, Seth is going to help dissect and get into even more detail as we go along. But I just wanna bring our listening audience in to the point that there are two separate stat strategies, just like Eric had said, but one is a very popular, well-known strategy, which called the CD method that some people use to collateralize the money in CDs.
[00:01:32] Vance Lowe: To borrow and finance cars. This whole story is about financing cars, but when we think about financing cars, it’s all about outflow of money, isn’t it? Mm-hmm. What’s our payments? Well, how much do we have to pay for the vehicle? It’s all outflow of money. Well, somebody has to get that money, and that’s the banks.
[00:01:54] Vance Lowe: Okay. Or the finance companies or whatever. What do they make? Off of financing [00:02:00] our cars for us. And this is the reality. This is what you’re seeing. This was the high numbers of self banking or self financing. So we want to delve into that. Uh, I want to pick up kind of where we left off. We had talked about over 50, 51 years of investing that the CD method after tax had $259,000 rounded up just a little bit.
[00:02:28] Vance Lowe: But the IBC sister with this special banking contract has almost $1,965,000 is what’s in the account. Hmm. And why is there such a discrepancy? We went through that in the last podcast. So go. We want you to go over that. That opens up a whole world to these twins. Okay, so picture these two over a lifetime that now need to break into this money and use it for retirement income.[00:03:00]
[00:03:00] Vance Lowe: The CD sister is going to be able to pull out $50,000 a year, but for a very limited time, and she’s gonna be totally outta money. And the reason we used $50,000, ’cause that was on the high end of what was calculated for the IBC sister where she could pull out $50,000 a year. For the rest of her life. In the illustration, we go to what’s called uh, a common mortality Age or time, and here we ended it at 64 years, thinking that if these people graduated from high school, that would put ’em around, I don’t know, 80.
[00:03:47] Vance Lowe: 3 85, and that’s was life expectancy when this chart was done. So we’re gonna go in and dissect this a little bit, but one person will run outta money really quick. The other person [00:04:00] won’t run outta money and every single year, even though she’s spending. $50,000 a year. Her account is growing and she’s gonna pass on a tremendous amount of money.
[00:04:13] Vance Lowe: So I’m gonna pull Seth in here now, and I want Seth to really go into this. I want to have him talk about the tax issues, whether we have to pay tax on this money or not. Time versus money. We, we’ve got lots of things to go over in this podcast, so pick it up, Seth, and let’s, let’s go through that. Sure, let’s help these people understand this.
[00:04:36] Seth Hicks Esq.: What, what Nelson Nash did was really brilliant with these twin nieces. He, he got them to buy into financing a car because that’s what they could elevate their mind to, but really he had a long-term strategy in mind, and that was. Uh, retirement planning, at least for the IBC sister. And one of the, the things that I mentioned in the closing of our [00:05:00] last podcast is we’re gonna have, uh, a loom video where Vance Dissects spreadsheets in greater detail and drills down and make that available for our listeners along with some media, a spreadsheet that you can follow along some of the, the numbers that we’re discussing.
[00:05:16] Seth Hicks Esq.: The IBC sister had over a million dollars available in her. Policy to draw down on. But what really is phenomenal, phenomenal about this is that she could take $50,000 out a year until she died, so that she never ran out of money and. That’s the number one fear of Americans that are in the retirement age bracket, that they’re gonna run out of money before they die and when they need it most.
[00:05:42] Seth Hicks Esq.: That’s statistically, uh, proven from numerous studies, and it’s only increasing with inflation. Basically cutting your money in half within about 20 years. So Americans will have half. The spending power in 23 years than than they did when they had the [00:06:00] money originally. So I don’t know if many people have thought about how that’s gonna affect them, but if you implement a private banking strategy, IBC banking policy, you won’t have to deal with that.
[00:06:10] Seth Hicks Esq.: There’s seven pillars. Of private banking strategies, and one of them is the velocity of money and being able to use the same dollar over and over again, and this illustration represents that, that principle very well. Whereas you’re paying a premium dollar, you’re able to. Pull, uh, a premium dollar back out to use it for purchasing an automobile or a, a mobile home or a, a rv, as you described in the last podcast, Eric, or a piece of real estate, anything that, that you can get another touch on your dollar with that.
[00:06:46] Seth Hicks Esq.: It cycles. The money and the velocity of money is something that we’ve, we’ve got some articles about, we’ve got some different content that deserves more attention, but that is one of the secrets of this system as well, getting [00:07:00] multiple touches on the same dollar.
[00:07:02] Vance Lowe: Well, Seth, let me ask you this question because I think our people need to know.
[00:07:06] Vance Lowe: They need to know how much these twins invested to get this thing started. And what are the tax advantages on this retirement income?
[00:07:17] Seth Hicks Esq.: Well, that’s what blows your mind is they, they initially put $5,000 a year for seven years, so $35,000 capitalization in the beginning. Then they paid themself back interest, uh, on whatever they borrowed out.
[00:07:32] Seth Hicks Esq.: Both of them paid back interest and the IBC policy also had the reinvestment of dividends. So the initial capitalization was $35,000, which is mind boggling to think at the end of your life you can withdraw 50,000 until you die and have a death benefit, which is something we haven’t even talked about.
[00:07:53] Seth Hicks Esq.: The CD sister, when she dies, she dies penniless. And with no [00:08:00] inheritance for her beneficiaries other than her burial, uh, expenses, tax and estate expenses, if any, whereas the IBC sister has $1.3 million in death benefit that only grows each year of her life as she continues to. Pay paid up additions writer on the policy, so her heirs and beneficiaries get a $1.3 million surprise, and the CD sisters get a tax bill and a burial funeral expense bill.
[00:08:30] Vance Lowe: That’s it’s typical to life, though most of us are following the example and mentality of the CD sister. I want to share one more thing, and that’s the, uh, time and the principle of compounding interest. We’re also showing here uninterrupted compound interest. We have to build a format, though, that’s why it’s a slow start.
[00:08:54] Vance Lowe: When you look at the charts, the growth from year one to year two equals [00:09:00] a number, but then in year 50 to 51, the growth. Is a different number between those two, Seth, which one has the highest growth? At the end of the cycle? At the end of the cycle. So year 50 to 51. You grow the money the absolute most, correct?
[00:09:25] Vance Lowe: Correct. What would happen if we procrastinated one year? Would we lose year one? Or would we lose year 51?
[00:09:37] Seth Hicks Esq.: Well, you lose year 51 and it, it’s exactly what we talked about in the last podcast where my eyes were open to the fact that the real parabolic increase in compounding growth comes at the very end.
[00:09:49] Seth Hicks Esq.: It went from two and a half million dollars to $5 million. So if you skip that day or that year, you’re getting cut in half.
[00:09:58] Vance Lowe: Absolutely. In our [00:10:00] book, when, when, when our people take a look at that, thank goodness we didn’t go to 31 days ’cause it would be 10 million. So unbelievable. 11 million actually. So folks, what we’re trying to share here is they’re the, there’s the common way to do things out there, which is the bank’s way and the banks always get the money back, right?
[00:10:23] Vance Lowe: We’ve been able, we go earn a new dollar. We pay our taxes. Everything else, what we bring home is ours. And that’s called principle folks. And we’ve heard somewhere throughout our life, I don’t think anyone is naive enough to say, well, I’ve never been told that you never spend principle, but yet that’s our take home.
[00:10:45] Vance Lowe: Mm-hmm. And we have to pay bills. Right? We’ve gotta live. But the people who understand money follow two rules. Number one, never spend. Principle [00:11:00] number two, always follow rule number one. That’s your Warren Buffetts, your Donald Trumps, and all the successful people who understand money versus the flow of the popular thing.
[00:11:14] Vance Lowe: And we call that the herd mentality. Folks don’t get caught up in what everybody else is doing. Because the successful people who grow money, they don’t follow that herd mentality. They don’t even do any, hardly any of the things that we, the common people like to do. We’re told that, Hey, you know, we’re doing IRAs or 4 0 1 Ks.
[00:11:37] Vance Lowe: We participate. We think we’re, we’re getting an advantage there when in fact we’re not. They do not only don’t do those things, they do 180 degrees opposite of what. We do, but here’s what we have to f uh, fight. And this is why I joke and I tell people, if you’re gonna learn about this strategy, [00:12:00] it’s like me teaching you Martian.
[00:12:02] Vance Lowe: If I teach you how to speak Martian, who are you gonna be able to communicate with? And, and really what we’re talking about here is that the way money grows is alien to us. ’cause we don’t understand it. We don’t know. We think we do, but we really don’t understand. How money flows and works, and that’s where our problem lies.
[00:12:23] Vance Lowe: It’s not what we don’t know, it’s what we think we know that’s incorrect. So folks, here’s the sad thing, and I’ve run across this thousands of times over my financial career in managing assets for people. The people who under start changing and, and understanding they gotta follow their own path are always successful, however they succeed.
[00:12:50] Vance Lowe: Alone. So many people out there would much rather fail with company than succeed alone. Would you agree?
[00:12:59] Eric (Host): Yeah. [00:13:00] And, and I wanna, I wanna interject here real quick because we’re, we’re gonna, I’m hoping that the audience can kind of see themselves in these, in these situations. And one of the things that I wanna talk about when we come back is the, the fact that I don’t think anybody as a parent or even a grandparent wanna be dependent on.
[00:13:19] Eric (Host): They’re family. I don’t want my kids to have to take care of me when I’m older. I don’t want my grandchildren to have to take care of me when I’m older. And I wanna bring up a point that I’ve learned through this discussion about the twins. When we come back. Uh, we’re just gonna take a quick break so you guys can get some contact information and, and Seth has mentioned it on a previous podcast.
[00:13:37] Eric (Host): There are loom videos that these guys do that Vance does specifically, that are gonna be available to you as as a resource. So we want you to get that information and that’s what this little brick is about. We’ll be right back.
[00:13:50] Midroll: Do you see yourself in that story? Do you feel like you are generating a lot of revenue but are not moving forward as fast as you would like?
[00:13:59] Midroll: Are you [00:14:00] ready for help? Please call private banking strategies at (817) 200-4777 or visit us at www.privatebankingstrategies.com.
[00:14:18] Eric (Host): All right guys, we’re back and, and I just have to say something because this, the whole concept still blows my mind. I’m still trying to piece everything together and I’m gonna stick with you for every podcast that you guys are gonna do. ’cause I need to get this stuff down pat. But I wanna go back to the retirement income that you were talking about with these two sisters and.
[00:14:38] Eric (Host): Starting in year 51, right? That’s when they, they start taking that $50,000 a year income. And just for kicks and giggles, we’re gonna say they live another 20 years. Seth, you said you made a comment about the, the CD sister. All she’s leaving, uh, to her family is funeral expense and so on and so forth, and we all kind of chuckle about that, but more than that.[00:15:00]
[00:15:00] Eric (Host): That $50,000 a year only lasts about five years, or five and a half years according to, according to what you’ve shown me. So not only does she leave that debt of her funeral expenses, she lives for the next 15 years after the money runs out with nothing. Let, let’s say that she doesn’t have any other retirement accounts.
[00:15:18] Eric (Host): Neither one of do, they don’t have any, they don’t have 4 0 1 Ks, they don’t have anything besides these two systems. That’s 15 years of, oh, but Eric, she’ll, she’ll qualify for fruit stamps. Oh, well that’s fantastic. Thank you for that. Yeah, we, yeah, so, I mean, but, but that’s what, that’s what bothers me most about this.
[00:15:35] Eric (Host): I think, uh, you know that once that 50,000 a year is gone, then she’s dependent on somebody else or the government, which nobody wants to be dependent on what the government decides for you. I, I just don’t think anybody. Uh, I thinks that’s a good idea and again, I, I, yes, I am blown away by the fact that the IBC sister contin, her account continues to grow even though she’s pulling money out every year.
[00:15:58] Eric (Host): It continues to grow above and [00:16:00] beyond, which still blows my mind, but my thoughts are more of, I don’t wanna be a burden to somebody. So I think that’s what one of my favorite points that you guys have have said so far.
[00:16:11] Vance Lowe: Yeah. Seth, you can expand on that really wonderfully. So give us your thoughts on that.
[00:16:17] Seth Hicks Esq.: Well, you’re touching on something that most baby boomers are, uh, conscious of and share your same sentiment, and that is being a burden to their family or running out of money before they die and, and being destitute. And it’s not just a fear, it’s an actual reality. Most, I think the, the median savings of age 57 to 74 is about $152,000, which is dismally insufficient.
[00:16:45] Seth Hicks Esq.: And they will be a burden to family or they will be on government services. And not to mention that the increasing healthcare costs are estimated, I believe, at about $300,000 for a married couple [00:17:00] that’s not covered by Medicare, and that’s not accounting for taxes. So if, and that’s for the medical needs that are arising for today’s baby boomers and elderly.
[00:17:11] Seth Hicks Esq.: So that’s not talking about retirement income so that you can actually enjoy or just survive. I mean, how much would it take to have a comfortable living? This will, this will shock you. Most people think, well, if I’ve got a million dollar nest egg, I should be able to make it. And I’m talking about a million dollar nest egg that’s in traditional.
[00:17:32] Seth Hicks Esq.: Retirement so-called retirement plans like 4 0 1 Ks and IRAs. The, the reality of that is that you’ll be able to pull out $28,000 a year, which is next to nothing. Yeah, and the, the, the facts show that you’re probably gonna need about a $3 million nest egg using. Traditional retirement strategies to be able to pull out just enough, and that would be about $84,000 a year.
[00:17:58] Seth Hicks Esq.: And that’s not taking into [00:18:00] account the healthcare costs that I mentioned, nor is it taking into account the tax burdens that come along with withdrawing money from those 4 0 1 Ks. Mm-hmm. IRAs or other government sponsored entities. And that’s why this, the IBC private banking strategy, sister knocks it out of the park.
[00:18:20] Seth Hicks Esq.: IRAs can’t compare to that. 4 0 1 Ks can’t compare to that. Any type of government sponsored program can’t compare to that. And the re the reason is, is because the government’s always gonna get their tax money now or later, or now and later, Eric. Mm-hmm.
[00:18:36] Eric (Host): Well, I mean, and required minimum distributions is a big conversation that a lot of people are having right now.
[00:18:41] Eric (Host): RMDs, this doesn’t have RMDs,
[00:18:44] Vance Lowe: right? No, no. I also wanna point out, Eric, this $50,000 from the IBC sister is not income. It’s not taxed. Mm. It it comes out from an existing [00:19:00] in investment as basis. Basis has already been, been taxed until they get down and, and have used all the basis. And, and for these folks it’s 35,000 for what they’ve put in in the early years.
[00:19:14] Vance Lowe: Plus the interest she put in over time, she can pull back out and then she’s actually borrowing the money from the accounts and loans aren’t taxable. Those loans are for not forgiven. They’re subtracted from the death benefit, and we’re trying to show you what the net results is after that loan is paid off, what is passed on to errors.
[00:19:39] Vance Lowe: This person could also qualify for food stamp because this is not considered income. Now we don’t wanna do that, but I’m just trying to talk about a point and, and answer your question, Eric. Let me explain something very important here. We arrived at almost a million dollars over a lifetime [00:20:00] just trying to take care of the need of financing vehicles.
[00:20:05] Vance Lowe: This IBC Sister accumulated this money over time. What would happen? Instead of $10,550 that she financed, we fi, we doubled that to 21,000. Would this million dollar total at the end of this time be higher or lower, Eric?
[00:20:27] Eric (Host): Well, I mean, my, my brain says it would be lower because you’re taking more money out to finance the car.
[00:20:34] Eric (Host): But I don’t think you’d be bringing this up if it was lower.
[00:20:38] Vance Lowe: Absolutely not. It would actually double. The amount in the account, so it would go to $2 million. Wow. So if mom financed her $21,000 car and dad financed his $21,000 car, there would be somewhere around $4 million in the account. Now we’re going back to, to [00:21:00] Seth’s comment of what it’s gonna take to retire.
[00:21:02] Vance Lowe: All we did was solve. The equation of financing vehicles under our own terms, under our own bank. So our whole premises here, guys, is putting the banking equation back in our lives instead of giving it away. If we do the banking, we reap the profits. We’re talking about millions of dollars of profits that someone else is gonna make.
[00:21:29] Vance Lowe: Mm-hmm. Off of our financing if we don’t sell finance. And your retirement’s assured it’s so easy to become independent, and this is why I think banks are diabolical, unethical and need to be brought to bear for crimes because had we known this, had we been taught this and set up from the time we left home, we would never have to worry about income for retirement.
[00:21:56] Vance Lowe: Comment on that. That’s, there’s so much more to talk about. [00:22:00]
[00:22:01] Seth Hicks Esq.: Sure this, this, it wasn’t originally like this. This system, this secret, so-called secret system has been around for centuries and it has paid dividends and never gone backwards throughout the Civil War, the Great Depression, the great recession, and every other economic downturn and the.
[00:22:21] Seth Hicks Esq.: Ultra Rich and politically elite have been using it during that entire time. The banking system that we’re currently in is a product from, from a brain trust in the 1913 when the IRS was created and when the Federal Reserve was created. And we’ve got some resources that we can refer out to people who wanna learn more about that.
[00:22:43] Seth Hicks Esq.: But that is the, the where the. I guess there was a fork in the road, so to speak. Mm-hmm. But you don’t have to play in that sandbox, and you don’t have to play under that slavery as in effect what it is. You can come out of that [00:23:00] and make your own rules, have guaranteed financing, protect your assets, keep yourself financially private, and enjoy all the tax free growth that we’re describing by simply entering into one of these special contracts.
[00:23:16] Eric (Host): Guys, I, I’m, I’m blown away. Uh, again, you’ve done it again because my brain hurts and because mainly ’cause I’ll be honest, I, I’m really interested and looking forward to a future podcast. I don’t know when that’ll be, but I, I think that anybody who has signed up for a 30 year mortgage, like most of us have, when we go to purchase a home, we see the pay schedule and it, it.
[00:23:37] Eric (Host): The first time I ever saw that pay schedule, it really made me sick to my stomach because I remember looking at that saying, okay, I’m paying, I think it was $1,300 at that point, $1,300 a month for my mortgage, and out of that $1,300 it was, I think it was like $1,200 was all interest. I was barely paying anything toward the home.
[00:23:56] Eric (Host): And so this really excites me knowing that we set our [00:24:00] own interest. We, we are paying our own bank, so it’s not some other bank. Getting all that extra cash that doesn’t even count toward my home. So yeah, I’m, I’m really excited. I, I know that we’re running low on time today, so I want to ask both of you for closing thoughts for this story in this scenario, but I’m looking forward to the next few podcasts.
[00:24:17] Seth Hicks Esq.: Yeah. A Abso absolutely, Eric, it’s, it’s something that blew me away when I first discovered it and I met Vance. I was a client of Vance’s before we became partners, and it’s revolutionized my financial life. It absolutely has.
[00:24:34] Vance Lowe: And for me, I, I tell a little bit of a story how I found out about this. I was ever searching to come up with the best money management strategy for clients to help ’em retire independent.
[00:24:46] Vance Lowe: How would you feel when you discover that everything you were doing for an entire career, 38 years, was somebody else’s strategy built? To return all assets and all [00:25:00] money back to the banks. In other words, you discovered you were doing it wrong.
[00:25:03] Eric (Host): Mm-hmm.
[00:25:04] Vance Lowe: Here’s a home run folks. This is the holy grail.
[00:25:07] Vance Lowe: There’s no risk here except the person looking back at you in the mirror. That’s the only person that can steal from you. There’s no economic risk. There’s no market risk or downturn risk in self banking strategies. So I hope this is helpful. I hope you can see yourself in here and that people can see there might be a better way than the way I’m doing it now.
[00:25:33] Eric (Host): Yeah, absolutely. Vance and Seth again, I, I am very excited about these next few podcasts. I’m ready to learn more. So thank you so much for your time. Thank you for the resources that you’re, uh, putting up for all the listeners. And of course, our last thank you goes to you listening audience. We wouldn’t be here without you.
[00:25:48] Eric (Host): So thank you for tuning in and listening to the Private Banking Strategies podcast with Vance Low and Seth Hicks. 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 [00:26:00] on your listening device.
[00:26:01] Eric (Host): This makes it much easier to share these podcasts with your friends and family. Again, thanks for listening today. For everyone at Private Banking Strategies, this is Eric Johnson reminding you to live your best day every day, and we’ll see you next time.
[00:26:13] Midroll: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals?
[00:26:21] Midroll: Do you feel stuck? Let us help you get unstuck. Are you ready to take action and get your own private bank? Please call private banking strategies at (817) 200-4777 or visit us at www.privatebankingstrategies.com.
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