[00:00:00] Intro: Welcome to Private Banking Strategies Podcast with Vance Low and Seth Hicks, your secret weapon to protect your assets and never have to start over financially again. Vance and Seth help high net worth individuals, families, business owners, and investors structure and asset protected fortress for their families.
[00:00:21] Intro: Learn how to keep what you earn and use the velocity of money. To create your own private banking system. Join us on this journey as we explore the secret strategies of the rich and political elite and help you take total control of your financial security now onto the show.
[00:00:37] Seth Hicks Esq.: Hello. Welcome to the Private Banking Strategies Podcast with V Low and Seth Hicks.
[00:00:43] Seth Hicks Esq.: This is a secret weapon to protect your assets and never have to start over again financially. Hey, Vance, how you doing?
[00:00:50] Vance Lowe: Hello. Hello. Hello. It’s uh, nice to see you again, Seth, and it’s great to get back in the saddle and get, uh, another, uh, podcast for our listeners. [00:01:00]
[00:01:00] Seth Hicks Esq.: Likewise. Yeah, absolutely. So today we’re gonna talk about private banking strategies is an investment strategy.
[00:01:07] Vance Lowe: Well, yeah. One of the things that really caught my eye in seeing that you don’t have to be limited was the ability to get the money back. Like banks, you know, we live around banks, do everything with banks. We try to take every advantage. We always complain that the banks aren’t treating us right. Which is correct, by the way, but the banks are doing something right.
[00:01:30] Vance Lowe: That we or the public doesn’t do. We are switching people from spending money to using money. Lemme give you a good example here. If I was a money manager for you and you gave me a hundred thousand dollars to manage the first year, I double it in year two, I lose 50%. In year three, I gain 25%. In year four, I lose 12.5%.
[00:01:59] Vance Lowe: At the [00:02:00] end of four years. Now, this is probably unfair to everybody, how much is in your account? If you’re a good math wizard, you’re gonna be very close to a hundred thousand dollars, right? But guess what? I legally get to put in the prospectus for that four years. That fund averaged a 25% annual rate of return, because mathematically, that’s the number that comes up, and people will invest in that all day long, but they ask the wrong question.
[00:02:29] Vance Lowe: The correct question to ask folk and, and this will really throw your brokers in a tizzy, ask, what is the yield on this account? Yield means money put in the account. That cannot be returned, that can’t reverse. It cannot be reversed. Banks were very big at the beginning on yield, especially savings accounts.
[00:02:54] Vance Lowe: Everything, you know, everything’s in your account and nothing can be taken outta your account. Life insurance is that [00:03:00] way. It’s all based on yield, okay? Everything that all the profits, you know, they could have a, a big profit one year and a loss the next year. Nothing comes outta your account.
[00:03:12] Vance Lowe: Everything’s there. All the guarantees are there. So yield is important because if you would’ve asked me what’s the yield on that four years, I would’ve had to say zero. Now, how likely are you gonna be to buy that investment? Yeah, you can do that with stocks, bonds, mutual funds. They’re gonna tell you, you can’t.
[00:03:32] Vance Lowe: Well, we don’t have any of that information. Well, then why would I wanna make a decision on false information on a mathematical number that doesn’t equate to what I’m actually going to get?
[00:03:44] Seth Hicks Esq.: Right.
[00:03:45] Vance Lowe: That’s one of the biggest faults and problems with, uh, financial planning. Right. So what’s the counter to that, Seth?
[00:03:55] Seth Hicks Esq.: Well, viewing the big picture and looking at your whole personal economy [00:04:00] and focusing on yield, obviously with your investments and where you’ve got your money at work. Also, I mean, there’s elements of keeping control, having, you know, the decision making power at being smart with your own decisions. But that’s, that’s kind of a tangent, but I think, you know, it’s basically looking at a big picture rather than, uh,
[00:04:22] Vance Lowe: small picture.
[00:04:23] Vance Lowe: Right? So here, the, the first thing I saw on this topic was they, I now own the debt. I woke up my money and I actually bought my debt. I bought my mortgages, I bought my automobiles, I bought. Everything I possibly could, my comp, other companies, you know, and now I am receiving all that third party profit is coming into me.
[00:04:52] Vance Lowe: But guess what, Seth? And folks, it’s totally tax free. All the money I got back on my, for my automobiles, that [00:05:00] half a million dollars. Totally income tax free. Talk about a macro picture. This is wide open. You open this up to your extended family. Hey, we got a family bank. We’re gonna sell finance. We’re gonna charge a good interest rate.
[00:05:15] Vance Lowe: Interest rate’s gonna be turned around and it’s just gonna multiply like crazy. So good difference, uh, between, uh, micro and macro net worth. Is a measurement for financial planning and net. Net worth is, is what people go on. And you know what? That doesn’t feed people, right? If you have a net worth of that and you don’t have control of that.
[00:05:39] Vance Lowe: That’s meaningless. It’s great for the IRS because they can tax you on it. So what’s the alternative?
[00:05:45] Seth Hicks Esq.: Rather than managing or measuring rather, in the total portfolio value and creating bigger portfolios, it’s more about cash flow is the measurement, especially when you’re buying debt. And you’ve got cash flow streaming back into [00:06:00] your banking system.
[00:06:01] Seth Hicks Esq.: Like you had mentioned, the more debt that you purchased on automobiles and real estate, the more cash flow you’ve got coming into your banking system. That’s, that’s really the measurement.
[00:06:11] Vance Lowe: I agree with that right off the bat. When I started this, I received the training from the very best people out there.
[00:06:19] Vance Lowe: R Nelson Nash himself really tutored me on this concept, so I immediately sold my company and received quite a bit of money, and Nelson Nash in his books and everything else set up a process of funding. Your bank funding your company, your lending company first, you know, so it’s profitable, and then start.
[00:06:42] Vance Lowe: The money process coming out. Well, I figured right off the bat if we used what’s called a paid up editions writer, we could go back or do a big portion in single premium, which is cash valuable immediately, and I could start banking almost on day [00:07:00] one. But I had all this cash back in my control. I was worried where I was gonna put it.
[00:07:06] Vance Lowe: So I decided right now my monthly overhead for all my stuff, uh, back then, 20 years ago was $10,000 a month. I could buy that debt. But did I wanna wait five years to get that into my life insurance policy? So the math at. $10,000 a month is $120,000 a year, times five. That’s 600,000 bucks. I don’t think I could make that up had I waited, so I.
[00:07:33] Vance Lowe: Macro plan together. I bought the debt and I reversed the cash flow of $10,000 to inflow. That’s literally a $20,000 difference from depletion to addition every month, folks. That’s what we’re talking about here.
[00:07:50] Seth Hicks Esq.: Yeah, and Nelson describes that in his book with regards to drag versus lift. Right, or maybe he didn’t describe it in his book, but he [00:08:00] certainly taught the principle of an airplane heading into a headwind, which creates a drag or, or a sheer down.
[00:08:06] Seth Hicks Esq.: And that’s what that $10,000 going out and you losing control of it and you losing the ability to put it to work versus having, buying the debt, having that 10,000 coming in and creating lift and a tailwind that accelerates your wealth curve.
[00:08:22] Vance Lowe: That’s beautifully said guys. Well, let’s go on. From that. On the financial planning side, we were always 100% oriented to retirement and for the life of me over 30 years of this type of planning, I had to be able to answer the question, which is the fear question, which I retire.
[00:08:42] Vance Lowe: Am I going to outlive my money every, I don’t care what, how much they had. That was the number one fear when I retire, am I gonna outlive my money? Because you, they admitted they’re going out of production. They’re not gonna be creating any more cash flow, and [00:09:00] you can’t do that. You can’t run an economy that way.
[00:09:03] Vance Lowe: So it was always a reward not to work. So the opposite of that, Seth, is, you know, what is this abundant freedom oriented?
[00:09:16] Seth Hicks Esq.: Well, it’s enjoy your life now and create a life that you wanna live now and have predictable money for retirement, but you can still utilize and create that velocity that we’re talking about and that return on your, the cash that you’re putting to work in your private, uh, banking economy, and it’s not stored up for some rainy day, you’re able to actualize and realize it now.
[00:09:46] Vance Lowe: So lemme give a a little picture on that picture of small Town. There’s a bank in town. You own the town in essence, you own the bank in town, you own that town, but there’s a lot of other stores and things [00:10:00] and, and commerce going on and. This is what we’re talking about in abundance. Everything is going on pretty soon.
[00:10:09] Vance Lowe: Town has maneuvered itself so that it is attracting far more money coming into town than is leaving town. And when a town does that, it really prospers and people can live on that. They can live the way they want to, do the things they want to do, but there still are. Operating their town. And that’s what we’re talking about here, folks, switching from working from someone or even working from yourself, which is still for the government and you know, the banks to operating your own private system that creates no taxable events.
[00:10:47] Seth Hicks Esq.: And that’s a huge one right there, is that this growing and compounding without any taxable event as you use your money, as you pull it out, as you buy the debt. And then as you ultimately take it out in [00:11:00] retirement or as it’s given to the next generation, there’s no tax consequence there.
[00:11:06] Vance Lowe: Absolutely, absolutely another product of, uh, financial, uh, planning is everything lives and dies on interest.
[00:11:15] Vance Lowe: It’s all about interest, and that’s wrong. This is what got me so angry. I was very good at this. We were really good at this compared to the national money management firms all over America. We were really priding ourself. Here, but this was the focus, it was all about interest rate returns. And this is not how wealth is built.
[00:11:35] Vance Lowe: Interest rate doesn’t pass on. And so the alternative, and I wanna say this a different way, uh, Seth, and I want you maybe to explain it. It’s from living only on interest to using and replacing principle.
[00:11:51] Seth Hicks Esq.: What comes to mind right now is how interest rates have moved up and it created like a housing freeze in a [00:12:00] sense.
[00:12:00] Seth Hicks Esq.: I mean, people can’t move out of the house that they have and buy an equivalent comparable home because of the interest rates. If they’re locked in a mortgage rate that they had pinned at three or 4% over the past five years at all time lows, and now they have to, and that’s ticking up. A point or two points, their, uh, mortgage, uh, payments for the same type of house will almost double.
[00:12:25] Seth Hicks Esq.: And so I think that we’re gonna see continued housing, cooling, market cooling. And so when you’re locked into that type of mentality where it’s interest rate driven, you’re very limited in what you can do. And the same thing would be for anything that you’re going to, that you’re going to finance, unless you’re using your own.
[00:12:44] Seth Hicks Esq.: Financing entity. And then it’s, it, you’re, we’re not interest rate driven. You’re actually the banker and you want an interest rate that fits within your means, but as high as possible. So, but especially when it’s tax free and coming back into your control. [00:13:00] So you want to be able to live within your cash flow, within the money that you make, but within that, there’s, it’s not an interest rate driven mentality.
[00:13:13] Seth Hicks Esq.: Yeah, I, I agree with that a hundred percent.
[00:13:14] 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 you get unstuck.
[00:13:34] Midroll: Are you ready to take action and get your own private bank? Please visit us at www.privatebankingstrategies.com. Another philosophy
[00:13:47] Vance Lowe: of financial planning compared to what we do is money stay still. You put the, literally, I learned that you put the money asleep. When you have to leave money in an [00:14:00] account to earn an interest rate return, that money is asleep for you.
[00:14:03] Vance Lowe: It is not working for you. It’s working for the individual who has the money versus what? What’s the opposite of that? Seth? Moving
[00:14:12] Seth Hicks Esq.: money, moving and creating velocity. Right.
[00:14:15] Vance Lowe: Yeah. So that’s what, this is why lending companies lend money is to get this velocity and volume, okay? The velocity means every time a a dollar has absolutely no value until it moves, until it trades hands, okay?
[00:14:31] Vance Lowe: And it’s a touchdown, and it goes up in the air and it touches down. And so the velocity means how many times can I get it to touch down in a year? Right, because every time it touches down, it’s gonna create another dollar’s worth of product and services. That’s how money works. Okay. The volume then comes into, can I make that circle and keep adding more and more and more money and lending more and more money out there to increase my cash flow return [00:15:00] into me.
[00:15:00] Vance Lowe: That’s the secret. That is the difference, right? An age old strategy that has never been updated versus the way America. And I believe in a higher maker that, you know, our country was, you know, was really blessed with a strategy to make it so powerful and so strong faster than any emerging company in, you know, in history.
[00:15:25] Vance Lowe: Based on this strategy, dollars do only one job and financial planning, what does that mean for financial planning? What does that mean?
[00:15:33] Seth Hicks Esq.: Yeah. Well, I think that it’s more of a scarcity, poverty type mentality as a, you know, saving for education and. Emergencies and retirement and the Someday type mentality and always saving, and we, we talk about that in podcasts, about the fallacy of saving cash and buying everything cash and how that is a flawed paradigm, a flawed model.
[00:15:59] Seth Hicks Esq.: Spending the [00:16:00] dollar for one particular purpose, and then that purpose is met and your dollar’s gone and you can’t use it again. Whereas opposed to the private banking strategies paradigm, we’ve got much more robust application and use of the money. We’re able to, like you said, use it for more than one thing, have multiple touchdowns for the same dollar in a year, and being able to use it for multiple and flexible purposes as opposed to.
[00:16:25] Seth Hicks Esq.: One purpose only
[00:16:27] Vance Lowe: in America, we don’t even know we’re slaves to the system brainwashed in what we should do, and I called it get back to zero strategy. Uh, one of the cars when I first moved to Texas, uh, after I got married and uh, I was saved up for a car, I could buy a brand new Chevrolet I bought for 25,000 bucks.
[00:16:46] Vance Lowe: I went into the bank and said, gimme a check. I I’m gonna go buy a car. So I, it took me a couple years to save that up. I took them money and went and bought the car. Where does that leave me, Seth?
[00:16:58] Seth Hicks Esq.: Back at zero.
[00:16:59] Vance Lowe: Zero. [00:17:00] But I got a new car. Right, but the car’s gonna wear out, isn’t it? Right. So when people say to me when they do this very same thing, well, I don’t have car payments.
[00:17:09] Vance Lowe: I laugh and say, liar, you have to replace that car eventually. So you’re either gonna have to take more money out or whatever else. So the all alternative is go in debt and then make payments, you know? And then when you’ve got the car paid off, where? Where does that leave you
[00:17:28] Seth Hicks Esq.: back at? Zero zero.
[00:17:30] Vance Lowe: And a worn out car.
[00:17:31] Vance Lowe: Right? Okay. There’s a better system folks, rather than spending money having to go back to work. I’ve done some calculations for a lot of people and cell phone businesses. It could be as much as 25 to one to replace a dollar that you spend if you have to go back out into the workplace using your car, your wear and tear, your time making everybody else profit paying Uncle Sam just to get the dollar back so you can spend it again.
[00:17:59] Seth Hicks Esq.: Right, and [00:18:00] you’re implementing your own private banking strategies where you are empowered as the, the, the banker. You make the decisions with investments that you’re comfortable with, that you know about. For some people, that’s real estate. For some people that’s widgets. For some people, that’s, you know, logistics and other person, it may be.
[00:18:19] Seth Hicks Esq.: Automobiles and they apply their trade expertise and empower themselves to manage their own financial kingdom, so to speak. And money can be simplified. It’s not something that is overly complicated that people should relinquish their control to someone or supposed guru, like you said, and, and, and then.
[00:18:41] Seth Hicks Esq.: Look back and and go, wow, I should have never done that. They should take control of their own finances and implement strategies like I said, that they’re confident with. So money can be demystified with private banking strategies and that helps build financial confidence. Our clients have financial freedom, financial confidence, [00:19:00] and control over their wealth.
[00:19:01] Seth Hicks Esq.: And if folks wanna learn more, you can find us at www.privatebankingstrategies.com. That’s private banking strategies.com. And on our website there you’ll be offered a free book that Vance and I wrote entitled, what The Banks Don’t Want You To Know. And that book highlights some of these issues and many more that act as a red pill to folks who are new to these ideas and these concepts.
[00:19:29] Seth Hicks Esq.: And also we’ve got all of our. Podcast there on the website that you can listen to for free. There’s content on every type of subject matter that you could want to understand with private banking strategies. We’ve got other resources and materials and articles and, and if you’ve done that, if you’ve read some of the emails that we send and these things are resonating with you, you’ve listened to some podcasts, you can schedule an exploratory call with Vance and ultimately create an eight year plan to see how.
[00:19:57] Seth Hicks Esq.: Private banking strategies will work [00:20:00] particularly for you and your family.
[00:20:01] Outro: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals? Do you feel stuck? Let us help you get unstuck. Are you ready to take action and get your own private bank?
[00:20:18] Outro: Please visit us at www.privatebankingstrategies.com.
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