[00:00:00] Intro: Welcome to Private Banking Strategies Podcast with Vance Lowe and Seth Hicks, your secret weapon to protect your assets and never have to start over financially again. Vance and Seth help high net worth individuals, families, business owners, and investors structure and asset protected fortress for their families.
[00:00:21] Intro: Learn how to keep what you earn and use the velocity of money. To create your own private banking system. Join us on this journey as we explore the secret strategies of the rich and political elite and help you take total control of your financial security. Now onto the show.
[00:00:37] Seth Hicks Esq.: Welcome to Private Banking Strategies podcast, Vance Lowe, and Seth Hicks.
[00:00:41] Seth Hicks Esq.: Hi, Vance. How are you?
[00:00:43] Vance Lowe: I’m doing wonderful, Seth. How are you doing today? You’re
[00:00:46] Seth Hicks Esq.: doing great. I’m excited about this, uh, podcast we’re doing today. We’re gonna talk about some frequently asked questions about private banking strategies. So these are routine questions that people have [00:01:00] that I, I think, will provide a lot of value and help educate listeners into how to maximize private banking strategies.
[00:01:08] Seth Hicks Esq.: So often we’re asked, can you put a lump sum into. A private banking strategies contract. Can you do that?
[00:01:18] Vance Lowe: You know, I’m so excited about that. We get that question all the time. There are people out there who have started hearing about a better way to store their safe money and a better way to use money than what they think.
[00:01:36] Vance Lowe: They should be doing. And so everybody’s questioning what’s going on with government, everything else, banking and this. And so some of the top questions, this is one of those top questions, is how fast can I fund money into these contracts? So can I super fund them? Can I dump money in, can I, you know, how quickly can I do that?[00:02:00]
[00:02:00] Vance Lowe: The answer to that question is absolutely yes, you can Superfund. And you can dump in money into these contracts, but under a guideline, and it depends on what the goal is for that money. If we break the rules going in, it will create a modified endowment. Will that make you worse off than you are today?
[00:02:25] Vance Lowe: No. You’ll still be much better off. Okay. But it is the best way to go. Maybe not. Maybe if we can stay on the right side of the fence of those rules, we could probably enjoy much more privacy. No reporting and no tax issues at all. Right. So yeah, I think we can do that. I think what we ought to do is maybe go into a little bit more depth, maybe give an example or something, because this is a pretty hot topic.
[00:02:55] Vance Lowe: Sure. Well, when
[00:02:55] Seth Hicks Esq.: we talk about safe money, I mean it opens up a whole Pandora’s [00:03:00] box with regards to where’s the best place to store cash. And we’ve talked about this many, many times and we’ve got a lot of resources on it. And you can’t help but address the safety or the lack of safety in centralized banks.
[00:03:17] Seth Hicks Esq.: So. In 2012, under the Obama administration, the Dodd-Frank Act was initiated and enacted into law. And that piece of legislation effectively treats your deposit into a centralized bank like Wells Fargo or Bank of America or Chase, JP Morgan Chase, or any of the other centralized banks as their deposit, their cash, and you have a right to access it.
[00:03:46] Seth Hicks Esq.: So long as they don’t become insolvent, and if they become insolvent, they effectively can bail in on your cash. And so the next line of thought that people always have is, well, what about FDIC insurance? Doesn’t that guarantee my [00:04:00] deposit up to $250,000? Well, it does on paper. How good is the paper that that promise is written on?
[00:04:07] Seth Hicks Esq.: When you analyze what the FDIC is worth on its best day, it may be a hundred billion dollars. There are $20 trillion in cash deposits in American banks, a hundred billion. And FDIC insurance will not cover $20 trillion in cash deposits. Needless to say it’s a penny or less depending on what the, the real value of the FDIC is.
[00:04:33] Seth Hicks Esq.: The only way that they would be able to make good on that promises is for the Fed Reserve to print $20 trillion worth of. Funny money and that would tank the entire economy. So as far as safe money goes, putting your money, your cash money into whole life insurance contracts, properly structured is one of the safest places it can be on earth.
[00:04:56] Seth Hicks Esq.: In the right states, it’s actually protected by law from [00:05:00] creditors. So there are numerous states generally in the South that protect the cash in these policies. Unlimited. So you could have $50 million in cash value in your life insurance contracts and it’d be completely protected from creditors. But that doesn’t even take into account Vance the fact that when you put your money in a centralized bank, they, they effectively pay you nothing.
[00:05:22] Seth Hicks Esq.: They make a ton of money off of you because of what’s known as derivative lending and fractionalized lending. So they take your a hundred thousand dollars that you deposit there and they take 90 of it and go make other loans. They have a 10% reserve or less, depending on how big a bank they are, and they make a whole lot of money on your 90,000.
[00:05:42] Seth Hicks Esq.: They don’t pay you anything. In fact, they probably charge you fees. Fees for bank wires, fees for a CH, fees for too little of a deposit, maintenance fees for this, fees for that, which effectively makes it a negative interest rate. But when you have it in an insurance contract that’s properly [00:06:00] structured, you’re actually making money on that average four to 7% a year compounding.
[00:06:06] Seth Hicks Esq.: So when we talk about safe money, you have to analyze those aspects of what I just described. I mean, you can’t make that in a cd. You can’t make that in bonds or money market accounts, four to 7%. You’re only gonna find that type of availability in. The life insurance and it’s guaranteed.
[00:06:24] Vance Lowe: Well, back in the day when, uh, life insurance companies were the banking equation for the average American family, the returns and the gains in these life insurance contracts far exceeded the stock market.
[00:06:39] Vance Lowe: Purely safe. These are. Contract. These are not assumptions. The only part of the assumption in a life insurance company would be the profits annually, and we only deal with companies who have never not paid a profit in their entire existence of over a hundred years. When we’re talking about. Safety, Seth.
[00:06:58] Vance Lowe: You know, Seth mentioned [00:07:00] that the life insurance industry is safe. They’re grandfathered in the Dodd-Frank Act. If they use their cash value reserves and they put that in a bank, they have a special dispensation where that always has to stay in cash reserves. They can’t fractionalize away this cash value in those accounts in those banks because that money has to be there.
[00:07:26] Vance Lowe: Life insurance companies have to be all times, a hundred percent of the time, fully cash reserved to cover all of their life insurance cash values. Okay, so back in the day when banks first started, they had to compete against the life insurance business because the life insurance had all the money. And so they came in to schools and every place else to educate or brainwash, however you wanna put it, that the banks were the safe place to put.
[00:07:55] Vance Lowe: And they were going against a very bad history because banks were [00:08:00] robbed right and left as they were starting up. The more banks that were there, the more robberies that occurred. Bonnie and Clyde and you know, all of these bank robbers out there that robbed banks, and so the money just wasn’t as safe, so they had to come up.
[00:08:14] Vance Lowe: With an insurance FDIC, they had to come up with a way to compete to get more money. And so the interest that they offered in savings accounts and their checking accounts were above 5%, six, seven, 8% depending on how long you had them. And this is what’s called yield folks. Yield means money put into your account.
[00:08:37] Vance Lowe: That cannot be reversed. The stock market has to be average rate of return because there are no yields unless you’re doing this type of account in the market where the value of that account will fluctuate. Stocks fluctuate every day. Mutual funds fluctuate every day. You have no idea what the earnings are really going to be.
[00:08:59] Vance Lowe: [00:09:00] Banking doesn’t work off that. Banking works off of 10 years from now, this account’s gonna be worth X, and that’s exactly what it’s worth. Or more depending on the profits,
[00:09:11] Seth Hicks Esq.: banks actually keep their safe money in the life insurance contracts, and we’ve talked about that in previous episodes about the annual premiums that banks pay and for life insurance policies.
[00:09:23] Seth Hicks Esq.: And the reason being is ’cause there’s no market risk or loss, and there’s a guaranteed predictable growth that’s many times higher than any other place to place your conventional safe money.
[00:09:35] 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?
[00:09:45] Midroll: 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 [00:10:00] www.privatebankingstrategies.com.
[00:10:06] Vance Lowe: Now, if you want to go get a loan at a bank, how hard is it?
[00:10:09] Seth Hicks Esq.: Of course, there’s rigorous loan application processes for most collateralized loans.
[00:10:15] Seth Hicks Esq.: And contrast that with accessing cash value in the life insurance contracts, there’s effectively no qualification. Because you’re the lender. Yeah. You’re able to access that cash value,
[00:10:28] Vance Lowe: so you have to disclose to a bank where you may have a whole lot of money, your business and all your accounts. You have to bring in tax returns, you have to bring in everything, and you gotta collateralize the banks.
[00:10:43] Vance Lowe: Don’t stop. When they’ve got enough collateralization to cover the loan you’re asking for. The banks want total control, so they’re really not happy. Even at a hundred times that collateral, oh well we’ve got this, but we need you to sign over [00:11:00] your. Inventory for your business. We need you to sign over all of your machinery, all of that in order to cover this $25,000 loan.
[00:11:09] Vance Lowe: They want it all. They want control of your personal affairs. They want control of everything. So it’s very, very hard at times, especially when money’s tight, interest rates are going up to get loans. Because when they find a hiccup, they want you to disclose, oh, well there was this six years ago. Why did you have that?
[00:11:28] Vance Lowe: How have you solved that? Like Seth said, with a insurance contract, you are an owner of the life insurance company. You get special privileges when you call up and you want to borrow money out of your account. That’s how we use money from our cash value. We borrow it so we can put it back. So that’s an in and out transaction.
[00:11:50] Vance Lowe: That was virtually the banking equation, so we would borrow money. We don’t borrow our own cash value. We borrow the cash reserves of the life insurance [00:12:00] company against our cash value. That’s a plus because our cash value stays there and earns the guarantee. Now we pull money out and we can put it to work or purchase something that we can finance back into our policy and use money over and over and over again, just like the banks do.
[00:12:18] Vance Lowe: The banks always get the money back. We can always get the money back by using our contracts. They only ask two questions, Seth. The two questions are, are how much do you want? Where do you want it sent? That’s it.
[00:12:32] Seth Hicks Esq.: Right? And the, the flexibility that the policies offer are really unbeatable, and so that’s much different than 4 0 1 Ks or IRAs or other government sponsored retirement plans that a lot of folks have.
[00:12:46] Seth Hicks Esq.: And. Where they have all sorts of strings attached to ’em, and you can’t access your money before you’re 59 and a half without penalty. You have to access it after you reach a certain age or you’ll have penalties and you’re gonna be [00:13:00] taxed on it no matter what. And that kind of brings us into one of the follow up FAQs that we’ll get into.
[00:13:07] Seth Hicks Esq.: Can you roll over a 401k into a policy or can you access that cash there and put it into a better place?
[00:13:15] Vance Lowe: There’s another advantage of using your cash value, being able to borrow it. And put it to work. And we show people. We actually have people put their numbers into our system and we show them what can happen over an eight year period of time, and we show how getting the money back and reusing it over and over again can work in their advantage.
[00:13:39] Vance Lowe: And a 401k, it was designed to take control of your money. To take it away from you and put it in the control of the people who have the money so that they could double it every two and a half to five years. I search high and Y for a 401k to grow like that. And [00:14:00] unless it’s in, you know, exotic or real estate or something that people are highly leveraged, they can never do that in that amount of time, especially through an employer.
[00:14:09] Vance Lowe: We don’t even own these accounts folks. We don’t own 4 0 1 Ks or IRAs. And the control is just like Seth said earlier, is that they mandate how you can touch it, how you look at it. They know how much it is. They’re always aware of what this account is. But I tell you one of the biggest, irritating things in managing assets for clients was every time they turned around, they had to pay taxes.
[00:14:35] Vance Lowe: Every time they pulled a little amount out here, they had to pay taxes on it, they had to report it, blah, blah, blah. Over and over and over again. One of my best friends, that’s all he complains about today, is that every time he uses money, he has to pay taxes. So folks, let us show you a way. To move 401k or IRA money into this strategy, into this type [00:15:00] of a situation with the least pain possible, and you’ll immediately be able to see how fast you make the tax money back.
[00:15:09] Vance Lowe: As if it, it never was gone. That’s another thing, Seth, but if someone says, I’ve got a $800,000 401k, I’ve got a million and a half dollar, 401k, I’ve got a $3 million, 401k, do they have $3 million or for whatever the amount is? No. If they’re under age 59 and a half, the only money that they are entitled to is the after tax and after penalty money.
[00:15:36] Vance Lowe: So about 55 to 60% of that total is all that they get to walk away with. They solve their future planning on the million or the total amount, and everything goes wrong and everything gets eaten up during their lifetime. Folks, there was a comment made by the guy who invented 4 0 1 Ks. What [00:16:00] has he told us and what’s the advice today for everybody?
[00:16:03] Seth Hicks Esq.: The father of the 401k has come out in recent years and described it as a monster and moved. His own money out of those vehicles into life insurance contracts and for all the same reasons that we’re we’re describing because you don’t really have any control of it. The money that you think is yours is not your money, and you’re gonna be taxed.
[00:16:28] Seth Hicks Esq.: When you try to access it, and you may be heavily penalized depending on when you need it, you’ve got no flexibility, no liquidity, no control, and that’s why we wanna show folks how to move that money into a life insurance contract where the taxes that you’ve. Do pay for accessing it, and any penalties that you made in Concur are swiftly swallowed up by the gains you make in the compounding annualized growth in a tax-free economy, in a truly tax-free economy and where you have access to it.
[00:16:59] Seth Hicks Esq.: [00:17:00] So it’s like comparing apples and oranges it, it usually takes some working through the numbers to help people see through the illustrations how they’re going to benefit from that. But once they see that, it’s a no brainer.
[00:17:13] Vance Lowe: We have dealt, especially myself for 40 years almost in dealing with this problem for clients how to get the best value and growth.
[00:17:24] Vance Lowe: So on the 4 0 1 Ks, folks know that is a ticking time bomb. And one of the topics we’ve got here is a solution for our number one question is debt consolidation. It’s funny, but the average American. Has more than six credit cards, and the average American has more than $45,000 in debt on credit cards.
[00:17:47] Vance Lowe: Just trying to manage those is a nightmare. And then you add cars and you add, you know, student loans, you add all kinds of things. It’s mind boggling if we organize that. We put [00:18:00] all of our money to work for us instead of someone else. And that’s another topic. Who’s the money working for you or someone else?
[00:18:08] Vance Lowe: If you get it working for you, you buy debt and then you switch the payments. You still make the payments to pay everything off so the money comes back in. But we start buying the debts with that volume of payments called volume of return on money at work. So if I put $10,000 to work and my payment, I bought a, uh, car loan, the remainder of a car loan, and their payments were $500 a month.
[00:18:34] Vance Lowe: The volume of return is the annualized. Payments or $6,000 divided by the money at work, the money we had to come up with to buy the debt, that’s a 60% volume rate return. I don’t know about you, but that’s high enough for me. Okay? Right. That’s a large volume coming back in your control, that $6,000 every year could buy more of your debt.
[00:18:56] Vance Lowe: People are just unbelievably [00:19:00] astounded, but they know that it’s true. ’cause they see it month by month until it happens. How they purchase their mortgage in five years and they didn’t change the payment, right? They didn’t change how they live. They didn’t save extra money to change their lifestyle. All they did.
[00:19:20] Vance Lowe: Was change who gets the money and this system sets you up to be able to do that. Debt consolidation is a beautiful way to do
[00:19:28] Seth Hicks Esq.: that. Absolutely, and, and one of the fascinating features of these non-direct recognition policies is that the money in your policy continues to grow as though you never touched a dime of it.
[00:19:43] Seth Hicks Esq.: So it’s a very powerful tool. And folks, you can find all sorts of resources on our website@privatebankingstrategies.com. And if you haven’t been there before, you’ll. Find an offer for a book that Vance and I, uh, authored Secrets That Banks Don’t Want You to [00:20:00] Know. And that book offer is available to you when you put your name and email address in, and we’ll make the book available by audio version and PDF and we highly encourage you to read, read, or listen to that book.
[00:20:14] Seth Hicks Esq.: It’s got a lot of valuable. Nuggets in there and listen to some more podcasts that are also all free on our website. Under the resources tab. We’ve got almost a hundred, uh, podcasts as of the date of this recording, which address almost every topic, uh, that is associated with private banking strategies.
[00:20:30] Seth Hicks Esq.: If our book and this podcast, and other podcasts resonate with you, schedule. Exploratory call with Vance and he’ll have a link to his calendar through an email that we send out to you, and you can, uh, schedule that exploratory call and take this on a test drive and how it it applies to you personally and your family.
[00:20:51] Seth Hicks Esq.: So we sure appreciate you joining us and look forward to having you join us again. Thank you everybody. Thank you, Vance. Any closing remarks? [00:21:00]
[00:21:00] Vance Lowe: You know, it’s just a pleasure to be able to talk about this. I love this topic. I get to watch families turn their monetary situation completely around and always be successful.
[00:21:12] Vance Lowe: Here, you have a chance to win. Government can’t control it. The I rs can’t take it away from you. So guys, stay safe out there. We hope that you’ll take that opportunity.
[00:21:24] Outro: Awesome. Thank you folks. Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals?
[00:21:33] 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. Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become [00:22:00] available.
