[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.: Hello and welcome to Private Banking Strategies Podcast, Vance Lowe, and Seth Hicks Vance, how are?
[00:00:43] Vance Lowe: I’m doing great, Seth. You know, I’m really excited about what we’ve been talking about the last couple of podcasts. This is really exciting news folks, and this is something that I think everybody’s been asking for, so I’m [00:01:00] really excited that we can continue.
[00:01:02] Seth Hicks Esq.: Absolutely. We’ve been talking about the hundred year family bank.
[00:01:05] Seth Hicks Esq.: What is that? How do you create it? What value and benefit does it have? We’ve been talking about some of those things for the last couple podcasts. Folks, if you haven’t heard those and you’re just tuning in here for the first time, please listen to those prior two podcast on the hundred Year Family Bank because we lay some foundation in there that will help you master what we’re talking about in the content.
[00:01:28] Seth Hicks Esq.: Today we’re gonna talk about the generational blueprint. A generational blueprint and architecture of, of how the family bank starts to work. And there are foundational stones, foundational cornerstones, so to speak. Vance, and I’m gonna have you start to address what is the foundation of the a hundred year family bank?
[00:01:51] Vance Lowe: Well, there always has to be a beginning, whether it’s a business structure, a trust, a family partnership, limited partnership, whatever else. There has to be [00:02:00] the originators. And in the legacy of the infinite banking concept, the founder of that institution is Arn Nelson Nash. Okay. So he’s a founder. He’s the one that was the guru that literally figured everything out and his.
[00:02:17] Vance Lowe: Life’s dream was to get it back to the people. Since America used to have all this stuff and it was eradicated, we need to bring it back. And so this is our part in helping us do that. So a founder would be a first initial structure of setting up their own banking equation for loan purposes, being able to get tax advantage.
[00:02:42] Vance Lowe: Treatment on setting money aside, being able to hold money and still have it, keep pace with inflation, those types of things. So the founder is the person who initially starts it, learns the system and starts setting up the structure,
[00:02:59] Seth Hicks Esq.: right? And [00:03:00] when that founder or that initial first level of insurance contract is fulfilled and that founder dies, there’s a death benefit.
[00:03:11] Seth Hicks Esq.: Where does that death benefit flow?
[00:03:14] Vance Lowe: Because he’s a founder, we are assuming that now that he’s put a structure in to benefit his errors, there will be a death benefit. There will be a lot of cash coming in to someone or some structure, and if it’s organized right, that will benefit. The, it could be spouse, it could be the children, it could be the grandchildren.
[00:03:39] Vance Lowe: It could be all of them combined, because instead of passing it out to individuals, he’s a little smarter. He gives the heirs access to money. Access to this death benefit in a structured form where they could borrow money and pay themselves back with interest and it would continue to [00:04:00] grow and they would get the interest and everything else on it.
[00:04:02] Vance Lowe: So it’s much better to own your own banking equation, which this is what you know we’re talking about anyway, to be able to do that. So this founder also has put this organization together and set up. A governing factor with policies and procedures so that it doesn’t collapse on itself from people who don’t know what they’re doing.
[00:04:24] Vance Lowe: That’s the best definition I think I can give on the founder.
[00:04:28] Seth Hicks Esq.: And so then the next level is the stewards. And they operate the bank. They manage the loans, they expand the capital.
[00:04:37] Vance Lowe: Well, I think people could probably relate if a guy gives an inheritance out through trust or whatever else. He’s got a large sum of money.
[00:04:46] Vance Lowe: He usually gets an executor to handle everything. That could be attorneys, but banks are a lot of executors of family wills and trusts. And so that’s kinda what a steward is. [00:05:00] It’s their job to see that everything is adhered to properly, that everything is followed for structure. For instance, you know, we told an early story about a family having access to money and they have to pay it back, but they have to follow a structure.
[00:05:15] Vance Lowe: And when somebody falls out of that structure, they borrow money and they don’t want to pay it back. There’s a procedure that they follow to assure that’s not gonna hurt the family bank or you know, the structure, whatever it is, so that it will grow and it will continue. It needs to operate in a private manner.
[00:05:37] Vance Lowe: There’s loan procedures. How much can actually go out in loans at any one time? And what type of loans are have all got to be discussed. And you know what is unique here, Seth? Is that under the founder and the stewards, this can be adapted to any structure, any scenario of needs. One might have a huge family.
[00:05:59] Vance Lowe: Family [00:06:00] might be much more business oriented and hold income assets or something, and that needs to be structured differently. So it’s quite easy to meet the needs of whoever wants to do what the stewards are there to make sure it happens.
[00:06:15] Seth Hicks Esq.: That is a crucial job in the family governance structure, obviously.
[00:06:21] Seth Hicks Esq.: And if you don’t do that well, you can ultimately mismanage the family bank and create attrition that is unnecessary. And some of that relates to what we talked about in the last. Episode with regards to percentage of leverage and appropriate risk. So folks, make sure you listen to that again, because that is a key principle in how the stewardship of the family bank should operate.
[00:06:45] Seth Hicks Esq.: Now, here’s an interesting thing that the policies begin to mature and pay into the next level. You’ve got this expanded capital and a long-term compounding runway. So think [00:07:00] about that. You’ve gotta. Grandfather or grandmother who have been paying on life insurance, a capitalization in their family bank on children for 30 years, and then they’ve also been paying their grandchildren’s policies for let’s say 15 or 20 years.
[00:07:15] Seth Hicks Esq.: That long runway of compounding growth will create such. A parabolic expansion in value like we’ve shown on our curves. It’s hockey stick in the last five to 10 years on a 30 year curve for private banking. So you’ve got grandchildren that have having things compound for 30 years, and then they step into a banking system that’s fully seasoned and has the massive principle that’s compounding and growing every year.
[00:07:43] Seth Hicks Esq.: That’s where you begin to have the problems like you described in the last. Story. Where does this family put their money? Where they don’t have enough outlets for investment? Because it compounds so rapidly.
[00:07:56] Vance Lowe: One of the things I think people need to also [00:08:00] realize is that we all want to invest in the perfect investment.
[00:08:04] Vance Lowe: Folks. We’re telling you what this perfect investment is. If you list it all out, you’ll find that these contracts that we put together have it all. High earnings growth, everything. And so we use these as storage and as leverage to be able to meet the needs of the family structure to be able to go forward.
[00:08:25] Vance Lowe: It’s an opportunity to get a lot of different advantages without working harder. That’s why we use this structure. Can we do this structure without it? Yes. The difference is is who’s gonna get the profits and the interest. If we use a real bank, they’re gonna get the profit and the interest. If we use our private family bank, we get the profit and the interest, and there’s so many avenues to be able to do that.
[00:08:52] Vance Lowe: So don’t let anyone tell you that life insurance is an expense. Can it be? Yeah, but that’s [00:09:00] not why we do it. We don’t even actually solve for death benefit needs, though. It is an intricate part of death benefit. It will come with. You know, some death benefit, but it’s solved totally different. These contracts are solved to accumulate as much cash as possible.
[00:09:16] Vance Lowe: One of the promises we give our clients in these individual structures is that we want to get the efficiency of these contracts producing at above a hundred percent. What that means is if I put a dollar’s worth of premium in, I want it to grow by a dollar five or a dollar 10 or a dollar 20 instantly, and how many of those do I want all I can get.
[00:09:36] Midroll: Did that story feel like it was about you? Do you feel like you are generating a lot of revenue better, 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. Are you ready to take action and get your own private bank?
[00:09:59] Midroll: Please [00:10:00] visit us at www.privatebankingstrategies.com
[00:10:07] Seth Hicks Esq.: to perhaps have real estate investment cash flow. You may have businesses that are operating that are returning cash flow. You’ve got death benefits that are paid into this family banking system. And you’ve got new policy layers that all function in the economy of that family banking system.
[00:10:26] Seth Hicks Esq.: So the stewardship of how that is managed and governed is crucial and critical, and is a skill. And we’ve known other folks that have expanded their family banking to over a hundred policies. You’ve described a gentleman that know from decades past, had his family banking system mature into his children’s, where that’s all that they did was manage their policy loan.
[00:10:52] Seth Hicks Esq.: Distributions and repayments and the businesses, it was all banking. So they came out of traditional jobs and came [00:11:00] into a family banking where that’s all that they did. They became complete bankers, and so that stewardship is a crucial and important cog in this engine.
[00:11:08] Vance Lowe: It really is. That’s one of the main pivotal points that got me into this strategy in selling my money management firm years ago, was the success that this individual approved out to me.
[00:11:22] Vance Lowe: He would say outlandish things I wouldn’t even begin to believe, but then he took me in and he would show me line item by line item, policy by policy. This is what I do. You want to see what the income is? Here’s the bank account. He proved it every step of the way and it blew me away. Nelson Nash told, I asked him, I said, look, you know, I’m doing this.
[00:11:44] Vance Lowe: I want, you know, your three top people who have taken this as far as they can, and he named off three different names. And this gentleman, he’s already deceased. He was totally uninsurable, but he took this further than anyone I think has ever [00:12:00] taken it. He had way over a hundred policies back then, $8 million out in loans, 300,000 or more coming in in monthly payments against loans.
[00:12:10] Vance Lowe: Had all of his family involved. They all worked outside the banking except two of his daughters. Two of his daughters were employed full-time doing bank loans for the family and extended family. And as far as I know it last time I heard they are still doing it. So this is multi-generational folks.
[00:12:33] Seth Hicks Esq.: Well, he’s a key example in how to efficiently run a family bank and create multi-generational.
[00:12:40] Seth Hicks Esq.: Layers for it. And I think that having other family members step into the business, learn how the processes work, and understand the mechanics of it is key. You know, you’re not gonna be able to delegate or offload this to somebody else. This is a skill that people have to learn. We [00:13:00] don’t go fishing and catch a string or a fish for people.
[00:13:03] Seth Hicks Esq.: We’re teaching them how to fish. We’re teaching there. Children and their grandchildren, how to fish and create a family banking legacy that outlives them and that will create opportunities that are unmatchable.
[00:13:20] Vance Lowe: In our first podcast on this series, I told a story. Go back and listen to that because it’s critical that the generations learn the strategy.
[00:13:29] Vance Lowe: They understand they’re taught how money really works. That comes from within the family. The family is the strongest unit. On the planet. It’s what made our nation so powerful. And you can see over the last 15 years how they’ve been trying to tear the family apart to try to move our nation some other way.
[00:13:50] Vance Lowe: But don’t kid yourself. The family unit is where all the instruction, all the teaching, everything needs to happen. And when we don’t do that, our [00:14:00] families suffer because we then start getting outside ideas that may not be cohesive. To the way we believe and the way we wanna structure things.
[00:14:11] Seth Hicks Esq.: This first generation level is the one where your foundation stones are set and it provides that early compounding.
[00:14:20] Seth Hicks Esq.: But when that first generation policies mature and death benefits are paid, it’s the generation two where you’ve got this expansive capital. Bank and you’re able to then devote all of your resources to banking effectively because you’ve got that death benefit being dumped into your new policies. And then the third generation where you’ve got grandchildren, that’s really where they step into another type of opportunity where they have to learn how to use the banking right from the get go.
[00:14:52] Seth Hicks Esq.: And they have to understand. How their access to capital and their repayment of capital is going to work. And when I [00:15:00] think that you create that framework for people, they can drive in between the lines and successfully create multi-generational wealth.
[00:15:07] Vance Lowe: By the time you get to that third generation, you’ll never ever have to go outside the family bank.
[00:15:14] Seth Hicks Esq.: It
[00:15:14] Vance Lowe: doesn’t matter whether we’re popper when we first start. If the foundation founders can just pay a very small portion into the family bank, it compounds. What do we say on the average? We can double assets as often as every five years it seems like. Sometimes more often, how many Doublings does the first generation have?
[00:15:38] Vance Lowe: And then the second we even do an illustration on doubling a penny in our book folks, we’ll tell you about that a little bit later. You have to follow a formula, you have to structure it correctly. You need to follow the structure every time, and it will give you what you want
[00:15:54] Seth Hicks Esq.: and the compounding growth.
[00:15:56] Seth Hicks Esq.: Is like you said, in the third generation, is [00:16:00] Parabolically increasing. And then Vance mentioned a book offer. I’ll just go ahead and tease that now. Folks, you can get that book on our website, private banking strategies.com. There you’ll be offered a. Opportunity to put in your name and email that we will give you a free copy of our book called What the Banks Don’t Want You to Know, and that’ll come to you in A PDF and also audio version, so you’d listen to it on the go.
[00:16:25] Seth Hicks Esq.: In that book, we talk about compounding growth, and in the last years of a 30 year cycle, that Penny’s value. Is doubling every year effectively. Like in that scenario, it’s a compounding every day, but in life insurance contracts, they compound annually. That parabolic increase at the end of a 30 year cycle is literally straight up.
[00:16:49] Seth Hicks Esq.: On a curve if you’re looking at it on a curve. So that means that third generation and even the second generation will enjoy some expanding capital and growth. But [00:17:00] as it matures, and we’re going into 40 years, 50 years of family banking, the compounding growth is astronomical. And that’s what those grandchildren step into is compounding growth inside their policies tax free.
[00:17:14] Seth Hicks Esq.: That they have access to capital, that they would never have access to fund their college. They can fund new businesses, they can take advantage of things that. Other people without access to capital can’t. So just drive that point home a little bit. But folks, I mentioned our website if, if this content is resonating with you, check out our website.
[00:17:35] Seth Hicks Esq.: We’ve got a ton of resources there, 150 plus podcasts. We’ve got blog articles that deep dive into various topics. We’ve got just a plethora of resources that will help you educate yourselves. And if that content is resonating with you and it’s something that you want to learn how to do, you’re gonna have an opportunity to schedule an exploratory call with Vance and an email that we send [00:18:00] you when you sign up for our free book.
[00:18:01] Seth Hicks Esq.: That’s the only way you’re gonna get access to his calendar. So if this content’s resonating, you’re like, this is something I’ve been looking for my entire life, or you’re already. Client you want to go deeper, then jump into this content and schedule exploratory calls with Vance and let us help you get started on creating a hundred year family bank.
[00:18:20] Seth Hicks Esq.: Vance. Any closing comments?
[00:18:23] Vance Lowe: No, there’s just so much to go over. You know, we only touch the surface each time we think we can get through more. But hang with us folks. We’re gonna go through an outline for you and literally do this a hundred year outline so that you can see the potential in your own lives.
[00:18:40] Vance Lowe: So, take up our offer or read the free book and see if it doesn’t resonate with you.
[00:18:47] Seth Hicks Esq.: Absolutely. Yeah. Folks, we thank you for sharing the time with us on this podcast. We hope you come back for the next one, and we look forward to seeing you then. Thank you so much.
[00:18:58] Outro: Did that story feel like it [00:19:00] was about you?
[00:19:01] Outro: 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 www.privatebankingstrategies.com. Thank you for listening to the Private Banking Strategies podcast.
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