[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.
[00:00:41] Eric (Host): Hello and welcome to Private Banking Strategies with Vance Low and Ethics. Gentlemen, how are you today? Doing great, Eric. Absolutely fantastic. Alright,
[00:00:50] Seth Hicks Esq.: so what are we talking about today? We’re talking about asset protection, the first pillar of private banking strategies, Eric, and one of the reasons that we’ve put it as pillar number one [00:01:00] is because it’s not what you make that counts.
[00:01:03] Seth Hicks Esq.: It’s what you keep. Mm-hmm. That counts. And perfect illustration of this, I’m gonna tell a story about a client of ours, right? And then Vance is gonna help me explain how this person utilized private banking strategies to their benefit. But this is a client that’s very successful. They have a. A $10 million revenue cumulative business over the past, less than a decade.
[00:01:27] Seth Hicks Esq.: And when we first started talking about asset protection with this client, he basically shirked it off and thought, well, I don’t really need asset protection. Didn’t identify the reasons for it. Well, since that he is been sued four times in just normal business disputes and business litigation, none of which were his fault really, or responsibility, but yet it identified the fact.
[00:01:51] Seth Hicks Esq.: That we all need asset protection, that we need to keep what we make. So one of the, the fundamental things that certain states provide with the [00:02:00] private banking strategies is law that protects your cash value. So you have a banking. Capitalized and your cash value in there is untouchable by creditors and it’s regulated state by state.
[00:02:15] Seth Hicks Esq.: So some states are not as friendly and favorable as other states. And those, we have other workarounds that help you to create a cash vault. Mm-hmm. Is what we like to call it. And that vault is in penetrable fortress, so to speak. So if you happen to have litigation and turn up a liability or a judgment against you.
[00:02:35] Seth Hicks Esq.: The cash that’s in your private bank is untouchable. Now. That’s just one aspect of the asset protection pillar. Litigation, we’ve been talking off camera, some about the current administration and the policy that’s going on with what we consider to be the most expansive new deal, error, expansive government since FDR.
[00:02:57] Seth Hicks Esq.: Mm-hmm. Um, and there’s about two places [00:03:00] that those. Can, people can reach for coming up with the money that’s being printed. So Vance, I’m gonna let you kind of chime in a little bit about what we’ve been talking about with the government expansive uh, spending policy and how that’s gonna affect taxpayers and investors.
[00:03:17] Vance Lowe: One of the things we’ve gotta understand in today’s economy is behind the scenes effect of the erosion of our retirement money. It’s not that the account balances are gonna go down, it’s that inflation is gonna outstrip those amounts of money and it’s already happening. The best example I can give you today, and this is almost across the board folks, if you go into.
[00:03:45] Vance Lowe: Uh, like Home Depot or Lowe’s, and you need a two by four. You’re gonna be absolutely shocked at what the price is today. Mm-hmm. Six months ago you could buy a two by four under $2. Today [00:04:00] it’s right at $9 per eight foot. Two by four. I mean, how many times has that doubled? Yeah. Well, what’s happening, uh, what’s happening on a, a retirement basis, like your 401k or your IRAs, you’ve got 400,000, 500,000, a million dollars there.
[00:04:19] Vance Lowe: By the end of the year, the purchasing power of that will be cut in half, and if not stopped, it’ll be cut in half again. Mm-hmm. Absolutely critical. Also, the place, what we’re talking about and what we really want to explore. And Erica, we want to to draw out from you maybe some concerns if you see yourself and maybe our audience sees theirself in a situation, well, how can I protect my money?
[00:04:43] Vance Lowe: Where’s the best place to store my money? If it’s not in banks, ’cause we wanna talk about the effect of the Dodd-Frank Act and how close banks are there. FDIC insurance, how there’s no money there. I think at this point, just as, as a ca caveat, [00:05:00] FDI or the government is thinking that if a run on the banks happen, they can print enough money mm-hmm.
[00:05:08] Vance Lowe: To supply FDIC insurance and that’s not gonna work.
[00:05:11] Eric (Host): Well, Vance, you’re rubbing salt in the wound. I’ll be honest, a, a little bit ’cause I’m redoing our master bathroom. The guy that’s working on it is been a friend of mine for a very long time, but around here I, I went and priced a couple, two by fours and it was $10 and 40 cents per eight foot, two by four right now.
[00:05:30] Eric (Host): Yesterday I was at Lowe’s and it’s down to about $8. I think probably 60 cents per two by four. My buddy came over and he is like, what do you got in your garage? I’ve always got scrap, whatever. I got extra two by fours from, you know, previous projects. I remember buying the two by fours that were in my garage for three bucks a piece.
[00:05:47] Eric (Host): I had six of ’em. So he is like, well, there you go. You just saved yourself x amount of dollars by having these in your garage. I’m like,
[00:05:52] Vance Lowe: I could, I’m building a shop at my house and I, I went and got a load of wood and I’m rebuilding the fence and got a load of wood [00:06:00] and a painter come over. And he said, wow, look at all that gold.
[00:06:05] Vance Lowe: Mm-hmm. And I’m going, what are you talking about? The lumber? Yeah, he, he, it’s already hit out there in public how expensive things are getting, so you’re right.
[00:06:14] Eric (Host): It’s absolutely great. Well, don’t tell anybody, but my wife actually found on the buy sell trade app, this couple that was tearing down a play hut, they built just three years ago for their kids.
[00:06:23] Eric (Host): It was full of two by twelves and two by sixes, and they were giving it all away for free. So I helped ’em tear it down and I took it all. ’cause they’re, they’re 10, 12 feet long. I’m like, this is my retirement guys. There you go. Yeah. Great. So I’ve got lumber for days. Don’t tell anybody where I live. Please.
[00:06:38] Vance Lowe: Well, Seth, let’s, let’s, let’s talk about the, uh, ramifications if the banks start getting more wishy washy than they are today.
[00:06:47] Seth Hicks Esq.: Sure. So we’re describing certain categories of potential liability. One. One is litigation. Mm-hmm. Like the gentleman we described, who’s a successful entrepreneur and businessman and [00:07:00] getting sued and having your cash assets being subject to judgments.
[00:07:04] Seth Hicks Esq.: Well, with an expansive government printing money and bank deposits being robust, it’s an obvious. Place ripe for the taking. And people go, well, how are my deposits safe in a, in a bank? Well, the Dodd-Frank Act basically says that you are a unsecured creditor of the bank, and the bank actually owns those funds when you make the deposit and they give you an IOU.
[00:07:33] Seth Hicks Esq.: They promise to pay you your funds when you come to withdraw them. But you, you or may or may not recall a bank called IndyMac, Eric and IndyMac Bank was a bank that failed in 2000, uh eight, 2009 time period. And there was a bank run on IndyMac and there were actual armored police vehicles and mounted patrol at banks all [00:08:00] across Southern California.
[00:08:01] Seth Hicks Esq.: Keeping the peace at IndyMac Banks because of the bank run that was made on that bank, and people go, well, I’m, I’m okay because I’ve got FDIC insurance. If you actually do the math on what the FDIC insurance is good for, it’s about 1.30 cents on the dollar. So your bank deposits in a centralized bank are not safe.
[00:08:24] Seth Hicks Esq.: And with the inflationary aspects of our current economy and the continued printing of money, they’re becoming more and more unsafe. So you go, well, who’s gonna pay for the printing of money? Taxpayers and depositors. Taxpayers are, are going to have increased taxation, and our current administration has promised that.
[00:08:45] Seth Hicks Esq.: And there’s only one place that you can keep your cash asset protected by law, and that’s in a private banking strategy contract in the right state. Hmm. So this is not fear mongering, it’s really just a real hard look at [00:09:00] reality and facing the facts.
[00:09:02] Eric (Host): Well, this is not new though, guys. I mean, let’s face it, it’s a wonderful movie.
[00:09:06] Eric (Host): The Wonder, uh, it’s a wonderful life, right? There’s a scene in there where everybody runs into that bank or credit union or whatever it was at the time, and they all want their money out, but he doesn’t have it because it’s in Mary’s house and it’s in Joe’s house, and the money’s not there, right? And so all these people wanted it.
[00:09:23] Eric (Host): They couldn’t get it. And chaos and pandemonium hit and it sounds like that’s what you’re describing that happened. In in Southern California. Exactly.
[00:09:31] Vance Lowe: You’re right. Exactly. It’s not, it’s during our lifetimes. We’ve seen our government, when, remember when they first got into the billion dollar deficit area, we’re gonna have to do a stimulus package or something for $1 billion.
[00:09:47] Vance Lowe: Everybody thought, oh my gosh, we’re going to heck in a hand basket, and then it immediately went to 1,000,050, a million and a half, and then multimillions. And it wasn’t very long ago, [00:10:00] I think Obama’s administration, when we got into the trillion dollars, $7 trillion and behind that scene was a $16 trillion riding of new money.
[00:10:12] Vance Lowe: And now it’s an everyday occurrence. Yeah. So government I think has totally lost. Reality site on what they think they can print out and uh, go after. So it’s just the story is what I, I want to get to Seth. You had a client in Cyprus that actually lost money from. Uh, the bank overnight, taking a large portion of everybody’s capital.
[00:10:47] Vance Lowe: Tell us what happened there and how that client and, and today if that clients recovered anything.
[00:10:52] Seth Hicks Esq.: Sure. Well, there was offshore havens that were, supposedly your cash assets were supposed to be [00:11:00] safe and enjoying financial privacy and other aspects that people look for offshore. And it was 2000, uh, 13 in Cyprus.
[00:11:10] Seth Hicks Esq.: The, the banks became, one of the centralized banks became insolvent and they bailed in, bailed in, meaning they had to take depositors money to balance, uh, their books and everything. Over a hundred thousand dollars deposited was, was taken at 50%. So you had some massive wipeouts of millionaires in deposits.
[00:11:36] Seth Hicks Esq.: There’s actually litigation still ongoing, trying to recover certain cash assets from that. But the bottom line is that it, you don’t want to take on that risk and you don’t have to take on that risk. You don’t have to play in that sandbox. You don’t have to have hundreds of thousands of dollars or millions of dollars.
[00:11:54] Seth Hicks Esq.: In centralized banks, domestically, foreign or otherwise. There are other ab absolute [00:12:00] bulletproof protective vaults that you can keep your cash in, access it with complete liquidity, and it’s never going to go backwards, and it’s never gonna be confiscated from you. So, so,
[00:12:10] Vance Lowe: okay, Seth, you’ve sold me. Where do I put my money and how do I set it up?
[00:12:17] Seth Hicks Esq.: Sure. Well, that that’s what private banking strategies is all about, and that’s, we help you set up a vault where you maintain your cash liquidity in these contracts and you’re able to use that money. I. Over and over again, and you treat that money just like you would from any other bank. You make sure that you are, uh, collateralizing the loans.
[00:12:41] Seth Hicks Esq.: If you go out and purchase an investment property, or you’re financing equipment like we’ve talked about in prior episodes, you structure those just like any bank does with any other borrower so that you get the money back, your ba, your bank gets the money back and has a first lien priority interest in it.[00:13:00]
[00:13:00] Eric (Host): I wanna jump into that when we get back, but we, around this time, we usually take a break ’cause you guys offer a ton of resources, right? And do we have some resources that we can offer the audience for this podcast as well?
[00:13:12] Seth Hicks Esq.: Absolutely. Yeah. We’ve got a a 50 state bulletin basically, that tells the audience if they’re a particular resident of a state, whether their state provides asset protection in a private banking strategy contract, or it doesn’t.
[00:13:28] Seth Hicks Esq.: Okay. Many of the southern states do, so. Yes. We’ll make that available, Eric. All
[00:13:33] Eric (Host): right. So what we’ll do right now, guys, is we’re gonna take a break and so the listening audience can get that information.
[00:13:42] 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? Are you ready for help? Please call private banking strategies at eight one seven two hundred. Four. Seven. Seven seven [00:14:00] or visit us at www.privatebankingstrategies.com.
[00:14:11] Eric (Host): All right. Welcome back. Thank you so much for joining us. Again, you have the information on how you can get those resources. Please go to the website, follow those instructions, and, and, and get those resources. Now, Seth, I know that I interrupted you. I’d love to hear more and I want you to expand on what you were just talking about.
[00:14:25] Seth Hicks Esq.: Sure. Well, private banking strategies. Provides, uh, a framework for you to bank your cash in a whole life insurance contract, a high cash value life insurance contract. It affords you with complete liquidity to your cash and allows you to have that growing tax free compounding year after year without the threat of it being taken from you by.
[00:14:50] Seth Hicks Esq.: The government or a super creditor or any other creditor, and so you go, well, how is it regulated? It’s regulated state by state, so each [00:15:00] state has its own insurance code, which dictates whether the contract in that state. And for that resident is gonna be protected or not protected or to what level? So for example, Eric, in Texas, the insurance codes provides that a hundred percent of your cash value is completely protected from creditors.
[00:15:23] Seth Hicks Esq.: And also with the life insurance contract we’ve talked about, there’s a death benefit. And so whoever your beneficiaries are, if they have a liability or create some type of. Problem. Their creditors cannot access those funds either in Texas and many of the southern states are similarly codified. Florida, Oklahoma, Tennessee.
[00:15:46] Seth Hicks Esq.: And the reason that is, is because it’s a post civil war error, uh, codification of law, and it was to prevent carpet bagging. But many of the outside ocean states, the west coast, the east coast, northern states, [00:16:00] they don’t provide some of those same protections. And so there’s other ways that we work around to accomplish that.
[00:16:06] Seth Hicks Esq.: But the best states are the ones that the legislatures codified for their residents complete asset protection. So mostly southern states accomplish that.
[00:16:17] Eric (Host): Yeah.
[00:16:17] Seth Hicks Esq.: Let’s
[00:16:18] Vance Lowe: talk for just a minute, a a little bit about timeframe. So I’m a listener. I’m now worried that my money’s not safe, so I’ve gotta have a timeframe.
[00:16:29] Vance Lowe: Can I go ahead and make a deposit into a life insurance policy tomorrow?
[00:16:34] Seth Hicks Esq.: Well, you’ve, you’ve gotta go through an application process and there’s a health underwriting Yeah, yeah. And a financial underwriting. But comparatively speaking, we’re talking about a few weeks Vance to get that set up. Can you pay
[00:16:48] Eric (Host): it all up upfront or do you have to, because I, I remember the two examples.
[00:16:50] Eric (Host): First of all, if you have not. Heard those podcasts, go back and listen to ’em. They gave two great examples, one about I believe Nelson Nash’s nephew who, who funded equipment [00:17:00] for his business, and then at the tail of the two sisters, which were twins and they were financing vehicles. But I think in both those examples, they paid into that insurance policy or into their private bank over a number of years.
[00:17:12] Eric (Host): Are you able to pre-fund it in one shot if you, if they somebody had the capability of that, or does it have to be over a certain number of years?
[00:17:19] Vance Lowe: Well, the answer to that, Eric, is no and a yes. Alright. Thank you for clearing that up for me. There are situations where yes, you can just dump it in all at one time.
[00:17:30] Vance Lowe: Okay. That comes with a few tax ramifications. Oh, okay. In other words, you might have to pay tax on some of the interest when you go to use the money. Hmm. If you’ve got the time and you are pre-planning, like we’ve mentioned in the other meetings. Then systematically putting it in. Let’s say I’ve got a million dollars to put in.
[00:17:50] Vance Lowe: I wanna roll a million dollars into my Safe Haven. Mm-hmm. My fortress, it’s gonna take about 250,000 per year. About a quarter of that can go [00:18:00] in per year and escape all of those tax consequences. If we can do that, Eric? There’s life without taxes from this point forward.
[00:18:09] Eric (Host): So you gave that example. What about somebody who has, let’s say 250,000?
[00:18:13] Eric (Host): You, you said that somebody who had a million had to do it over four years. Yeah. Do divide it and
[00:18:17] Vance Lowe: put it in now, same thing there. There’s ways to handle that. Let’s say we think things are going to heck in a hand basket right now. Mm-hmm. I’ve got 250. I’ve got a half a million. I’ve got a million. I want it to end up in my bank and I don’t want it taxed because I want it private and nont traceable.
[00:18:36] Vance Lowe: There’s other strategies out there, and I’m just gonna open one up. We’ll have to go into it another time, but an immediate five year annuity where you can actually go buy an annuity. It’s like a pension.
[00:18:47] Eric (Host): Mm-hmm. The
[00:18:48] Vance Lowe: money is spent and now I receive one fifth of what I put in there, plus the interest. It can move directly in.
[00:18:58] Vance Lowe: Uh, to my bank,
[00:18:59] Eric (Host): oh, [00:19:00] without
[00:19:00] Vance Lowe: any legal or ramification from that point on, it’s all handled at the life insurance company. There’s no risk. It’s all guaranteed.
[00:19:09] Eric (Host): Okay. Well, I definitely wanna explore that in the Future podcast because that, that, so
[00:19:13] Vance Lowe: that, that really works. So we can handle what we’re trying to just mention no matter what your circumstances are and what level of, of, of want or fear that you might have, we can show you and build a plan that you can choose from and decide what you want to do.
[00:19:30] Eric (Host): Hmm.
[00:19:31] Seth Hicks Esq.: Wow. Yeah. The general rule would be you divide the, what you want to capitalize your bank with and get it in over four or five years. Eric, if you have a primary need or an overriding need to get it in faster than there’s other strategies. And then there’s premium deposit accounts, which Vance I, I’ll let you explain that a little bit and what that does, Eric, is it actually.
[00:19:53] Seth Hicks Esq.: Puts that corpus of money. Let’s say that you had $250,000 and you put it into the custody of the insurance [00:20:00] company and it’s earmarked for the premiums, upcoming annual premiums. Mm-hmm. But it’s also asset protected. Wow. So you don’t, it’s not subject to the Dodd-Frank regulations, like being in a centralized bank where there could be a bail in, it’s not subject to you having a judgment creditor, uh, confiscating or attaching your, your bank accounts.
[00:20:24] Seth Hicks Esq.: It’s not, uh, subject to any of those gaps and holes, but it’s in the asset protection vault that we’re describing.
[00:20:32] Vance Lowe: So the reason that this is, uh, Eric and and for our listeners is that most the life insurance companies are well over a hundred years old, which means they predate the IRS and everything else, and they have grandfathered immunity with a lot of the principles that are going on.
[00:20:52] Vance Lowe: A lot of the regulations going on with our government right now, they’re governed and regulated under state law and not [00:21:00] federal. So they have a lot of immunity out there. The premium deposit account, the best way to explain it is like the life insurance company having their own money market account for you.
[00:21:14] Vance Lowe: You can deposit the money. It’s earmarked for premium. However, it’s liquid, which means you could access that money should you need to one time most. Life insurance companies have this available because of lack of use, which means the, uh, life insurance agent. Force was not educated enough to tell their clients about the use of this.
[00:21:43] Vance Lowe: A lot of companies have discontinued that, but we still have a few that have that opportunity. And you can pre-fund your life insurance premiums. You actually get an interest rate in that account, which is higher than at the banks, but that part will be [00:22:00] taxable ’cause it’s not. Life insurance yet until the premium actually gets put in.
[00:22:04] Vance Lowe: So,
[00:22:05] Eric (Host): okay. Hope that
[00:22:06] Vance Lowe: explains that.
[00:22:07] Eric (Host): A couple, yeah, you took a couple examples there and really broke ’em down to chewable bites, so I appreciate that. I know that every listener, uh, probably just took away a ton of information from this. Is there anything else you guys wanna touch on today’s podcast as we run out of time here Pretty soon.
[00:22:21] Seth Hicks Esq.: Yeah. Asset protection. Eric is best when it is preemptive. It’s best set in motion before you have problems. And like the gentleman that I described with, with an eight figure revenue, annual revenue business, now he, he sees a great need for asset protection and we’ve set those things in place for him and he, and more importantly, his wife, sleep.
[00:22:44] Seth Hicks Esq.: Very well and rest peacefully knowing that they’ve got their cash protected in something that by the legislature is untouchable. But contrast that if someone has been sued or they’re getting tax lien notices [00:23:00] from, uh, the IRS or other entities, that’s, we could still help people out in those situations, but it’s best to plan before you have the need for it.
[00:23:11] Vance Lowe: And I would like to just add, uh, as a final note, it’s very important to avoid what we call the ostrich syndrome, where you bury your head in the sand.
[00:23:21] Eric (Host): Mm-hmm.
[00:23:21] Vance Lowe: Well, sometimes we call it, uh, the herd mentality. Well, everybody’s doing it this way, so it must be right. It’s not right. The herd mentality was never correct.
[00:23:32] Vance Lowe: You’ve got to plan, you’ve got to decide now what you’re going to do for the future, or you’re gonna. Be left wanting folks, we’re here to help. There’s a lot of resources for everyone out there for you to decide, but make the decision An unsuccessful person has to build an absolute career of making choices to be unsuccessful.
[00:23:58] Vance Lowe: Did you know that? [00:24:00] I mean, it’s, that’s just absolutely amazing that, okay, I got two roads to go down. This is what everybody’s, no, I, I don’t think I want to do it that way. Do yourself a favor, make the right choices. Find out what your alternatives are. Don’t take risk, you don’t have to in this strategy. So thank you very much.
[00:24:18] Vance Lowe: I really appreciate it. I hope if the listeners are interested, they’ll take another step. Yeah.
[00:24:23] Eric (Host): And, and I was just gonna say, I know that they got a special message halfway through this podcast, but Seth, can you tell them where they can go to get some of those resources? What the website is? They, they can start.
[00:24:33] Eric (Host): Really digging into this.
[00:24:34] Seth Hicks Esq.: Sure. It’s private banking strategies.com and there we’ve got a free book offer that comes in an ebook form or audio book, which serves as a red pill device to help people spot some issues and may shed light on things they didn’t realize could be problems for them like the Dodd-Frank Act among a few others.
[00:24:55] Seth Hicks Esq.: But the asset protection content that I’ve published, I’ve taken, [00:25:00] uh, great time and energy to really educate our audience and with issues with regards to asset protection issues. And so that comes in email form and they can sign up for that free custom, nothing, read them at their own time and, uh, begin to educate themselves into some of these asset protection needs.
[00:25:20] Eric (Host): That’s fantastic. Guys. Thank you so much for your time today. I mean, it’s always a pleasure and again, every time we get together, I’m learning a ton and hopefully one step closer to working with you very soon.
[00:25:31] Seth Hicks Esq.: Awesome. Thank
[00:25:31] Eric (Host): you, Eric. Thanks so much, Eric. You bet. And of course, our last thank you goes to you, the listening audience.
[00:25:36] Eric (Host): 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 listening device.
[00:25:48] Eric (Host): Again, thank you so much 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.[00:26:00]
[00:26:04] Midroll: 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 call private banking strategies at (817) 200-4777 or visit us. At www.privatebankingstrategies.com.
[00:26:34] Intro: Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become available. The information covered and posted represents the views and opinions of the guest. And does not necessarily represent the views or opinions of private banking strategies.
[00:26:51] Intro: The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. [00:27:00] Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.
