[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.: Well, hello and welcome to Private Banking Strategies Podcast with Vance Lowe and Seth Hicks.
[00:00:42] Seth Hicks Esq.: Vance, how are you?
[00:00:44] Vance Lowe: I’m doing great. Again, that’s great to be back and share a few insights with our listeners.
[00:00:50] Seth Hicks Esq.: Thanks for joining us folks. We’ve been talking about the architecture generation by generation in a hundred year private family bank, and we’ve [00:01:00] talked about the initial cornerstone policies that are created in the.
[00:01:05] Seth Hicks Esq.: Matriarch and Patriarch Family Bank, and we’ve talked about Generation two policies on the children. And now we’re gonna talk about today, generation three policies on grandchildren and continuing to flow in the Family Tree Vance. This is a really fun topic for us, and when people get the. The light bulb moments like we’ve had so many clients tell us, finally got it.
[00:01:30] Seth Hicks Esq.: And they’re putting policies on their children and their grandchildren. You can see how it’s going to waterfall the wealth.
[00:01:37] Vance Lowe: You really can. When I was first learning the strategy and the, the whole a hundred year type plan, Nelson Nash, who’s the author of bringing this all back, his kids would complain every time the wife got pregnant.
[00:01:53] Vance Lowe: They would start to worry because they knew dad would be around to sell two policies on [00:02:00] that new baby, his grandkids. He would sell two policies. He would buy one and he would require the parents to buy the other one.
[00:02:10] Seth Hicks Esq.: Mm.
[00:02:10] Vance Lowe: He was really protecting this third generation in making sure that they had an opportunity to immediately come in, start things up, and be taught about money from the beginning of, of their existence, so to speak.
[00:02:25] Vance Lowe: So
[00:02:26] Seth Hicks Esq.: That’s awesome. Yeah. Him being. One of the original tip of the spear, people that brought this into the perception brought it back because, you know, private banking has been around through life insurance contracts for centuries before this country was even declared a country and formed. So Nelson, when he begins to lay this out in his own family, how did it work?
[00:02:49] Seth Hicks Esq.: Because we’ve talked a little bit about your own family and different stories with children implementing and not implementing. Tell us about how it started to work when put policies on grandchildren.
[00:02:59] Vance Lowe: Well, the [00:03:00] theory goes, the outline is, is that as the matriarch and patriarch mature with policies on their own life, the bank is formed.
[00:03:10] Vance Lowe: All these contracts both on parents and children are pulled together and they’re at some point in. The first generation, probably towards the second half of the first generation, there’s enough money to start financing everything and policies, procedures, principles, all have to be set up and embedded.
[00:03:32] Vance Lowe: It’s not complicated. It’s actually quite simple. You know, with the correct vehicles. But the simplest way to understand what happens is that when the parents die, those policies, uh, the death benefit comes in, it pays out the death benefit minus any outstanding loans. So let’s assume each parent had a million dollar policy on them and they deceased at the same time.
[00:03:57] Vance Lowe: $2 million would be coming in. [00:04:00] The trust would own the contracts, and so the death benefit would be paid into the trust. And the ideal situation is that can we put that money instead of in someone else’s bank, but in our money warehouse, our policies? So it fills up all the outstanding loans. So that’s gonna create.
[00:04:22] Vance Lowe: Opportunity for a lot more contracts to be written. There’s usually enough money or freed up money that we now go to the absolute youngest generation and make sure we put new policies on them. That’s what we’re talking about today, is this third generation. It’ll continually be the third generation, so to speak.
[00:04:44] Vance Lowe: ’cause that’s usually what is alive at any one time. So we’ll put those policies on the young kids because they’re brand new. Insurance is the cheapest. They all qualify. There’s no problem. There are ways and angles to [00:05:00] increase the insurability properly. Ethically, we wanna make sure we take advantage of that depending on how many grandkids there are.
[00:05:10] Vance Lowe: So now the money’s all settled again, and the bank is even bigger and planning for this newest generation to pay for, you know, finance, their, you know, education and way through life. While the older generation, which are the kids now, they step in and start reaping the rewards, the earnings off of the bank as well as their own other, you know, retirement funds and things that they might have.
[00:05:35] Vance Lowe: So it’s that stewardship to make it happen, make all of those things work. Like I said, Nelson Nash was, you know, he was very driven to be able to make sure every single child, you know, when they got home from the hospital, he was there to do a policy on them. And today it’s easy to do. Parents sign, there’s nothing the child has to do.
[00:05:58] Vance Lowe: The only thing they have [00:06:00] to find out is if there’s any. Birth defects. I don’t think I can even remember a newborn or an infant child ever being refused. I really can’t. Now, Seth, let me tell you one more story here. I have followed this, I put policies on my grandkids. One is in our book, but two others are totally uninsurable right now, completely uninsurable.
[00:06:24] Vance Lowe: They’ll never be. Eligible for insurance. Again, that’s my oldest granddaughter and my second to oldest the grandson. Neither of those can purchase any additional life insurance, so you never know how things change in a heartbeat, especially as the family gets bigger and bigger. Medical issues will, will kick in, and if you don’t do things as soon as you possibly can, if you delay or if you procrastinate, sometimes the door closes, and I’m so thankful that I have that because both of these policies could easily replace a complete [00:07:00] retirement income when they’re old enough.
[00:07:02] Seth Hicks Esq.: Right, and that’s the compounding curve. And if you start policies on infants and toddlers, when first opportunities, by the time they’re 30, there’s basically enough capital even on small policies to finance even 20 years old of age. On those people, there’s plenty of capital to finance. School tuition opportunities.
[00:07:23] Seth Hicks Esq.: First businesses. First homes. So it’s there. But what you described is basically bringing children and grandchildren into a system where they learn stewardship. They learn how to govern according to the rules that the original founding bank matriarch or patriarch started, and to continue in that stewardship.
[00:07:44] Seth Hicks Esq.: That creates a real skill of financial discipline and understanding how you get the money back, and it really does start with bicycles and iPads like you described in the prior episode.
[00:07:55] Vance Lowe: Well, let me share something else with you. You know, we put the compounding illustration in [00:08:00] our book. Think of these kids, these little babies, infants.
[00:08:04] Vance Lowe: Many times we can only put. $5,000 on them, but that $5,000 will blow away 50,000 or a hundred thousand dollars annual premium on the parents,
[00:08:14] Seth Hicks Esq.: right?
[00:08:15] Vance Lowe: Because of the doublings, the opportunity of this exponential compounding. So folks, that’s what’s so important is, is that you get money in play. In a safe environment, don’t make the mistake So many people do.
[00:08:30] Vance Lowe: All the stock market, you know the grass is greener over there. This is more exotic. Life insurance is old plain Jane, and yet it’s beat the stock market long term. Sense that the stock market came into play. We also did an illustration that two friends graduated college, one went right to work and he was able to save $2,000, but he started right out of college.
[00:08:54] Vance Lowe: The other one waited until his income was more stable. And started when [00:09:00] the other guy stopped, but he was able to do $10,000 for the rest of his life, both compounding at exactly the same amount of interest rate. You work it out till age 65, wonder which one has the most money in it. And it actually, in this case, they both have the same amount, but one only.
[00:09:17] Vance Lowe: Either seven or 10 years in the rents are put in 45 years worth. This is very important. I think if you guys are really thinking about maximizing your effort, the sooner the better. Our advertising and our economy and our way of life teaches us to postpone, and so we’re here to say. What everybody’s doing.
[00:09:38] Vance Lowe: Do the opposite,
[00:09:41] Seth Hicks Esq.: right? It really does come down to long-term compounding, and we illustrate that concept in our book that we have on our website, folks@privatebankingstrategies.com. Vance and I have provided a book to our listeners in our audience that tells them secrets that banks don’t want you to know that help you improve your wealth.[00:10:00]
[00:10:00] Seth Hicks Esq.: 30 year compounding curve. It begins to double in the later 30th year. I think it’s the last two or three or four, and it begins to pick up such a snowball avalanche of compounding growth that it’s mind-boggling
[00:10:14] Vance Lowe: it. It’s such a steep curve. It’s just straight up. Every time it doubles, it goes outta sight.
[00:10:19] Vance Lowe: So fast. One generation, even if you started, like I said, $5,000 a year, you’re in the multimillion. Dollars in your banks if you’ve actively put the money to work and got the doublings on the averages that you’re supposed to, it’s there and it’s there. Well established now into the third generation so that the whole family, the whole extended family can use the private family bank for all their financial needs.
[00:10:49] 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 [00:11:00] 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?
[00:11:12] Midroll: Please visit us at www.privatebankingstrategies.com.
[00:11:20] Seth Hicks Esq.: I think that most people are more inclined or motivated to try to make that happen faster. And so we tell a story about, it’s a classic example of the hare and the tortoise and who wins the race. Well, the hare is. Self grandiose and things. I’m like, how can I lose to this turtle?
[00:11:37] Seth Hicks Esq.: And people think, well, I can get in the market how, you know, I can make 30%. Why would I put it over here where it’s barely doing 7%, or whatever the case may be. But we’ve talked about that and how there’s funny math involved with money managers and there’s a drag on management fees and taxation issues, and by the time you pencil it all out and come to the end of that 30 year curve.
[00:11:59] Seth Hicks Esq.: They’re [00:12:00] not even close. Private banking will far surpass someone in the markets unless, you know, they got extremely lucky, pretty much, and bought only Apple and Nvidia. Like Nancy Pelosi.
[00:12:12] Vance Lowe: The stock market says, you know, you’re doing a really good job. If you can double assets every 10 or 15 years. You’re really lucky if you could do it in seven.
[00:12:21] Vance Lowe: We talk about doubling your money at work, your assets on the average of every five years. A lot of times it happens in two and a half years and there’s no risk. If you’re out there trying to get 10 year doublings, you’re taking on a tremendous amount of risk in order to make that happen. The doubling effect in the stock market requires a lot of risk.
[00:12:44] Vance Lowe: The faster you want to try to double, the more risk you have to take. What I’m trying to say is that people feel like when they put their money in the stock market, they’re putting their money to work. They’re not. It’s the people who receive [00:13:00] the money in those stock companies who are putting your money to work.
[00:13:04] Vance Lowe: Those are the ones that are doubling it far faster than you can. So we need that effect. We need to have the money working for us instead of someone else. And that’s what we’re talking about here.
[00:13:16] Seth Hicks Esq.: You know, we talk about this over and over again about having large sums of cash in a bank and how people go.
[00:13:22] Seth Hicks Esq.: They have the false perception that that’s safe and that there’s no risk in the bank. They may not be owning any interest, but it’s actually not for a multitude of reasons, including the Dodd-Frank Act, including the banking agreements that you sign when you open up accounts. It basically makes you an IOU creditor, not.
[00:13:42] Seth Hicks Esq.: Being your money. And, uh, if it, there’s a bank run or bank failures or mid-tier banks, domino and the top tier banks or some type of national debt implodes upon us, or whatever the case may be. The safest places in the life insurance contracts and life insurance contracts with companies we use [00:14:00] haven’t failed for centuries.
[00:14:01] Seth Hicks Esq.: They’ve paid through the Civil War, they’ve paid through the Great Depression, paid through every economic downturn and upturn. Bull trend, bear trend throughout. Centuries every year.
[00:14:13] Vance Lowe: A lot of people ask us, what’s a typical premium for toddlers, and you wanna try to see if you can qualify for around 10 to 15 if you have the funds, do what you’re comfortable with.
[00:14:25] Vance Lowe: The problem is, is insurability. If you do an infant. You put $5,000 annual premium on them. Those death benefits are like $3 million. If you’d go to 10, it’s 6 million. We had one very wealthy, uh, client do a policy on his 9-year-old, and he wanted to put literally $30,000 a year. Well, it was well over $30 million of premium.
[00:14:53] Vance Lowe: We had to use several companies in order to do that. So it’s important just to know if we [00:15:00] have the funds, it doesn’t necessarily means we can put a lot of money on a infant. Uh, again, it’s based on curability. We’ve got other podcasts. We actually go into that insurability amounts. But you know, for this third generation.
[00:15:14] Vance Lowe: You know, we want to get that money in working quickly. But Seth, why does that matter?
[00:15:20] Seth Hicks Esq.: Well, because of the compounding that we’ve talked about, obviously that compounding growth when they’re adults is doubling and 25 years in. Plus it’s, that’s where the real parabolic growth comes, and you’ve got massive liquidity.
[00:15:36] Seth Hicks Esq.: For opportunity, you’ve got appropriate risk and having capital in your family bank is like dry powder or combustion and capturing opportunities that come to all of us in life or capturing various investment without any type of qualification or having other people over collateralize and secure everything you own, which is [00:16:00] typical with.
[00:16:00] Seth Hicks Esq.: Third party banks, and I often just say Wells Fargo and Bank of America. ’cause everybody knows those banks, you go in for a loan first, they gotta make sure that you really don’t need it, that you’re rich enough to pay them back, and then they wanna see all of your assets and collateralize everything for their little puny loan.
[00:16:17] Seth Hicks Esq.: So those are some various reasons.
[00:16:20] Vance Lowe: It really is. It’s just that third generation. We also call it the generation that really is the builder. The insurance, the death benefits are so much higher. We have so much longer for the doubling and when the third generation becomes the. Patriarch in the cycle, it’s massive.
[00:16:41] Vance Lowe: You know, you’re actually getting multiple policies on everybody you possibly can to hold the wealth inside these contracts instead of banks. By the way, when we do that, the money literally disappears because there’s no reports generated or anything else. You’re gonna hold a tremendous amount of wealth in [00:17:00] life insurance.
[00:17:00] Vance Lowe: No one knows except you and the insurance company. So that’s an important fact to understand in that third generation, if we take care of that, think of the child who’s grown up and is taught what money is and how he separates everything. It just becomes a way of life. The only weird thing is that everybody around him on the outside isn’t doing it.
[00:17:24] Vance Lowe: But folks, we call that the 10% law. If we’re used to always putting 10% in and then putting it to work, no matter what the month brings in, we can always do that. That becomes the paramount thing. It’s inbred. It’s something that. Happens and for these kids to get involved and start this process that early when they wanna self-finance things, when they start learning that money is the exchange that gets them things that they want and that through work.
[00:17:55] Vance Lowe: They can get it and pay themselves back. Then they start realizing that, [00:18:00] hey, I always get the money back. I never have to spend my principle, my principle’s always working for me. It’s circulating. I can use a dollar more than once and get it back and get a new dollar every time it circulates. Touches on a dollar.
[00:18:13] Vance Lowe: How many times can you know, a dollar touch down every year? So it’s. Totally set up by that third generation. Now there’s a fourth generation we want to talk about, but we’re gonna do that at another time. Seth, I don’t know what else I can say to define what we’re talking about here. For the third generation,
[00:18:31] Seth Hicks Esq.: the few key words, buzzwords that I’d like to reinforce are stewardship governing principles over this third generation.
[00:18:39] Seth Hicks Esq.: Those have to be well established and they have to have. Been working within that system to be able to govern and steward. And so it’s part of the initial principle and concept that we’re not providing handouts with a hundred year private family bank. We’re providing hand up. Then we’re letting them climb on our [00:19:00] shoulders and build another layer in our family tree.
[00:19:03] Seth Hicks Esq.: But handouts will destroy hand ups with stewardship and governance and financial discipline will produce unmatched results.
[00:19:13] Vance Lowe: It really will. I’ve just seen that throughout my life. I, I see too much of the other side. You know, the failure, the loss of money where they give out inheritances, ruins the family, and the money’s gone within six months.
[00:19:25] Vance Lowe: It’s still the average.
[00:19:27] Seth Hicks Esq.: Yeah. And we talk about that in our case studies and uh, the Vanderbilt legacy is a great example of just letting money evaporate without governance and principles. And the Rockefeller family, on the other hand, is a family that used life insurance contracts. Had stewardship governance and implemented those and had a different wealth trajectory for their family.
[00:19:47] Seth Hicks Esq.: Folks, if this content is resonating with you, if these are principles that you wanna learn more about, go to our website and it’s at private banking strategies.com and Vance and I have created a book for [00:20:00] you, our audience to dig into. It’s called Secrets the Banks Don’t Want You to Know. And if you put in your name and your email there, you’ll have option to either listen to that or read it.
[00:20:10] Seth Hicks Esq.: Or both. And more importantly, you’ll begin to get emails from us announcing new podcasts, announcing valuable content that we think will help you on this journey. And. You’ll have an access to Vance in his calendar. So if our podcast resonate with you, if our book resonates with you and you want to see how this will actually work for you, schedule an exploratory call with Vance and he will ultimately, in a process, take you through an eight year analysis, or you plug in your financial situation, your numbers, your family, economics into an algorithm so to speak, that tells you exactly who to pay, what to pay, how to use.
[00:20:50] Seth Hicks Esq.: What’s within your hands to take the banking equation back in your life? Vance, any closing remarks?
[00:20:57] Vance Lowe: No, you said it really well, folks. Just, you know, do [00:21:00] yourself a favor, spend some time. Plug yourself into this. Where do you fit? You know, you’ll come up with questions, you’ll come up with answers, and take us up on our offers, you know, we’ll show you how this thing works.
[00:21:12] Vance Lowe: We’ll let you take it for a test drive with your own numbers. So with that, we wanna thank you for your time and for listening to us today.
[00:21:19] Seth Hicks Esq.: See you on the next one, folks. Thanks.
[00:21:22] Vance Lowe: Bye-bye.
[00:21:23] Outro: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals?
[00:21:31] 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.
[00:21:47] Outro: 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.
