[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 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, and I think we’ve got some information for anybody and everybody who’s willing to listen and wants to try to get to the next level of understanding on how money works.
[00:00:55] Seth Hicks Esq.: Absolutely. Today we’re gonna do something that people have asked. [00:01:00] For, and clients have asked for over and over again, it’s case studies on a successful family or a case study on perhaps an unsuccessful family.
[00:01:08] Seth Hicks Esq.: But today we’re gonna focus on the Rivera family, where the names and identities have been changed. Obviously to protect people’s confidentiality. But the Rivera family is a great example of how to start and operate a private family bank and how to build a hundred year private family banking system for your family.
[00:01:27] Seth Hicks Esq.: So Vance, talk to us about that.
[00:01:30] Vance Lowe: Well, let’s go in and share with our audience this scenario. People are willing to write this down or they can re-listen to this, but let’s go into the typical family and put yourself into this situation if maybe you fit. We got a couple parents here. They love each other.
[00:01:45] Vance Lowe: They’re 45 and 44. They’re professionals. They’ve got three kids, pay 15, 12, and five, and household income, because both parents were. They have some primary goals, so I wanna share those [00:02:00] with you. And I want us all, maybe this can be just an open forum a little bit, and everybody think through, well, here’s how I would do it.
[00:02:07] Vance Lowe: Here’s what I would say. But they wanna plan college without destroying liquidity. You know, we’ve got some strong ideas about college by itself as probably a number one destroyer of family liquidity, but college or you know, higher education for their kids. Build business seed funds for their kids so that they’ve got a legacy and an income where they can create their own financial independency.
[00:02:33] Vance Lowe: They want tax free legacy. We all do. We all want that. Pay as little amount in taxes and set this up because they’re so family oriented. They have extended family and they have. Multi-generation traditions that they uphold to, and they want to keep that going. So the hundred year plan is in their makeup.
[00:02:56] Vance Lowe: They want this to last multi-generational [00:03:00] and established structure that trains each generation, that takes over this strategy so that it will improve every, every generation. It won’t deteriorate. So Seth, let’s talk about that a little bit.
[00:03:16] Seth Hicks Esq.: Yeah, they built a plan in mind to sustain college tuitions. If children want to go to college or perhaps start businesses, and they’re concerned about having the liquidity and the capitalization without being vulnerable to the tax erosion, inflation, erosion market risk.
[00:03:37] Seth Hicks Esq.: Lack of liquidity with bank financing, bank limitations, changing government laws and rules, or any other type of financial aid traps. And one of the things that Daniel communicated the father was, I don’t wanna leave my kids money. I want to leave them a strategy. I wanna leave them a system. I wanna teach them how to steward [00:04:00] money that me and Elena make, and not just hand them loaded guns without knowing how to operate the strategy.
[00:04:06] Vance Lowe: That’s one of the parts that are so endearing to make it multi-generational. Seth, you’ve got real live examples of rich families who pass inheritance on to kids, money on to kids, and you’ve kind of got a saying something like, uh, the, the second generation tries to maintain the inheritance, but the third generation blows it.
[00:04:30] Vance Lowe: Why is that, and why will this fix that?
[00:04:33] Seth Hicks Esq.: Great question. I mean, I think it’s because you, you’ve got no system, no strategy, no plan in place, and you’ve got massive power and money. Those two things combined are a recipe for disaster. You have to create structure and ways where the next generation learns.
[00:04:55] Seth Hicks Esq.: Stewardship learns management. Fiscal responsibility, [00:05:00] appropriate leverage, appropriate risk, and mitigation of risk. And generally the first generation, in our case, Daniel and Elena, if they make all this money and hand it to their children, their children will inevitably do the best they can. But it’s a matter of chance if they’re not given a system and a strategy, when Daniel and will build the private family bank and the structure and the strategies.
[00:05:23] Seth Hicks Esq.: The kids have to participate in the way it’s structured or they disqualify themselves from the use of the private family bank. That’s how you guarantee structure, stewardship, and financial responsibility with future generation.
[00:05:37] Vance Lowe: And let me lay this out because what Seth just said, people think, wow, this is just.
[00:05:42] Vance Lowe: Gonna be complicated and really difficult to set up, and I’m not that smart. Folks, this is gonna blow you away when you find out how easy, how simple it is to structure, to set it up and to run it. It is amazing. Anyone of any [00:06:00] education background can make this happen and set this up and be extremely successful with it.
[00:06:06] Seth Hicks Esq.: And so when Daniel and Elena come in and they begin to place policies, the first generation policies are on themselves. They have reciprocal and multifaceted interests. Obviously, we don’t really solve for death benefit. We often tell people that, but it is a component of the structure and when someone dies, there’s a death benefit paid.
[00:06:29] Seth Hicks Esq.: That money should go into the family banking system. So if Daniel were to leave the planet. He’s going to leave a sizable death benefit that is for the benefit of Elena, his wife, and his three children. And Elena can continue to implement the strategies and the plans that her and Daniel put in place without going bankrupt or having to change the structure and the strategy.
[00:06:52] Seth Hicks Esq.: And it’s not a best case scenario for their family, but if it happens, that money comes into the system and [00:07:00] begins to. Fund other policies or be available for their banking. And so the first generation policies are on the patriarchs and the matriarchs, and they’re usually the most sizable policies. And then after that, perhaps sometimes at the same time, depending on a family’s strategy and their financial capitalization abilities, they start to place policies on the children.
[00:07:22] Seth Hicks Esq.: Why is that an important part of the structure? Placing policies on the children, Vince?
[00:07:29] Vance Lowe: Well, because they have time on their side. One of the benefits of a strategy is that money starts working for us and it circulates. And this term is called velocity. It’s how many times money can touch down. And in the strategy, we literally put money to work.
[00:07:45] Vance Lowe: So we get credit for it, and then we get it back, and then we use it again and get credit for it, and, and it always comes back. The money always draws back, which doesn’t happen in people’s lives now. And if you start that on young generations, the upfront cost is [00:08:00] really a lot less, but it’s again, not a significant factor.
[00:08:03] Vance Lowe: These contracts are what hold our wealth, what hold our assets, but it gives them so much more time to get. Massive amounts of money in those contracts when we’re older. It’s based on what we’re able to put in now and can accumulate at the same rate, but not as many times. And if you read our book, we put in there a penny doubled 30 times we’ll amount to imagine if it doubled 31 times.
[00:08:34] Vance Lowe: So we wanna set that up now. I set that up on. 10 of my grandkids, I have three of those 10 totally uninsurable right now. They can never get more life insurance on them, but we’ve got nice contracts on ’em. A lot of cash value in those contracts. Able to pay for colleges right now, or their cars, all types of those things right now.
[00:08:58] Vance Lowe: So it is important [00:09:00] because it becomes the bank when the older people die. When the patriarchs die, these first two that we’re talking about here, they’ll die. That death benefit will then be paid into this trust where all the policies are, and it’s gonna pay off all the loans, and it’s going to provide monies for the next generation of policies.
[00:09:25] Vance Lowe: They’re gonna look at the very youngest, maybe the grandkids are now married and they’re having kids, and so there needs to be policies. Put on them so that the same thing can happen. I don’t wanna go into really deep structure here, but it’s very perpetual. Again, the younger kids, they will end up with more death benefit than they can ever qualify for because the death benefits, the way the proper contracts are structured, increases every single year, along with the cash value and everything else.
[00:09:59] Vance Lowe: It can’t go [00:10:00] down. If somebody wants to put five or $10,000 on a newborn, that’s a million dollars up, maybe even $3 million worth of death benefit, and we’re not even going after that. And then if it just increases from that point, look what comes into the family bank when that generation ceases.
[00:10:17] Midroll: Did that story feel like it was about.
[00:10:21] Midroll: 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. Are you ready to take action and get your own private bank? Please visit us at www.privatebankingstrategies.com.
[00:10:48] Seth Hicks Esq.: The long term compounding growth on the policies initiated when someone is a child is staggering and is precisely for that. And Vance mentioned that our book, you [00:11:00] can. Get a copy of that folks as a gift from us for being on our podcast and hit the website, private banking strategies.com. You’ll be offered the book and the book’s title is How to Grow Rich with Secrets that the Banks Don’t Want you to know.
[00:11:16] Seth Hicks Esq.: One of the secrets banks don’t want you to know is that you can capture your own compounding growth and not give your money to them to make money off of you. So that’s a huge pro tip right there. Check the book out. Put your name and email in and download our book. It’s available in PDF or audio.
[00:11:31] Seth Hicks Esq.: Long-term compounding growth on minor children will stagger you at the end of that curve. Someone that has a life insurance policy on ’em for 70 years paying premiums in is just. Incredibly efficient, cost effective, and long-term compounding machine that will stagger you. But yeah, Vance, I mean we’ve got, the book shows a penny compounding, but we have illustrations and Nelson Nash has illustrations in his book that show.
[00:11:59] Seth Hicks Esq.: Like the twin [00:12:00] sisters illustration that people can look at it. Folks, that’s another real key example of how you, something simple. The Twin Sisters is one of the first episodes we have on our podcast, and we go through illustrations of what, just using life insurance to finance automobiles can do when you start early enough and then have a 30 year curve, a 40 year curve, and it’s staggering.
[00:12:21] Vance Lowe: It is, let me share one example. It’s not a deep dive, but it is a legitimate idea that people practice every day. One of the things, once we buy our own debt, we like to do is we buy our own automobile debt. And one of my perfect examples, and I lived this through, this is twice over the last 20 years and I’m still practicing this.
[00:12:45] Vance Lowe: I wanted to get back all the money I’d ever. Bought vehicles with over a lifetime. And what we did envision this, if you will, you’ve got a family member out there who is paying for an automobile and he’s in the back [00:13:00] half of the loan period of time. And the payoff on the note happens to be $10,000. And I just so happen to have $10,000 sitting in one of my plans, my policies I wanna put to work.
[00:13:13] Vance Lowe: So I. Tell my son or daughter that I want to buy that automobile debt that you’re paying Honda Finance right now. They’ll ask, okay, what will that do? What will that cost? Everybody’s interested in the interest, and it’s simple. It’s not gonna change for you at all. I’m just gonna buy the debt. But when I buy the debt, I get the monthly payment that they’re making and it just so happens to be $500 a month if I take the money at work, which is $10,000, and if I receive $500 per month.
[00:13:45] Vance Lowe: That’s $6,000 per year, folks, right? If we do the math right, 6,000 divided by the money at work is a 60% volume rate of return. And right there, I’ll bet you’ve never [00:14:00] in your life thought about that before. ’cause this is why lenders lend money if the volume. Rate of return coming back into your control, that doubles assets, right?
[00:14:12] Vance Lowe: If you did the math, that would be 30,000 in five years, but if you took the 6,000 and you bought more debt with it and you got the 60% return, which is average for all of the clients out there, 60% is the average volume rate of return. That same five years, it wouldn’t be 30,000, it would be 180 plus thousand dollars back in hand.
[00:14:36] Vance Lowe: Now let’s double that $10,000. See how many times we double that 10,000. There’s an example right there, folks, of what this strategy does if you put it in your life and why this a hundred year plan will take any family into financial security in such a short period of time.
[00:14:56] Seth Hicks Esq.: Right, and this has been proven out at even the [00:15:00] highest family owned office levels and clients worth literally tens of millions of dollars in real estate holdings that use that very principle to capture their own cash flow, leverage appropriately into real estate opportunities, have places when they sell real estate to dump windfall.
[00:15:19] Seth Hicks Esq.: It’s proven out with some of the most sophisticated real estate developers that I know. In 30 years of practice using the banking policies to implement that. So folks, if you like what you’re hearing, hit our website, private banking strategies.com. We’ve got robust materials and content. There are over 150 some odd episodes, and growing of podcasts, which you’re probably listening to us on right now.
[00:15:45] Seth Hicks Esq.: We’ve got blog articles, but more importantly, you’ve got access to one of the preeminent IBC private banking strategies coaches. Which is Vance. He was protege by Nelson Nash. I’m not a bad [00:16:00] sidekick in everything that I bring, but we’d love to help you. We want people that wanna steward their families.
[00:16:06] Seth Hicks Esq.: Well leave generational wealth and that’s our focus. And so if these things resonate with you, you’ll have a opportunity to schedule an exploratory call with Vance through the emails that you sign up for. You gotta put your name, your email in. You’re gonna get access to our book. Secrets. The banks don’t want you to know how to grow, which with the secrets, you’ll get that in audio in a written form.
[00:16:27] Seth Hicks Esq.: But more importantly, you’ll be able to schedule a call with Vance on an exploratory call and he will be able to take you on a test drive of how this will fit for your family. Whether you’re the wealthiest family we’ve ever talked to or whether you’re the poorest family, we don’t really distinguish. We want to help the little guy.
[00:16:43] Seth Hicks Esq.: We want to help the blue collar folks, and this will work for you and it will work for the richest people on earth. The richest people on Earth already use it, most of them. So any other closing remarks, Vance?
[00:16:55] Vance Lowe: No. I just challenge you guys to take the next step, improve [00:17:00] your existing situation. Otherwise, five years from now, it’s gonna be the same as it is today.
[00:17:05] Vance Lowe: We just have to do a little bit more effort. It produces so much more results. So I encourage all of you to take the challenge. Let us help you take this for a test drive so that you can actually see with your own numbers what it will do for you. Thank you very much.
[00:17:21] Seth Hicks Esq.: Thanks folks for visiting with us. We look forward to seeing you on the next podcast, and until then, be good.
[00:17:27] Seth Hicks Esq.: Bye-bye.
[00:17:28] 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? Please visit us at www.privatebankingstrategies.com.
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