[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 an asset protected 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.
[00:00:38] Seth Hicks Esq.: Hello, and welcome to Private Banking Strategies podcast with Vance Lowe and Seth Hicks.
[00:00:42] Seth Hicks Esq.: Vance, how are you today?
[00:00:44] Vance Lowe: I’m doing great. Looking forward to a new topic.
[00:00:47] Seth Hicks Esq.: We’re gonna continue on in implementation of the 100-year family bank, and one of the things that’s important is to set cornerstone meetings and roadmap posts in place. And it’s important [00:01:00] that we set those things out in the beginning, or if you don’t know what you’re shooting at, you’re not gonna hit the target, right?
[00:01:06] Vance Lowe: Absolutely. And this goes into play with any successful venture, business, corporation, even up to the S&P 500 mega companies. They have a structure that they follow. You have to do that in order to be successful. If we break that all the way down to the family level and personal economies, there is still an absolute structure that you have to adhere.
[00:01:31] Vance Lowe: You have to find out where you’re at, make any adjustments along the way, and go forward. So I think all of those issues are critical in order to function.
[00:01:42] Seth Hicks Esq.: And they’re, they become increasingly critical and important as the size of the bank increases and as multiple policies are layered in to the private family bank, and you’ve got matriarchs and patriarchs passing, and children taking over the corpus of that [00:02:00] wealth.
[00:02:00] Seth Hicks Esq.: You’ve got to have clear smart risk framework and protocols which the, the entire system runs on.
[00:02:09] Vance Lowe: Yeah, you do, and you have to prepare. It seems like it’s an unfair assumption, but you have to prepare for the unknown risk. Let me give you an example. A family can be building a family legacy, a family bank for 20, 30 years, have multiple policies, everything else, and have one of the spouses decide that, “Ooh, there’s a lot of money here.
[00:02:32] Vance Lowe: I don’t love my spouse anymore. I’m gonna take half the assets.” And overnight, you could have a problem. So setting up how you operate the system, how the system is owned is a critical format, especially if this is going to be multi-generational. And we’re talking about a 100-year plan here, folks. We’re talking about multi-generation, multi-facets, multi-department, so to speak, to make this all run [00:03:00] smooth and easy.
[00:03:01] Seth Hicks Esq.: Yeah. And I think we talked about this in prior episodes, like what frameworks apply to the, the access to capital within a bank. That’s gonna depend- And upon your particular family, it’s gonna correlate with your wealth strata. There’s gonna be different applications with different families, but the important thing is that they establish a framework, and that there are risk allocations, and that there are rules for deployment of capital and recapturing that capital, and repayment of loans, collateralization of the loans, just like a bank making real estate financing possible for developers.
[00:03:41] Seth Hicks Esq.: They have a first lien position on that real estate. Well, in family banking, it’s the same thing. The bank needs to make sure that they make good loans. And so that’s where the smart risk framework comes into place and the training that should have been occurring in the family banking system from the [00:04:00] beginning of its implementation.
[00:04:01] Vance Lowe: That particular footnote, smart framework, because that’s something that needs to be well thought out and can ever be changing a little bit. Owning your own debt, owning family debt, owning extended family debt, is there an advantage to that? Yes, there is an advantage, and because there’s an advantage, there’s an opportunity for abuse.
[00:04:27] Vance Lowe: So that all has to be well thought out. In a family bank, if someone has a crisis, loses a job, gets involved in an accident, and can no longer make that commitment, the family bank is in a situation to take over or alter the loan so that it can accommodate that individual getting back on their feet and being able to completely pay off that loan.
[00:04:52] Vance Lowe: It may take a lot more time, involve more interest, recalculation of the actual payment, stop payments for six [00:05:00] months, but the loan doesn’t go away. If it’s determined that can’t work with that person, then yeah, your collateral, the way you set up the loan, the whole thing has to kick in. The asset probably has to be sold to protect the bank But the other advantage is any excess can be given to that family member.
[00:05:20] Vance Lowe: They just might not get another loan
[00:05:22] Seth Hicks Esq.: Its flexibility and the freedom to make changes and modification are there, but there still has to be a framework that is neutral and blind in its application. Otherwise, there can’t be partiality and people in a multi-tiered layered family bank that gets their own rules.
[00:05:40] Seth Hicks Esq.: So that’s just a non-starter, and if you wanna… That, that’s just the way it has to be. And a- as people implement that and they begin to operate in that framework and other family members participate, I don’t think that’s too hard of a pill to swallow. I think it gives… It’s like lines [00:06:00] on the highway, you know where the lanes are.
[00:06:02] Seth Hicks Esq.: That’s a good thing
[00:06:03] Vance Lowe: I think it’s all positive, 100% positive. I made mistakes early on with my kids trying to force them into this thing, and as I did get them in, I said, “Look, let me buy this car loan. Let me buy this debt. Let me buy that debt, and I will share with you some of the profit that comes into the bank as your interest and ownership in the family bank.”
[00:06:29] Vance Lowe: And they’re surprised. They don’t change their payment. It pays off exactly at the same time, but all of a sudden there’s more money back in the hoppers than they thought. They weren’t getting anything back because they were losing all the money. But all of a sudden, okay, now I got the car paid off, look at how much money’s back in the hopper for them to do it again and again.
[00:06:50] Vance Lowe: And you need to participate. Start your own contract. We need to build the money warehouse a little bit. So great opportunities [00:07:00] if we set the framework up correct so that they understand that this is not family lending. This is a family bank structured and everybody’s going to comply. But every circumstance can be viewed and can be adjusted where outside banking and financing would never be
[00:07:20] Seth Hicks Esq.: That’s the flexibility and the freedom that people can build into their own frameworks and their own rules for discipline.
[00:07:27] Seth Hicks Esq.: It’s a flexible application, and it’s… Every family’s gonna have their different applications. So let’s say that we’re 12 months down the road or, or been implementing the plan. Do we do things on a regular basis to make sure that we’re operating and we’re firing on all cylinders?
[00:07:48] Vance Lowe: That first 12 months, folks, is absolutely critical, as well as the first 60 months.
[00:07:54] Vance Lowe: So every month as you start this plan, it’s absolutely critical, number [00:08:00] one, to adhere to the plan because the plan is designed, if you’ll follow it, that there will be more totals in your favor than the plan calls for that’s built that way on purpose. I can’t tell you how many hundreds of people have said, “Well, I have more money in the account than my plan says I need.”
[00:08:22] Vance Lowe: So that first 12 months is if you have done everything and followed it, the money for the next premium will be there. You’re gonna know exactly how much can be borrowed out and how much to attack on the next item that we’re purchasing. We might have to do a partial purchase. We’re just gonna know exactly what to do, and we run that.
[00:08:45] Vance Lowe: In that first 12 months, there’s really nothing to do. We don’t plan additionally. We don’t change or implement a new plan at the end of the first 12 months because a lot hasn’t changed. If that’s the case, if [00:09:00] totally our world is totally different because of moving and new jobs and births or whatever, maybe we have to pick up the pieces and set up a new plan.
[00:09:11] Vance Lowe: Normally, we can go two years with the exact same plan, just altering it a little bit, but that doesn’t mean, number one, the new client doesn’t go 12 months without talking to us or two years. We’re talking on a regular basis at least every 90 days to make sure we’re bringing on all the concepts, that we’re flowing money the proper way
[00:09:38] Midroll: Did that story feel like it was about you?
[00:09:41] 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 [00:10:00] private bank? Please visit us at www.privatebankingstrategies.com.
[00:10:09] Vance Lowe: So when I say a 90-day law, we record our sessions for our people so that they can have them and learn. A lot of them say, “I’m supposed to go into the account every 90 days and do this.” No, the 90-day law is you go in every single month and you do this and you look ahead 90 days. You’ve got to know and implement and internalize each of these principles in order to be extremely effective.
[00:10:40] Vance Lowe: The difference between a novice and an absolute, we call them a mechanic artist, absolute professional, is that they have everything internalized. They can pull out anything they need to make things happen. We grade professionals on a scale of one [00:11:00] to 10. Uh, a one doesn’t even know the topic. A 10, there are no tens because that person walks on water.
[00:11:07] Vance Lowe: So from nine to, to one, the gurus, the people who teach the best people are the eights and nines, and the sevens are the ones that are seeking out these eights and nines. It’s the five we have to look out for. The five is a person who knows enough now that, “Hey, I can do this and I can work with another people, another person and sell it to them.”
[00:11:32] Vance Lowe: They don’t have that background. They don’t have the experience, but they think they do. They think they’re sevens, eights, and nines. So what I’m just trying to say here is that we wanna take our own steps. We want to be able to learn and never stop the learning process and become absolute experts, and it’s gonna take Five years.
[00:11:52] Vance Lowe: It’s gonna take a while to experience everything, and if you’re willing to always learn something new every [00:12:00] day, you will become that expert, and there’s no better lucrative business or profitability to be in than private banking.
[00:12:09] Seth Hicks Esq.: Yeah, it is truly a remarkable tool for so many reasons, and we’ve styled them around seven pillars on our website, folks, and called them the Seven Pillars of Private Banking Strategies, and those are the why.
[00:12:22] Seth Hicks Esq.: That’s the why that, that these contracts are superior to anything else and can put your family in a wealth curve and position that it wouldn’t otherwise be in. That’s part of the, the building that happens after the stabilization, the discipline tools are implemented. You’ve got the ability to expand really quickly in second and third, fourth, fifth years to expand, find other places that you’ve got capital and assets that you can convert into the, the banking system and start to see next generation policies.
[00:12:57] Seth Hicks Esq.: That’s when it gets pretty exciting, and you can begin [00:13:00] to see the trajectory.
[00:13:02] Vance Lowe: We’ve been taught throughout our lives that we always try to chase the new fancy gizmo, new state-of-the-art. When in fact, there are laws in the universe that never change. The law of gravity never changes. At least I don’t think so.
[00:13:23] Vance Lowe: I think everybody who jumps off of a 10-story building can only do it once, okay? The same thing with money. There are perpetual laws about money. Money has no value except in the exchange, folks, no matter what anybody else says. The volume of return is the money coming back in control for people to use, and that volume needs to always increase.
[00:13:52] Vance Lowe: The velocity of money, how many times can we control it and use it over and over again in a [00:14:00] year, in a day, in a week? These are universal laws. Never spending principles, switching from spending your assets to using it and getting it back. These are universal laws since mankind has been on the planet.
[00:14:16] Vance Lowe: They will never change, but yet we try to chase these new fancy things. And I remember Nelson Nash, who’s the author of this, an originator of banking strategies, said, “It’s all about how we think. It’s not trying to reinvent the wheel. It’s getting the most out of what we already have and understanding it better.”
[00:14:42] Vance Lowe: So folks, this is something that it took me 27 years of hard money management and financial management to find Well, I think that’s in our book the way we found that, but that 12-month mark is [00:15:00] critical. The annual review, at least on the phone, is critical. Cash flow scheduling, making sure, okay, when is our next increase in cash flow, and will we be able to meet that demand, and following the plan.
[00:15:15] Vance Lowe: So these are all benchmarks that we’ve got to look forward to and have fun with, as well as the protection side. But I don’t know of an easier way to get there, folks. I think this is something that if we follow these principles, we’ll get there. Long-term expansion, it should come natural, folks. If you’ve been in the plan a year and you have a review and all of a sudden you’ve got X amount of money that, you know, wasn’t planning on, are you gonna shoot yourself in the foot and say, “Oh no, even though that’s more, I’m limiting myself to this”?
[00:15:54] Vance Lowe: Shouldn’t do that. You should expand your bank until you’re at 100% capacity.
[00:15:59] Seth Hicks Esq.: [00:16:00] And that’s when you’re able to create the cash flow within your own control and get multiple touches. And folks, if this content is resonating with you, check out our website, privatebankingstrategies.com, privatebankingstrategies.com, and there you’ve got an opportunity to get a book that Vance and I authored called Secrets the Banks Don’t Want You to Know.
[00:16:22] Seth Hicks Esq.: Put your name and your email in, and that book comes to you in an audio version or a PDF, and you can listen to it on the go or you can read it. But more importantly, you’re gonna get a email with updates to our webinars that come out regularly, and also an opportunity to schedule a call with Vance. And there’s a link to his calendar in those emails, and only in those emails.
[00:16:45] Seth Hicks Esq.: So that’s how you would learn how this would apply for you. And Vance, tell folks what happens in that exploratory call and the following process.
[00:16:54] Vance Lowe: And Seth, we’ve done this so many times. In every single podcast, we invite [00:17:00] people to find out about this. We’re trying to make it as comfortable and easy as possible.
[00:17:07] Vance Lowe: So we wanna set you up to actually take this strategy for a test drive at no expense to you. A little bit of time, but using your numbers and being able to see point blank if this will work for you. We call it a test drive. We’re gonna talk about your assets a little bit, debt, and how we can turn lemons into lemonade, how fast we can buy debt, in other words, pay off mortgages.
[00:17:35] Vance Lowe: It blows people’s mind because they’ve never experienced getting the money back and reusing it and buying more debt, and how that exponentially compounds. So we encourage everyone that listens to this, take the next step. Get the book, read it, take the challenge, take the opportunity to r- take this for a test drive.
[00:17:58] Vance Lowe: You won’t [00:18:00] regret it, I promise you.
[00:18:01] Seth Hicks Esq.: It really is the, the easiest way to increase your intergenerational wealth and permanent wealth creation with just disciplined banking strategy. Folks, thanks for joining us today. We look forward to having you back on our podcast next time. Vance, any other closing remarks?
[00:18:20] Vance Lowe: No, I just really appreciate you listening to us. You guys stay safe out there.
[00:18:24] Seth Hicks Esq.: Bye for now.
[00:18:26] Vance Lowe: Bye-bye.
[00:18:26] 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?
[00:18:42] Outro: Please visit us at www.privatebankingstrategies.com.
[00:18:50] Outro: Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become [00:19:00] available.
