[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.
[00:00:37] 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?
[00:00:44] Vance Lowe: Today’s another day, and I’m, I’m looking forward to discussing a couple things that have been noticed with existing clients, and we wanna share some more in-depth thoughts of practical money management, I think. [00:01:00]
[00:01:00] Seth Hicks Esq.: Absolutely. We’re gonna be talking about the Smart Risk Framework. And what the Smart Risk Framework is the wisdom of using cash value in a wise manner.
[00:01:13] Seth Hicks Esq.: Every family that succeeds with private banking strategies, they re- realize that opportunity is meaningless without discipline. And so risk is not necessarily the enemy, but reckless, unstructured use of cash value in your decision-making is a way to destroy your private banking strategy. The Smart Risk Framework is it’s a guardrail system that keeps the family bank safe, and liquid, and productive across multiple generations, and it ensures that every loan and every investment and deployment of capital aligns with the long-term mission, and values, and family structure.
[00:01:56] Seth Hicks Esq.: It’s not a theory, it’s a practical, [00:02:00] disciplined framework that the most successful implement and stick with. So let’s dive into that a little bit deeper, and maybe you can explore some of the purposes of the Smart Risk Framework.
[00:02:13] Vance Lowe: Yeah. Let’s get into maybe purpose first. We can dive into that a little bit.
[00:02:19] Vance Lowe: When someone starts accumulating money faster than they’ve done it before, a lot of things go through our brain, especially if we find ourself in a successful career or we’ve got money coming in. We want to multiply that. We want to do as much as we possibly can. It could be doctors, it could be a dentist, it could be anything.
[00:02:41] Vance Lowe: And they have excess cash, they wanna put it to work. But many times, they don’t understand the risk factor. They think, “If I’m as good as a dentist, I ought to be as good as investing.” And that’s why we’re having this discussion is because that mentality seems [00:03:00] to transcend to, “Okay, I’ve got a pile of money now.
[00:03:03] Vance Lowe: I wanna put it to work.” So the first thing that we want to put on this thing is to avoid speculation. We see an idea, something out there that might sound good, and just thinking of that it’s going to be as good as we want it to be doesn’t necessarily make it so.
[00:03:21] Seth Hicks Esq.: And here’s the perfect example. Let me just interject for a moment.
[00:03:25] Seth Hicks Esq.: Let’s say that you’re a real estate developer. We have numerous clients that are real estate investors, some in very large scale developments that they entitle and subdivide, and we’ve got other folks that are just buying rentals, short-term rentals. And those are different ends of a real estate investment, and we have successful clients in both areas of those.
[00:03:47] Seth Hicks Esq.: But let’s say you take a guy who’s an engineer, and he’s never bought an investment real estate property together. He’s got a million dollars in cash value, and he thinks he wants to spend that [00:04:00] million dollars on an apartment. He’s gonna invest in a real estate apartment building, but he doesn’t know anything about real estate prior to now, never had a success in it.
[00:04:10] Seth Hicks Esq.: Would that be more speculative and fantastic fantasy oriented, or what would you weigh in there?
[00:04:18] Vance Lowe: Yes, unless he’s, uses all of his engineering skills. You brought up engineering ’cause they, they really dive deep a lot of times into the details. If he were to do that in real estate, he could probably ferret out a lot of the actual things that are required.
[00:04:36] Vance Lowe: Otherwise, we fall prey to the numbers that everyone tells us. “Oh, you can make a million dollars here. You can do this. You can get a 34% ROI. You could do this. You could do that.” And it’s all speculation, and if we make a decision on that, we could become very vulnerable.
[00:04:51] Seth Hicks Esq.: So having no experience in a particular subject matter that you’re gonna dump all of your cash value and private banking strategies [00:05:00] into would have to be very well thought out according to extreme detail business planning and I would say backups to backups with problems.
[00:05:10] Seth Hicks Esq.: But probably a better use of cash value would be something that person has a deep expertise in. So for example, let’s just flip that on its head, and let’s say one of the developers or the short-term rental folks that are s- already successful in real estate, they have a million dollars in cash value to deploy, and they wanna go acquire more real estate assets, and it fits right within their wheelhouse.
[00:05:34] Vance Lowe: Yeah, that’s not… That takes it away from speculation. There’s more detail. It’s more skill-oriented, more opportunity-based orientation than speculative because speculative, there’s no backing. So there’s a backing, there’s with experience, or they’re speculative, “I wanna get into this, and I’m falling prey to the hype, the numbers.”
[00:05:54] Seth Hicks Esq.: Emotional decision-making that sometimes people think the grass is greener on the other side of the fence, but they don’t [00:06:00] know how to operate that business.
[00:06:01] Vance Lowe: Yeah, see, I think all of this that we wanna talk about follows the brain, the thinking. So we speculate, “Wow, I could do this and this, so I’m gonna start looking at real estate.”
[00:06:12] Vance Lowe: And if I don’t know what and how to look at real estate, how to bid it, I’m gonna fall prey to emotional decisions. “Ooh, that bedroom, that kitchen looks wonderful. Those yards look absolutely beautiful. It has a new roof,” or it has this or that, and we start the emotional side of things to make the decision versus the mechanical.
[00:06:35] Vance Lowe: I would rather say mechanical, which is… are the nuts and bolts and… of a good investment. If we fall prey to the emotional side of buying a car, all of us have a favorite car. We wanna buy this or we wanna buy that, and it ends up costing us more for transportation than it needs to if we went to practicality.
[00:06:53] Vance Lowe: So emotion is the next step. I’ve got an idea. I wanna do this, and because I haven’t done it in the [00:07:00] past- What am I looking at? I go look at property. Wow. And you fall in love with something. And you got two over here, and this one looks a little run down or more plain Jane, and this one over here looks absolutely pristine, and I’m gonna buy this pristine one.
[00:07:15] Vance Lowe: I can probably get a little more rent out of it, when in fact you can’t.
[00:07:19] Seth Hicks Esq.: I think the main takeaway from that is when you stay within your expertise and you understand the business, you can deploy more of your cash value in a smart risk framework to accomplish your goals. And if it’s something that you’ve never done, you would maybe take a 10% of your cash value, $100,000 of that million dollar cash value, and purchase your first investment property and begin to learn the mechanics of that.
[00:07:45] Seth Hicks Esq.: You’re going to get your nose bloodied and go through some battles that help you understand how that works better, and whether you really wanna scale up and use all your cash value and you can make that work or you can’t. So the smart risk framework will help you avoid [00:08:00] speculation, avoid those emotional fantasy decisions, and employ things that you know.
[00:08:05] 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 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?
[00:08:28] Midroll: Please visit us at www.privatebankingstrategies.com.
[00:08:36] Vance Lowe: Let me give you another example like you just said. I’ve got a chiropractor here who’s very good at what he does. He’s got a good clientele and he was thinking about real estate, but then this traction machine was released a few years ago and that thing has great success.
[00:08:53] Vance Lowe: So I’ve got a client here who bought one. He did his research and everything else and it’s [00:09:00] part of his work so he put it in his office, he introduced it to his clients and now when people get on that machine the dollars per procedure went up 10 times because you can command a lot more because the results are so much better and the ROI of buying this machine is producing more return, more volume, more capital coming back into his control.
[00:09:26] Vance Lowe: And so he’s got the money, he’s got self-financing in his cash value. He was looking at things like real estate but this came along and he feels so much better off because of the volume of return.
[00:09:39] Seth Hicks Esq.: Let’s shift gears now. Let’s say that someone has got significant cash value but they really don’t have an expertise for the use of the investment capital and they’re just stacking up cash value dry powder.
[00:09:52] Seth Hicks Esq.: Is it better to just protect that cash value and ensure that your liquidity is there when an opportunity that you do understand [00:10:00] and want to take advantage of it comes along or would it be better just to kind of throw money at different things and try to figure it out because you need to get that money working for you?
[00:10:09] Vance Lowe: Yeah, people make the mistake when they think they’ve got to have the money working for them right now. One of the most beautiful things we see is these contracts. You can store the money in them. It’s like a money warehouse. When it’s in there it’s compounding on a guaranteed rate. In addition to that, they’re adding profits to it on a tax-free basis.
[00:10:30] Vance Lowe: So we’re making money at a rate competitive, if not beating the market by itself And so you’re safe there. You- you’ve got a way that you’re outpacing inflation just by having your money in these contracts. The worst thing we can do is force ourselves to find an opportunity or speculate in something that we think is an opportunity and miss something, [00:11:00] make a mistake.
[00:11:00] Vance Lowe: And you hit it on the nail, Seth, when you said, “Okay, if you wanna branch out, you got a million dollars out there, maybe take up to 10% and get your feet wet. See what you can do. See if this is really what you think.” Because if the opportunity is there today, it’s gonna… another opportunity is going to be there tomorrow.
[00:11:19] Vance Lowe: That’s another thing that people don’t understand. “I’ve got to do this today or it’ll never happen again.” You’ve been hearing that your whole life. And everybody, if you’re honest with yourself, you have heard opportunity out there your whole life. You’ve just never been in a position to participate in it.
[00:11:35] Vance Lowe: Now you are. If you take yourself out of that ring, when a real good opportunity comes along, you’re not gonna be able to do it. So that was a long answer to what you asked me. It’s better to leave your money there and wait for a really good opportunity to come along.
[00:11:51] Seth Hicks Esq.: Keep in mind that your cash value inside the life insurance contract is still compounding and growing, currently at 6 to 7% [00:12:00] annually compounding year over year in a tax-free system.
[00:12:05] Seth Hicks Esq.: So it’s not just idle, it’s working. And you can begin to get the two for one velocity of money, cash in the contract and cash in your investment, when you have an appropriate target that you understand and it fits within the smart risk framework. That’s what we’re trying to communicate. And that smart risk framework, it turns into clear structure, and that structure turns into success, and that’s what we want people to take away.
[00:12:30] Vance Lowe: Yeah, it does, and if we can do that, if we can look for the right opportunity and put it to work. One of the best opportunities, folks, is right in our own personal economy or our personal family situation where we have to buy things, we have to purchase things, automobiles, education, mortgage. Anything the family needs is money that we can put to work instead of spend.
[00:12:54] Vance Lowe: So once that’s satisfied and we’ve got this extra amount of money, we [00:13:00] can look for that opportunity, expand our knowledge, our expertise by going outside that and creating additional funds.
[00:13:09] Seth Hicks Esq.: Exactly. Folks, we’re gonna keep it short and sweet on this podcast, and wanted to make sure that- You guys are aware that we have a brand-new tool on our website at privatebankingstrategies.com.
[00:13:23] Seth Hicks Esq.: It’s a tool that we have developed so that you can basically ask Vance or I any question that you want as if you had us one-on-one in person about your personal private banking strategy. And on our website, there’s an icon that says, “Put Vance in your back pocket. Ask Vance anything you want.” And that’s an AI tool that you can begin to query just like you were asking Vance or I questions, and it provides content that we’ve generated.
[00:13:54] Seth Hicks Esq.: We’ve got nearly 200 podcasts. We’ve got blogs from years and years and years, and it [00:14:00] assimilates all of our content and gives you tight, specific answers in how to develop your private banking strategy, how to develop a smart risk framework, how to develop asset protection goals, how to maintain financial privacy.
[00:14:15] Seth Hicks Esq.: You can pull out the resources that are in between Vance’s ears and in between my ears that we’ve already published. It is an amazing, powerful tool, folks, and we created it just for you. So go over to Private Banking Strategies and use the AI tool to begin to develop your smart risk framework and ask Vance and I specific questions.
[00:14:38] Seth Hicks Esq.: We built that for you guys. We want you to take advantage of it. And if you’d like to dive even deeper, folks, put your name and email in. We’ll send you emails every week that announce the podcast and give you access to content that we’re producing on a first-come basis. Vance, any closing remarks today?
[00:14:55] Vance Lowe: No. We’d really encourage you to go there. There are some offers, some [00:15:00] things that you can do to really test this out for yourself before you dive in. So you know yourself. Could you be better off understanding more about money than what you think you know now?
[00:15:12] Seth Hicks Esq.: Absolutely. Thanks for joining us today, folks.
[00:15:14] Seth Hicks Esq.: We look forward to seeing you on the next podcast. Bye for now. Bye-bye.
[00:15:18] 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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