[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.
[00:00:43] Seth Hicks Esq.: Vance, how are you today?
[00:00:44] Vance Lowe: I’m doing great. Looking forward to talking about what we left off with last time.
[00:00:49] Seth Hicks Esq.: Yeah, we’ve been talking about a great application of how to think like a banker. One of the best applications is in the use of auto [00:01:00] and vehicle purchases, and using your own family bank to finance those purchases.
[00:01:05] Seth Hicks Esq.: And at the end of our discussion on the last podcast, we had laid out the framework for the banking strategies and how the auto loan is a great tool to illustrate how to think like a banker. But let’s come to the end of our car loan payment, and let’s say that you are a private banker, you’ve been faithfully executing the, the payment structures back to your lender, and you’re paid off on the auto loan.
[00:01:31] Seth Hicks Esq.: Your car is totally paid off. Now what do you do? So we wanna carry that discussion into this today. And what happens to that monthly cash flow after the car payment ends?
[00:01:42] Vance Lowe: Everybody looks towards that final car payment, and let’s use $700 today. I wanna maybe start this conversation with we are a product of the choices we’ve made throughout life.
[00:01:56] Vance Lowe: I think everybody can agree with that. The choices we’ve made have, has [00:02:00] brought us here today. This is a crossroad. Everybody deals with financial issues, and they come to this final payment. I’m sure most of our listeners have paid off a car before. Sometimes they get a lump sum, and then they’ll dump it into the car payment or whatever else.
[00:02:17] Vance Lowe: But today, let’s say it’s $700. And we have choices to make. We are so busy trying to expand and improve our lifestyle, we’re not paying the attention we need to make to growing our wealth, to increasing and making ourselves better off than we, we were the month before, the day before, or the year before.
[00:02:39] Vance Lowe: So when this $700 becomes available, what goes through your mind? If something goes through your mind like, “Whoa, I got $700. We’ve been thinking about a boat, or we’ve been thinking about expanding in a patio or putting in a pool or something like that. That could go for that,” folks, all you’re doing is burying yourself.
[00:02:58] Vance Lowe: The reason I’m saying that [00:03:00] is that we put out $700 a month for a vehicle that is wearing out, and by the time we’ve got it paid off, half the life of that car is already used up, if not more So we’re gonna need another vehicle. If we talk about, and this is what we always do, is talk about the banking equation, we need to understand that we need that money back plus interest to put it towards the next one.
[00:03:24] Vance Lowe: If we don’t, we’ve got problems. A year later, most of the time when we have that $700, we don’t even know where the money went. It’s now absorbed someplace else. It’s actually depressing when we were religiously came up with 600 or $700 a month, putting it towards the car. Now we have the car. That car’s an asset.
[00:03:46] Vance Lowe: That car needs to still produce, so it should still produce $700 a month, and that should be coming back in until we’ve got enough money back to replace the car if we’re starting again.
[00:03:58] Seth Hicks Esq.: Why do you think a payment that [00:04:00] someone has managed for years, making that $700 auto payment to their own bank for years comes, may come to the end of the eq- equation, and psychologically it becomes difficult for them to keep setting it aside?
[00:04:14] Seth Hicks Esq.: Why do you think that happens? If you wanna relate it to maybe the five rules of, of IBC.
[00:04:19] Vance Lowe: Yeah. Everyone that they… It’s not greed. It, it has nothing to do with that, but it does have our eyes. There’s $700. We live within our means. Hopefully we’re bringing in more than we’re spending, but that seven hun- $100 represents transportation, okay?
[00:04:37] Vance Lowe: And if that transportation is now paid for, we make a fatal mistake if we think we don’t need to pay that $700. We can accumulate it and maybe use it for something else if we don’t need a car next year or the next year, but we probably will. But if we squander that, I call it, if it goes into our checking account and it just disappears, there’s an extra [00:05:00] $700 there.
[00:05:01] Vance Lowe: Or somebody’s wants to go deeper in debt, and so they wanna buy something else that’s gonna wear out. Now we’ve got two things wearing out, thinking that $700 is gonna cover each one, and that’s where we get in trouble. Seth, people really need to understand that if they use that s- $700 and they… A pool is a good example, or a boat is a good example, or a second car Is a good example.
[00:05:28] Vance Lowe: And using that $700, it doubles the responsibil- the replacement responsibility. And we wonder why we don’t get ahead when we’re getting raises and w- we’re doing everything we think we need to be doing right.
[00:05:42] Seth Hicks Esq.: Let’s take a look at, let’s say two different private bankers, two different families that take different paths, and they both use their private bank to purchase automobiles.
[00:05:53] Seth Hicks Esq.: And the automobiles are $700 a month with both families. They religiously pay [00:06:00] on time, and they don’t steal the peas, as Nelson Nash would say, and they come to the end of the line. One family has the wrong mindset, and they haven’t fully adopted thinking like a banker with all of their financial transactions, and they’re still in a wrong mindset.
[00:06:16] Seth Hicks Esq.: And they come to the end of that car payment and they go, just like you said, “Great, I’ve got $700 and we’re gonna take vacations.” The other family says, “We’re gonna have continual payments no matter what to con- to supply our bank.” And they continue to direct that $700 payment into their banking capital.
[00:06:34] Seth Hicks Esq.: So let’s take a look at those two different families and analyze what’s going on and what one has after another year or another two years of payments, and what the family that doesn’t keep making payments into their bank looks like.
[00:06:47] Vance Lowe: Yeah, I think we ought to do that because that’s the whole crux of private banking.
[00:06:53] Vance Lowe: It’s the whole crux of wealth accumulation. What are we doing with the money? Do we want to grow it? Do we want [00:07:00] to become better off? Or is that an excuse for us to burn more money to spend it? So what you’ve just described is two different mindsets. One didn’t grasp the banking concept, the other one did.
[00:07:15] Vance Lowe: The banking concept, folks, and it’s very simple, and it’s very simple to set up, and it’s very simple to live. Banks always get the money back. So you forked out seven hundred dollars to purchase that vehicle. So you’ve got in that vehicle twenty, thirty, forty, fifty, a hundred thousand dollars. Do you have that money back yet?
[00:07:37] Vance Lowe: You don’t. But now you have a car that you’re not having an outflow of seven hundred dollars a month in payments. That becomes an asset. You’ve got an asset there now. You can continue. You can switch that seven hundred dollars to a rental payment for the people who drive that vehicle. Now that car is making you seven hundred dollars a month, and it’s replacing back [00:08:00] into your hoppers the money to replace itself after a while.
[00:08:03] Vance Lowe: That’s what banks do. So the one family who takes the money and says, “Hey, we freed up seven hundred dollars, let’s go do something else,” that money’s never going to accumulate or grow wealth. The one mindset who gets it, “Hey, if I take seven hundred dollars a month, and I pay, continue to pay that back to me and call that transportation expense, in one year I’ve got, what, eighty-four hundred dollars.
[00:08:27] Vance Lowe: In two years, I’ll have sixteen eight plus interest. And if I use that back in banking, if I buy more debt with that money coming back into my hands, I could double that in two years.”
[00:08:38] Seth Hicks Esq.: And that’s what it’s all about is that goes back to the compounding nature of your bank capital, that it’s tax-free, and it grows and compounds annually.
[00:08:47] Seth Hicks Esq.: And so as you’re steadily repaying your loan transactions, that’s growing and compounding more than the sixteen eight you just described, and it has all the benefits of the contractual rights and the [00:09:00] life insurance contract. So you got the same payment, same time, and one capital preservation is growing and compounding, and one is not.
[00:09:08] Seth Hicks Esq.: And that goes back to the seven pillars and the compounding nature of private banking. These cash flow payments, each one is building, compounding, and growing.
[00:09:18] Vance Lowe: I wanna mention also, and I think this is absolutely critical, one family gets it, the other one doesn’t. E- everyone thinks, “Hey, I freed up seven hundred dollars, and I could go buy something for seven hundred dollars.”
[00:09:30] Vance Lowe: If you spend that seven hundred dollars, it’s not gonna cost you seven hundred dollars, folks. You just financed seven hundred dollars for the rest of your life. And if our average interest return on banking is twelve percent, do you have any idea what that seven hundred dollars is gonna cost you over a lifetime every single month?
[00:09:50] Vance Lowe: That’s the wealth we could have accumulated had we taken the money back in and put it to work, just like you said.
[00:09:58] Midroll: Did that story feel like it [00:10:00] 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?
[00:10:13] Midroll: 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.
[00:10:28] Seth Hicks Esq.: That’s why we call it often a, a race, and we’ll use the story of the hare and the tortoise. This is a long strategy. It’s a long-term mindset that pays great dividends over a lifetime, and even greater dividends to the next generation, and even greater dividends to the next generation.
[00:10:49] Seth Hicks Esq.: So as this water falls, the death benefits that are paid in insurance contracts and the compounding nature, tax-free growth, creates wealth that people [00:11:00] can’t necessarily even earn in their lifetime. So we’re combining a number of pillars of the seven pillars with compounding growth, and with the tax-free growth, and with the nature of private banking value.
[00:11:14] Seth Hicks Esq.: That changes when people actually grasp that, understand that, and then institute discipline and continually work their disciplined financial strategies, knowing what their end game is, what the long game is. There’s no better place to store and keep your money.
[00:11:32] Vance Lowe: There really isn’t, but it is discipline.
[00:11:34] Vance Lowe: What happened when our country was being formed, we went from the poorest nation in the world to the most powerful nation on the planet in the first hundred years. What did we have at that time? We had this strategy. We had a self banking strategy. We didn’t have real banks at that time. These life insurance companies that came into being during that time were the banking arm of America.[00:12:00]
[00:12:00] Vance Lowe: Even today, the real money still resides with the life insurance carriers, the hard dollars, the actual money. Our banking system, the banks you walk into and make deposits, that’s fiat banking. That’s fictitious money. All the debt that is accrued here i- in the United States comes from those banks because they lend money they don’t have, where the life insurance industry has to have dollar for dollar backup.
[00:12:29] Vance Lowe: Always do. So what happened, Seth, to the mindset? To– I think with advertising, social media, the herd mentality, it’s a today generation. “I need it today.” Banking is lifetime. Banking is long-term. To the to-today investor, anything over a year would be long-term. Anything under a year, that’s short-term. “I want the advantage, I want the benefit now.”
[00:12:54] Vance Lowe: A couple getting married, “I need the big color television screen, the nice car. [00:13:00] I wanna get into a house with a pool. I wanna get into it really fast. I want all the luxuries of someone who, that has been married for twenty-five or fifty years. I want it now.” And so our society has switched to, “You can have it now.
[00:13:14] Vance Lowe: You can go into a lot of debt and get it, be a slave to the system.” Or as money frees up, you can commit that money and have the stuff now, and you’ll be just fine later on. So let’s get it today and not worry about tomorrow, and that’s the problem. The guarantees, the buildup is not there in society today, and that’s why we’re here.
[00:13:37] Vance Lowe: We’re here to bring that strategy back in. Everybody can do this. They don’t have to change their lifestyle. They don’t have to work harder. They just need to know that when they bring home money, that’s principal, and you can easily switch from spending your principal every month to using your principal every month and getting it back.
[00:13:57] Vance Lowe: That’s a huge difference. If people [00:14:00] could understand, hey, I can get 100% of my monthly expenses back by using a banking strategy, what would that mean in your life?
[00:14:07] Seth Hicks Esq.: It’s a continual flow of money that you’re earning in your own financial system, and you’re able to create a plan that fits your family and makes the next investment or the next purchase sustainable, possible.
[00:14:24] Seth Hicks Esq.: We’re preparing for the next purchase as we continue to capitalize the bank, meaning when your car payment’s over, you continue to capitalize your bank with the same amount. It’s already within your means and your earning capacity. You’ve already set it up. You’ve exercised the discipline for years. You wanna continue to stack dry powder in your private bank until the next opportunity comes along.
[00:14:45] Seth Hicks Esq.: That next opportunity could be a car, when the car you’re paid for wears out. It could be a start of a new business. It could be some other type of investment that returns cash flow. It could be a down payment on a home. It [00:15:00] could be the purchase of a home, depending on what payments are cycling. So that is thinking like a banker, and when one payment ends on a car or a house, that doesn’t end your banking strategy.
[00:15:15] Seth Hicks Esq.: It becomes… The next payment becomes the first contribution towards another car or a house or an investment property or whatever y- you need to use the money for.
[00:15:24] Vance Lowe: People’s mindset needs to change. Instead of possessions, things to maybe increase the quality of life, which many times it doesn’t. Many homes have a television in every single room, several cell phone plans, all kinds of different toys and gadgets and everything else, and that’s what they focus on.
[00:15:45] Vance Lowe: The problem is they live from paycheck to paycheck. They always will, and they’ll die by paycheck to paycheck ’cause if they don’t get a paycheck, the solvency of the average American isn’t even 90 days. There’s not– They don’t have enough money to support [00:16:00] themselves for 90 days. Why don’t you switch, folks?
[00:16:03] Vance Lowe: I go out and I produce a paycheck. Who’s the first person we’re supposed to pay? Ourselves. Okay? So at least 10%, maybe 20% of what we bring in and we control should be freed up, not tied up, freed up and put to work For wealth accumulation, okay? That wealth accumulation is gonna produce cash flow. That cash flow is what we build our life on, our substance on.
[00:16:30] Vance Lowe: That’s what… That cash flow comes in, that finances our next car. Notice it doesn’t pay off or buy it outright, it finances our next car, and that money comes back. Now we got two sources of money coming in, and our cash flow increases. We can go in and explain this in detail, but our mindset needs to change.
[00:16:52] Vance Lowe: $700 here, okay? I’m used to paying that. If I continue to pay that, I could accumulate and [00:17:00] be better off every single month by $700 exponentially, especially if I put it to work, purchase more debt, and get a payment that used to flow away from me coming into me. Now I’ve got $700, and maybe after a year, $8,500 credit card debt that I was paying another 250 on.
[00:17:18] Vance Lowe: If I bought that debt, I would have seven plus 250. Now I can buy a $10,000 debt the next year and maybe get a $500 payment in. Now I got 700, 250, and 500. Folks, it’s easy to compound wealth if you have the right mindset.
[00:17:36] Seth Hicks Esq.: That’s… It, it’s an amazing strategy, and when folks really catch it and begin to implement it, it changes not only their lives, but their children’s lives, their grandchildren’s lives, and the hundred year family bank is in full motion.
[00:17:52] Seth Hicks Esq.: So folks, rather than thinking, “Hey, this…” look for a check that you’re writing that could be captured within your own private banking system. [00:18:00] Think about, “How could I redirect this payment?” Whether it’s a mortgage on a home, or a car payment, or a student loan, how could I integrate this into family banking?
[00:18:11] Seth Hicks Esq.: How could I utilize the next check that I write for the banking strategies?
[00:18:16] Vance Lowe: Seth, it’s all about, look, how much money could I possibly free up this month and put to work producing a payment or a cash flow regularly into me? That’s the emphasis. If you don’t have money that you’re able to free up and put to work for you, you’re in a s- state where there’s not any growth whatsoever.
[00:18:37] Vance Lowe: And that may have been just like the last five years, or 10 years, or even 20 years, thinking we’re gonna do better if we could earn more money, if we could get a higher paycheck or something. But yet, if we don’t convert money to working for us like the banks do… The banks don’t even use any of their own money.
[00:18:56] Vance Lowe: They use everybody else’s money, and they make up [00:19:00] to 4,000% more than they pay us on deposits and things that, that go into banks. It’s ridiculous. That’s the thinking that we have to change, and that’s what this car payment represents. It’s a way of life. It’s a way of thinking, putting the banking equation back in your mind, putting money to work every month, because I’ve just pointed- It out.
[00:19:19] Vance Lowe: $700 can produce 250 pretty quick, but 700, 250 can produce another 500. All those combined, it’s exponential growth. And you know what? I- inside your own banking concept, you don’t trigger any taxable events, so none of that, those payments coming into you, is gonna trigger taxes or a taxable event.
[00:19:40] Seth Hicks Esq.: Yeah. If this is intriguing you and you wanna learn more, go to our website at privatebankingstrategies.com and continue the conversation with Vance and I just like you were having a direct face-to-face.
[00:19:52] Seth Hicks Esq.: We’ve got an AI tool on our website where you can prompt it with questions like, “How do I use private [00:20:00] banking to purchase my next car?” And it will be as if you’re talking to Vance and I, and give you content that we’ve produced and particular to what you’re asking. Go to privatebankingstrategies.com if this conversation intrigues you, you wanna learn more, or if you’re already banking and you wanna learn how to do it.
[00:20:17] Seth Hicks Esq.: We’ve got the tools, folks, to show you how to be a competent private banker. Vance, any closing remarks?
[00:20:23] Vance Lowe: No. I just hope people will challenge themselves, maybe take the opportunity to learn something more about money, and I hope something that we say will trigger that for them.
[00:20:33] Seth Hicks Esq.: Thanks for joining us today, folks.
[00:20:35] Seth Hicks Esq.: We’ll see you on the next one.
[00:20:36] Vance Lowe: Thank you very much. Bye for now.
[00:20:38] 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 [00:21:00] www.privatebankingstrategies.com.
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