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[00:00:40] Aric Johnson: Hello, and welcome to private banking strategies with Vance Lowe and Seth Hicks today’s topic is, and I guess the title you could say is Congress is coming for your retirement money.
And if you’re looking at that title, when you clicked on this podcast and thought, man, this is, this could be clickbait. This could be whatever it’s meant to grab your attention. Because it’s time to be paying attention. I [00:01:00] I’m saying this from my point of view, because I was talking to Seth Vance before we even hit the record button.
And some of the things that we’re just chatting about before we started were pretty eye opening. So without further ado, I want to, I want to bring the gentlemen in Vance and Seth, good morning.
[00:01:14] Guest: Good morning,
[00:01:14] Seth: Eric doing great. Eric, thank you for doing it.
[00:01:18] Aric Johnson: Yeah. So I know that we have a lot to dive into today.
I think it’s incredibly important, but I know that we want to actually kind of give them even a smaller foundation to this by kind of recapping what the last two podcasts were about. Right.
[00:01:31] Seth: That’s right. Yeah. In episode 17 and 18, we talked about why the audience should carefully consider dumping their 401ks and providing some of the alternative structuring that, uh, allows them complete liquidity and control over their money with no taxation.
And we referenced a few reasons why Gulf government qualified plans are not the way to go one. You can’t get the money when you want it. You got no control. You [00:02:00] can’t get it when you need it. You got no access and you don’t actually know what’s going to be there when you do need it in retirement. And then the main elephant in the room as we called it was taxation.
You don’t know what the government’s going to do with taxation that. Constantly moving the goalpost. And one particular evidence of that is the Dodd-Frank deck coming after deposits. And another here’s the one, two punch is the secure act. And that’s the Genesis of the title coming after your retirement money and what you can do to stop it now.
When government has increased the taxation of qualified plans, uh, they’ve set us up for decades, giving you incentives to put as much money as you can, to the retirement accounts and giving employers incentives to match and make contributions. But now they’re, they’re putting the screws to us. Vance can he’s a 40 year [00:03:00] wealth manager.
He’s was performed really. And another life has, we’ve talked about someone putting people into these plans. So Vance, won’t let you jump in here and add your 2 cents about what you’ve seen over 40 years with the government changing the goalpost.
[00:03:16] Vance: It’s ironic to think that. People can get an advantage, can actually find an opportunity in a qualified account.
I call all of them qualified. We’re talking Roths, we’re talking IRAs, 401ks, and even pensions, but in every single case, I think if we look back and we look at when Roth hit the market. People were being told that you can pay for the taxes today and never have to pay tax again on, on the balance. And why a Roth is [00:04:00] so much better than a regular IRA.
We immediately did the comp patients at that time. And there’s absolutely to the penny. No difference. However, that package was sold to the American public and Congress got billions and billions of, of doll early tax dollars for talking people into a Roth IRA, knowing that it was still what’s called an ERISA plan.
And they can change their mind. They can change the tax qualifications on it later on. So they were able to get tax money that they normally couldn’t have gotten out of the baby boomers. This is mainly to entice the baby boomers to get the Roth so that they could get the taxes now and that’s done and now they need more money.
So they’ve got to find other ways, and this is always ever changing. We talked also a little bit last time about [00:05:00] ownership watched over the years that when these first came out, these IRAs first came out and then the 401ks to start replacing pensions. These products were actually owned by the people, the individuals today, they are no longer owned by the individuals.
These are a gov government or ARESA trust. Government trust, all owned by the government and we are participants or those who choose to invest or participate in these ERISA plans or need to understand who actually owns the accounts. And I think it’ll actually get more serious than, than we want to delve into, but I just thought I’d share that because I see that difference.
I’ve seen it change. I’ve seen the amounts of IRAs, how much you can put in that changes at the whim of government, and then they’ll [00:06:00] pull it back and then they’ll add more and then they’ll pull it back and they just totally control over it.
[00:06:07] Seth: So that’s what we want to do. Eric has really educated the audience to try to protect as many as we can from being subject to the grab.
That is ongoing. Now I mentioned the secure act. We really don’t want to get lost in the weeds with that. You can research that it’s good bedtime reading, but the effect of the secure act is. That there they’re coming to a road to $7 trillion of baby boomer, nest eggs that have been stored up and they’re coming after it, through taking from the heirs and limiting the ability to access that.
In the air. I mean the wall street journal calls it 20 years of retirement planning, stuck to the middle class and they’re there. It’s pretty common consensus that they’re telling you that, oh, this is good [00:07:00] for you. Congress is telling me all, this is, this is good. It’s it’s got bipartisan support. But in effect, those who are retirement planning, experts see that it’s, it’s more of a grab and it’s a taking than anything else.
In fact, there’s a Congressman in Texas who says, well, IRAs are not wealth succession management tools, and he’s got support from other people on the other side of the aisle saying the exact same thing. Well, w w what is, what is a succession well, succession management tool. If you’re not, if you don’t want what you’ve stored up and.
Able to give it to your heirs. If you’re, if you don’t use it in your retirement, then people aren’t making the choice to give it to the government. That’s not the
[00:07:44] Vance: point of it. Seth, let me jump in here and create maybe a reason why or a motivation for the government. They, they don’t need anything other than they’re hungry for money, but I think what we need to understand here [00:08:00] as.
This money that the baby boomers have this $7 trillion represents hard asset in essence, a real live dollars where in government they’re in a world of printing, fictitious money all over the place. This is what we’ll call a level or a tier money. It’s the most wanted a valuable asset in America. Right?
Well, they’re going to do everything they can to did either deteriorate it by making the dollar more worthless. And by the way, folks, you know, since 1900, when the federal reserve took over our government to today, the value of the dollar compared to back then is now way less than 1 cent. And it’s hard to calculate now because of the, uh, the recent trillion dollars that they, they recreated that.
Y there after this [00:09:00] money is it represents hard, real dollars, real assets that could make these people stay more independent and less government are less reliant on government. So just thought I’d show that.
[00:09:16] Seth: Yeah. And know what that really means, Eric is that the money that you’ve stored up in a government sponsored retirement program is going to be more costly, to control, more costly to use and more costly to enjoy.
And whatever’s left over for the heirs ultimately will not be under their control and used to enjoy. And those restrictions are. Government serving. They don’t serve you. They don’t serve your wealth management plans or that certainly don’t serve your, your heirs. This is all really a function that we’ve we’ve addressed before is the government printing money out of thin air and someone having to pay the bill.
And that’s one of the reasons they’re targeting the $7 [00:10:00] trillion in baby boomer nest eggs, because they have something to take. Yeah. And. So you’ve got about 75 million American baby boomers with 7 trillion and a golden nest egg there. That’s about a quarter of the country’s population. That’s that’s the reason that it’s in the cross hairs.
[00:10:21] Aric Johnson: I think it’s important. I know that you guys have resources and I want to take a break here for just for a minute. You’ve got resources on the website and we’ve got a little just mid roll here that we’re going to shoot out. That’s going to tell you as a listener, how you can get more information from the guys and how to contact them.
[00:10:38] Commercial: Do you see yourself in that story? Do you feel like you are generating a lot of revenue, but are not moving forward as fast as you want? Are you ready for help please call private banking strategies. You said 8 1 7 204 7 7 7. Or visit us at www dot private [00:11:00] banking, strategies.com.
[00:11:06] Aric Johnson: All right, we are back. Thank you so much for sticking with us. Uh, I actually have a question for Vance. Why do you think the dollar has lost as much as it has over the last.
[00:11:17] Vance: You mean, why is it less than a penny than what it used to be?
Okay. Here’s why fractionalized banking is something that a lot of people don’t understand and know, every time a bank gets a dollar into the bank, they get to multiply that dollar up to 10 times, we call out a 10 factor. So when they receive a dollar, they get to multiply. Another $9 so that they’ve got $10 to lend out.
Where does that other $9 go or come from Eric, do you think? Well, yeah, it comes from us. Well, actually it comes from thin air. The dollar came from us. [00:12:00] Okay. But in addition to the dollar that comes from us, they get to create money out of thin air and it’s called fast. They have to keep a 10% reserve and then they can lend out the remaining amount.
And when another God dollar comes in, they can do it over again. And the federal reserve regulates what that factor is from time to time in an a zero, uh, earnings environment, which the government has ha has held so long. And that’s another topic, which is absolutely devastating to us. That is the erosion.
That is what causes inflation because. Actual dollars. Aren’t there. It’s what puts the banks at risk because they have all this commitment out there in fictitious money. If there was a run on the bank, they have no way to back that up. Now, therefore the Dodd-Frank act came in to eliminate U [00:13:00] N I U uh, just anyone could try today to go liquidate their account and ask for K.
They’re not only going to be told, no they’re going to be laughed at, you cannot close your account and take your money out of your account. As a matter of fact, all banks have a six month cooling off period. They could start today. When you go in and ask for cash turned around until, you know, but you can put your request in and six months later, we’ll give you X amount of your cash.
Those are rules and regulations that each one of us agree to. Every time we look at our check statements or anything, that we were new with banks. So over time and especially the printing of money, which is again, money from thin air, the federal reserve always lends money to our federal government for all these [00:14:00] programs.
And it comes from thin air. And it erodes the real dollar. And that’s why, that’s why gold is all the way to where it is now, south. What is gold today? Do you know? It’s around
[00:14:14] Seth: $1,200.
[00:14:16] Vance: Okay. So our dollars actually should be worth 1200 bucks today. That’s the difference. That’s why they had to tear it off of the gold standard.
I think a lot of us understand that a wasn’t a. Took us off the gold standard, darkest day of our country when that happens, because now they get to just do what they’re doing and not be accountable for it. That’s one of the biggest problems we face today is the on tethered spending of government.
Remember Eric? It wasn’t so long ago that we were all appalled that the deficit. [00:15:00] Got into the billion dollars, then it was 50 billion. Within five short years later, it went into the trillions and now you can hardly even find out what the spending budget is, but the, they were talking and complaining and all of that.
Cause they wanted all these other things that was going to cost trillions and trillions of dollars. There’s no money out there. To support it we’re way over our production. The gross production of America can’t even come close now to our debt or the interest on the debt. So there’ll be a time when we have to pay for it.
And government answer is right now. So the reason I pointed this picture out guys, and follow. So, this is why they want your money. This is why we’re trying to ring this bell today is because [00:16:00] they need this money from you. This is real money and they want it, and you’ve got to figure out a way and we’re going to help you show you ways to move this money from qualified to non-qualified.
I know that. Narration here, but I thought it was important to, to do. There’s still a few more facts. We want to get out here Seth. So let’s, let’s continue down the road here.
[00:16:26] Seth: Great job of illustrating why Congress is needs immediate access to your nest egg. And that they’re coming after retirement accounts.
I mean, we’re, we’re driving home that point so that people will take a close look and actually analyze what we’re saying. And we’re talking about two different systems here. We’re talking about a, a government system which prints money uncontrollably with nothing backing it. No precious metals backing it as Vance pointed out when Nixon took us off the gold standard.
Now it’s, it’s almost [00:17:00] like monopoly money and we’re $30 trillion in debt. And we’ve talked about in prior episodes, some of the, the just ridiculous wasteful. Printing I’m I call it burning of money, just sending it to other countries with no nexus and no value and consideration back to our country. Just the absolute worst pork belly spending that, that you can imagine.
What that, what that does is that that creates. Uh, bill for you and I as taxpayers to pay. And it creates a burden for our, our children and our grandchildren. One that probably can’t can’t even be repaid even as they attack retirement funds. So that’s, that’s one system. Now the other system is, is the system where we say you don’t have to play in those.
But that sandbox, you don’t have to play under those rules of having your retirement plans and wealth creation attack. You don’t have to have your children’s wealth attacked [00:18:00] and stripped. You can play in a different system and it’s a total different, uh, economic thought and policy. And it’s one that is the life insurance.
Companies don’t have to play in those sandbox rules. They have a, unlike a derivative and fractionalized lending where you’ve only got to have $1 in reserve for every 10. You lend out, they have to have dollar for dollar accountability. So there they’re actually on their balance sheets. It’s not funny money, it’s real money.
And it’s also a. Tax protected it’s tax advantaged. And this is why the, the ultra rich and the politically elite have been using a high cash value life insurance for centuries. And it’s actually the safest place to keep your money. And it is one of the things that we wanted to focus on today was how to create.[00:19:00]
Legacy value. Well, what do I mean by legacy value? I mean, how to create generational wealth, how to create the type of wealth that waterfalls into your, your children’s control to use and, and expand and into your grandchildren’s labs to control and expand. That’s what we’re talking about with legacy value.
As I mentioned at the beginning of this, this podcast, Eric, the Congress has severely restricted the ability for heirs to use control and access the money that the contributor has stored up. So they’re, they’re coming after that generational wealth. If you’re in qualified plans, like the 401k 4 0 3 B IRAs.
Unlike that system with the private banking strategies that we structure and others out there structure as well. There is a tax free [00:20:00] transfer to your heirs and you able to create a general generational wealth and legacy value that has no tax burden and it’s financially private. There’s no, the bank doesn’t raise their hand and say, well, we’ve got to report this money and this money out.
And there’s no restriction. You simply, if you need cash, like Vance was talking about, and you want to withdraw the cash value that you’ve got in your account, you simply request it. And it’s wired to. That’s the that’s the black and white, I guess some might call it yin and yang. The difference in systems there, you were able to, to not participate in the one that’s taking your money and you can actually participate in one that creates generational
[00:20:46] Aric Johnson: wealth.
Yeah. And I know that the, today was really presenting some of the issues and you backed it up with, you know, the, like the article, the wall street journal, some quotes from congressmen and, and, and. Really showing what their, their thought process is [00:21:00] and what they’re. I mean, obviously, you know what they’re after, but it just reminds me of an old story, you know, about a, a snake, how a snake will eat.
Pray a lot of times from the feet, right from the feet forward, the rear feet of an animal. And it’s almost as though the animal being eaten, doesn’t know what’s going on because. It’s rear feeder in the snake’s mouth first. And it’s not that uncomfortable, you know, a little bit of panic, but then they settle in a little bit.
Then the steak moves up a little farther. Snake moves up a little farther until they’re swallowed whole, right. And that’s the end of the tunnel. It gets very dark at that point, but that’s kinda what it feels like with the changes. You mentioned the secure act, and we didn’t want to jump into that, but the little things that, that the government has been doing to change the rules on us, move the goalposts, as you say, That’s it, it’s all evidence.
This isn’t conjecture, this isn’t conspiracy. This is you can see those changes that they’ve made and you know, that they have control over making changes in the future. So I know that this was incredibly [00:22:00] important to get this podcast out there, but we don’t want to leave the audience with gloom and doom.
Tell them a little bit about what we’re going to really cover and dive into on the next podcast, because we’re running out of time for today.
[00:22:09] Vance: Well, let me jump in there. First, one of the first thing I can’t wait to tell, I’m going to tell a story about yesteryear, about things that were so good in America.
That’s how we’re going to start this off. So you definitely want to stay tuned along with what a Seth has gone.
[00:22:27] Seth: Yeah, we’re going to focus on a pillar that we haven’t focused much on in prior episodes. And that’s, that’s pillar number seven of private banking strategies, which is legacy value, legacy value, and generational wealth creation, which a fundamental principle of that is being able to transfer your wealth tax-free to your heirs.
And that is absolutely possible and completely. Achievable. We focused on asset protection, tax-free growth and financial privacy, the velocity of money, and never going [00:23:00] backwards with your, your investment in this concept and being able to access your funds. But we haven’t focused on legacy value. And this is really Aric, one of our primary.
Motivations for a lot of our clients, especially those who are, who are wealthy and they have children and they have grandchildren and they, they want to create and preserve wealth in their family. So we’re going to show you how to do that. We’re going to give you some examples, give you some stories of how not to do it and how some stories of how to do it.
So we’re excited about sharing that with our audience and the next next step is. All
[00:23:35] Aric Johnson: right. Well, I can’t wait, Seth Vance. Thank you so much for all the information today. It’s it’s again, these aren’t scare tactics. You’re just here to educate and I appreciate that. And I’m getting an education every time I meet with you.
So thank you for that. And of course our last, thank you. Go see your listening audience. Thank you so much for tuning in and listening to the private banking strategies, podcasts with Vance Lowe and Seth Hicks. If you have not subscribed to the podcast yet, please click the subscribe. Now button below. This is way advanced and Seth come out with a new [00:24:00] podcast.
It’ll show up directly on your listening. This makes it really easy to share these podcasts with your friends and family. Again, thank you so much for listening today for everyone at private banking strategies. This is Eric Johnson reminding you to live your best day every day, and we’ll see you next time.
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