[00:00:00] Intro: Welcome to Private Banking Strategies Podcast with Vance Low 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 protect. 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.
[00:00:40] Eric (Host): Hello and welcome to Private Banking Strategies with Vance Low and Seth Ethics.
[00:00:43] Eric (Host): Today’s topic is, and I guess the title you could say is, Congress is Coming for Your Retirement Money. And if you are looking at that title, when you clicked on this podcast and thought, man, this is, this could be click bait, this could be whatever. It’s meant to grab your attention because it’s time to be paying attention.
[00:00:59] Eric (Host): I, [00:01:00] I’m saying this from my point of view because I was talking to Seth and Vance before we even hit the record button and some of the things they were just chatting about before we started were pretty eyeopening. So without further ado, I wanna, I wanna bring the gentleman in, Vance and Seth, good morning.
[00:01:12] Eric (Host): How are you? Good morning, Eric. Doing great, Eric. Thank you for having us. We’re doing
[00:01:17] Vance Lowe: great. Yep.
[00:01:18] Eric (Host): Yeah, I, so I, 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 a, even a, a smaller foundation to this by kinda recapping what the last two podcasts we’re about.
[00:01:30] Eric (Host): Right, Seth? That’s
[00:01:32] Seth Hicks Esq.: right. Yeah. In episode 17 and 18, we talked about why the audience should carefully, uh, consider dumping their 4 0 1 ks and providing some of the alternative structuring that’s, uh, allows them complete liquidity and control over their money with no taxation.
[00:01:50] Eric (Host): Mm-hmm.
[00:01:51] Seth Hicks Esq.: And we referenced a few reasons why gov government qualified plans are not the way to go.
[00:01:56] Seth Hicks Esq.: One, you can’t get the money when you want it. You’ve got no control, you [00:02:00] can’t get it when you need it, and you got no access. Mm-hmm. And you don’t actually know what’s gonna 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 they’re.
[00:02:16] Seth Hicks Esq.: Uh, constantly moving the goalpost. And one particular evidence of that is the Dodd-Frank Act 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. Mm-hmm. And what you can do to stop it now. So. 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, uh, match and make contributions.
[00:02:55] Seth Hicks Esq.: But now they’re, they’re putting the screws to us. Vance, can he? He’s a 40 year [00:03:00] wealth manager. He’s was formerly in another life, as we’ve talked about someone putting people into these plans. So Vance, I want let you jump in here and add your 2 cents about what you’ve seen over 40 years with the government changing the goalposts.
[00:03:16] Vance Lowe: It’s ironic to, um, think that people can get an advantage, can actually find. Uh, an opportunity in a qualified account. I call all of them qualified. We’re talking Roths, we’re talking IRAs, 4 0 1 Ks, and even pensions. But in every single case, I think if we look back and we look at when Roth. Hit the market.
[00:03:46] Vance Lowe: People were being told that you can pay, uh, the for the taxes today and never have to pay tax again on, on the balance. And why a, uh, Roth [00:04:00] is so much better than a regular IRA. We immediately did the computations 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 do early tax dollars for talking people into a Roth IRA, knowing that it was still what’s called an ERISA plan.
[00:04:30] Vance Lowe: 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, uh, get the taxes now and that’s done.
[00:04:51] Vance Lowe: And now they need more money. So they’ve gotta find other ways, and this is always ever changing. We talked also a little bit last time [00:05:00] about ownership watched over the years, that when these first came out, these IRAs first came out, and then the 4 0 1 Ks to start replacing pensions. These products were actually owned by the people, the individuals.
[00:05:15] Vance Lowe: Today, they are no longer owned by the individuals. These are a Gov government, ERISA trust. Government trust owned by the government. Hmm. And we are participants or those who choose to invest or or participate in these ERISA plans, need to understand who actually owns the accounts. And I think it’ll actually get more serious than, than we want to delve into.
[00:05:46] Vance Lowe: But, uh, I just thought I’d share that I, 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. Mm-hmm. And then [00:06:00] they’ll pull it back and then they will add more and then they’ll pull it back and they just totally control everything.
[00:06:07] Seth Hicks Esq.: So that’s what we wanna do, Eric, is really educate the audience to, 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.
[00:06:29] Seth Hicks Esq.: They’re, they’re coming to erode the $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. Uh. In the heirs. I mean, the Wall Street Journal calls it 20 years of retirement planning stuck to the middle class, and there, there, it, it’s pretty common consensus that, uh, they’re telling you that, oh, this is good [00:07:00] for you.
[00:07:00] Seth Hicks Esq.: Congress is telling me, oh, this is, this is good. It’s, it’s got bipartisan support. 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 in Texas who says, well, IRAs are not wealth succession management tools.
[00:07:21] Seth Hicks Esq.: And he’s got support from other people on the other side of the aisle saying the exact same thing. Well, what, what is a succession? Well, succession management tool, if you’re not, if you don’t want what you’ve stored up and you’re not. 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.
[00:07:43] Seth Hicks Esq.: That’s not the point of it.
[00:07:45] Vance Lowe: Seth, let me, uh, jump in here and, 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, uh, real live dollars.
[00:08:12] Vance Lowe: Mm-hmm. 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, uh, valuable asset in America right now. They’re gonna do everything they can to either deteriorate it by making the dollar more worthless.
[00:08:36] Vance Lowe: And by the way, folks, you know, since 1900 when the, uh, 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, it’s hard to calculate now because of the, uh, the recent trillion dollars that they, they recreated. That’s what. Why they’re 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 on go are less reliant on government.
[00:09:13] Vance Lowe: So just thought I’d show that.
[00:09:16] Seth Hicks Esq.: Yeah, and what that really means, Eric, is that the money that you’ve stored up in a government sponsored retirement program is gonna be more costly to control, more costly to use, and more costly to enjoy. And whatever’s left over for the, hes ultimately will not be under their control and used to enjoy.
[00:09:36] Seth Hicks Esq.: Mm-hmm. And those restrictions are. Government serving. They don’t serve you. They don’t serve your wealth, uh, management plans. They 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.
[00:09:56] Seth Hicks Esq.: And that’s one of the reasons they’re targeting the [00:10:00] $7 trillion in baby boomer nest eggs. Mm-hmm. That’s because they have something to take. Yeah. And. So you’ve got about 75 million American baby boomers with 7 trillion in, uh, gold nest egg there. That’s about a quarter of the country’s population.
[00:10:17] Seth Hicks Esq.: That’s, that’s the reason that it’s in the cross airs.
[00:10:20] Eric (Host): Yeah. I, I think it’s important. I, I know that you guys have resources and I wanna take a break here just for a minute. Uh, you’ve got resources on the website, uh, and we’ve got a little just mid-roll here that we’re gonna shoot out. That’s gonna tell you as a listener how you can get more information from the guys and how to contact them.
[00:10:38] Midroll: 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 would like. Are you ready for help? Please call private banking strategies at (817) 200-4777 or visit us at [00:11:00] www.privatebankingstrategies.com.
[00:11:06] Eric (Host): Alright, we are back. Thank you so much for sticking with us. Uh, I I actually have a question for Vance. Vance. Why do you think the dollar has lost as much as it has over the last century?
[00:11:17] Vance Lowe: You mean why is it less than a penny than what it used to be? Yeah, just, I can’t fathom that. Okay. Here’s why.
[00:11:24] Vance Lowe: Fractionalized banking is, uh, 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 that a a 10 factor. So when they receive a dollar, they get to multiply. Another $9 so that they’ve got $10 to lend out.
[00:11:49] Vance Lowe: Where does that other $9 go or come from? Eric, do you think?
[00:11:53] Eric (Host): Well, yeah, it comes from us.
[00:11:55] Vance Lowe: Well, actually it comes from thin air. The dollar came from [00:12:00] us.
[00:12:00] Eric (Host): Hmm, okay.
[00:12:01] Vance Lowe: Okay. But in addition to the dollar that comes from us, they get to create money out of thin air, and it’s called factoring. They have to keep a 10% reserve and then they can lend out the remaining amount and when another dollar comes in, they can do it over again.
[00:12:18] Vance Lowe: And the Federal Reserve regulates what that factor is from time to time. And in a zero, uh, earnings environment, which the government had 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 those. Actual dollars aren’t there?
[00:12:40] Vance Lowe: Mm. It’s what puts the banks at risk. ’cause 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 DOD Frank Act came in to limit you [00:13:00] and I, you, uh, just anyone could try today to go liquidate their account and ask for cash.
[00:13:07] Vance Lowe: They’re not only gonna be told no, they’re gonna 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, turn around telling you no, but you can put your request in and six months later we’ll give you X amount of your cash.
[00:13:37] Vance Lowe: Those are rules and regulations that each one of us agree to every time we look at our check statements or anything that we renew 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 [00:14:00] these programs, and it comes from thin air.
[00:14:04] Vance Lowe: And it erodes the real dollar. Mm-hmm. And that’s why, that’s why gold is all the way to where it is now. Seth, what is gold today? Do you know? It’s around $1,200. 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, uh, what wasn’t, uh, Nixon.
[00:14:31] Vance Lowe: Took us off the gold standard darkest day of our country.
[00:14:35] Eric (Host): Hmm.
[00:14:36] Vance Lowe: 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 untethered spending of government. Remember Eric, it wasn’t so long ago that we were all appalled that the deficit.[00:15:00]
[00:15:00] Vance Lowe: Got into the billion dollars. Mm-hmm. Then it was 50 billion within five short years later it went into the trillions and now you, you can hardly even find out what the spending budget is, but the, they were, uh, talking and complaining and all of that ’cause they wanted all these other things and it was gonna cost trillions and trillions of dollars.
[00:15:26] Vance Lowe: 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, you know, 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 folks.
[00:15:52] Vance Lowe: Is that 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 gotta figure out a way, and we’re gonna help you show you ways to move this money from qualified to non-qualified. I know that was a long.
[00:16:16] Vance Lowe: Narration here, but, uh, 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.
[00:16:25] Seth Hicks Esq.: Yeah. You know, you did a great job of illustrating why congresses needs immediate access to your nest egg. That they’re coming after retirement accounts.
[00:16:35] Seth Hicks Esq.: 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, Eric. We’re talking about a, a government system which prints money uncontrollably with nothing backing it. No precious metals backing it.
[00:16:55] Seth Hicks Esq.: As Vance pointed out, when Nixon took us off the gold standard. Now it’s, it’s [00:17:00] almost like monopoly money. And we’re at $30 trillion in debt and we’ve talked about in prior episodes some of the, the just ridiculous, wasteful. Printing, I might call it burning of money, just sending it to other countries with no nexus and no value and consideration back to our country.
[00:17:17] Seth Hicks Esq.: Just the absolute worst pork belly spending that, that you can imagine. What that, what that does is that that creates. A bill for you and I as taxpayers to pay, and it creates a, a burden for our, our children and our grandchildren. One that probably can’t, can’t even be repaid. Mm-hmm. Even as they attack retirement funds.
[00:17:39] Seth Hicks Esq.: 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. That sandbox, you don’t have to play under those rules of having your retirement, uh, plans and wealth creation attacked. You don’t have to have your, your children’s wealth attacked [00:18:00] and stripped.
[00:18:01] Seth Hicks Esq.: You can play in a different system and it’s a total different, uh, economic thought and policy. And it’s one that is, uh, 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 gotta have $1 in reserve for every 10 you lend out, they have to have dollar for dollar accountability.
[00:18:27] Seth Hicks Esq.: So they’re, they’re actually on their balance sheets. It’s not funny money. It’s real money. And it’s also, uh. Tax protected. It’s tax advantaged. And this is why the, the ultra rich and the politically elite have been using, uh, high cash value life insurance for centuries. And it’s actually the safest place to keep your money.
[00:18:53] Seth Hicks Esq.: 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. Mm-hmm. To use and, and expand and into your grandchildren’s laps to control and expand.
[00:19:19] Seth Hicks Esq.: That’s what we’re talking about with legacy value Now. As I mentioned at the beginning of, of this, this podcast, Eric, the, uh, 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.
[00:19:42] Seth Hicks Esq.: If you’re in qualified plans like the 401k, 4 0 3 B IRAs, but. 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’re able to create a gener generational wealth and legacy value that has no.
[00:20:07] Seth Hicks Esq.: Tax burden and it’s financially private, there’s no there. The bank doesn’t raise their hand and say, we’ve gotta report this money in, 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 you.
[00:20:30] Seth Hicks Esq.: That’s the, that’s the black and white, I guess some might call it yin and yang. The difference in, in systems there, you are able to, to not participate in the one that’s taking your money and you can actually participate in one that creates generational wealth. Yeah, and
[00:20:47] Eric (Host): I know that, that today was really presenting some of the issues and you’ve backed it up with, you know, the, like the article of the Wall Street Journal, some quotes from congressmen and, and, and kind of.
[00:20:56] Eric (Host): Really showing what their, their thought process is [00:21:00] and what their, I mean, obviously, you know what they’re after, but it, it just reminds me of an old story, you know, about a, a, a snake, how a snake will eat prey 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.
[00:21:18] Eric (Host): This, 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 and then the snake moves up a little farther. Snake moves up a little farther until they’re swallowed hole. Right. And that’s the end of the, that’s the tunnel gets very dark at that point.
[00:21:33] Eric (Host): But that, that’s kinda what it feels like with, with the changes. You mentioned the secure act, and we didn’t wanna jump into that, but the, the little things that, that the government has been doing to change the rules on us, move the goalposts, as you say. Um. That’s, it’s, it’s all evident this, this isn’t conjecture, this isn’t conspiracy.
[00:21:51] Eric (Host): 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, I know that this was [00:22:00] incredibly important to get this podcast out there, but we don’t wanna leave the audience with gloom and doom. Tell ’em a little bit about what we’re gonna really cover and dive into on the next podcast.
[00:22:07] Eric (Host): ’cause we’re running outta time for today’s.
[00:22:09] Vance Lowe: Let me jump in there first. One of the first thing I, I can’t wait to tell. I’m gonna tell a story about yesteryear, about things that were so good in America. That’s how we’re gonna start this off. So you definitely wanna stay tuned along with what, uh, Seth is gonna, uh.
[00:22:25] Vance Lowe: Tell you
[00:22:27] Seth Hicks Esq.: yeah, we’re gonna focus on, uh, 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. Mm-hmm. Legacy value and generational wealth creation, which a fundamental principle of that is being able to transfer your wealth tax free to your heirs.
[00:22:47] Seth Hicks Esq.: 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, in this concept and being able to access your funds. But we haven’t focused on legacy value and this is really Eric, one of our primary.
[00:23:10] Seth Hicks Esq.: 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 gonna show you how to do that. We’re gonna give you some examples, give you some stories of how not to do it and how some, some stories of, of how to do it.
[00:23:31] Seth Hicks Esq.: Mm-hmm. So we’re excited about sharing that with our audience in the next next
[00:23:34] Eric (Host): episode. Alright, 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.
[00:23:46] Eric (Host): So thank you for that. And of course, our last thank you goes see the listening audience. Thank you so much for tuning in and listening to the Private Banking Strategies podcast with Vance Low and Seth Hicks. If you have not subscribed to the podcast yet, please click the subscribe now button below this way.
[00:23:58] Eric (Host): When Vance and Seth come out with a new [00:24:00] podcast, it’ll show up directly on your listening device. 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.
[00:24:15] 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 call private banking strategies at (817) 200-4777 or visit us at www.privatebankingstrategies.com.
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