[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.
[00:00:39] Eric (Host): Hello and welcome to Private Banking Strategies with Van Slo and Seth Hicks.
[00:00:43] Eric (Host): We’re talking about a family again on this podcast, and it’s all about Suzy Q, the banker’s daughter, and how she actually changed her father’s mind about a few things and, and kinda woke him up to some new realities and with the help of Vance Vance. How are you man? I’m so excited about the second half of [00:01:00] this story.
[00:01:01] Vance Lowe: Oh, I’m excited to, to go through it. There’s, there’s some great takeaways here and I think we’ll be able to show people that this fits your life. This is where you, you might be at as well. And these, these are some, some absolute results and some things that can happen if you start using the money the way the banks use it.
[00:01:21] Vance Lowe: So a couple of of things. I don’t wanna leave as a cliffhanger here. We painted the picture of this father as a very domineering individual, which he was. He came in, I wanted to take charge, and soon became humbled. And from that point on the respect and the relationship grew and grew and it was 100% respect.
[00:01:42] Vance Lowe: It was more of a Vance, I’ve got my kids here, they’re gonna do this. All you have to do is I’m gonna serve ’em up for you and uh, we’re gonna go forward. But I. I want to be very cognizant of how they want to do it. So he, [00:02:00] he realized that everybody has their own choices and the beauty of the strategy folks is you put it together.
[00:02:09] Vance Lowe: And live it the way you wanna live life. Here is a typical client that we’re sharing with you. Their take home after taxes was $5,000 a month. So what I want to do is introduce some concepts that she literally discovered along the way here. At the end of the first year, they had put $10,000 into their bank.
[00:02:35] Vance Lowe: They had bought a bunch of payments. They had reduced their debt by $73,000. Remember, we started with about $50,000 total, and they had $27,000 in their accounts, and they had moved along with their savings from outflow to inflow about $2,200. Well, she started thinking, couldn’t I [00:03:00] set my own? Finances up like a business.
[00:03:05] Vance Lowe: And I laughed and said That question is right on point. Those are the questions you should be asking now, and the answer is yes. So can we call this first policy my first business? Because she had a way she wanted to understand things because as I see things here, my bank will be too small next year. I won’t, I, I’ll need to be able to put more than $10,000 a year in, and I’m gonna have $20,000, so I know already is, is it all right if I go ahead and start a second policy so I can, it will hold the rest of the money that’s generating from the strategy.
[00:03:47] Vance Lowe: Business number two started in the 25th month in the fourth year. She went along, she says Everything’s going absolutely fantastic, but I see the same thing [00:04:00] happening in starting year five. So in year five, she starts another. A third policy, what she called her third business. Now there’s all kinds of number changes and we, we go into efficiency.
[00:04:19] Vance Lowe: We want these banking accounts to go over a hundred percent in efficiency. In other words, at some point when you put a dollar in, wouldn’t you like to earn more than a dollar, Eric? Mm-hmm. Absolutely. Immediately. Yeah. Tax free. How many of those do we want? As many as we can get? Yeah. Uh, okay. And that’s the game here is we’re expanding.
[00:04:42] Vance Lowe: In other words, our banking, we’re adding branches to it. Like, remember we said earlier in a podcast, it’s all about getting a hundred percent of our income going into our banks instead of someone else’s. And then putting it to work. So she literally [00:05:00] took that starting year six, she had three businesses.
[00:05:04] Vance Lowe: She had $3,100 of monthly income coming in. She paid down $14,000 of debt. And to make a long story short, it was in year six that they became completely. Outside debt free. Now the Klein, the mayor, still owes all of those monthly payments, but her system finance purchased all of that debt paid off the house, the boat, the cars, everything else.
[00:05:35] Vance Lowe: That money’s flowing back to ’em. ’cause the cars are gonna rare out. Right. And so the money’s there to finance the next cars. It’s all tax advantage. And by the eight end of the eight year analysis, it was absolutely fabulous. They had idle money they couldn’t put to work what she told the family, family, dad, mom, I [00:06:00] can finance the cars now.
[00:06:03] Vance Lowe: Okay, I’ve got a hundred thousand dollars in accounts. I’ve got $65,000 available from loans from all four of these accounts now. So along the way, before the eighth year, she actually started a fourth policy, all paid by the system. None of it came out of pocket from new earnings. Yeah, we can finance cars now.
[00:06:26] Vance Lowe: And they did. And their family bank, their private bank, I’ve almost lo lost track of, uh, of where they’re at now because they’re so independent. It, it, it grows exponentially every five years. It, it compounds. It doubles. So what we can amass in the first five years, how effective we can be in putting our own little system together the way we want it to work.
[00:06:50] Vance Lowe: Well, she was amazed. She said, Vance, I don’t have to work any harder. And look what what’s happened. We, I, I can’t believe these numbers, and it’s so easy [00:07:00] to be able to do this. Just following the plan, working up where we are. I, it’s hard to talk to her dad at this point because he was kind of proven wrong.
[00:07:12] Vance Lowe: He loved the new system. He still, uh, a branch president today doing his salary, but he’s into private banking with his entire family. They figured out a way to set family trusts up, which was her next problem. Her concern is Vance, if I own my property now and my dad set up owns rental property and the family’s pooling money, how do we protect that?
[00:07:38] Vance Lowe: So that’s the scenario. That’s kind of the takeaway. We broke away from the herd mentality, didn’t we? Now we discovered that the banking provides many, many opportunities for growth to put additional accounts to work, which creates additional problems. So I’d like maybe Eric you to ask a few more questions, but Seth is gonna [00:08:00] delve into a few more pillars that we probably haven’t gone into of how to protect our hard earned asset base as it accumulates and grows.
[00:08:10] Vance Lowe: Because in in Nelson Nash’s book, becoming Your Own Banker. There’s five principles in there. One of them’s called the Willie Sutton Law. Willie Sutton back in history, was a famous bank robber, was finally captured, put into prison, was interviewed, and the interviewer asked him, he says, Willie, why did you rob banks?
[00:08:34] Vance Lowe: And Willie got this incredulous look on his face and says, well, duh. That’s where the money is simple. But Willy Sutton law could really affect these folks. Somebody’s gonna try to take away, if the IRS isn’t gonna come after ’em, then somebody will probably try to steal it. We had to solve those issues here.
[00:08:57] Vance Lowe: Seth analyzed that for us a little bit and [00:09:00] we can go forward.
[00:09:01] Eric (Host): Vance. Absolutely. I’m excited for that. But before Seth starts, we’re gonna take a quick break and, uh, you’re gonna want to hear what this, this. Midroll commercial, as we call it, says, because it’s gonna give you some contact information and it’s gonna ask you a couple very important questions.
[00:09:14] Eric (Host): So listen to this real quick, 10, 15 seconds long and we’ll be right back.
[00:09:21] 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 www.privatebankingstrategies.com.
[00:09:48] Eric (Host): Alright, we are back. Seth, why don’t you go ahead and, and start up.
[00:09:52] Seth Hicks Esq.: Sure. The concept of breaking through into financial freedom is not completely problem free. [00:10:00] When you begin to amass wealth and you have assets, those assets are at risk from creditors. Liability thieves. And others who become envious among many other types of, of, of targets that you create. People with true wealth, they create asset protection strategies.
[00:10:20] Seth Hicks Esq.: That’s the first pillar of private banking strategies is asset protection. One of the amazing things that I learned on my journey, Eric, into, uh, be becoming a practitioner of private banking strategies, was how easy it is to protect your cash in a bulletproof vault. Now many states have laws on the books whereby their legislatures have protected.
[00:10:48] Seth Hicks Esq.: Life insurance contracts and other types of life insurance vehicles. Many of them are southern states, and these laws have been on the books for almost 200 years since the Civil War. [00:11:00] Life insurance is a state regulated activity. It’s not federally regulated, it’s state activated, state regulated. So all the compliance comes from the legislatures of the state and.
[00:11:12] Seth Hicks Esq.: What I discovered was in contrast to complex offshore trust, which could cost you 50,000, a hundred thousand dollars, where you’re transferring assets offshore and you’ve got trustees that take control of the assets and technically you, you don’t have any control of the assets and you don’t understand the complicated structures that are going on.
[00:11:34] Seth Hicks Esq.: This is. Incredibly simple. It’s the stroke of a pen and with a contract and it’s bulletproof vault protected by the legislature. So for example, in Texas, you can, uh, look at the insurance code, think it’s section, uh, 1158, and it provides that your whole life insurance contracts are a hundred percent exempt from creditors, [00:12:00] other types of liabilities, any type of liability, simply because they are.
[00:12:05] Seth Hicks Esq.: And that’s one of the beauties here. So Susie q uh, when she starts her life insurance policies and capitalizes her, her bank, it automatically goes from being able to be, uh, uh, a liability that could be taken, uh, in a liability to an asset protected. Fortress, it’s untouchable. That that kind of boggled my mind because I’d spent 20 years helping people structure transactions and keep things safe in the complex, very expensive way.
[00:12:35] Seth Hicks Esq.: And hereby this took all of my expertise and effectively flushed it down the toilet.
[00:12:43] Seth Hicks Esq.: So it’s, it’s really so simple that I, I love having discussions with other lawyers about this because it, it, it, we, I teach them something that they think they know about. They think they understand how to keep their assets protected and that they’re smarter than me and I’ve already walked that journey and [00:13:00] can put the insurance code in a very simple.
[00:13:03] Seth Hicks Esq.: Two sentences in front of them, and it, it’s, it’s done. It’s a slam dunk. I call it a Michael Jordan 360 slam dunk. That’s indefensible. So that’s the first pillar of the private banking strategies, asset protection. Once you begin to break into financial freedom and you’re accumulating wealth. You’ve, if you’ve already amassed that and you’re coming to us and you’re, uh, a high net worth individual or high net worth, uh, family, you undoubtedly need asset protection.
[00:13:33] Seth Hicks Esq.: Here’s a little story about a client of mine that I use with his permission. This is a very successful entrepreneur in the Dallas-Fort Worth area who’s just come into the $10 million. Mark in revenue over the last few years. So their business has generated over $10 million in revenue. Most of that is bottom line in your pocket.
[00:13:54] Seth Hicks Esq.: It’s very low overhead. And when we first started talking about asset protection, he [00:14:00] told me that he really didn’t care. It wasn’t a concern of his well, since that initial conversation, he’d been sued three times and after paying literally. Tens of thousands of dollars in litigation fees and the the burden that litigation creates for you, just from an emotional and psychological standpoint.
[00:14:21] Seth Hicks Esq.: I had the conversation with him again last week and I said, does asset protection matter to you now? And he laughed and he said it absolutely does, and it’s a good thing that he already had his private banking strategies in place and that his cash assets were already protected and they weren’t going to be touched.
[00:14:39] Seth Hicks Esq.: But he, he never focused on the fact that it was, that it really is a true need for most people out there with any wealth. Now, if, if you don’t have any wealth to protect people, I don’t really care about asset protection, but I. I reply with whatever I’ve made, whether it’s been a little or a lot, I, I’ve never wanted to lose it.[00:15:00]
[00:15:00] Seth Hicks Esq.: I’ve never wanted to just flush it, and I’ve never wanted anybody to just put it out on my front doorstep that someone could come along and take it from me. Whether it’s a thousand dollars or 10 million, it’s the same concept. You, you need to protect your assets. It’s just disciplined wisdom.
[00:15:15] Vance Lowe: Yeah.
[00:15:17] Seth Hicks Esq.: Absolutely,
[00:15:17] Vance Lowe: Seth, thanks for for the, the comments. I hope we start understanding that liability can be a real issue for Suzy Q. She definitely had a beautiful business mind. She was literally her father’s daughter. Once she discovered that she could not only finance the family cars and their, their bank progressed from that point, they started.
[00:15:41] Vance Lowe: Into the real estate business and they would pool their money and they would buy income property, duplexes, fourplexes around the area to supplement their income. This is a great way, uh, to be able to expand wealth, especially if you can sell finance. [00:16:00] So that leads into a little more liability issues, Seth, doesn’t it?
[00:16:06] Vance Lowe: For sure.
[00:16:09] Seth Hicks Esq.: So well tell us,
[00:16:09] Vance Lowe: uh, yeah.
[00:16:11] Seth Hicks Esq.: Yeah. With real estate in particular, utilizing your your private bank to, to acquire those real estate assets is, is key in protecting your assets. And Eric, you and I were discussing this off mic previously that, especially with free and clear properties that. You shouldn’t leave those assets out there in the public record to be targeted, whether it’s a, a nuisance value plaintiff, a slip and fall plaintiff or, or any other type of, uh, liability that can occur.
[00:16:48] Seth Hicks Esq.: The, the equity can be stripped through something that’s called equity stripping in an arm’s length transaction with your bank, whereby your bank finances, acquisition, or [00:17:00] portions of the equity in your property on. On title on paper, your bank is primary lender and is in first priority position In the event that there’s a liability or a third party foreclosure or any other type of attack on the asset.
[00:17:16] Seth Hicks Esq.: Another thing that it provides is financial privacy. You really don’t want to hold your assets in your personal capacity because it. It’s like a ne a, a neon sign telling everyone what you own. And if you went to go try to find a balance sheet on Donald Donald Trump or Warren Buffet and what they control and, and actually have the benefit in owning, you wouldn’t be able to find it.
[00:17:42] Seth Hicks Esq.: Because in effect, they control all those assets, but they own nothing on, on paper. They own, they own in the, in the layman’s sense, they own. Billions of dollars of wealth and value, but in a paper technical [00:18:00] sense, you’re not gonna find their name on that high rise building in Manhattan. You’re, you’re not gonna find their name on any piece of property in their personal capacity.
[00:18:10] Seth Hicks Esq.: It’s all going to be. Cloaked legally with other structures that create financial privacy and asset protection. So when Susie Q began to break into the realm of, of wealth, uh, and out of debt and exercised the the business acumen that she had, she very properly and appropriately set those things in asset protective structures and in financially private ways and manners.
[00:18:42] Seth Hicks Esq.: Therefore, you’re not a sitting duck for others to come along and take what you’ve, what you’ve made.
[00:18:47] Vance Lowe: Let me re restate what you just said in, in terms that I, I understand because I’m part of this. I actually have have taken these steps. So in essence, I own a duplex out there, but [00:19:00] on public record now, I think the actual value of the duplex is probably 350,000, but there’s a lien against that property that’s at $470,000.
[00:19:13] Vance Lowe: Which is far above the the worth of that property. So how likely, I don’t think it’s very likely that I’m going to have a lawsuit come against that property ’cause there’s no equity, there’s no money in there, and then on the backside we can’t help it. If I own that lending company that has that lien right.
[00:19:34] Seth Hicks Esq.: Hmm. Yeah, that’s right. It’s an, it’s an arms length transaction whereby the, the bank that Vance has created, has financed the acquisition and the rehab of, of certain investment properties, and they’ve appropriately, the, the bank that is, has appropriately leaned that property in an arm’s length transaction.
[00:19:54] Seth Hicks Esq.: Vance low, the person and the entity that. That have loaned the money, [00:20:00] have a, an agreement, a note, a promissory note, and a deed of trust just like you would if you went into Wells Fargo. And here’s another key tool that, that we utilize, and that is the HELOC home equity line of credit. If you go into Wells Fargo or Bank of America and you want to get a HELOC and you’ve got equity in your property, they say.
[00:20:22] Seth Hicks Esq.: Okay, fine. They go send an appraiser out there, they do an appraisal and they say, we’ll loan you $200,000. So you go back in the bank, you sign all the paperwork, they file their deed of trust or against your property. You may or may not take out a dollar at that very time on that heloc. Right? I mean, it, it’s, it’s the ability to pull that money out and access.
[00:20:44] Seth Hicks Esq.: The equity in your property and, and liquid cash through the bank, but it doesn’t mean that you’re going to do that right now. But on title, it looks as though your property has a, an additional $200,000 HELOC on it, correct. [00:21:00] So we use the same principle through our, through our own banks, that we set up HELOCs, such that if someone needed the liquidity out of the equity in their real estate, they, they pull, they could pull that out of their private bank, but in the meantime.
[00:21:17] Seth Hicks Esq.: The deed of trust and the promissory notes are executed in an arm’s length transaction, perfectly legal, perfectly valid. And it’s recorded on title such that anyone looking at the, the public record sees a property that has no equity. It, they see a property that is not, uh, attachable, not foreclosable, because it has no equity, and that’s the whole.
[00:21:42] Seth Hicks Esq.: Purpose of that type of transaction and what so-called equity stripping is
[00:21:48] Eric (Host): Wow. I mean, that, that’s a lot to think about. Uh, I again, know that we have It really is, isn’t it? Yeah, it, it is. But I also know that this is part of why you guys have created those loom videos and the Loom video that we talked about a little bit earlier.[00:22:00]
[00:22:00] Eric (Host): These videos are created so that people can see the numbers, see step by step what it looks like. It’s great discussion on these podcasts. I love it. But the videos really do spell it out a little bit. Easier for people to see and, and, and conceptualize. We wanna let you know that those are attached to the show notes of every podcast.
[00:22:17] Eric (Host): So this story specifically Suzy Q’s story and her family, that’s what this one is about. When you go to the show notes and you click the link to the loom video for this, you’re gonna see exactly what they’ve been talking about over this podcast. And the last one, uh, ’cause this was a two-parter. Guys, any closing thoughts for today’s podcast?
[00:22:35] Vance Lowe: Yeah. Really. I think that, uh, sums this one up. Seth, what do you think about talking about car financing next time? Oh yeah, absolutely. Let’s get
[00:22:43] Seth Hicks Esq.: into that. Ants,
[00:22:45] Vance Lowe: this should be fun for people because cars, everybody gets involved with cars. Oh yeah. So we, we’ve got some great stories and some great illustrations to show.
[00:22:54] Vance Lowe: For our next podcast.
[00:22:55] Eric (Host): That’s perfect timing. ’cause I’m, I’m, I’m thinking about I gotta get a truck. I just [00:23:00] gave my, I gave my, my old truck to my son. He’s a mechanic. He’s gonna fix it up and use it himself. And now I have no truck and that just doesn’t feel right. I gotta get a truck. So that’ll be a great podcast guys, thank you so much for your time today.
[00:23:11] Eric (Host): And of course, as always our last thank you goes see you, the listen audience. Thank you for tuning in and listening to the Private Banking Strategies Podcast with Vance Low and Seth X. If you have not subscribed to the podcast yet, please click the subscribe now button below this way. When Vance and Seth come out with a new podcast, it’ll show up directly on your listening device.
[00:23:26] Eric (Host): This makes it much easier to share these podcasts with your friends and family. Again, thanks 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.
[00:23:40] Midroll: Did that story feel like it was about you?
[00:23:43] Midroll: 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 eight one seven. [00:24:00] 204 7. Seven seven or visit us at www.privatebankingstrategies.com.
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[00:24:26] Intro: The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.
