[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 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.: Well, hello and welcome to Private Banking Strategies Podcast with Vance Lowe and Seth Hicks.
[00:00:43] Seth Hicks Esq.: Vance, how are you?
[00:00:45] Vance Lowe: I’m doing great, Seth. It’s a great day to be alive and, uh, a lot of things happening out
[00:00:52] Seth Hicks Esq.: there. Absolutely, absolutely. Well, we’re excited to get into this topic in multi-part series. Tell us what we’re gonna [00:01:00] talk about today.
[00:01:00] Vance Lowe: We’re gonna talk about how this strategy, when we acquire our own debt, or when we buy loans, how we evaluate them and how, or what the worth is to us.
[00:01:14] Vance Lowe: So there’s a spreadsheet that, uh, we’ve, uh, defined over the years along with our, uh, outline of the eight year analysis. We’re gonna use one of those. We’re gonna use an old client that I got permission to use his information, and we’re gonna evaluate some of those loans and, and introduce everybody to the software.
[00:01:35] Vance Lowe: For the new folks, you can begin to see why it’s so important that if we believe we finance everything we buy and we have debt and we’re making payments to someone else, we need to find out what type of profit they make and why they lend money, and then that’s why we’re. Doing what we do to be able to control or own or put our own [00:02:00] money to work, our assets to work by buying the things that we would normally finance, automobiles, cars, education, you name it, are things that we as human beings like to do.
[00:02:11] Vance Lowe: We want to be able to finance those, but get the money back. So without going into a ton of detail before this, most of you can listen to our podcast, know what we’re about. This is going to really get into, Hey, I’ve done a little bit, I’ve found out a little bit about the private banking strategy, and today we’re gonna give you an.
[00:02:33] Vance Lowe: In-depth look of some of the power behind this strategy. Awesome.
[00:02:39] Seth Hicks Esq.: Yeah, so when we’re talking about loans, we’re talking about the repayment of our own private bank for expenditures. That money has been used. For and taken out of our bank for whether it’s an investment or a credit card, purchase of debt, or whether it’s any type of purchase.
[00:02:58] Seth Hicks Esq.: Like you said, we [00:03:00] finance everything we purchase, so we’re talking about setting up the repayment of our own bank, our own private family bank for those purchases. So
[00:03:09] Vance Lowe: let’s introduce this client because a lot of our clients find themselves in kind of a situation, maybe like this. May not be as dramatic, or it might be right on, or they even might be further in depth than most other people.
[00:03:25] Vance Lowe: So we segregate each and every death that a person has. Here’s an individual who was a, uh, chiropractor. He got misdiagnosed with Lyme’s disease and couldn’t practice for two full years. He ran up a debt. You know, he owed everybody it seemed like. And when they came in it was to find out whether they should file bankruptcy or if they needed to pull their twin sons out of Michigan State University because they didn’t think they could keep it going.
[00:03:55] Vance Lowe: So we wanna show maybe the example here in the power of [00:04:00] self financing, how fast an individual can get outta debt. So you can see up here, 13 debts. And the balance now owed and the monthly payments on each and the interest rate on each. And you can see that this interest rate on the average is really high.
[00:04:19] Vance Lowe: You know, it’s in the double digits between 14 and 16%. And they found out about the banking strategy and what they told us is that I can afford. Two office patient visits. The the cost that I I, I get in for that, the income will get in for that per day. That came out to $20,000 per year, so he could put into his bank $20,000 per year.
[00:04:44] Vance Lowe: And we’ll show you kind of how this unfolds. So if you’ll take a look up here, we have a credit card. I’m just gonna say that they’re making the minimum payments. A lot of times we’ll pay more. Than the minimums. ’cause we’re trying to make a dent. We [00:05:00] hear other people saying, well, yeah, you wanna pay more than the minimum, or you’ll pay forever.
[00:05:04] Vance Lowe: Well, that’s true. If you don’t have a strategy and if you don’t have a plan, if you don’t have a plan to take that credit card out, then yeah, you pay as much as you can. But if you do have a plan, you do the absolute minimum. Because it’s all about control of principle. You do the minimum and then you build momentum, and then you take that debt out.
[00:05:23] Vance Lowe: Same thing with a mortgage. A lot of people have bought into this idea that if I make half my mortgage payment every two weeks, I’ll make an extra or two per year. That’s not gonna help the individual. It, it, it will, you know, shorten the time period, but not anywhere close to what you’re gonna see here today.
[00:05:44] Vance Lowe: So a lot of people look at this, okay, well here’s $3,500 I would have to take outta my retirement or from stock or whatever else to buy that debt or to pay it off.
[00:05:56] Seth Hicks Esq.: Just to clarify, we’re talking about a Target credit card [00:06:00] that that was existing for this client and they had a balance that they owed target of $3,550 and the interest rate was 16% annual interest rate payment with a minimum payment due of $71.
[00:06:16] Seth Hicks Esq.: Is that the correct hypothetical? Perfect. Okay, got it. Just wanted to make sure that the audience understands exactly what we’re doing. We’ve got a target credit card along with 13 other debts at high interest credit card rates, and other high interest borrowing debt rates with the minimum payments due that are overwhelming the people.
[00:06:37] Seth Hicks Esq.: And so they came to Vance and asked him, you know, we either file bankruptcy and take our kids outta school, or can you show us a better way? And Vance said, I can show you a better way. Let me show you how to operate your own private bank and knock these debts out and actually accumulate wealth in the process.
[00:06:56] Seth Hicks Esq.: And here’s a little spoiler alert. The chiropractor and [00:07:00] his family, not only did they come outta debt, but they began to expand their practice buying other chiropractic offices and began to actually soar. Wealth accumulation. So, but we’re right at the very beginning of understanding this story, and we’re talking about a target credit card debt with a $3,500 balance at 16% annual interest rate.
[00:07:21] Seth Hicks Esq.: But the thing that distinguishes this people from some is that they had a lot of cash flow. They had the ability to make a redirection of who they pay those cash flowing payments to and to their own bank rather than. Third parties, I, we’ll reference the other chiropractic video so people can look at both sides of the coin.
[00:07:41] Vance Lowe: Okay, so let’s bring up date. This was the death that they amassed when they announced they had made a mistake. He did not have Lyme’s disease and he was so far in debt. He had exhausted all of his credit and everything possible. If you’ll [00:08:00] the, the first five are credit cards, then it goes. When he contracted that false disease, I guess we’ll call it, he was trying to buy another practice out, actually another two.
[00:08:13] Vance Lowe: And owed on those. Then he had to get money from a friend. Then he had to get lines of credit at the bank. Then he had to do a HELOC on his mortgage. So now they’re here and the only thing they can do is throw $20,000 at this debt. I asked them, how long is it gonna take ’em to get outta debt? And it was my first experience, you know, that was when I was really new, just practicing this part.
[00:08:39] Vance Lowe: They both started to cry. I didn’t know if I could handle that or not, but they said we’re never gonna get out of debt. We can’t see a way to pay this debt off and have any type of normal life. And that was because the interest rate, if they added up, the [00:09:00] cost of the interest rate was almost going to equal.
[00:09:03] Vance Lowe: You know, what they had to put in. So now that you can see all of this debt, you ask yourself the question, how long is it gonna take them to get out of debt? Up here at the top was what they had in assets at the time. So they had a little portfolio. Actually it was a 401k from his wife’s work. From years back, and so we decided to liquidate that we were going to have to pay taxes and we were gonna have to pay penalties.
[00:09:32] Vance Lowe: We had $29,000 to start to put into this plan and the overpayments on the credit cards, plus what we said is their 10% equal the total of 1667 that they’re going to put in per month. Just to clarify, they’ve got about
[00:09:50] Seth Hicks Esq.: $30,000 in availability because they liquidated a 401k. They paid their penalties and the taxes on that [00:10:00] liquidation of the government sponsored retirement account, and they had a monthly amount of 1667 to apply towards, uh, flow payments.
[00:10:10] Seth Hicks Esq.: Exactly.
[00:10:11] Vance Lowe: Okay, so that’s perfect. So what we do is we help install the banking equation back in people’s lives. That’s what this whole strategy’s all about. And when people say, well, what does that mean? Well, the strategy’s very simple and very easy. The banks always get the money back. The banks never sit on money.
[00:10:32] Vance Lowe: As a matter of fact, banks won’t even let. Their excess money sit in their bank overnight. It’s called overnight lending. It moves forward with the sun all around the earth, 24 7. So we install this for them, which means they’re going to get money back on payments, especially what they purchase. And instead of paying off the debt, we recommend that they set up their own little banking [00:11:00] situation.
[00:11:01] Vance Lowe: And their bank buys this debt. And let me show you what happens now. So let’s just do a little math. We’re not doing any, uh, growth. Everything you see in here has been, uh, actually hindered, but it’s absolute guarantees. Everything in here is written down in a guarantee. There’s no assumptions here whatsoever.
[00:11:21] Vance Lowe: So here’s the math. $30,000 to start with. We’re gonna take $20,000 of that and, and start. Their banking contract. It’s the old banking strategy, which was always used by life insurance companies. So we built one of those contracts and we dumped in $20,000. That left just under 10. Well, that 20,000 immediately grew cash value of, we’re gonna say $12,000.
[00:11:52] Vance Lowe: Upfront insurance companies are work off of what’s called annualization, and when you pay annually, you get the [00:12:00] earnings, profits and everything at the beginning of the year, not at the end of the year. And one more caveat that a lot of people don’t know, we’re gonna use that cash value. We’re gonna add that back to the 10,000 remaining, but.
[00:12:13] Vance Lowe: We’re gonna borrow that from the insurance company. We’re not gonna borrow that from our cash value. We’re gonna borrow the cash reserves of the life insurance company, and now we’ve got $21,000 in hand to go purchase debt. So I want you to look over here at the green, and if you look at the last column, you see month of payoff.
[00:12:36] Vance Lowe: So these first four were immediately going to purchase. And that is going to now put the payment, if I come back up here to the top of the payment, seventy one sixty six, seventy five, a hundred forty one, or. 350, uh, $3 of outflow is now going to turn to [00:13:00] inflow. They’re gonna get that in. So life isn’t gonna change for them at all.
[00:13:04] Vance Lowe: They’re still making their payments, everything’s going forward. But what’s happening is they’re being paid for this ILE money that was in a brokerage account that hadn’t gone anywhere for several years. Uh, as a matter of fact, he’d lost quite a bit of money back then. We’re gonna add $353 per month to his 1667.
[00:13:26] Vance Lowe: So that makes it, uh, a little over $2,000. This Wallace practice, if you’ll loan us at the beginning, he only owed 82 on it and eight months of making those payments. ’cause he’s making 1,054 per month, he pays off that business. So you can see right down here that in month eight. We asked him if he wanted to take it out.
[00:13:51] Vance Lowe: Hey, you’ve paid on this forever. You know, do you wanna take it out? Do you wanna leave it in? He says, no, I, I’m getting the system. I want my money back, so I’m gonna keep [00:14:00] making the payment. So we left it in. That bumped up how much he was going to pay into his bank. $30,000. So that’s enough on this. This is all the background, Seth.
[00:14:10] Vance Lowe: Yeah,
[00:14:10] Seth Hicks Esq.: so lemme just clarify and make, make sure that I understand and everyone understands. So he had $1,667, which is the start. And the the green bar that was available then he redirected $353 that was going out to other credit card companies and he bought that with the money that you illustrated abo above.
[00:14:34] Seth Hicks Esq.: Took out, paid off those entire credit cards with the money in his own private family bank, but he didn’t stop making payments on those debts. He just, he just redirected who got the payments. So instead of Target and Sears and Home Depot and Chase getting his cash flow, his own private family bank got the $353 in cash flow a month.
[00:14:57] Vance Lowe: Yeah. Target, Sears, home [00:15:00] Depot, chase. All have a bank and the money is flowing back to the bank. The bank put the this money to work through credit cards, okay? They always get the money back, and so that’s all we’re putting in this guy’s life. He’s gonna wake up this $30,000 and put it into production.
[00:15:19] Vance Lowe: $30,000
[00:15:20] Seth Hicks Esq.: was doing nothing in his retirement account. Can’t touch it, can’t use it. Can’t eliminate the overwhelming debt that he is got, but when he cycles it through his own private bank, puts it to work. Now he’s, instead of a headwind, he’s got a tailwind we like to
[00:15:35] Vance Lowe: call it. So when he left in this Wallace practice and we have all these other loans, each one, we can evaluate how, what is it worth to us?
[00:15:46] Vance Lowe: Remember the banks always get the money back, so you are using, I don’t know how long this took him to save up in his 401k or for his wife, but you know, it’s more than 10 years. We don’t spend [00:16:00] money. Our whole society and the way our system has taught us because of lack of education, is we spend what we earn and that’s a no-no.
[00:16:11] Vance Lowe: You can’t do that and win the money game. You can use the money. But you can’t spend the money. ’cause when you spend it, you lose control. It’s gone forever. You gotta go back to work, make everybody else money just to replace what you spent and you’re gonna spend it again. So that sounds like the perfect definition of insanity to me.
[00:16:30] 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?
[00:16:53] Midroll: Please visit us at www.privatebankingstrategies.com. [00:17:00]
[00:17:01] Vance Lowe: Let’s start with the big one here. Uh, year eight, let’s evaluate that. So he paid a lot more for this agency than 8,214 bucks, but this is the incentive that we try to do for ourselves. So we put a little software together, and I’ll put that up here. 82 14 I think it was, and he was paying $1,054 a month.
[00:17:25] Vance Lowe: So let’s find out what that interest rate was. That interest rate on that little puppy was 7%. Okay? Seth, you and I saw this debt. We would buy this debt in a heartbeat. Take your knowledge away. A person out on the street when we told them that, Hey, I’m gonna get, let’s, let’s use, just use what I’ve got in here, eight and a half percent interest.
[00:17:52] Vance Lowe: The payment’s 1,054 and I gotta come up with 82 14 in order to buy the debt. Why [00:18:00] would I be drooling at the mouth to buy this debt? Well,
[00:18:02] Seth Hicks Esq.: most people focus on the interest rate, and so they’re only looking at the size of the interest rate. The higher the interest rate, the more they think that they’re making, but they’re not focused on what they should be focused on, which is cash flow and the volume of return.
[00:18:19] Seth Hicks Esq.: I hope
[00:18:20] Vance Lowe: I can turn a light on for you. Now when I click over here. How does 154% volume rate of return sound to you on this debt? Is that high enough? If what I’m after is the volume of return, which is the payment based on the money at work, I only had to come up with. $8,200, we’ll call it. But the payment doesn’t change.
[00:18:45] Vance Lowe: It stayed at 1,054. That’s $12,648. People scratch their head and say, well, yeah, but that’s gonna pay this loan off a lot faster. It’s not about the 82 [00:19:00] 14, it’s about all the money that he had to pay for this property, for that business. So until he has to reassign this money, like he said to me, he says, I’m used to making that payment.
[00:19:11] Vance Lowe: I’ve been paying on it for 10 years. Let’s just keep it in and get the money back. So do the math with me here. If that equals 12,648 annually, if we kept that going for five years. That’d be 63,240 bucks, and everybody agrees that that’s a great number. That’s a financial planning number. That’s a number that most of the individuals out there who try to help you with retirement planning, your stock brokers, everything.
[00:19:44] Vance Lowe: They can do this type of math and these types of charts. But I hope folks, you’re not here to listen about financial planning. You’re want to know about the power of banking. So if you’ll come straight down on the yellow, which is [00:20:00] column D, you’ll see the money at work is. 82, 14. And but you’re gonna see year two that the income for just that year is not 12,648.
[00:20:13] Vance Lowe: It’s 32,124. Well, how can that be when the banks always get the money back? What do they do with it? So what are we gonna do with this? $12,648, Seth? Well, we’re gonna put it back to work. Yeah. And this is assuming we get the same interest rate, so we know we’re not gonna get this on everything. Okay. This is anything above a hundred percent.
[00:20:39] Vance Lowe: It’s in the top 10% of what you’ll be doing. The average is about 60%. It’s above 50. So it’s 60%, and I’m so spoiled now. I won’t even do one if I’m making 24%. I just don’t have to. So the program doesn’t know any different, so it’s gonna take that 12, it’s gonna go [00:21:00] purchase more debt, assuming it’s gonna get the same return.
[00:21:03] Vance Lowe: This 12,000 that I have back in hand now, or the bank has back in hand, they’re gonna wanna put it to work again and lend it out again. And so what we’re gonna do is we’re gonna go buy more on that list of his debts, and we assume if we’re gonna get a 154%, that that first year’s 12,000 is gonna produce 19,467, and we’re gonna get the 12, 6 48 every year.
[00:21:31] Vance Lowe: We’re gonna continue to get the. Get the 6 48, as long as he pays it back to himself until he’s got all the money back that he purchased for the practice, including interest. Well, if I keep that going in year three, I’m gonna put this 19,000 to work as well. I’ve gotta get now 12 six. I’m get 19 four. 19 four.
[00:21:54] Vance Lowe: And 29. Nine. So how does [00:22:00] 576,000 compare with 63,000? It’s amazing. Seth. We have a lot of people in crypto world, don’t we? There are cryptocurrency and things like that, and everybody touts about the number of Xs. Let me put on here a little bit more realistic one, and I’m particularly fond of this one because I worked this strategy on two of my vehicles started almost 20 years ago.
[00:22:25] Vance Lowe: I wanted all the money back on all the cars I had bought throughout my lifetime, and when I added that up, it was over a half a million dollars. I liked exotic cars and BMWM threes and I, I just really enjoyed that. I always bought new and. Anyway, when the last cars that I had financed and I’d financed them through Bank of America when their payoff got down to $10,000, I bought out those debts.
[00:22:54] Vance Lowe: So this is one of ’em. Each car payment was $500 a month, so I didn’t change [00:23:00] that. I’m used to paying that. I paid it almost all my life. So take a look at this one. This is an average. Debt buy right here. What’s the volume of return? You take? The number of payments per year, 500 times 12 equals 6,000. Well, I had to come up with out of pocket from one of my investments, $10,000 to buy this debt at the time was paying eight and a half percent interest.
[00:23:25] Vance Lowe: That’s still a 60% volume rate of return. Now let’s do the math. Let’s do the financial planning. Six times five is 30,000. It’s still a good number, especially when you start at 10,000. Okay? There’s no risk here, by the way, either. There is no risk except the guy looking back at you in the mirror. Now let’s bring on banking.
[00:23:46] Vance Lowe: The power of banking. Now let’s, this is more realistic for everybody to really see and understand. I’ve got $10,000 at work. I got 6,000 back in my hand in year one. I buy more debt with that [00:24:00] so that in the year two I’m gonna get 6,000 from the original. I’m gonna get 3,600 from the 6,000 that I put to work.
[00:24:08] Vance Lowe: And I’m gonna add. More numbers every single year. In year three, I’ll have 6,000. I’ll have 36 and 36, and then I’m gonna invest years to 3,600 and I’ll get 21 from that and it’ll just keep on going and I’ll invest all the money. The money will be put back to work buying more debt. ’cause they have so much debt to buy.
[00:24:34] Vance Lowe: So here is something very. Every day. Very realistic. How does 82,848 sound? How many times did we double this $10,000 that I had to put to work? That’s how what I came up with, I woke it up. Everybody thinks that if they have stocks, bonds, mutual funds, 401k portfolios, that their money is out there working for ’em.
[00:24:58] Vance Lowe: That’s 180 [00:25:00] degrees wrong folks. It’s not working for you. You have to leave that money in the account under the control of someone else. The people who are in control make the lion’s share of the money. You only get interest and you take all the risk here, you get all the earnings, a hundred percent of it, and there is no risk except the person looking back at you in the mirror if they rob from you.
[00:25:24] Vance Lowe: We can’t help that. Let’s take 10 and double it. That goes to 20. Now let’s take 20 and double that. It goes to 40. We’ll take 40 and double that. It goes to 80 and we’re at 82 8. So what do they call that in the crypto? Is that a three x or something? No, that would be an eight x. A lot of people want to hit home runs, but unfortunately the home run hitters.
[00:25:50] Vance Lowe: Strike out far more than they ever hit. Home runs if, if you want that analogy. Here is the sure thing in these types of things in banking, [00:26:00] you can always plan what’s going to come in. Have I stopped this? Yes. But I took 10 years. I was able to do this and keep it going for 10 years for each. I ran outta debt to buy.
[00:26:12] Vance Lowe: I shouldn’t have. I made some mistakes in my own life with my family. I thought I would have a really strong family bank now where our whole family could self-finance things, but I tried to preach this to ’em. People don’t like that, especially dad.
[00:26:28] Seth Hicks Esq.: Folks we’re just getting started on this educational podcast.
[00:26:32] Seth Hicks Esq.: We hope that this is making sense and light bulbs are going off, and that fireworks are exploding in your mind. Thinking about how your wealth trajectory could change. If you want to know more about creating your own private bank, visit us@privatebankingstrategies.com. That’s Private banking strategies.com, and when you hit our website, you’ll be.
[00:26:56] Seth Hicks Esq.: Offered a free book that Vance and I wrote, [00:27:00] which deals with issues like this and many other, uh, issues. We like to call red pill issues that educate people on what they’re not doing and what they don’t know that can change their life that will teach them. And that book comes in an audio version or a PDF, and it’s free to you when you put in your name and email.
[00:27:20] Seth Hicks Esq.: And from that point, if the book resonates, if these podcasts resonates, you’ll have the opportunity to schedule an exploratory call with Vance through emails that we send you and, and dive into this. And ultimately, you can take this entire process and these analytics on a test run and what we call an eight year analysis plan.
[00:27:40] Seth Hicks Esq.: Vance mentioned that at the top of the podcast. An eight year analysis actually shows you how this will work for you. Your actual finances and your actual situations, and it will demonstrate to you step by step over an eight year period, month after month [00:28:00] of what you need to do, how you need to do it, and, and you can come out like this chiropractor smelling like a rose, owning multiple practices and totally outta debt.
[00:28:08] Seth Hicks Esq.: So any closing remarks Vance.
[00:28:11] Vance Lowe: I get really excited about the strategy. It’s what the banks and our government don’t want us to know, but it’s what made America strong. This is not new. This was not created by us, wasn’t created just over the last 25 or 30 years. It’s how America started. We didn’t have banks, so I’m just really excited to share what we know.
[00:28:36] Vance Lowe: With our audience out there and hope they enjoy it.
[00:28:40] Seth Hicks Esq.: Absolutely. Well, folks come back for the next, uh, part of this multi-part series and we’re gonna teach you some more. Thanks for joining us. Bye-bye.
[00:28:49] Outro: Did that story feel like it was about you? Do you feel you should be making more progress toward your financial goals?
[00:28:57] Outro: Do you feel stuck? Let us [00:29:00] help you get unstuck. Are you ready to take action and get your own private bank? Please visit us at www.privatebankingstrategies.com. Thank you for listening to the Private Banking Strategies podcast. Click the subscribe button below to be notified when new episodes become available.
