What Is The Difference Between Private Banking And Wealth Management - YouTube

In this video, I'm going to talk about what's the  

difference between private banking and  wealth management and why you need both?

So, in this video, I'm going to talk kind of about  three things specifically. The difference between  

private banking and wealth management more  specifically your relationship with your local  

private banker and just really for those of you  beginning your banker and then the big one the big  

one at the end. How do you become a bank? Can't wait to teach you that. Let's start with the definition  

of private banking and wealth management. So, a lot of you that are out there and you think, "Well, this  

isn't for me because I'm not even close", we'll stay  here right now because it could be you and I want  

to motivate you to make it you. So private banking  is a section within most banks for high net worth  

individuals. That's simple. You say, "Well, what's high  net worth?", well, I can tell you you're going to have  

to be millionaire to walk through the doors. But that's not going to take very long. I'm the  

millionaire-maker I have a three to five-year plan.  I have people right now though in the Covid

period now with the volatility of the market.  Becoming millionaires in a year 18 months this  

is not difficult. But private banking is when you  start banking on the other side of the bank. Now,  

wealth management are typically wealth management  firms. There's a lot of firms in the country. Some

really good ones some really crappy ones and they  will help manage your money and your wealth as you  

accumulate it. Typically, they'll have a standard  a lot of like beginning firms they'll take you at  

a quarter million half million and then they'll  grow you as you grow your wealth into you know  

1, 2, 5, you know 10 million and plus. So, there  is a difference and they do coexist you're going  

to have both. Now, let's just talk about banking  before we go on. So, banking has a 10x rule.

So, what happens when you put a deposit in the bank and for those of you that are beginners and  

staying tuned thank you. My first goal for you is to help you make 100,000 dollars. I love  

the first hundred, it's the most difficult. Because  we're employee trained not entrepreneurial trained.

So you can't take employee skills that you might  have learned in college and become an amazing  

entrepreneur. You're going to need to get mentoring  and help with someone like me to show you how do  

you make that first 100 quick and believe me, I promise I actually have a guarantee I'll do it in  

less than a year. So we can kind of get over that  learning curve of becoming a great entrepreneur.  

The next goal is that you become accredited. That's  a 200,000 per year goal and for two years in a row  

if you make 200,000 or more or as a couple 350 or  more you're now considered accredited and with the  

accredited status now you have access to invest  in all sorts of alternatives that you normally  

couldn't invest in PPMs prospectuses, private  businesses, a lot of real estate deals, phenomenal.  

So our first goal is 100 our next goals are  credited our next goal's a millionaire and then  

once you hit a million you're off to the races.  Now, back to banking. Picking that first bank of  

where you're going to do this growth is important.  They do need to have a encourage you I'll say it  

that way. I would encourage you to have them have  a private section of the bank so you move there  

sooner than later. So, here's how banks work. If you put 100,000 in the bank's deposits per year.

You give them a 10 what's called the 10x rule. They get to reach up to the central banks and get a  

million. So, they get 10 times your deposits. So now  let's go the other side. Why private banking works  

and it's so important and why your relationship  personally is so important. You put a million in  

you now gave that bank the opportunity to get 10  million. You say, what do they do with it? They give  

you loans. They give individuals loan. They give  companies loans. So they make money on what's  

called the spread like you're not getting paid  for your deposits. I mean there's people who  

actually you know motivate you and give you  a coffee pot or some little trinket because  

you're going to move from one bank to the other.  Because they're motivating you to put in deposits  

with their collective deposits in a bank they get  10x that is their loan ability. So then they  

can put out loans. So, knowing that, way back in  the day I'll tell you a quick little story how  

I got a laundry mat on my terms. So, I went into the  bank and knowing this I actually put a spreadsheet  

together of the years and years that I've been  doing deposits and I was on the private side.

So I knew my guy really well and I walked in with  this little spreadsheet of all the money that I  

put into his bank on deposits millions of dollars.  I said, "So I know that I have put millions in  

and you got this. You got 10 times that amount to  then borrow out to customers at 7-10%. I mean people  

with bad credit 12%. You made all that money. Well, I gave you the benefit of that. So, knowing that  

I'd like a free loan", we had a fun little laugh. He said, "Aren't you cute?", I said, "Well, I am."  

But I know you have to go to committee which  banks go to committee once a week or one  

at least once a week if not more than that. But they'll go to committee and they'll talk about  

the different folks applying for loans. So, of  course they brought me up and they brought my  

little presentation that I gave them and they  came back and I got a two percent loan. Now, I  

got two hundred thousand dollars for two percent.  Now, I had two hundred thousand in the bank already  

invested in other things. So obviously the first  obvious answer is why don't you use your own money?  

Because that's invested at more than two  percent. So if I that invested say at 12, why do  

I want to take out that to use my own money when  I can use yours. You've used mine for the whole time.

So I have a lot to teach you. If you're liking  this content I need you to subscribe right now  

and then give me lots of thumbs up. because  I'm going to be here every day giving you  

new content new financial literacy about money  and it's important. Because when you get to that  

point where you need a banking conversation I want  you to ring me up and say, "Loral, coach me give me  

a script on how you know help me get my two percent loan", and so I'll help you put that  

presentation together and do the conversation  and so I bought a new laundromat for 200 grand  

and got it for two percent which is like free  money. So, when you really understand the system  

it's to your advantage. Because right now  a lot of people didn't even know that basic rule  

of private banking of just banking in general and  then private banking how you can use it. So let's  

speak of that like that was a little bit of my  second term before I go into wealth management.  

You really do need a relationship. The challenge  in today's day and era with all this digital

access going on you can pretty much do a lot of  your transactions digitally and you there's no  

face behind the bank. I cannot encourage you enough  to walk through those doors and get to know the  

human who's actually the brain the decision-maker  behind your requests. So really important that you  

get to know ideally if you're at small enough  banks you get to know the bank president or the  

lending officers but get to know them and you know  what even if you don't qualify for private banking  

I'll give you a little homework walk through the  doors and introduce yourself say I'll see you soon  

and then make it happen. That's my favorite  activity part of it. Because it puts you on the  

line for a commitment that I want you to keep and  I know I can help you with. Now, let's go to the  

other side wealth management. Wealth management  is the collective. Now, you can give your  

money to a wealth management firm there's a lot  of good ones and then like I said there's bad ones  

and what I'm going to teach you is to do some  of your own wealth management to understand  

your money rules. To understand the integration  of wealth. So the reason I exist and built  

the company the way that I did because I'm not a financial planner. I'm not licensed.  

I really curated a whole team of experts from  alternative financial planners, to tax strategists, 

people are just simple CPAs, I got bookkeepers,  real estate experts, ma experts, insurance, trusts,  

corporate structure, you name it. So, a huge  team of experts that when you come in you get  

access to them. The benefit is we all talk to each  other. How many people on your wealth team talk  

to each other including your wealth management  team? Because your wealth management team  

might have insurance. it might have a trust, typically it doesn't. It's really just  

management of your family office in these assets. But those people have to talk to the people that  

have insurance, your entities, your trust, your  tax advisor, all these people have to have one  

conversation not five or six and then there you  are in the middle trying to manage it all. So my  

goal is to be your educator, to be your advocate, to stand in the middle of all those people and help  

put together a proper wealth management plan with  your goals, your family's goals, and your family's  

legacy, and then you'll be using private banking as  part of that strategy. So, the last and most fun is  

how to be your own bank? So when you require enough  money you can be a bank in several ways. You  

can be a hard money lender or you can borrow  your money to different real estate folks or  

I know people who do it just in private aviation  where they're helping people buy planes, whatever.  

Buy businesses so you can be your own bank by being a lender and again, you would want to use the  

private banking and the structure because that's  what's going to hold your money. You can actually  

work escrow accounts for you to help manage and  control all that. Another way to be your own bank  

is through life insurance there's very specific  policies. In fact, there's seven that we that our  

insurance expert uses and that'll come on a future  video. How to be your own bank and how to put money  

into insurance but then you get the capacity to  borrow it back out. so essentially it's your money  

being leveraged back out to go buy real estate.  You can buy businesses. You can invest in your own  

business. But essentially you're your own bank and  your own cycle of cash it's phenomenal. So, there's  

lots of ways to be your own bank. Those are my  two favorite my favorite is accumulating enough  

money and being the lender and you could create  your own fund. You could create your own private  

equity firm that's for later conversation. But I  just want to invite you to think about even on a  

small scale say that you accumulate 100-200,000 be  very cautious and aware of those loans especially  

your family and friends. Sometimes those don't get  paid back. I'm not a fan of those at all but I am a  

fan of working with a private banker working with  other people who have been a bank and how do you  

do convertible debt lending and how do you become  the bank to help other people fund their dream. You  

get first position you'll get the asset back if it  doesn't work. Much stronger position than being an

equity partner. Lots to teach you, lots more again,  if you haven't subscribed yet do that again now  

and I will see you every day right here  on this channel. Before we leave though  

if this is interesting to you even if you're a  beginner and say, "Oh, it doesn't apply to me yet",  

make it apply to you. Be that person who's going to  set a big goal and say, "I'm going to have this one  

day in my life", so fill out an application there's  a link in our show notes below in the description.  

Fill out the application thoroughly. Like, the more  I know about you the more we can help you and

Just say, "Hey, I want a meeting. I want to time one on one with some a Loral senior team. I want to  

talk about this financial infrastructure private  banking wealth management because I'm going to  

be there too." So, fill out the application send it  in to us and I'll talk to you on the other side.