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Success Story Podcast

Chris Naugle – Co-Founder & CEO of The Money School | How To Be Your Own Bank

By August 6, 2022January 18th, 2023No Comments

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About The Guest

From pro-snowboarder to money mogul, Chris Naugle has dedicated his life to being America’s #1 Money Mentor. His success includes managing over 30 million dollars in assets in the financial services and advisory industry and tens of millions in real estate business, with over 200 transactions and an HGTV pilot show since 2014.

In 20 years, Chris has built and owned 16 companies, with his businesses being featured in Forbes, ABC, and House Hunters. He is currently the co-founder and CEO of FlipOut Academy™, founder of The Money School™, and Money Mentor for The Money Multiplier.

As an innovator and visionary in wealth-building and real estate, he empowers entrepreneurs, business owners, and real estate investors with the knowledge of how money works. Innovating what it takes to break the chains of financial slavery, Chris is driven to deliver the financial expertise that fuels lasting freedom. To date, he has spoken to and taught over ten thousand Americans.

Talking Points

  • 00:00 — Intro
  • 03:38 — Chris Naugle’s origin story
  • 34:16 — How did Chris navigate through the recession after 9/11?
  • 50:21 — How to be your own bank
  • 1:02:00 — What happens when you get paid on your death benefit early?
  • 1:03:30 — Are there any underwriting issues that may be faced while taking loans?
  • 1:12:30 — What is Whole Life Insurance?
  • 1:10:09 — How can you screw this up?
  • 1:13:40 — How do recessions and inflation affect the market?
  • 1:25:57 — What are the factors that can affect an average person’s financial wellbeing?
  • 1:36:41 — How can people connect to Chris Naugle?
  • 1:39:06 — What keeps Chris up at night?
  • 1:39:14 — The biggest challenge that Chris Naugle has overcome in his life
  • 1:39:40 — Any book or podcast recommended by Chris Naugle
  • 1:39:50 — What would Chris tell his 20-year-old self?
  • 1:39:55 — What does success mean to Chris Naugle?

Show Links

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What is the Success Story Podcast?

On this podcast, you’ll find interviews, Q&A, keynote presentations & conversations on sales, marketing, business, startups, and entrepreneurship.

The podcast is hosted by entrepreneur, business executive, author, educator & speaker, Scott D. Clary.

Scott will discuss some of the lessons he’s learned over his own career, as well as have candid interviews with execs, celebrities, notable figures, and politicians. All who have achieved success through both wins and losses, to learn more about their life, their ideas, and insights.

He sits down with leaders and mentors and unpacks their stories to help pass those lessons on to others through both experiences and tactical strategies for business professionals, entrepreneurs, and everyone in between.


Host of the Success Story Podcast:








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Contact: Scott D. Clary MBA |416-522-5622 |

Machine Generated Transcript


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Scott D Clary, Chris Naugle



The new film 13 larges is available on Prime Video, boys and their coach. I’m trapped in a flooded cave from Academy Award winning director Ron Howard. I gotta get those kids out of the crazy I said only chance. Experience the incredible true story. How sad is this? I’ve never done before. Nobody has been united the world today, so let’s do it. 13 lives rated PG 13 may be inappropriate for children under 13. Watch now only on Prime Video.


Scott D Clary  00:30

Welcome to success story the most useful podcast in the world. I’m your host Scott D. Clary. This success story podcast is part of the blue wire podcast network as well as the HubSpot Podcast Network about Podcast Network has other great podcasts like marketing made simple hosted by Dr. JJ Peterson. Now Marketing made simple brings you practical tips to make your marketing easy and more importantly, make it work. If you like any of these topics, you definitely want to go check out the show how to write and deliver a captivating speech, how to market yourself into a new job, how design can help and also hurt your revenue, creating a social media ad strategy that actually works. If these topics resonate with you. Go check out marketing made simple wherever you get your podcasts. Today, my guest is Chris Naugle. He is the founder and CEO of the money school. He is a former pro snowboarder turned money mogul. He is known as America’s number one money mentor. His core belief is that success is built not by the resources that you have, but how resourceful you can be his success and national acclaim have come in a large part from what he’s learned firsthand. From seeking a better way to create wealth and preserve wealth. He has built and owned over 19 companies. His businesses have been featured in Forbes ABC House Hunters. He had his very own HDTV pilot in 2018. He has built the money school money mentor and the money multiplier. His successes include managing 10s of millions of dollars in assets in the financial services and advisory industry and in real estate transactions. As an innovator and visionary in wealth building and real estate He empowers entrepreneurs, business owners and real estate investors with the knowledge of how money works. He is also a nationally recognized speaker, author and podcast host he has spoken to and taught over 10,000 Americans delivering the financial knowledge that fuels lasting freedom. So we spoke about his origin story, and some of the things that he’s learned over his life that have allowed him to operate at the level that he operates at right now we spoke about after his story, what he focuses on which is helping people understand wealth, money, finances, book about money, myths, talk about the truth about money. We spoke about private money lending, we spoke about the laws of wealth. We spoke about privatized banking or BYOB, be your own bank, we spoke about Infinite Banking. We spoke about recycling and recapturing your money. We spoke about finding ways for your money to gain interest and earn dividends even while you’re spending it. And then we spoke about economics, we spoke about what’s happened with the Fed printing trillions of dollars, we spoke about what’s going to be happening in the years to come. It’s not great. He is an accent. He’s not an economist, but he spends a lot of time in the weeds understanding how our country how the US will navigate the next few years and how inflation will affect the average person and also how the person the average person whether or not, you’re just trying to figure out how to make ends meet or you have an extremely large investment portfolio, how you can navigate the impending recession. So let’s jump right into it. This is Chris Naugle. He is a podcaster, author, speaker, Founder, CEO of the money school.


Chris Naugle  04:09

It’s a good story, and it’s one I don’t really often talk about. So it really starts when I was a kid, and I grew up in a lower middle class family. My dad was an alcoholic and really wasn’t a big part of my life. And my mom raised me and in my mom raising me, we didn’t have money. We didn’t have resources. So if I wanted things what my mom taught me, which is purely brilliant on her part, but she probably didn’t know it was just a way for her to allow me to never think I can accomplish things is when I wanted things. She taught me to draw them. I was always an artistic kid. I loved drawing cartoons and you know whether it was a skateboarder BMX, or you know, I’ll get into a story about a pond in the backyard, my mom would just say, well go draw it out. Show me what it looks like. So I would literally I’d go through BMX plus magazines, I go through snowboard magazine, skateboard magazines, I’d find pictures of things. I resignated with that I wanted to accomplish and I would draw them. And then I would talk about them to my mom. And, and you know, we talked earlier about like the idea of just focusing, you know, focusing on one thing, and that one thing always happened. Well, that’s kind of what my mom taught me to do. And it at a young age, my mom taught me how to save. Never forget, you know, one particular thing, my mom needed a lawn more our lawn more was on its last leg, and we had two acres of land. So a lot more was pretty important. We didn’t have money to hire somebody. So my mom started saving all of her change. And she made a point to show me how this worked. She’d come home, and you know, after going grocery shopping, and she’d have changed in her pocket, and she had this big glass jar in her in her closet, she would take me in there and show me how she saved. Well, after I watched this for a little while, I wanted to do the same thing. You know, monkey see monkey do. So my mom got me this, and I still have it today. It’s right over in the next office, little black box with a slide top. And what I started doing is my grandparents lived in a mobile home park. So I would go out there and I would go around to the neighbors and ask if they needed weeding or their their windows cleaned. And you gotta remember, I’m like, five, six years old at this point, maybe a little older, but it was in that range. So when I would make this money, it was pocket change, you know, Buck, two bucks, maybe five bucks. And all if I did a whole land landscape thing, which I wouldn’t call it landscaping, it was pulling weeds back then. And I would come home and I’d give the money to my mom, and she’d put it in this box. So fast forward. This is how I learned then, you know, as a little older, the one thing my dad did teach me is how to fish and I loved fishing. But to fish, I had to go up the street and long walk to this little pond and there was never any fish. So I said well, why don’t we have a pond in the backyard? So I got this idea. Why don’t I just dig one. Remember when you were a kid, you know, I have a 23 month old when you’re a kid, you don’t have boundaries like we do as adults. We haven’t been tainted. We haven’t had enough people in our lives tell us we can’t do things when we’re a child. So for me, like the simple the simple goal was I want a place where I can fish and catch fish. So in my mind as crazy as this sounds, just dig a pond dig a hole. So I literally went in the backyard and I did a whole YouTube video on this and I started digging a hole and I hit rock. And I got upset and my mom said well, you need to go to where a low spot is where water sets. So I remembered fire back in the yard there was a spot where in the winter when all the snow melted and we’re in Buffalo we get lots of snow. There’s this place for water SAP. So that entire spring and summer. Every single day after school. I went out there with a wheelbarrow and a shovel. And I just dug and I dug and I dug and I dug and there’s no like pretty story to this. I ended up digging a pond. And you know when when it rained, we had water and I’d go up the street on my four wheeler catch some sunfish and some cat fish and put them in my pond. And I would sit out there for hours. I remember just sitting there for hours trying to catch these fish. Now, all of you are laughing listening because you’re like, what, Dude, you just caught the fish and you throw them in the pond, they’re not going to they’re not going to soak them. They’re not going to bait TAKE THE BAIT. I didn’t know this, I had a pond. So that meant that manifestation of thinking about this and doing this now, the one thing like First it started with the idea. And then it started with thinking about it over and over and then actually taking action going out and like digging a pond is no small task. I went out there recently and the hole that I dug is still there. It’s still holds water, but clearly not good for fishing. So now fast forward a little further. Alright, I’m getting older, and I’m in high school. I’m just a punk skateboard kid. You know, my goal was to be a pro snowboarder. Living in Buffalo, New York is not the mecca for snowboarding. And I remember, I didn’t have money to buy lift tickets. And my first snowboard was a US board that you know, really was just terrible. But I would take that board up the street and we had this hill, there’s a four wheeler track up there. It just had a little hill and I build the jump in the winter and I I just keep hitting it and destroy myself. But whatever. I was a kid. And then all of a sudden my my one friend Jack said, Well, let’s go up to the resort night. I didn’t even know what a resort was. I’d seen pictures of this in magazines are these big mountains. And I’m like, Oh, wow. So we went up there. And I remember my first run, I hated it. I’m like, I can’t do this. I almost gave up and this would have been in my life. This probably would have been one of the first times I was willing to give up on something. And I’m sitting in the lodge and Jack comes down. He says let’s go up for one more and I’ll teach you and I didn’t want to but I went up I’m soaked. I’m tired. I’m beat up. We go up one more and something clicked. And that was the point where you know, I really fell in love with it. And I came up with the crazy idea that I’m going to be a pro snowboarder. I’m watching the VHS tapes, and you know the snowboard magazine, which back then was Transworld. And I’m looking at all these photos of my heroes Teddy Hopkinson who I’ve had on my podcast and and all these just legends Craig Kelly. And I remember I’m like, I want what they have. I want to do what they’re doing. So instead of going to the resort I couldn’t there was a country club the Lockport Country Club, which is where I grew up. My mom would pick me up from school If she would drop me off at the country club now you got to know like school ends it right to 33. By the time I get there, it’s three, I have to build a jump. So now it’s four 430. And it gets dark at 530. I have one hour to accomplish the on fathomable of all these tricks I had lined up. And I remember in the early years of doing this, I would, I remember, like be going, I’m getting in my groove. And then also in the here, the dreaded Hong Kong, my mom is picking me up, I didn’t want to leave. So I figured out I have to get in better shape. So I would come home. And my idea was alright, I gotta I can’t run up this hill enough times and keep my wins. So I just got to get in shape. So I ran up and down my backyard, in in Serral boots to get in shape so that when my mom dropped me off, I could get more hits. And then I started pre planning it and building the jump beforehand, so that when I came back The jump was already there. I just had to fix it up and pack it down with some snow and and that’s how I did it. And it’s crazy to think about that right? Because when you think about a pro snowboarder, you think Oh, they’re traveling around doing all these events. Like I didn’t have that luxury. I didn’t have the money. And that came later. But my early years were spent learning tricks in the summer on a trampoline. And the tricks were just tricks I watched in VHS tapes. And all that stuff made me a really good snowboarder because I was regimented. So when I was learning tricks, I would I would hit it over and over and over and dial that trick in until I moved on to the next the next than the next. So when I actually started competing, and actually started going out and having a little extra money because I worked, you know, jobs at restaurants and that I could go to the resort and for Christmas, my number one thing was always a 10 pack. So they’d buy me a 10 pack, and that’s 1010 times the resort. And I would go and I would just compete and lo and behold when I competed I thought it would suck. I actually did really well even my first contest, because I practice so much. And then I then the barrier came from people telling me you can’t be a pro snowboarder you live in Buffalo. And I’m like, okay, so I needed I needed to see somebody that had done this journey. And there was these two guys Blair and Shane, and Blair and Shane were pro Burton riders they didn’t live in, in Buffalo anymore. But there was one time I heard rumor that they were doing a photo shoot in this brand new park that they had just built a kissing bridge. And I made sure that day I was there. I was the fly on the wall, if you will. And I was watching these icons, these two pro snowboarders in the best gear hitting stuff. And I just, I remember there was like nobody there because it was like afternoon, you know, the big photoshoot. I was like one of the only riders in the park, surprisingly, and I just kept following them. And I felt embarrassed because you know, I let them go way ahead of me. So they didn’t think I was following them. But I just kept falling and doing laps. And then eventually Blair, like saw that I was doing this. She said, Hey, you’re pretty good, like ride with us. And, and at that moment, something clicked. And I said, Well, I can do this, because I seen these two guys who grew up where I was that it made it. And I just went for it. And that that was that’s how I kind of became a pro snowboarder, and I was a pro snowboarder from the age of about 90. And I was amateur before that 19 And I wrote all the way pro up till I was 34. And a lot of things spun off of that. In my early years, when I was 16 I had gotten a job just like all of us. I’ve started working on a farm at 14. But at 16 I got a big boy job at a restaurant. And I remember the owner of this restaurant was just a nasty man. And he would degrade me so badly that I I literally got to the point where I was clinically probably depressed. I thought I could do nothing right. It affected everything. My Grades, my willingness to want to go to school, my whole life was spiraling down because this one guy made me feel like I could do nothing right. And the day came when I was 16. And I marched into work and he started writing on me. And I don’t know that day was just that was it. I was done. And I told him I said I quit. That marked the day when I quit trading hours for dollars. Thank God that I did this at a young age at 16 I came home thinking my mom was gonna be so mad because you know, I was coming home early and and I had a plan the whole way home I had planned out what I was going to say to her and I said mom I quit you know told her the reasons why thinking she was going to be super upset. And I said but I’ve got I want to start a clothing line me and my art teacher Mr mahal ski been printing shirts for the school. I want to start making my shirts, I’ll sell them on my backpack. I’ll travel with them to snowboard contest and sell them to my friends and and that was my first company. I started it in 1992. At 16 years old it was called fat clothing company PHA t. Now some of the some of you are listening are in today’s world. They’re like, Oh, wow, you became an entrepreneur. No, no. I was solving a problem with this. I didn’t care about being an entrepreneur. I didn’t even know what that was. You know, all I wanted was enough money to be able to travel without having some guy degrade me and make me feel worthless. And the reason I wanted to do this is remember I told you I was artistic I was my whole childhood was spent drawing pictures of the things I wanted skateboard, snowboard, dirt bikes, whatever it was. I was just good at drawing. So I draw this art work with this logo fat and back then fat came from. It’s cool. Oh, that was fat. It’s just the thing back in the 90s. And some of you are too young to remember that. But I started making shirts and a printer with my art teacher and then, you know, we got past the capacity he had. So then I had this other guy Mark art in my town, start printing shirts, and I sold them out of my backpack. And then I got my friends to start selling them out of their backpack. So a dozen shirts, I sold them I made two dozen, two dozen shirts sold, I made two dozen 12 hats and, and I just kept going like this. And as I sold them, I bought more. Well, that forced me to have to actually start learning a little bit. So this is unique. I’m in high school. But now all of a sudden, I took a liking in, in this business. And I had heard about this thing called accounting, you have to have accounting because my guy that did my taxes is like Well, do you have you know, where are your books? So I actually started by took accounting courses in school and the accounting teachers Mr crossly knows how I remember these names is back to do yes, because these people were so influential. They spend time with me after school to teach me debits and credits and spreadsheets. So I started doing these things that I was learning in school, but I was applying the knowledge different than all the other students they were just learning it to pass. I was learning because I needed it for my business. Fat clothing one year later, had three seamstresses, you know that basically, me and my mom would buy pattern like little Pattern templates at JoAnn Fabric, and we’d come home and we’d make a prototype because my mom could sew. And then I would then give it to the seamstresses, which were just local ladies that wanted side work. And they would stitch these these jackets and shirts and pants. And then I would test them out on the hill. And then I built a snowboard team. All this was going great selling my clothing on the road. And then when I was 17, something happened. And it was from being on the road in the snowboard contest, I’d stopped at a lot of snowboard shops. And I got this fixation that that was what I want. And I wanted to own my own skateboard Snowboard Shop because these guys had it made right. They got up in the morning. And then when they did their dream they they ran their snowboard shop that I was selling my clothes to. And then in the afternoon whenever they wanted, it seemed they went out and snowboard with me and I just had to have that I needed that lifestyle business. And that goal I found out would take about 70,000 bucks. So I went to


Scott D Clary  17:11

something on that. Yeah, passion man. Because you when you find your why, and you find your why you’re so driven. But do you know Do you know what? What makes you tick? You know why? Do you know why this Snowboard Shop? Like it’s a nice idea. There’s a probably 1000 Other things that you saw while you were going city to city that you could have been inspired by or interested in. So how do you find that?


Chris Naugle  17:34

Because it was in line with my why it was in line with the What the What was I want to snowboarding was my life skateboarding in the summer but snowboarding was my life it was all I thought about all I cared about. So everything was just a means to that and a skateboard Snowboard Shop embodied everything that that why was and the funny thing is is you know we’re talking about a lot of books but there’s another book talks about this and there’s a lot of books that do but if you figure your why and your what out like I did no I did it on accident just because I was so in love with snowboarding. But if you figure the while the how always happens but so many people in their lives in me which the next part when I was 17 the How was what stood in my way and how was 70,000 bucks? How do I get 70,000 Everybody says no you know everyone tells me I’m crazy. My father says son this is a stupid idea you’re gonna lose all the money you need to come work I’ll get you an interview over at Harrison radiator and you can do what I did and and I despised that and it ended up in really a taking a negative relationship with my dad actually sent him the single cat’s in the cradle. Because he just had no desire to support my dreams and no faith in the fact that I could do this. So the HOW WAS was I went from the what you were talking about. I think this is where you were going and now all of a sudden I took my focus off the what and now I focused on the how because everybody that I asked you know about money drove me to you can’t do this. So the how became my obstacle and it almost became an obstacle that made it so that my dreams died right then and there. 17 years old, fat man board shop which was going to be the name of the shops and still as you can look it up that man board shop still exists today. I sold it in 2010 It’s 20 Some year legacy of mine. And I remember I got a Bank m&t Bank said Hey, kid, you know, we liked the idea. We’ll give you an SBA backed loan, but you need collateral 17 I don’t even know what collateral is. I know that sounds funny, but you know, I figured it out and it’s Oh, perfect. I got to CAX 125 I got a 1986 Buick Skyhawk and I got a baseball card collection will that suffice? Not quite. So they they pretty much said no. We need something of significance. And I’m like, I don’t have anything. But my mother member I told you she was really a big part of my life and I call her my uncondition one. She watched all this happening. She watched this fall out with My father, she watched all these people tell me no and then I can’t. And she just sat back. But my mother had one thing, one asset. And that was the house she got in the divorce. And House literally had about $75,000 in equity in it. And my mom made the decision to put her house up the only thing she had in the world so that her punk skateboard, snowboard kid could chase his dream. And she did and I did it in November of 1994. Fat Man board shops opened with his 1000 square foot skateboard Snowboard Shop in the Lockport Mall. And that was my my first big plunge into being an entrepreneur. Now, remember, I’m 17 Most 17 year olds, they’re out, having a good time, maybe experimenting, doing the fun things with their friends going out. Now I had this business and I knew my mom’s house was on the line. And it led to many sleepless nights, many nights crying in the back room of the you know, the shop, not knowing I was gonna make it. But five years went by I paid that loan off and fat man was real, it was mine. It was this is gonna make everybody laugh. My my projections for the bank showed that my pay would have been $30,000. Now we were talking about income. But this is this is the 90. So I guess 30 wasn’t terrible. But I thought about that. And I’m like, that is $30,000 to me at that point, would be the equivalent of today, probably $3 million. And I’m not even kidding. I’m talking not dollar for dollar. But I’m talking mindset. It was more money than I ever thought I could earn. It was more money than I ever needed. I never really made that much in these early years because I bought inventory. But that was what I was supposed to make. I took a salary every week of 200 bucks. And that’s what I lived on. Which was, surprisingly enough for a simple kid to get by. And those stores flourish. They kept going on and on. I started other clothing lines and everything was going like a dream. And um,


Scott D Clary  21:52

you’re still snowboarding. You’re still working toward a lot, man.


Chris Naugle  21:55

Yeah, I was. Yeah. And the funny thing is this year, you know, I tried something different. I only went with Go ahead.


Scott D Clary  22:01

No, I was gonna say I didn’t mean now I didn’t I could talk about now is talking about as you’re building the store. You’re still trying to


Chris Naugle  22:07

Yeah, yeah, I was. I was a pro snowboarder at this point. Exactly. Or I was on my I’m sorry. At the beginning of the store. I was on my way to being a pro snowboarder. But you know, by 1819 around there, I became a pro snowboarder, I got my first contract and was making a little bit of money with the contract. And it was like a dream. I think back to those days. And I think, man, what, what a life I had, you know, and, and it wasn’t a life because of money. It wasn’t a life because I came from a family that had money. It was a life that came because I chase my dream. And I didn’t I ignored all the people that told me I couldn’t do things. And I just pushed on and and I just wish and I hope I can instill this in my daughter, you know, she’s 23 months old. But as a child, we don’t have limitations. We don’t have barriers, there aren’t things that we, in our mind, think we can’t do. You know, and I have these up until reality kicked in and started telling me I couldn’t do things. And many people allow that to dictate their future. They let other people’s failed realities. Other people’s failed dreams dictate where they’re going to go in life. And unfortunately, it’s a sad reality too many people take the bait, when you really look at it. Earl Nightingale talks about it in the strangest secret in the world. You know, if you look at successful people, you look at 120 year olds and ask them all are you going to be successful at the age of 60? Every one of them 100% will say yes. Reality is fast forward to 60 take those same 120 year olds, but now they’re 60 years old statistics will prove that only one of them is wealthy, one out of 100 and only five of them would be considered financially successful. How can that be in focus? I’m talking about the United States of America, the greatest country on Earth, the land of opportunity. That’s the numbers here. That’s not Africa. That’s not, you know, anywhere else that’s here. Only five out of 100 people are successful in URLs. You know, speech talks about perfectly he says the reason for that is only five of them people the reason between success and failure is one thing. Five of them created something, they went out there and they created and they shut everything else out. They created the other 95% the difference why they weren’t successful, why they’re not financially success successful by Social Security, Social Security statistics, is because they gave into other people’s failed realities they conformed is what he would call it. And I didn’t conform my success. And I’m only taking you up now. So you know, my early 20s My success up to that point was for one reason, one reason only, I was a creator. That was it. And I would not conform to everybody else. I wouldn’t they tried. They tried hard and it was hard for me it was hard not to that did change, Scott, you know, as things went on, and I was living this fantasy world of just my dream, pro snowboarder magazines, video parts You know, back then pro snowboarders, you know, the top guys made 250,000. And, you know, I was probably 30. So I was, I was like in the middle, but I was, I was doing really well. And I had my shops, which were successful. And I did some odd side jobs and things, but take me up to the 2000s. So a lot happened. And we’re just skip a lot of it. But in the 2000s, if any of you remember the planes hit the towers in 911. And I’ll never forget, I had just gotten back from California to date earlier. So 910, I had landed from California was out there for a surf Expo, which was a trade show. And I remember driving to my brand new stores at three locations now. And I’m hearing about these planes in the tower. And what spiraled out of that is the realization that I had never gone through a recession. I didn’t even know I didn’t know what it was, I’d only seen good times, much like almost every person today, especially millennials, you’ve only seen good times. So that was me that while that spun into crash, which spun into the first recession I ever took part of which also meant my retail stores took a nosedive of 30%, just just like that. It was like it was on top of the world. And now my sales are down 30% And I’m struggling to make ends meet. I barely could make my car payment, which was no big deal. I think it was like 200 and some bucks a month. And all of a sudden I had to go get a job. I literally had a decision. Like if I’m going to keep living this this fantasy world, I gotta get a job. The one thing that I had defied and gotten away from all these years now just me became very clear. I had to do it. I applied to be a pizza delivery guy cuz I thought I’ll work in my shops during the day. I’ll deliver pizzas at night with my friend Mike. Thank God, Little Caesars wasn’t hiring at that moment, because they said no. And I put my resume out. And this is where Wall Street comes in. Now remember, I have no work experience outside of a few odds and ends things. I’m just an entrepreneur and I had been my whole life. So when I put my resume out, it was very basic. You know, I run skateboard snowboard shops. And here’s my education. I got two years of community college, not I wasn’t a poster child for a resume. And I got a call after call after call from Wall Street firms. And I’m like, what? And so I literally watched Wall Street the movie because I didn’t even really understand it. And I’m like, Yeah, I want that. So I went interviewed and I ended up getting into Wall Street and that’s where the next phase started. Because this was a this is a really difficult thing in my mind. So up to this point, I wore hoodies I wore beanies I wore baseball hats like I was just a snowboarder, right? And now all of a sudden, I’m forced to have to put suits on every day. And I remember my grandmother who was a huge part of my life took me to lurch and Dally and tiny little locally owned shop and got me my first suit, a gray suit, a gray shirt and a black tie, zip up types that do not tie a tie and I went to the interview. But I felt so out of my skin and out of my comfort zone wearing a suit I’d never put one on and now all of a sudden now I gotta wear one every day. So it was difficult in the beginning of me making a transition from snowboarder to Wall Street guy. And the story really comes down to a new familiar with a brand called Volcom. I’m wearing a Volcom shirt now. And it’s been a very important brand in my life and in my shops. But voltcom Thank God made suits, like for their silly athletes. Yeah, they made suits. And nobody would have known this, but I had a shop. So I got the catalogs, right for voltcom. And in the back like they have these special orders suits. So I started ordering Volcom suits, because in my mind welcomes a skateboard surf Snowboard Shop. If I’m wearing a voltcom suit, dude, I’m cool enough. And when I come from the Wall Street job back to my shop and I’m wearing a voltcom suit, I felt like I I kind of made that transition work in my mind. And whether that makes sense to any of you or not, it doesn’t really matter. But to me, this was a very difficult transition. So I guess the biggest thing that I will tell you is when I get into Wall Street, the one thing I was very, you know, adapt to is I was in the bullpen, and that’s where all new reps go, they throw us in the middle. And you know, they say dial and that’s pretty much it. And I watched intently when I was there, all the guys around the outside and those big offices. And all these guys were you know, 100,000 or more producers, they made big bucks. But I remember they got there at nine o’clock at best. And then they went out for an hour or two hour lunch. And then they’re usually gone by 430. And I said, you know, and I started talking to him, how long did it take you to go from where I’m at to hear you know, five years, seven years, whatever. And I said, Well, I want to do it faster. So to do it faster. I just have to do everything they’re unwilling to do. I started getting into work seven in the morning. I did all my prep work and all my paperwork done. So when the you know the market opened, you know, I was dialing and then when they went for lunch, I really didn’t have money to go to lunch at this point. I just I made calls and I actually got people answered the phone. And then at 430 when they left. I made appointments to go meet people at their kitchen tables. And I did this for years. I was I was done Number One rookie. Okay, so out of the first year I was they called it the new org. I was the number one guy there, I kept winning and I became very competitive because of snowboarding. So I always wanted to be number one. And I just kept doing this over and over. I made 74,000 My first year. And it just was a vertical climb after that, and I became one of the top financial advisors for this company, and I was literally crushing it. I dabbled in some real estate because I had watched some TV shows where they were doing some flips, property wars, I think was the show. So I took my chip stab in 2006 at a flip and made 8000 bucks hardly worth even talking about but it taught me some lessons. Then another one the next year and in 2008, right before the Great Recession hit. I took a big leap of faith because I was making good money I had a bit of an ego. And I had people that were willing to lend money next to my main fat man shop on Sheridan drive was dilapidated paint store. And I remember the morning I drove to work there in front of it was a sign that it was for sale. And in my mind, I’m like, Well, I can take that. I can convert it into a strip mall. And that’ll be the new home of fat and board shops. So I found a group of this group of guys, one of them a very nasty man that were crazy enough to lend me 340,000 bucks on hard money loan. And they did. And Scott, you know what happened next. And all that we got it was like getting hit by a Mack truck at full steam ahead. The Great Recession hit me that November, right before the Christmas season. And it’s irrelevant when it started when it isn’t. This is when it hit me. Because Christmas was my big big. We made 60% of our money during the Christmas season at the shops. And I had this strip mall two buildings down then I spent all my waking hours I usually got home about two or three in the morning from painting and doing everything. And then I went right back to Wall Street the next day, paint and fingernails and everything. But everything shut off my financial advisory job which I was making hundreds of 1000s Literally flatlined, nothing. I went into damage control people. The only calls I got were people yelling at me. My retail stores dropped tremendously. Our Christmas that year was 30 40% off. And all of a sudden I just started thinking how am I going to do spiraling out of control wondering how I’m not going to default on this hard money loan. And, gosh, I’ll never forget the day, I hit exhausted my 401 K loans, I took all the money I had in investments out I was down to my last month, I had about enough to make it a month and then maybe some income could carry me a couple more. And I knew that there was no way I was going to make it. So this is that moment, folks, where the inevitable starts to become real. And you start thinking, I’m going to lose this. I’m going to go bankrupt. I’m not going to be able to keep my stores I’m not gonna be able to keep the strip mall. So I did what I guess any smart guy would do. That’s a two men, but I came home to my brand new girlfriend who had just moved into my house and I said, Sweetie, I need your help. Sure, what do you need? She had a big, big girl job at one of the big banks and I said, Sweetie, I need you to help me pay the mortgage. I need you to help me pay the utilities and that bedroom down the hall. I’m going to rent it out to my friend Pete who worked for me too. And the bedroom upstairs, I’m going to rent to my friend Jessica, because I figured all this out as to how I’m going to make it. And I I was stupid enough to think that I had at least a 5050 shot of keeping this girl. My friends later told me dude, you had like a 10% shot of her saying yes, but I guess she kinda liked me. And you know, she were married now she’s the mother of Vivian. We’re still together but she did she she took that stand and allowed that and that’s how we made it through 2008 the next couple years are super hard and I struggled and I got into real estate pretty deep got up to 36 units by 2014. And then again realized that I didn’t know what I didn’t know because in Wall Street I’ll tell you something, and we’re going to get to this and then we’ll I’ll stop talking I feel terrible that no longer dude, I never don’t even know this story.


Scott D Clary  33:54

Do Don’t Don’t worry about I love the story. I just want to take a second to thank the sponsor of today’s episode HubSpot. Now, what words come to mind when you think about entrepreneurship. For me it’s grind hustle strategy hard frickin work. Because building something from the ground up is anything but easy. HubSpot is on a mission to help your business grow better with a CRM platform that’s easy to buy, use and love. With 1000s of integrations. Teams actually use HubSpot works the way you do hard. And if you want to figure out how to streamline your deals easy. The sales hub makes it easy to close more deals by automating your busy work. If you need to automate your social media piece of cake the marketing hub has everything you need to publish post and monitor your social media channels. All in one place. Learn how HubSpot can make it easier for your business to grow. and I like how scrappy you are. And I want to just after you tell this story. I want you to look at it in hindsight and just understand like how you like the thought process you went through in figuring is out because your ability to figure shit out is absolutely incredible that a lot of people would just crumble. And I want you to understand how you got that and how you navigated this. And what do you think sort of gave you that mental fortitude to allow you to persevere when you went through post 911 Then major recession, asking, and I know it doesn’t I don’t know if this what this sounds like to people that are listening for even like asking your partner for help and when shits hitting the fan, but that is an incredibly difficult thing to do was born. That is a tough thing to do. And then to have somebody step up and help you that’s also very incredible. But I want to you have you have a mindset. That’s very impressive. That’s all I can say. But

Chris Naugle  35:46

Yeah,and I don’t know where it comes from, I just give so much credit to my mom, just for my upbringing. I mean, when you don’t have anything, and you see other people that have things, you just want them and you just go after it. And, and that’s, that’s this next phase, you know, I made it through 2008, barely. And now all of a sudden, what I realized, during this is all my clients, my financial clients, like they were all riding this roller coaster down, right, it’s terrible period of time, anyone that lived through the Great Recession, it was a really bad, bad recession. It was It was awful, to be honest. And I was an advisor, and a business owner through this. So I got a double whammy. But the thing is, I also realized, you know, by being a student looking at my successful clients, there were there were clients that actually thrived during this period of time. And surprisingly, a couple of them were real estate investors, and during this time at watch them start buying more and more real estate. And I’d sit down with them because they you know, they were clients so and they would just tell me, yeah, this is the best time ever in my life to buy real estate. It’s, I’m getting these, these apartments 40 cents on the dollar, and people want to give them away. And I’m like, Oh, all right. Well, I had, I had gotten out of that hard money loan because I finished the plaza and I rent it out just enough to get a bank to take the mortgage. So I had a relationship with a bank. So I went to that banker. His name was Greg, he was a commercial lender. I said, Hey, if I start buying some apartment buildings, do you guys think that you would lend us? Absolutely, you know, we did your deal. Obviously, you looked good on paper will will lend to you again. So I found my realtor on us. And she started finding me apartment buildings in 2009. You know, from nine to 14, I did this. And it was a very easy time, because people were losing everything oversea investors that owned these apartment buildings, they just want to dump them. And NASA was very good at finding them because she was she was Middle Eastern. So she had these these investors that just needed to dump these properties. So I bought them. And I highly leveraged myself, I literally every penny I made in the Wall Street job, I moved over to the real estate, everything I made in the stores, you know, after Christmas and back to school went over to the real estate. And I would be working in. So think about this folks, like I’m working my Wall Street job busting my butt there. I’m running my stores, which now at this point, I’m more working on the business, not in it. So I was forced. When I took the Wall Street job, I was forced to not work in the business anymore, which is also very difficult. And I was working on it. So I had managers that which were my friends that worked at shops that actually ran the stores better than I ever did. But if I never took that leap out of the business, because of necessity, I never would have understood that somebody could do a better job than I did. Because that was just tunnel vision. Do you know when you’re in your business, you see what you see. And you don’t let other people’s creativity take over? Why did and and I witnessed that. So everything’s going on at the same time. And now, every free moment and weekends I’m spending at these apartment buildings, renovating, and I don’t know how to do this stuff I’m learning as I go and renovating and I’d get a unit done, I’d rent it. And then I’d go on to the next unit. And I just did this for years. And I got up to 36 units by 2014. But you see, there always comes a point where learning also comes from failing. So I hadn’t really failed up to this point come close. But now in 14, this is the moment where I really failed. You see, I just thought that you could just keep going with banks borrowing and they just keep giving you money because it was so easy up to this point. And I bought my 37th unit to the bank. And they said no. flat flat out Greg was like, No, we can’t lend sorry. And I said, Greg, well, why were your debt to income ratio doesn’t support this? And what what is that? He said, Well, for the amount of income and the amount of debt you have, we can’t lend to you anymore. Oh, and by the way, we’re gonna have to freeze that line of credit, because I have a line of credit that I used to renovate to now and they froze that, well, that was the death spiral that was you know, the kiss of death. For me it was just spiraled right down really fast because now I didn’t have money to renovate houses. I was over leveraged. I was under knowledge and I didn’t even understand what happened. But the bank shut me down. And that resulted in me then getting a little behind. So then they called one of the mortgages and then that was it. I ended up having to sell all 36 units. I entered one of the darkest periods of time in my life. nothing mattered. I was playing the blame game like hate to say today, everybody seems to like love to blame everything else are sitting President loves to blame everything else for everything that’s going on. Well, that was me. I blamed everything else. I blamed the recession. I blamed bad business partners. I blamed everything for what was going on in my life. And I remember at this present point, what I had to do is sell off all these properties. But I had bought our me and Larissa were together and I bought our dream house, and I ended up having to sell that which then me and Larissa split. I’m literally at the deepest form of what I would call depression, or just like lowest point where you start thinking, should I just drive my truck off this cliff? And yeah, I remember, it got so bad that I sold in this dream this dream house 171 Radcliffe, I sold the house, but I didn’t just sell the house. I remember sitting in the bedroom, looking at you know, the bed that my mom had bought I’d had for a long time and the dressers and I put them all on Craigslist and I sold those two I sold everything I sold. I had a couple Audi’s I sold them all except for one, which was a beat up one. And I literally went to this cleansing period of just selling material things purely because I had to, and I packed a backpack. And I went to Thailand of all places. At first I went to Singapore. Then I went to Thailand for a month to clear my head to figure out who I was. And I, I went around in a backpack stayed at hostels saw some beautiful things and just tried to figure out what do I want. And when I got back, me and Larissa got back together, I started piecing together things and this would have been 2014. And this is the very first time I ever went to a mastermind and ponied up five grand that it didn’t have to go to this mastermind cuz I just thought I have to be around successful people that can help me figure out where I’m going. And that was a difficult thing because I didn’t have the money. And that is how I got myself back. I started watching studying intently, categorizing it in almost like, you know, I don’t want to call it journaling but almost journaling what all these successful people did. Now, later, I found out these people that acted successful really weren’t. It’s funny. There’s a surgeon Duffy, who’s a dear friend of mine now, he was broke when he was at that mastermind, but he, to me was the iconic multimillionaire, because he just looked the part he was a surgeon and all this and I just I looked and followed everything these successful business owners did. And I started seeing some weird things that didn’t make sense to me, I was in Wall Street, remember. So I only knew the traditional financial world, I didn’t think there was anything else when you’re a high level financial advisor making hundreds of $1,000 You don’t think anyone can teach you something new. When I got into these wealthy people’s like circles, I realized that everything they did was the complete opposite of everything I’d been taught to teach and everything I’d been taught to sell my clients complete opposite. What they did with money was the complete opposite of what I was doing with money. And it came to a head when I was at an event. And I remember these two guys get up. I mean, you notice like I don’t have a good memory folks, terrible memory. You know, this, these names, how they’re just automatic recalling, there’s only a couple of them. But these people are so pivotal in my life, that I remember that Mike and Greg, they got up on stage. And they’re talking about money in real estate, Mike had an AMI TV show, and Greg was, quote, unquote, the bank and bolt young guy. So I’m like, wow, look at these guys. And they start talking about how they did what they did, how they were funding real estate and how they were being the bank instead of just doing real estate. They’re also lending money. And I remember Greg saying, I’m talking about a concept and he says the ultimate in real estate is being the bank to me. Now does everybody else in that room, it probably went right over their head. But to me, I’m like, Oh, my God, all I need to do is flip enough houses to make enough money to then when I can reach the level where I can just become the bank. Well, I was all wrong, because it wasn’t about the resources. Again, it was about being resourceful. And Greg didn’t have all the money. He was learning. He just figured these things out. And I remember sitting in Salt Lake City shortly thereafter with Mike asking him questions like, How do you do this? And he talks to me about this thing, this thing that I knew, or thought I knew, and he’s talking about, like how we lens and he’s like, like, Well, how do you land? He’s like, Well, I lend from my private bank. I’m like, you dirty dog. You got yourself a bank. And all of a sudden, he’s like, no, no, I just, I got this guy that helped me create my own private bank. I’m like, exactly, dude, where is it? Let’s go check this bank out. He didn’t have a bank. But he had a bank. He did everything that a bank does. But he did it with what he called his private bank. And what I found out in this conversation at this private bank was not a bank at all. It was using a giant Mutual Insurance Company to hold and houses capital. And then from that insurance company, he lent them money out and then I found out what the product was because remember, I’m an advisor so I’m what’s the product? What does this product I got to know this and He tells me his whole life insurance. And I’m like no way to Nope. Whole Life doesn’t work that way. You should be buying term investing the difference. Some fool told you a lie. There’s no way this works this way, Mike and Mike, very successful, and today is probably worth a couple 100 million leans into me nonchalant at Cheesecake Factory in Salt Lake City, and says to me, Chris, if it doesn’t work this way, how have I been doing it? And I sat back, ego destroyed, thinking. He’s got a point. Maybe? I don’t know. So teach me Mike. And he said, I can’t you got to call this guy Brent, who does it for me. So I call Brent immediately on the drive back to my friend Jack’s house in Salt Lake and I’m like Brent Brent, met with Mike Baird and blah, blah, blah, and going off. And he’s like, great. Have you seen the video? I’m like, what, I don’t need to watch a video. I’m an advisor, man, I got 14 years and financial advisor, you’re like, I know what this is like, Come on, show me the way. He says you got to watch the 90 minute video. So I pause. And then that’s Sunday, I took a big cup of coffee down to watch this stupid video that before he’ll talk to me. And I hit play. And that this 90 minute video is the biggest transition point in my life because I saw what the wealthiest families in history have done. And I’ve always done. And I saw how they did it. I saw how they use the vehicle that I always thought did one thing, they use it in a completely different way. And I saw how it worked. And it was it was kind of like the equivalent of when you you find God. To me it was that equivalence. Nothing was ever the same. First off, I lost full faith in Wall Street. My job as an advisor took a different turn, I just I just stabilized. I just did just the minimum to figure this stuff out. As I learned from Brent, and I became one of brands, you know, he mentored me, not not in a mentoring capacity, but I became a client. And I went to all the places where he spoke I I watched him speak over and over to try to get these little things to figure them out. And I started learning it. But I didn’t just learn it, I applied it. I took everything he taught. And I put the little money I did into this this banking policy. And I moved that money in and made that money go to work for me. At first I started paying debt off and I started building slow, slow wealth by paying credit cards off and then whatever I would give the credit cards that would pay back to my banking system. And I just kept doing that. And then I started doing it with my first car, which was the first car I did that with was an Audi eight, it was a used one. So don’t think oh, well, you had an aid? Well, I did. Because as an advisor, like you had to have that status thing. And I was a pretty high level advisor. But you know, I started doing this, but I’m getting too deep into this, this 90 minute video changed everything. In 2018. I left Wall Street out of nowhere. I just one day just I just couldn’t tell the lie anymore. I couldn’t do what they wanted me to do anymore because I knew it wasn’t right for the clients. And I knew it wasn’t what wealthy individuals did. But I knew that stepping out of that would mean I have to find income. So that income came in another dream. And we talked about this. I had had gotten this idea from Mike and from Tarek and Christina that I wanted a TV show. And me and my wife, you know, she’s pretty girl. I’m like, let’s start flipping. We’re flipping houses, but let’s start doing it and filming it. And as a snowboarder, I had guys that were videographers. So they came in and they filmed it and edited it. And we made sizzle reels, we sent them off to a&e and HGTV and long story short, we eventually got a shot with Hg into HGTV. Our show aired in 2018. The year I left wall street because literally when we got the green light to air, I went to my my brokerage, which you have a compliance department and I said, Hey, I needed another ova outside business activity. And I need I’m going to do a TV show. Oh, they were like, Nope, you’re not doing this kid, you got to decide, are you going to be a financial advisor or real estate guy and you got to decide right now. No problem. Mike guy said, you want to buy my practice what we negotiated, I sold my practice to him, he still cuts me checks every single month for that practice. And I was now a full time real estate investor. And I did the hardest darn thing you can do in real estate that’s flipping and, and that’s what I did using this infinite banking concept that I learned from Brent and Mike to kind of fund a lot of this stuff. And that’s how we got the show. And the show didn’t take we aired eight times, or I’m sorry six times, six times. And he was bought by discovery and decided we weren’t going to make the cut and go on and it was the biggest hit for me. But that was the moment when I realized what I had to do. Tell between my legs. I’m sitting with Brent after he had just spoke at our RIA because we had a RIA here. And my wife kicks me under the table and says to me, she says you need to help Brent mean you want me to start going around speaking teaching people what I’ve been doing with this and she said precisely No, no, I got this idea. I’m going to do this thing money school and I’m going to teach you know self directed IRAs and all this stuff and she said no, you’re going to do this happy wife happy life, boys and men. Learn from that and I did and I today um, we you know our company is one of the most well known and the biggest, you know companies that do this specialized thing called privatized banking, and I teach it around the country and a lot spawned off of that we’ve got a FinTech company we’re talking about because that book played played bigger, where we basically created the equivalent of what a dating site would be like eHarmony for money, and brunch right up to the current time. Sorry, it took so long and there’s a lot to unpack there.


Scott D Clary  50:21

No, you went through it, man, that that ties everything together. I was wondering how we were going to go through all this stuff. But you’re good man. You brought it all you brought all those


Chris Naugle  50:29

times doing it? I just never done it like this. God, this is the first time I’ve ever told the story because you kind of gave me the free pass in the beginning. Yeah. Don’t Don’t ask, you know, don’t pause, just just tell your story. And no one’s ever let me do that. So I’d never have. So I just gave you’re


Scott D Clary  50:43

not going to ever. I’m not going to ever ask the questions that I need to ask because the story is in your head. So I appreciate it. So I want to let’s let’s talk about let’s talk about now let’s talk about present day. Let’s talk about I still need to better understand this, this private banking system. So what do you what do you teach over like, if I don’t want to misinterpret this and and I’m just coming at this for the first time ever. So when you work in this system, like you, you’re finding deals, you’re acting as a bank. But you’re you’re funding the bank yourself, or you’re you’re basically acting as like the broker and you’re finding high net worth individuals, and you’re bringing the deal, it’s


Chris Naugle  51:26

all my money. So think of it this way, right? We all had been taught to go out and work for money, we’ve put a monetary value on our hours. And we do that. So for those of you listening, some of you are watching them holding $100 bill. You know, we make money in when we make money, most of the money goes out and gets spent on our living expenses. You know, if you live in Toronto, all of it goes to your housing. Just kidding. But you know, not, not not alive. Very true. We make this money and you know, the smart ones, not all of them, but the smart ones save or follow their six laws to wealth. I’m writing a book on it will be my fourth book, called laws, it won’t be called the laws of wealth, but it’s about the laws of wealth and law. Number one is, you must keep or save 1/10 of your money. Now, I knew this for a long time, pay yourself first a lot of different things. But when we save money, where do we save it? Well in Wall Street, 401 K’s bank accounts, money markets, brokerage accounts, all the different things that we sold. But when I found out as none of the wealthy individuals started with their money, they’re they changed one thing. And they changed where their savings went first. And the wealthiest of the Rockefellers, the Rothschilds, the go on for days that Ray Kroc, the Walt Disney’s, they all did this, okay, and right up to the sitting president today Love him or hate him, he does this as well. And they just change where their money goes. They don’t trust banks. And banks are the only ones that make money when you deposit money there. They even give you a sucker testers in Florida, you have these go to any bank in Florida, and get you know, make a deposit and grab a sucker. There’s not a bank in this country that doesn’t give away Dumb Dumb suckers, they’re telling you something. So I changed where my money was saved. And I put my money into these now. And the other thing to remember I said it was a whole life. And instantly people go to negative thoughts. Because regular whole life is not what I’m talking about this, these are specially designed and engineered contracts, incredibly specialized. There’s only a couple giant mutually owned insurance companies that do this. But we create this, this policy that serves and acts like a bank account. So I take the money that I would normally save, and I just changed where it goes. So I take it from my left hand or my right hand, I give it to my left hand, which is my policy, and I put it into this specially designed whole life. Now, the next phase, when you make money and you save money, what is the next thing you do? Well, you buy things, right? People buy cars, when you buy a car, you either lease it, you pay cash for it, or you finance it. And when you finance it, you make monthly checks to somebody else’s bank. Okay, whatever your bank is, so you’re paying. And then when you finance other things, dirt bikes, or boats or anything, you you make payments, we’ve been conditioned by the system to give up control of all of our money for the things we want. This concept that I learned from Mike and Brent is a is a banking concept. But it’s now I’ve got the money in the policy. Now there’s one thing the policy pays me a guaranteed interest rate plus dividends to get by today’s numbers about five to 6%. Okay, which is way better than what a bank pays you. And of that five to 6%, three to 3.25%, depending on the company is guaranteed forever. Okay, so I’m earning a pretty good return on my money. But the coolest part is is now it doesn’t matter what I’m earning on my money, I need to make that money go to work, because law number two is make your money work for you. So now what I’m going to do is I’m going to figure out, Where can I make that money go to work. Now remember, back in my story, when I first started this, I had lots of debt. And if you think of a credit card, if any of you have a credit card, your credit card probably charges us north of 20% interest. And every month you’re making a monthly payment of which most of that goes to interest. Have you ever thought about what you know? And then when you’re thinking about investing money in Wall Street or in the market, you’re like, Oh man, I wish you could make a 20% return ding ding meaning you’re giving 20% away to the credit card. So why don’t we start there, this is what Brian taught me. So I took the money that I saved, and instead of investing it, I took it. And I then paid off credit cards, lowest balance to highest balance, and I’d pay off a visa. And if I was paying visa 100 bucks, I took that 100 bucks, I was paying visa, and I set up an automatic transfer or bill pay that paid back to my policy. Now remember, it’s a specially designed and engineered whole life, but I call it my bank. So now that 100 I used to give away now I pay it back to my policy. Here’s the kicker, okay, that doesn’t sound too sexy. And it’s really not. But there’s one thing that I left out, that’s critical. And this is why the wealthy families do this. Let’s just say I’m, let’s call it 1000 bucks that I would visa. So I had to have 1000 bucks in my policy in order to pay visa for 1000. We all understand that you can’t make money out of thin air. But when I had 1000 in my policy, and I took that 1000 out to pay off visa, I took a loan against my policy, much like I would take a loan from a bank, I took a loan against my policy. But here’s the unique thing. If I had $1,000 in my policy paying me 6%, and I take $1,000 loan out of my policy, how much money Scott is left in my policy. I started with 1000. And I took 1000 out how much is


Scott D Clary  56:17

left. If it’s a loan, there’s still 1000. And you’re


Chris Naugle  56:20

smart. Now a lot of people that are listening to this would think zero, well, you had 1000, you took 1000 Zero, the insurance company never touched my 1000 bucks, they made me a loan that was collateralized by my $1,000. But the loan is a loan that never needs to be paid back. Now, this is the thing that most people and when I heard this, I’m like that can’t ever happen. That sounds too good to be true. The loan they gave me was a loan against my death benefit. The insurance company promises to pay a guaranteed interest rate on my money that’s in there. Plus, they promised to pay a death benefit the day I die. So the insurance company will allow me to use the death benefit up to the amount that I can collateralize with my cash value, which was 1000 bucks in this case. So the $1,000 they gave me was the insurance company just saying hey, here’s $1,000 for your death benefit today. And we’ll charge you an interest rate on that loan. But you don’t ever have to pay it back. Because when someday when you graduate and die, it’s a nice way of saying die. When you die, we’re going to we’re just going to true up then we’re going to subtract the 1000 from your death benefit you have and we’re good. We’re made whole. But if you hear what I just said, let’s just do some maths. Isn’t it though? Isn’t it fascinating? It’s so simple. But nobody teaches this. And I’ll tell you why nobody ever has heard of this. From an advisor standpoint. Now let’s just let’s just use use simple math. First year, let’s say I got 1000 in there, and I need 1000 to pay off visa. I’m making 6% on my 1000 with dividend and to borrow that money. Let’s just say the insurance company charges me for what is six minus four? to two, right? Yeah, to 2% spread. When you think about a bank, when you put money into a traditional bank as a deposit. Does the bank put your money in that vault? Like they want you to believe? No? What do they do with your best? Did they lend it out? That those cubicles around the outside? They’re lending your money out? So if they’re paying you 1% On your deposits, you’re leaving the bank? Are they lending it out more than 1%? Darn, right? They’re, they’re making a spread. So I’m doing the same thing with this policy. I’m making six, and I’m borrowing it at four I’m making a 2% spread. And then I pay off visa. I paid visa 100 bucks a month in which was all interest at 20%. And now instead of just saying, oh, visa is gone, I’m done. No, I treat my money the same way I would treat the you know the bank’s money. And instead of paying visa I just changed name on the check the $100 I gave the visa, I just write that check back to my policy paying my policy loan back. Which means now I’m making I just made money twice. Did anyone catch that? I just showed you how to make money two times instead of one time, I made a spread on my policy between the six and the four plus, I took back the 20% that I was giving away to visa. So as long as everybody understands that, let’s go round two. So I did this for years, and I paid off all my credit cards from lowest balance to highest. So now I’m recapturing all the money I used to give away. So I’m starting to feel like I got some real wealth because I was just giving all my money away now keeping it also My policy is now maturing and getting more and more money. Now remember my money through this whole process never left. So there’s a thing called compound interest that I’m benefiting from every year I’m compounding on a higher amount and a higher amount and a higher amount. So every year without me working any harder any longer doing anything different my life, my spread between what I’m making, and what I’m paying goes up automatically because I’m compounding on a higher amount. So that spread just naturally mathematics. My spread gets bigger and bigger. So instead of making a 2% spread five years later, maybe I’m making a 7% spread. But another five years maybe I’m making a 10% spread, folks, it’s just math listen, I’m telling you anything crazy complicated, but eventually all the debts are paid off. But we all buy cars right now most people finance their cars like I used to. Well now I finance my cars but I finance them with my bank, I take a loan from my bank, the policy, and I buy the car cash. But I then ask the dealer whoever I buy the car from, how much would this car be if I were to finance it through your finance company, 600 a month great, I then write a check for 600 a month back to my policy. Today, it’s evolved a lot from there, I lend money out at 12% through our FinTech company called Private Money clubs. So I take loans from my policy, I lend it out to, you know, good investors that are buying real estate, and I charged them 12. So now do the same math. Remember, my policies are mature, now I’m making a heck of a nice spread, let’s say it’s five to 10%. And I’m lending it out at 12. When when most people Scott lend money out, they make whatever the interest is, they’re charging, right? 12%, I’m making 12 Plus my spread, I’m making money twice. And I’m doing nothing different than everybody else. I’ve been doing this now for a long time. This is what I teach. And I teach it. And the reason no one knows about it, because it’s still like, one of the biggest secrets of the wealthy is, if I was an advisor, and I was to design one of these policies for my clients, I would have to give up 90% of my commission, how many advisors want to take a pay cut of 90%? And give you the answer, zero,


Scott D Clary  1:01:12

none. If I were to come,


Chris Naugle  1:01:15

I wouldn’t have the insurance companies. Like in the early years, I worked for a company called New York Life. And then I worked for their investment division called Eagle strategies. But they never taught us this, but yet they knew all about it. But they didn’t teach us because they don’t want us. In order for the policy to work the way I explained to where I put a, you know, I put 1000 bucks in and I have almost all of that money to use immediately in the next 30 days, requires the adviser or the person building the plan, who is us today to take a 90% reduction in commission. So we’re a normal whole life. And let’s just use 10 grand right? For simple math, if somebody put 10 grand into a regular off the shelf whole life with their adviser or agent, that advisor will make a minimum of $5,500. That’s a good day in the office, isn’t it. So you put 10 grand into a regular whole life, that advisor just made a PE of 5500. Now flip the script, I designed the policy through our company to do what I just explained, my commission is $397 See the difference? Would an advisor rather make 5500 or 387 Da, right. But in order for this to work the way that Brent and Mike and all these guys use it, it has to be built that way. Otherwise, it’s always somebody’s got to give for somebody else to get in the give has to come from us to design the policies the right way. This is why nobody knows about this. And most people just think it’s too good to be true.


Scott D Clary  1:02:33

And and when it’s incredible. Now, the only thing that I want to understand is if you’re if you’re if you’re getting paid out on your death benefit early, which is really the the loan that you’re taking out, is there a cap on that? When you when you create these policies, like if you put a you put a million dollars in and you’re like I want to take a million dollars out and I want to leverage that’s my loan the million dollars, now I’m making interest and I’m making dividends on that million dollars, it’s pressing my account is that real estate


Chris Naugle  1:03:01

investor right now that we’re doing, he’s putting 4 million in, and then each year, he’s gonna, he’s gonna have the ability to put 300,000 in because we build the plans anyway, the client wants, he just he had a big real estate project that he just sold in Colorado. So you had 4 million bucks sitting in a bank account. He’s moving that money over into the policy, we call that a dumping. So that money is gonna earn 6%. And then each year, he’s going to put additional money into the policy. And I said, How much do you want to have the ability to put in? We went around and around and he said, Well, I think 300 and his concern was in real estate is income changes, it fluctuates. So if he commits to 300, he was concerned that what if I don’t have 301 year, his minimum is 120. So his men and his Max is floor and a ceiling is 60% 300 is his Max, you can never put a penny more than 300 in because of IRS rules. And you can never put in for the first 10 years less than 120. And he was fine with that. So no matter how the client wants it built, we there’s no one policy design that we do that is the same it’s just for the client’s needs.


Scott D Clary  1:04:02

And then the actual so and then when you want to take up, take out money when you want a loan against that. Are there underwriting issues that could screw you that would stop you from getting the loan No wonder to things if you


Chris Naugle  1:04:15

So, know when you need money, you literally we were doing like a zoom, I could show you, you log into the account, you answer four questions. Is this a part of a divorce decree? Is this money going outside the United States? And then, you know, it’s basically just looking for money laundering? answer those four, then the next screen comes up and says where do you want the money sent? You want to check or do you want to attach a bank account? So I have two bank accounts a chat attached my operating account and my segregated account. I click which one I want to click a button. A lot of times it’s the next day but up to 36 hours later the money’s in your bank account just like that. No questions? No, no one cares.


Scott D Clary  1:04:49

And can I ask like why does whole life what’s best? What’s available reason


Chris Naugle  1:04:52

number one whole life is the vehicle that is used by the bank. So if you really focus on a lot of you are still like saying no way this works. says, Wait, okay, well, here, I’ll prove that it does. Banks. And traditional banks are the number one purchasers of whole life in the world. Google is Google, Bo li stands for bank owned life insurance, it’ll blow your mind, the top five banks in the United States as of 2020, had 70 might get us off a little bit $76 billion in whole life insurance. If you look at all the banks in the country, as of 2020, I think it was 191 billion. I mean, you guys can look it up, it’s on the just go to the FDIC website, it’ll pop right up hundreds of pages, we’ll come up with well, how much banks do So banks are the ones using this, they use their tier one capital to buy whole life. Why? Because it’s guaranteed. And because they can use the money. Banks understand compound interest better than anybody. So of course, they put our deposit money, their tier one capital into these policies, and then they take the money out of the policies, and they do all the things we do. So this is no secret. So they’re doing maybe bigger scale, they might be buying buildings or making loans with that money or funding pension plans or deferred compensation plans. But the thing is a bank can’t buy a whole life insurance policy, a bank needs a body to insure because the banks and entity so if you ever walk into a bank, and this is in Canada to because Canada this works in Canada, just so you know, there’s there’s guys in Toronto, we work with ascendant financial. And there’s another guy that do this big and in Canada, but all banks, if you ever walk into one, you will notice there’s an awful lot of vice presidents, and nobody really thinks about it. But like, Why does a bank meet so many darn vice presidents, I’ll give you the exact reason why a bank needs a body to insure for all this money that we’re putting into these whole life. So the only insurable body that they can do is somebody that they have an insurable interest in an executive, okay, and executive qualifies as an insurable interest for an entity. So the entity, the bank, basically promotes them to a vice president, making them an executive of the bank, meaning now to the insurance company, if they lose that Vice President. And if that Vice President were to get hit by a bus walking across the street, the bank has a soft, they’re going to suffer a loss so they can insure that body. So now, they just promote everybody to a vice president, so they can buy policies on these vice presidents. And for that the Vice President gets a fully paid up life insurance policy, usually 50 to 100 grand, but the bank is probably buying a $3 million policy on their life, but they basically buy the policy, the Vice President, they give the vice president of paid up insurance policy plus usually a deferred compensation, which is funded by the policy. And then when that employee dies, the bank’s made 100% whole, the bank got to use all of the money the entire time and earn an interest in dividends on that money uninterrupted. Every year that employee was there and up to the day that they die. Now you see why I had such a hard time wanting to keep pushing stocks and bonds and annuities and bullshit products in Wall Street, when I just saw the light of what the wealthy families do it and then there’s a lot more to what the wealthy families do. This isn’t the only thing this is just this is the foundation, this is where their money starts. From there. They they do a lot of private lending. They, they invest in private companies, they start companies, they do all the things that we’ve been talking about the whole time, but their money doesn’t sit where everybody else’s money is because the the wealthy families and the banks want to be in control of their money. Every one of us, including everybody listening right now, you’ve been trained your whole life, you don’t even know this to give up control of your money. You put your money in the bank, and the bank then makes your money go to work for you. Instead of you making it work for you. You put money in retirement plans for one case where who’s in control, not you until 59 and a half, you can’t use that money and opportunity comes across your desk, can you just go to your 401k and take all the money out not without penalties and in taxes know, you’ve been taught to give up control folks wake up, this is what I realized. And I just couldn’t do it anymore. Thank God, like I had that. That accent and I got out of it. And this is what I teach and you watch some of my YouTube videos which I put content up on YouTube every day. But you know, I’m also I can’t call myself an economist, but I am literally a nerd. I study economics, probably more than anyone would ever want to I understand cycles and patterns and what happens in the markets and I could pretty much predict to you and tell you exactly what’s coming in the next year or two years because of you know history and what I know of economics and you wouldn’t like it if I told you so just probably skip that.


Scott D Clary  1:09:28

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Chris Naugle  1:11:09

first and foremost, you have to be saving money for this to work. So that that excludes some people, if you’re living paycheck to paycheck like this isn’t going to help, I can’t, I can’t make money grow on trees for use, you have to be saving money. Secondarily, when you put the money into the policies, you’re not gonna have access to 100% of it in the first year, maybe even two years depending on how it’s funded. So there’s a period of time of a few years where every dollar you put in, you can’t use every dollar, it’s usually about 90%. So if you put 1000. And you can use 900. If you can’t live with that this isn’t going to work for you. And secondarily, you have to be able to fund this for at least a 10 year period, at some level, right? Like maybe you want to do 500 A month or 1000 a month, that’s your max, you have to be able to do at least $400 a month if you want to put 1000. And so there’s a minimum savings level that you have to be able to put into these in order for this operation to work. Those are the biggest negatives. And in you know life insurance companies aren’t nonprofits, they there’s a cost for the insurance, but all the numbers boil those out, what you’ll never pay us a fee for designing the plans, we get paid by the insurance company already told you $387 per $10,000 of deposit somebody puts in. So that’s how we’re compensated. And even though that’s small amount, we do this right now we have about 4800 clients. So you guys can do the math, it’s it’s a good day in the office. But you know, in the beginning, it sucked. Because as you were building, it was it was like being broke, it was like starting over again, because you’re just doing these tiny little nickels and pennies. But we had to see the big picture the scale. So those are the negatives is, you know, you have to save, you’re not gonna be able to use 100% of your money. There are costs for the insurance portion of the contract. So there’s no free lunch out there, folks, I’m not sitting here saying that this doesn’t have a cost to it. It certainly does. But when you look at the numbers, the cost is only an issue in the absence of value. If the value isn’t enough for you don’t do it. You don’t this isn’t for everybody. So those are the negatives to it.


Scott D Clary  1:13:02

Very good. Because I guess you know, if I’m just thinking about the, if I’m trying to figure out, do I put my money in this you’re looking at, you’re still looking at the 6%. And you’re still looking at the dividends and you’re just trying to balance it out against the cost. And it’s a pretty easy calculation as to whether


Chris Naugle  1:13:17

or not ever going to be a time that the cost isn’t going to be outweighed by the value you get in terms of what your returns are never can’t happen. Unless you’re like 70 years old and not in good health, then this just isn’t gonna work for you, then you got to do what the bank doesn’t borrow a life. And the other thing too, is like how do you learn more because this is a lot and you know, it’s too much actually. But if people want to learn they do the same thing I did you go to my website, video thing will pop up for that same 90 minute video I watched in 2014 and you watch the video and but we’ve we’ve got other videos now that are shorter if you just can’t do 90 minutes, but we broke it down to a 10 part video series. But the 90 minute video is what you want is swear to God, it’ll change your life. But you got to first go to the website and you got to watch the video. If you’re not willing to do that, well then I don’t have 90 minutes to help you. That’s simple how it is.


Scott D Clary  1:14:08

Very good. Okay, let’s do a little bit let’s just do a little bit because you’re so entrenched and and, and you’re always studying and researching finance and economics. Just talk to me about because I know that’s going to be interesting for people that are already listened to this episode to talk to me about let’s talk about recession. Let’s talk about inflation. I’m gonna leave it where do you think I’ll tell you what exactly happened going


Chris Naugle  1:14:35

and I just can’t tell you when because there’s not a person on earth that can time the markets. But I’ll tell you where we’re going. We are in the brink and in the midst of seeing what I would call the perfect storm. Okay, one of the biggest financial storms we’re gonna see in our lifetimes. I think it will be the equivalent or worse than the great depression but that’s just my speculation based on the things I see. But let’s just you know, a lot of you are like, oh, yeah, no, you know, that’s Not what’s going to happen. Okay, so let me let me quantify that in big words that we use in the space. Here’s why you all know we’re in an inflationary period. And that’s because they printed $5 trillion. During the pandemic, the printing press started back in well before 2008. But we’ll start at 2008. And they never stopped. So they’ve printed to the tune of $9 trillion. Now, the US government doesn’t print money, okay, the US government, it has, you know, a relationship with a separate entity called the Federal Reserve, I call it the devil, but you can call it whatever you want after you read the Creature from Jekyll Island, but they have the Federal Reserve, which prints money. And when the Fed prints money, it they can print as much as they want. It’s an unlimited amount. They don’t just hand it out, they change it, okay, they will trade dollars that they print out of thin air for debt. The US government and many other countries give the Fed debt in the form in these in this country. It’s called treasury bonds. So the Fed holds on their balance sheet, all these treasury bonds right now, it’s about give or take $8.9 trillion in US debt that the Federal Reserve has on their balance sheet. And then we’ll just use the 5 trillion they just printed 5.1 trillion, that money gets distributed into the economy, much of it finds its way into the capital markets, which is Wall Street, okay, that’s ballooning stock prices, ballooning assets, because there’s lots of money going in there. You guys all wonder why the stock market’s been so good. Since the pandemic, I just gave you the answer $5 trillion or 5 trillion reasons why not only that the US government then stimulate the economy, which was brought down because they shut it down Canada for longer than the US. They shut it down. So they then handed out checks, stimulus checks, Edi l loans to best businesses at 3%, PPP loans, okay, completely forgiven, forgiven if you had employees, and they stimulate the economy to the point where literally, they overstimulated it. They overstimulated it, because they got a gridlock, where supply and demand didn’t match up, people had more demand than they did supply. Hence all the ports, all the backlogs, people wanted goods and services where they wanted real estate because for years, like real estate pretty much halted, then all sudden, it just opened up and everybody wanted it. But not only that thing that most people won’t see because everybody understands that that drives inflation. Inflation is nothing more than a hidden tax. When the government or when the Fed prints money and exchanges it to the US government, that is an inflationary thing, because you’re making money out of thin air. So the only thing that printing money does is it devalues your dollars. If you look at 1913 Straight through two and I can only go to 2019 I hate to see where it’s at today. But 1913 to 2019 and 1913 $100 was had a purchasing power of $100. In 2019. That same $100 has a purchasing power of $3.87. It’s far less today. So every time they print money, it’s inflationary. Inflation is a hidden tax and all it does is devalues your dollar making. You see it as things get more expensive, things are really getting more expensive. Your dollars buying less. It’s all it is, folks, inflation is not the fact that things get more expensive. That’s that’s how they explain it cuz it’s easy for you to articulate the price of the fuel, the price of health, orange juice, or milk or anything you buy. It’s all expensive. It’s not expensive. It’s just your dollars are buying less, because they printed more of them. It’s so easy to understand. So now that we’ve got this crazy inflationary problem 8.5%, which is a big problem, okay. And it’s rising and rising because they printed too much money, the Fed has to slow this down. So if you pay attention, you watch the news. You’ve seen this. It’s not the person bringing this to you. But they’re doing three things. The Federal Reserve First off is announced they’re going to raise interest rates seven times 2022, they’ve already done it once a quarter percent, quarter percent raising interest rates spun mortgage rates out of control we went from last year being able to get a 30 year mortgage for around 3%. How much is it right now? Look it up folks. Google it 30 year fixed mortgage over 6%. And that’s just a 25 basis point increase in rates, they’re gonna do six more to slow this thing down. The next one will be 50 basis points, what’s that gonna do? It’s gonna make everything even more expensive, your car payments gonna get to be more if you buy a house, it’s gonna be a lot more if your credit cards are going to be more your lines of credit are going to be more everything is going to get more. They want it to be that way because they want to slow the growth down to curb this inflation. Seven times you tell me what will this look like at the end of 2022? If they raise rates seven times, and let’s just say they do it between 25 basis points and half a percent. You’re gonna see rates over 7% We haven’t seen that in a long time folks that’s going to slow this machine way down. It’s going to hit Wall Street straight in the middle groin section, like a swift kick to a man’s genitals. Okay, it’s going to hurt. It’s going to slow real estate down big because people that could afford the median home price of $387,000. Now Can’t they can afford 250,000 Folks, you’re not doing the math, right. So that’s the first one. But that’s not the big one. That’s not going to send us into a deep recession. But the next one will, the Fed has also announced that they’re going to do something that they’ve done in history roughly about seven times, and they are going to unwind the balance sheet. So remember, I told you the fed on their balance sheet has $8.9 trillion worth of debt, US Treasuries and mortgage backed securities, and they’re gonna start selling those into the open market. The good folks look at it, Powell said $95 billion a month, starting in May, is what the Feds gonna do. They’re gonna start selling $95 billion worth of those bonds to the tune of roughly roughly estimating about $3 trillion of the 5 trillion they printed. Now, Scott, you ever you ever watched the movie Spaceballs? Awesome, awesome. Like, yeah, do you remember the part where helmet in the bad guys pull their big ship up to that planet, whatever it was called it was Earth, but they pull it up to Earth. And then it converts into a made and member like, the earth opens and they put the vacuum cleaner on earth and they start sucking the air out. If the Fed sells $95 billion a month, or $3 trillion into the open markets, the vacuum cleaner scenario I just gave you is exactly what the Feds doing. They printed 5 trillion and now they’re going to take 3 trillion back out seven times in history give or take is how many times the Feds done this. Every single time they’ve attempted to do this, you hear it as the soft landing or whatever, every time they’ve attempted to do this in history has resulted in a deep recession, recession except for one time. Third thing, okay. And this is this is the we’ll call it the Iron Cross or the telltale, two weeks ago, I believe today, on the news, you would have saw something called the inverted yield curve, which means those treasury bonds, there’s different durations, there’s five year third year two year tenure, the five and the 30. Which if you buy a five year bond, that means in five years from today, the US government pays you back all your money guaranteed, okay, if you buy a 30 year bond, that means the US government pays you back in 30 years, all your money, guaranteed. And in the meeting in the middle of that they pay interest on that money each year. So wouldn’t it make logical sense that if you only did a bond, an IOU with the US government for five years, they pay a higher interest rate, or they would pay you a lower interest rate on that five year duration than they would pay you on a 30? Year? Because 30 You’re going way into the future, they’re gonna pay more interest, right? Well, right now, the five pays more than the 30. It’s called an inverted yield curve. The reason that is is that the big money in the industry, the insurance companies, hedge funds, the Wall Street people, they’re buying 30 year bonds, a lot of them driving the yield down because they know something’s coming. Then the real one happened, the two in the 10. Same idea, right to your tenure, they inverted. So you now can make more interest on a two year treasury bond than you can on a 10 year treasury bond. That makes no bloody sense. Exactly. Every time this has happened in history, I think there’s 22 times it’s happened. And I don’t know the math, but I can go from 1971 or 1974 on. It’s happened seven times out of seven times every time except for one has resulted in a deep recession. So now you just take history, and you look at one other telltale sign. Sorry, I’m giving you one bonus one. And this is something that Ray Dalio talks about you all should watch a video on YouTube called the economic machine. Okay, it’s Ray Dalio. So just go into Google type in the economic machine, it will explain this. There are cycles in markets. And there are cycles in the debt markets, which are the biggest part of the economy. Right now there’s a short term debt cycle, which is why you’ve seen recessions in your life, it’s usually five to seven years, every five to seven years, we have a rise in a fall, you know, like, like the Great Recession like that comp. But every 50 to 75 years, there is another cycle, which most of us have never seen in our lifetime. Actually, all of us watching this probably have never seen a long term debt cycle, you would have had had to have lived through the Great Depression. A long term debt cycle is 50 to 75 years if you do the math, 1933 or 34, wherever you want to count, right straight through today. Where are we far enough? We are at the end of a long term debt cycle. We are already on the way back down. You just haven’t seen it yet. Because the government had a printing press that they could keep manipulating this through modern monetary theory. Folks, I hate to be the bearer of bad news. But you take all this data, you look at history, and you plot it out. We are on a collision course. For one of the biggest, most tragic financial like episodes we’re probably going to see in our lifetimes. So now that I’ve scared the crap out of all of you, I got some good news. If you know that this is coming. We just don’t know when all you need to do is prepare. And if you prepare for this thing It won’t be a tragic event. It won’t be a bad event it will be single handedly the biggest, largest opportunity of your lifetime. You just got to get ready for it. And that’s what I teach Scott like, Yes, I teach the Infinite Banking concept. Yes, I teach private lending and all those good things that the wealthy do. But the one thing I will tell you, that I am doing is sounding the warning bells just like just like Ray Dalio, the founder of Bridgewater capital, largest hedge fund in the world, just like Warren Buffett’s silently, but openly, just like so many of these other guys out there that are telling you what’s coming, The Economist, the Harry dents, the Jim Rickards, gosh, all of them are saying the same darn thing, but everybody’s ignoring it. Because you’re chasing short term gains. Law number four of wealth. When you seek unrealistic returns, your money will flee you every time, it’s just a matter of time. So don’t play this, don’t play with this thing. I’m telling you this, the storm that’s coming in, this beast will tear you apart, we’ll tear your family’s finances apart, if you play the game. Don’t be in Wall Street right now. And if you are be very tactical, and I hope you know like and understand what you’re doing. And that’s what everybody should do, they should law number three, protect your wealth, you should only invest in things, you know, like and understand. And make sure today you really understand them and make sure you’re playing the short game versus the long game. Because the long game is going to be a dangerous one. If you don’t have the time horizon, or the risk tolerance to handle a 3040 or 50% decline in your investment portfolio. There I told it, I said it. Get ready. What about


Scott D Clary  1:26:30

No, dude, it’s it’s awesome. What about people that are, are not as highly leveraged, but the average person is just working the job and trying to make ends meet? What is that? So let’s look at the different things that could impact someone’s life. So you have their job, you have their investment in maybe traditional vehicles, you have investment in real estate, you have investment, and now crypto and defy all those different people, how does it affect


Chris Naugle  1:26:52

me a lot of different people and affect each one different, the average person working the nine to five, you know, taking a paycheck, you know, making things work, you know, the biggest risk they have, if they don’t have much money in the markets and too many assets to worry about very little impact. I mean, the biggest risk would be they could lose their job because the company they work for might not make it through the next economic recession. Or they might lay people off. So you might be part of a layoff or lose your job. Very little impact. Usually, I don’t mean to classify it, but usually like the lower income earners or you know, the lower class, so to say our little affected outside of that in terms of economic recessions, the middle class, as always is the one that’s going to be hit the hardest, the middle class that has money in 401, K’s is got some money in investments outside maybe owns a small crypto portfolio maybe has one or two rentals, they’re going to be devastated. Because it’s going to hit all those assets, your real estate will be fine. I think real estate is greatest investment on Earth. But you have to understand if you’re doing real estate, and you’re doing it for the speculative upside that you’ve been seeing for the last decade of your the price of your house going up and up and up that will stop I just told you why that’s going to come back down. No big deal if you’re renting it, and you’re just going to rent it straight through this. But if you have a liquidity or an exit strategy inside the next five years, it’s game over for you. You’re not going to make it and you’re not going to sell your house for anywhere close to what you paid for it. If you bought it in the last couple of years. You just won’t I’m sorry. So plan on a long term rental strategy and you’ll be just fine. Matter of fact, like I told you remember back in the Great Recession, those clients of mine that were making money hand over fist they were in real estate, they were long term buy and hold guys, they weren’t the flippers, the flippers went out of business. The the flippers that made a lot of money are the ones that started flipping into the recession as it went down. They did really well they all became multi multimillionaires, like Mike and Greg did. And then, you know, crypto is an interesting thing. And I’m not a crypto expert, but I surround myself around crypto experts for sure. I like crypto I think crypto is gonna be around for and specifically let me quantify that Bitcoin and Aetherium. Let’s let’s be very specific, maybe XRP and Cardano and a few others, but Bitcoin and Aetherium are not going anywhere. But they’re they’re very tied to the market. So if the stock market crashes, crypto will also crash with it. It just looked at the charts, folks. I’m a Chartist right, I studied this I mean how to read it. Like when the stock market goes down, I will tell you crypto goes down and if I looked right now, I can show you markets down on bad Bitcoin accounts down. But I’m playing bitcoins short term right now and I’m doing well I’m trading off different levels like it just dropped down to 38. I bought a nice little chunk, and I’m looking to exit about I almost got rid of it yesterday, but I missed the 43 my targets 44 I’ll get out probably 42 to 44. And then I’ll wait for it to go back down and I’ll buy it again. And some people like all That’s so stupid, really because I’ve been doing quite well. Because I bought it when I went down to 28. I sold it when it got to 44 last time then it came back down to 30. It’s it’s a fun little easy game. It takes maybe a minute today for me to do that. But there’s a lot of people playing the long game in Bitcoin. They’re buying it to hold for the long haul. I will tell you you will probably make a lot of money doing that. If and only if you don’t allow investors sentiment, your inner voice, Fear, get in the way. Because I’m gonna promise you, if you bought Bitcoin at 50 6040, it’s going way lower. And when it goes way lower, just shut your eyes, actually delete the app, just delete the app, so that you can’t do anything, this is the best advice I could give you delete the app, if you got Coinbase, delete it and keep your position and just hold it. Because in 510 years, Bitcoin will probably be worth a lot if they can maintain the finite amount. Now I know China is trying to beat that and beat the code. But who knows? Hopefully, it’s just like the book, creating a creating Bitcoin. I know I read a book about it, but hopefully it can’t be beaten. There’s always a finite amount. I think crypto is definitely the wave of the future blockchain specifically. So my bet is on Aetherium, more than any other one, because of what the problem it solves. And I think the biggest risk you’re gonna see in the next year or two years is already happening is the US government and the Federal Reserve and central banks going to a digital currency, the US dollar is dead, they’re crushing it right now. They’re killing it. Eventually, the US dollar will give way to a digital currency. It’s already being enacted in China and other parts of the country, that digital currency just so you know, will not be Bitcoin. I laugh at people and they think, oh, yeah, Bitcoin will be the next, no way. That will, they will never ever adopt a decentralized currency. It will be a centralized currency that they control wholeheartedly, and you will want it but they’re going to convince you to trade in your Bitcoin, just like they convinced people back in the 70s. And back in the 30s to trade in their gold for US dollars. How was How’d that work out? That’s so good. So don’t do it. If How did they didn’t leave Apple made it so that you couldn’t hold gold that you couldn’t exchange gold, you couldn’t use gold as a means of exchange, like they pretty much made it illegal in a roundabout way. I mean, there’s more to that story. But that’s the simplest explanation. But gold still is around interested in gold standard as a store of value, gold still is a good investment long term and it’s in Do or die times, if we ever needed it, it can be one of the few things that you could use as a means of exchange clip corners of it by bullion. I’m not a big, I’m not big into the collectible coins, but I think there’s some merit to those, I think like, just start buying a little bit. I mean, every week, I’m sorry, every month, I buy I have a subscription to a place called 7k. And I buy bullion. I’m not a huge gold bugs. I mean, I’m just I moved my money. That’s what I do. My money is always out working for me constantly moving in and out. That’s how I beat inflation. That’s how I make the majority of the money I make. But gold is just a nice little side store of wealth and no more than 10% of my wealth love or be in gold, silver, precious metals that never, I just don’t think anyone needs more than that. But I think it’s a good thing. And then crypto like it’s an alternative investment. I hate that it’s so tied to the markets, which is not what it was supposed to be. But that’s just what it’s become. And I think Kryptos definitely got some legs. If you’re playing in the defy space. It’s interesting. I’ve been learning a lot about it, I think that might have some legs, but you’re gonna get burned probably a couple times before you figure out what’s right and what’s wrong there. Well, if you go into the smaller projects, you got to really look at the utility the use of it and what problem it solves. And then in put your you know, just, again, Law number three of wealth, protect your wealth, and to protect your wealth and follow the laws of wealth, all you do is you should only invest in I wholeheartedly mean this. These are laws, folks, it’s like gravity, go to the top of your building and jump, you’ll learn what gravity is you can’t change it. Well, you can’t change the laws of wealth either. The third law of wealth just says protect your wealth. And in protecting your wealth. You should only invest in things you know like and understand you think Warren Buffett invest in things he doesn’t know like and understand that dude studies, everything he invests in, he knows it front, back and sideways. He doesn’t invest in many things. But when he invest in something, it’s because he knows likes and understands it. So let me ask all of you that are watching this and in Scott you as well. Why would you invest in something you don’t know something you don’t really like? And something you don’t understand is because your Uber driver said, Oh, this one’s going to the moon. Well, that happened back in the Great Depression to Kennedy senior the shoeshine boy was giving them stock tips. He took that as a sign it’s time for me to exit he got out of the markets, shorted the markets and made all of his wealth right there like read the story, the shoe sign, shoeshine boy. Just invest in things you know, like and understand if you’re gonna invest with other people invest with people that have knowledge, through wisdom in time, that is it and through wisdom in time they will have failed. So make sure you ask people about their failures. i i transparently told you all my failures I’ve learned because I failed enough times to figure out what didn’t work, and I will fail many more times. Recently, I just had another failure I defied the fourth love Well, I didn’t investment seeking unrealistic returns because it sounded awesome. And I did it and I’m gonna end up losing probably most all my money in that lesson learned I went against a law and you always learn you always lose and you know laws again, just go through them super quick for your audience. Okay, because I know we’re going long but number one, keep or save 1/10 of the money you make gross. If you’re not doing that, that’s, that’s the first step. Law Number two, make your money go to work for you. I told you lots of ways to move your money, make your money work for you don’t leave it sit lazy. Number three, protect your wealth. We just hit that one. Number four. Don’t seek unrealistic returns. If you do, your money will flee you and don’t invest with fraudsters and gurus that promise you unrealistic returns because they will steal your money. Number five, most important one out of every single law. Every single day you wake up, and every single day you do things do it with intention to solve someone else’s problem. There’s not a company in the world that doesn’t solve somebody’s problem. Scott, your company’s solve somebody’s problem. That’s why they’re successful. My company solve big problems, private money club my my eHarmony of money. Okay, peer to peer lending solves a really big problem for the average person doesn’t have access to what hedge funds and Wall Street does, to create companies or create things that solve people’s problems. And number six, in final in life, work your entire life to create a legacy that’s bigger than you that legacy doesn’t have to be the amount of money leave to your children. Too many people think legacy is that leave behind knowledge. Teach your children how money operates. Teach your children, these simple laws and principles. I’m writing the book for my daughter so that she understands the laws and the 10 rules to prosperity so that she doesn’t ever defy them like her father did. And like her father had to ride these roller coasters. My daughter should never have to do that. Because I’m leaving a legacy by teaching her through my failures and through wisdom. Leave a legacy folks every day. Think about that. Focus on it. Just manifest all of those different things. Anything you want in life and anything you ask of life, life will give you. I’m living proof of that. But that doesn’t mean it doesn’t come with pain, suffering and hard effing work. There’s nothing in life. That’s easy. And if it is easy, it’s too good to be true. And go back to law number four, because your money is going to flee. You’re pretty quick. So get it out and then call today and just move on.


Scott D Clary  1:37:11

Amazing, man. Okay, let’s do I want to do a couple rapid fire to close this out before I go into those. Any last closing thoughts? Or where should people connect with you all the social all the website?


Chris Naugle  1:37:24

I urge all of you to watch the 90 minute video. Okay, go to Chris It’s NAU je le is right on the bottom there. Chris A 90 minute video will pop up. Just watch the video. And if you want to book a call with us, we don’t try to sell you anything. We’ll just answer your questions. You can also get all all three and soon to be four of my books for free on the website. Just pay the shipping to your house or get the ebook for free. Social media. I’m everywhere. YouTube is at the Chris Naugle all my channels, tick tock Youtube, Instagram, Facebook, every single channel out there except for parlour and the what’s the new one, whatever it is, they’re all at through social, social 168,000 on the waiting list. Anyway, it’s at the Chris Naugle, I put free content out everywhere, there’s, you’re gonna look and you’re gonna have very hard time finding out something you can buy from me, I give it all away for free, because I understand that you have to solve people’s problems. And in doing that it’s giving. So that’s how you find me watch the video, do all that good stuff. And I’ll leave with one quote that’s changed my life. And then we’ll go into rapid fire. And it’s a quote by Will Rogers. And Will Rogers said this, he said the biggest problem in America is not what people don’t know. The biggest problem in America is what people think they know. That just ain’t so. That hit me hard when I heard that because I was that person that thought I knew what I didn’t know. But the problem is what most people think is not what you don’t know. It’s what you think you know.


Scott D Clary  1:38:59

Amazing. Okay. I appreciate I appreciate everything you’ve taught over. I’m going to have to listen to this one back again and probably take some notes myself know how to do a live interview. You can you you you teach over a lot. So you’re coming to Miami, we’ll do a live one in studio. Whenever you’re down here. It’ll be we’ll figure out other stuff to go into. I’m sure I’ll pick another topic that you talked about on YouTube. We’ll go on to something else. We can talk about we could talk about we dealt with we didn’t talk about fintech. We can talk about really what you’re actually building so we can do something on that and why that’s necessary. Okay, cool. All right. What keeps you up at night right now?


Chris Naugle  1:39:37

What keeps me up at night is the fear that I’m not doing enough for others. And I’m not giving enough


Scott D Clary  1:39:45

What’s the biggest challenge you’ve overcome in your personal professional life?


Chris Naugle  1:39:50

Letting my ego go you know, you we build an ego when we have levels of success and shedding the ego was the hardest thing and the biggest thing allenge I had overcome when I was an advisor. It’s an ego driven industry and getting rid of it was like ripping my my soul out, but I had to shut it.


Scott D Clary  1:40:12

Your favorite source to learn and grow book podcast, something you’d record you’ve made recommended a few. But if you could tell your 20 year old self one thing, what would it be? Then last question, what does success mean to you?


Chris Naugle  1:40:27

Success is your impact on others. When you success should not be determined by the amount of money you have in the bank. It should be determined by the amount of lives you change and the success stories from others because of what you did to help them and folks don’t think that that means you got to donate money or give money. I mean, just make people laugh, make people smile, give them one word of encouragement. You never know who was hanging on by a pinky. They might look like they’ve got the perfect life, the cars, the houses, they might be hanging on a pinkie and all they need is you to tell them, it’s all gonna be good and it’s all gonna be good. You’re doing great, that might allow them to then grab on with two fingers. And it’s such an important thing. That’s the measure of success.


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