Fuller Wallet Media

Fuller Wallet Media

Fuller Wallet Media

Be Your Own Bank And Earn Even More With YOUR OWN Money With Chris Naugle

FWM 14 | Your Own Bank


Don’t let your dreams die and go to waste. You are meant to go out, create, and make a difference. It’s time to take back control and significantly impact the world so you can give better lives for your family and the community. Tune in as your hosts Julie Houston and Gem Rinehart interview Chris Naugle on how you can be your own bank and earn more with your money! In this episode, Chris talks about what wealthy and successful people do and how they think. By developing a mindset like theirs, you’ll be able to achieve your goals and live with complete control of your wealth. He also explains privatized banking, financial institutions, and investment opportunities. Tune in to learn how money works, how to beat inflation, and how to attain absolute financial freedom. Start making those investments today!

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Be Your Own Bank And Earn Even More With YOUR OWN Money With Chris Naugle

I have a wonderful guest, Chris. Chris, how are you doing? Why don’t you tell us a little bit about yourself?

I’m doing great. I’m a normal guy living up here in Buffalo, New York. I didn’t grow up any different than a lot of people, lower middle-class family, and always been a dreamer. My career has been pretty interesting. It’s been full of ups, downs, and excitement, not excitement. I started my first company at sixteen years old in my mom’s basement. It was because I was degraded at a restaurant that I worked at that when I quit, I said to myself, “I’m never going back to work for anyone again.”

I didn’t start a company to become wealthy. I started a company because I didn’t want to work for anyone again. That clothing line led me to open skateboard and snowboard shops. Since I was seventeen years old, my passion has always been skateboarding, snowboarding, and surfing. That’s what I did. I went on to be a pro snowboarder. I still snowboard, skateboard, and surf. Not a day in my life will ever happen, no matter how frail I am, that I will not be on some type of board.

The interesting thing is starting that company and that retail store, when I first did that in November of 1994, some of you weren’t even alive. That’s when I opened my first shop. Coming from a family without money, I didn’t have access to capital. If you can all relate back to when you were seventeen years old, a lot of crazy things happened at that age. We’re dreamers. We’re all over the place. Nobody takes us seriously. That was my story.

I had a business plan. I had a solid idea for this company called Phatman Boardshop. Nobody believed in it. Everybody said, “You’re crazy. You’re going to lose all your money.” We’ve all heard it. It’s like that movie, “You’ll shoot your eye out, kid.” That was everybody else, including my family members. It’s funny because I didn’t know it then, but looking now, I want everyone that’s reading this to think about this, if you study successful people and you study people that are not successful, and then you listen to Earl Nightingale’s The Strangest Secret in the World, you start to piece together the difference between success and failure.

I’m pivoting back to when I was seventeen years old because it could have gone either way. Everybody was telling me, “That’s a dumb idea. Go get a job.” My dad was like, “Come work at the factory. You can get a pension and all this good stuff.” I want you to think about this one thing. If the difference between success and failure comes down to one simple thing called creation, why are we not all creators? Why don’t we all create our destiny, future, and lives the way that we want them to be?

It’s no more prevalent than now and we’re going to dive into the money side of what’s happening now, but the reason is conformity. Every one of those people that were telling me not to do something, every one of those people that were telling me I should go work at the factory, I should do this, it’s a dumb idea, they were trying to get me to conform to a failed dream, reality, lifestyle, or something that they failed at because they didn’t know what it was like to do what I was doing.

To try to protect me and that’s all it was, what they did is tried to get me to conform to their way of thinking. I wasn’t built for that. I was built to go out and create. The only person that believed in me is my mother. My mom was the only one that believed in this dream. It came down to a loan that I was able to get with this bank. It was an SBA-backed loan. The bank wanted collateral. Seventeen-year-olds don’t understand collateral, at least most don’t.

I was like, “What is that?” They’re like, “We need something of value to back this loan.” “I got a 1986 Buick Skyhawk. I’ve got a baseball card collection and a KX 125 dirt bike. What do you say?” They didn’t go for it. My mom saw this dream die. She didn’t want my dream to die. She came up with the idea that the only asset she had in the world was the house she got in the divorce. She put that house on the line so that her punk snowboard kid could chase his dream and open Phatman Boardshop in 1994.

The funny thing is if any of you go on Google right now and you punch in Phatman Boardshop, you will see the store that I started in 1994. It’s still open. I sold it in 2010, but that legacy continues on. Don’t ever let anyone tell you your dreams can’t happen. Don’t let anyone try to get you to conform to their failed realities. It’s your reality, dreams, and ideas that you need to focus on. Everybody else is noise, but it’s difficult when it’s the people closest to you telling you, you can’t.

To parlay that into the rest of my life, I’m going to do it quickly. Those stores led to me becoming a pro snowboarder. I ended up having an unbelievable career. It was like living in a fairytale land until the early 2000s. I’m driving to my newest store that I opened, that was highly leveraged. I had three stores going. I was the big pro snowboarder in all the magazines.

All of a sudden, I hear on the radio a plane hitting a tower. I’m like, “Somebody with a Cessna must have hit a tower. That sucks.” We all know that was 9/11. What followed that was something I had never seen in my life. It was something that was completely foreign to me, something you only hear about in distant lands, recession. I’m in my twenties at this point. I had never seen a recession in my life. I thought everything was great. You keep making money. You keep doing things. The same thing is happening right here in 2022. I don’t care what you believe and what you see in the news.

I’m from New York. I’m raw. You’re going to read the truth. I don’t care if you like it. We are in a recession. The Fed and the powers that be can’t go and change the technical definition of what a recession is. We are in it and it is going to get a lot worse. It’s the same thing I dealt with back then when I was a young man, living the dream. All of that came crashing down because of a recession that I didn’t understand and didn’t plan for.

FWM 14 | Your Own Bank
Your Own Bank: If the difference between success and failure comes down to one simple thing called ‘creation,’ why are we not all creators?


It is happening right now, folks. Everybody’s got money. Everybody’s got their working. Everybody’s like, “Life is good,” until it’s not. It wasn’t. In that one event, my retail stores dropped 30%. I had to get a job. I vowed I was never going to work for someone again, but I thought, “I need a temporary thing to get through this. This recession thing can’t last that long.” I went to Little Caesars to get a job. They were not hiring delivery drivers. During a recession, businesses don’t need new people.

I put my resume out. I was a good student in high school, but I only had two years of community college. I wasn’t super educated. I was a business owner. I had that going for me. My resume was one-page long. That was it. “I was a pro snowboarder. I owned skateboard and snowboard shops. I’m the man. Hire me.” Do you know who wanted me? It’s the most unusual place, Wall Street. I got numerous inquiries back from Wall Street. I didn’t even understand it. What do you do when you don’t understand something? You’re like, “I’m going to watch a movie.”

I went to Wall Street, the movie with Michael Douglas. It’s an iconic movie. I’m like, “I want that.” During the first interview, the dude at the other end of the table has a fancy dress. I had never put a suit on in my life. He slides the keys to his Porsche across the table. Later, I found out this was a thing that was done in a movie called Boiler Room. He slides it over and says, “Kid, if you work at this firm, you’re going to have one of these too.” I’m like, “Where do I sign? How does this thing work? I can’t figure this tie thing out. I don’t need to zip up. I’ll learn how to tie it. How do I get one of those?”

I was now on Wall Street. It was interesting because on Wall Street, when you first come in, it’s like what you’ve seen in the movies like Boiler Room, The Big Short, and all of them. I was in the bullpen. My job was to call and make these guys in the outside offices a lot of money. Being a business owner, I started to think, “Why did they make all the money? How do I get one of those offices?” I saw what they did. I studied them while I was on the phone. They get there at 8:30 or 9:00 in the morning. They leave for lunch sometimes for two hours. I was sometimes the only one there during lunch.

At the end of the day, 4:35, they’re gone. I said, “If I want one of those, it seems logical that all I need to do is do what they’re unwilling to do.” I got there at 7:00 in the morning and got all my paperwork, so when the bell rang, I was ready to roll. I don’t have any paperwork or all these things like the other guys did. Lunch came, I pounded the phone during lunch and people answered because they were on lunch break.

After the day was over, when nobody was there, I went and saw people at their kitchen tables. I had one of those corner offices. I was the number three guy in the office. I was the big Wall Street guy. I was still a snowboarder. At heart, it was a difficult transition. This is a fancy shirt to me with a Henley, I got a trucker hat on, nothing fancy. I wore suits every day. That wasn’t easy.

When I first got into Wall Street to make that parallel switch, that pivoted in my mind, I had to go to one of the manufacturers that sold me clothing at my store called Volcom. They sold suits just for their athletes. I was an athlete. I was able to get my hands on suits that this snowboard company made. That’s how I did it, folks. Sometimes you can pick your mind. It was still a suit, but on the inside, it said, “Volcom.” It didn’t say Brooks Brothers or anything else. Sometimes that’s all you need to do.

You guys are all sitting there trying to plan your life and think about what your big dreams are and other people say, “You can’t do this.” Maybe one of your dreams is you want to live on the ocean. Let’s say you live in Downtown Chicago. That would be a bad place to live right now. It’s noisy. You need to start envisioning that you live on the ocean because that’s your goal.

Try this. Get yourself from those little Amazon things. Before you go to bed, say, “Alexa, play ocean waves.” Turn a fan on across the room and have that fan blow on you so that it feels like it’s an ocean breeze. You’ve got the ocean waves in the backseat. Your mind doesn’t know the difference. It’s the only thing you do. If you trick your mind to believe things, your mind can do nothing else but lead you to the path where you want to be.

I’m no different than any of you. You look me up online and you’re like, “Look at this guy.” I didn’t start there. I failed many times. I failed in the early 2000s. I failed again during the Great Recession. I lost it all, one payment away from being bankrupt. The only way I made it out of is I went to my girlfriend, who moved into my house. I said, “Sweetie, can you help me pay the mortgage? I’m going to move this guy, Pete, into this bedroom down the hall, any questions?” She could have left. She liked me. We’re married now. You can do anything you want if you shut the noise off, put your head down, and stay focused on it.

Most people quit 3 feet from gold. It’s a true story. Most people will quit 3 feet before they reach it. Here’s the coolest thing. What we’re going to get into now is about being your own bank and we’re going to talk about inflation and money, but I want you to understand one thing. You can have all the money in the world, and you can still be the most miserable person on Earth. I know billionaires.

Money isn’t happiness. Freedom is. Money is just the tool that gets you to the things you want. Don’t ever forget that. If you’re old enough where you have children, teach your children young. My daughter’s young and she’s going to learn the laws of wealth so that she never ever understands the nonsense that people do with money, like giving up control of it and all these things we’re going to get into. The path is simple, but it’s difficult because it’s against the grain and what everybody will tell you.

I loved it. I had no idea you were a pro snowboarder.

Your mind believes things that you feed into it. It leads you to the path where you want to be. Click To Tweet

It was a long time. I was 32 or 34 when my career ended out in Mammoth. I overshot and jump and it was game over.

Let’s talk about where you’re at now. How did all this lead you to where you are at in your business and your companies?

You heard a lot of the story. I had retail stores and all this. In 2009, I started buying real estate. I had flipped a couple of houses during those times. I was making a lot of money on Wall Street. It’s because I’d seen a TV show where, in 23 minutes, they flipped the house and made $70,000. The guy, Doug Hopkins, was his name. I’m like, “I want to do that.” In 2006 and 2007, I flipped a house each year. I didn’t make a lot. In 2009, I almost lost it all because I bought a strip mall, two buildings down from my one retail store’s location. The lease came due and I’m like, “I don’t want to pay.” He was raising my rent.

I didn’t want to pay him. I bought this dilapidated paint store and I started the process of converting it into a three-unit strip mall, which is why I almost went bankrupt. I ended up getting it done. What happened after the Great Recession? We’re talking recessions here because the dot-com recession landed me on Wall Street. Sometimes one door closes and another one opens. 2008 was a doozy. That was one of the hardest periods of time for many of us if you went through it, but I made it through.

In 2009, I was reading a lot of books, trying self-discovery and learning. I was reading books on Warren Buffett because I was on Wall Street. Why not read books about the guy that’s famous in that? I’ll never forget, he said, “To make money in any investment, all you need to do is buy low, sell high, and you can’t lose money.” I wasn’t a smart real estate investor, but I knew one thing. In 2009, guess what was cheap? Real estate. I had a realtor and I started buying apartment buildings. I leveraged everything.

I maxed out my 401(k). I took loans from all my life insurance policies. I went deep in. Over a short period of time, from 2009 to 2014, I got up to 36 units. That’s not bad for a young guy that never done real estate before. Here’s where the silver lining ends and the monster comes in. In 2014, I brought my 37th door to the bank that had financed all of these things and also took me out of that hard money loan for that strip mall. They said no.

I’m like, “Greg, why?” Greg was the loan officer. “Why? You’ve gone this far.” He said, “Chris, as you build up more and more properties, it affects your debt-to-income ratio.” He goes into this whole thing. I didn’t understand any of this. I was borrowing in my personal name. This is an important lesson. There are commercial loans and there are personal loans.

If your house is probably in your personal name, you get a lower interest rate for buying it in your personal name. If you had an entity and you were buying that same house, you would pay more in interest for buying that house in your entity. For me, I’m logical, “This one’s cheaper than that one.” It’s not. It is just perceived to be cheaper.

What I didn’t realize is when you start going down the path of buying things in your personal name because you think it’s cheaper, all of a sudden, you hit the wall. That wall was an unforgiving wall called the debt-to-income ratio. I was out of the box that the bank said I fit in. They weren’t going to give me any more loans. They froze my line of credit, which I needed to renovate these apartment units that I was doing. That line that was going up quickly, like dominoes, started spiraling back down.

I ended up having to sell every single one of those rentals. I couldn’t maintain them. I couldn’t keep them up. Not only that, I’m missing things I didn’t know. You’ll never know these things in life. That bank, which was a small community bank, was selling to a big conglomerate. I found out what they were doing later from Greg when he went to a different bank. They were going through all their risky loans, the risky assets as they called them. They were trying to get rid of them so they could sell to the bank for more.

I fit that thing because of my debt-to-income ratio. They started calling my mortgages because I got laid on a couple of them, which gave them the ability to call them. It was a terrible time. That was the lowest point in my life. We’ve all been there. At that lowest point, you start thinking stupid, “I can’t do anything right.” You blame everybody else. You start thinking, “Do I even belong on this Earth?” I started thinking dumb things. I’m being honest.

At that time, you also find clarity because you start thinking about, “What should I do?” I didn’t have a plan. I was in Wall Street still. I was doing okay. I just wasn’t happy anymore. It doesn’t matter how much money you’re making. You can’t find happiness. Nothing matters. That’s where I was at. I remember getting a postcard. It said on the front, “Come to the seminar to learn how to flip houses.” Nobody should be surprised by that. You’re like, “You lost it all in real estate. Why would you go to a seminar to learn how to flip houses?”

On the back was the hidden secret, “Come to this seminar and we will give you a free iPod Shuffle.” “I got nothing to lose. Now I got an iPod Shuffle because I go to this dumb event. I’m off.” I sat in the back row thinking, “They’re going to give these iPod Shuffles out some time and I’m out the door.” We’ve all been there. Where does the pivot happen? It happens right here. Two guys get up on that stage, Mike and Greg. Instead of talking about real estate and flipping houses. They open up talking about money.

FWM 14 | Your Own Bank
Your Own Bank: Don’t ever let anyone tell you your dreams can’t happen. Don’t let anyone try to get you to conform to their failed realities. It’s your reality, dreams, and ideas that you need to focus on.


Is this the Greg that you knew from the bank?

No. This is Greg Hurling, one of my dear friends. Back then, he was this unknown guy who was young and incredibly successful. He starts talking about money. Mike is another guy. He had a show in A&E. That’s why he was there. He was a TV show star. All they start talking about is the opposite of what I thought I was there to learn. They talked about money, which was my problem. Remember, I had lost it all. They’re talking about how you can do deals without banks, how you can be the bank, and how you can do all this stuff. I’m like, “This is foreign to me.” I’m a Wall Street guy.

I’ve been an advisor up to this point. Why don’t I know what these guys are talking about? I was insulted. I was confused. I was all of a sudden excited because I had never known what these guys were talking about. I went to the back of the room as quickly as I could when they allowed it. “Everybody, stand up, go back, and sign up for the summit.” I swiped the card for $29.97. I’m pumped. I get to go to this summit to learn things I’ve never heard about.

I came home to the apartment that I’m now living in because we had to sell everything. I’m living in the only apartment building that I have left. I was living in one of those units. Larissa, the girl I talked about that helped me in 2008, moved back in because we had split up during that period of time. When you lose everything, things get rough.

She moved back in and I said, “We’re going to this summit. It’s out in Rochester, New York. You’re going to have to take Friday off of work, but this is going to change your life. By the way, I spent $2,900 on the Visa.” She wasn’t as excited as I was. “First thing, you spent how much?” She knew we were in tough financial times. “You want me to take a day off of work? Do you realize my father’s my manager? That’s not going to go well at the bank.” She worked for the Bank of America.

Anyway, we went to this thing and everything changed. We started focusing. We started having a direction. We had a place that was exciting, and that was flipping houses. We started doing that. I got to know Mike and Greg. The real pivot came here. Shortly thereafter, my wife and I flipped 271 houses. It’s not like something I love right now. I hate flipping houses, but we’ve done it. I’m sitting in The Cheesecake Factory in Salt Lake City.

If you guys have ever been to Salt Lake, there’s a mall. We’re sitting there and I’m meeting with Mike, the A&E guy, because he’s lending me money on my deals. I’m presenting another deal. I said to him, “Mike, how do you lend on all these deals?” I almost felt bad asking it, but I’m an advisor. I talk about money all the time. “Where’s the money come from?” Without even a gasp of air, he says, “I have my own bank.” I’m like, “You got your own bank? Why are we at The Cheesecake Factory? Let’s go to your bank.” He says, “No, I don’t have a bank, but my money operates like a bank.”

Now, I’m dumbfounded. I’m this big advisor. I’m the money guy. I’m talking to Mike, thinking, “What is this?” He drops the bomb on me. I keep asking him and I’m probing. I’m like, “What is this bank?” He’s like, “Instead of putting money in a traditional bank, I put my money in a specially designed and engineered whole life insurance policy.”

I sit back in my chair. I cross my arms. Instead of a smile, now I’m in a frown. I’m like, “Mike, I’m sorry but I’m an advisor, and a whole life would probably be the worst place you could put your money. Look at Dave Ramsey and Suze Orman saying it every day. Why would you ever do that? You should be buying term and investing your money with me. Why would you buy whole life insurance?”

He leans into me, straight face. He says, “If it doesn’t work that way, Chris, how have I been lending money to you all this time?” I sat back. I’m like, “That’s a pretty good question, Mike. How could that happen? Teach me.” He went on to say, “I can’t teach you. I learned from this guy, Brent, but here’s his number.” No disrespect to Mike, but I couldn’t get out of there fast enough to call this guy, Brent. I get him on the phone and I’m like a blender with its top off. He stops me and says, “Have you seen the 90-minute video?” I’m like, “What video? I’m an advisor. I don’t have 90 minutes. How do I build this bank thing that Mike told me?”

He says, “I’ll be happy to spend time with you, but you got to watch the 90-minute video.” That Sunday, reluctantly, I got home from Salt Lake with the biggest cup of coffee I could get because I’m like, “This is going to suck. Who wants to watch 90 minutes of this nonsense?” I put the cup down. I grabbed a pad of paper and I’m like, “Let’s get this over with so this dude will talk to me.” Ninety minutes went by and I had four pages of notes. I’m a religious man. It was the closest I’d ever come to see Jesus.

I had learned something in that 90-minute video that I never thought was possible, and I never fully understood. It’s something that was so far from the reality that I had learned on Wall Street, but now I was ready, but I was also completely losing faith in everything that I had done up to this point for 14 or 15 years as an advisor. Everything he said to me violated everything I’ve learned and been taught as an advisor. That brings me to now.

From that moment, that was 2014, 2015-ish, I’ve never looked back. I have been practicing the infinite banking concept ever since. I have never ever strayed from that. I changed every bit of where my money went. Now it all goes into my own banking system first, and then I make investments. I buy real estate. I lend money out. I buy cars. I do the same thing as all of you do, whatever that is, except for there’s one difference. The money I make that I would normally save in a regular bank, a 401(k), and Wall Street, my money goes somewhere different first. It doesn’t stay there. My money changes where it goes first, that is exactly what has changed my life.

Shut the noise off, put your head down, and just stay focused on your goal. Most people quit three feet from gold. Click To Tweet

I become a wealthy man. I’m happy. I teach tens of thousands of people. The funniest thing is I’ve learned the most important thing in everything that I’ve done comes down to six laws. We all understand laws, or at least I hope you do. If you don’t, go to the top of your building and jump. You will learn about a law called the Law of Gravity. No matter how much you flap your arms or try to do what you’re going to do, you’re going to hit the ground.

Don’t say I didn’t warn you. You cannot change or bend laws. They are laws for a reason. Those same laws apply to money and wealth, and they have since all the way before Christ. I understand those laws, I participate in those laws. I teach my daughter these laws. They’re simple, but they are completely against the grain of everything you’ve been taught about money, your entire life, which is the hardest thing. It will make you think, “This is a scam. There’s no way that’s real. It sounds too good to be true.” It is not. I will verify it all.

You can do your own research about everything that we’re going to talk about with being your own bank and this one place where my money goes. I did say what it was, a specially designed and engineered whole life. It’s not the whole life your broke brother-in-law tried selling you. This is completely different, something I never knew was even possible. I’ll explain that as much as we get into it, but because my money goes there, I tap into some of the laws.

I also tap into what Albert Einstein called the eighth wonder of the world, compound interest but not just compound interest. Compound interest for the way most of us think about it, because we understand it, would involve me putting my money somewhere and leaving it to sit. It’s boring. How many of you want to take your money, put it somewhere, and leave it, sitting there and be like, “I know it’s going to grow. I got to wait for it.” It will be like sitting out, watching the bamboo that you planted. You’re waiting for it to sprout. You’re going to go gray before that bamboo comes out.

Compound interest is the same, but the coolest part about what this machine gives you the ability to do is you get to tap into what Albert Einstein said was the eighth wonder of the world, the most powerful thing in the universe, but then you get to do it uninterrupted. In other words, I take my money. I put it into this specially designed policy. I’m going to pick on you. You come to me and you say, “I need $100,000 for this real estate deal and you give me a good proposal. You’re going to pay me 12%.” I go into my bank, which is a specially designed whole life. I take $100,000 out and I give it to Julie.

Let’s do some math. I started with $100,000 in my bank. That’s specially designed whole life. I’ve got $100,000 in there. There are different companies, but my money is earning between 5.2% and 6%. First off, is 5.2% or 6% better than the bank? It’s way better. It’s six times better than the bank. Let’s pick on one of the companies, MassMutual. I normally don’t call that out, but this is one of the companies I use. They pay a guaranteed contractual interest rate of 3%. The other 3% is a dividend that they paid every year for over 160 years now, consecutively. I make 6%, but I started with $100,000. I took $100,000 out and I lent it to you. How much is left in my bank?

All the interest that you’ve earned.

Forget about interest, simple math. I got $100,000, I take $100,000 out and I give it to you, Julie. How much is left?


What if I told you my bank still has $100,000? What would be the first thing out of your mouth?

When you lend me the money, you’re lending it to me a percentage, correct?

Yes, but let’s focus on how it is even possible that I started with $100,000. I gave Julie $100,000 from that same account and I still have $100,000 working for me at 6%. How can that even happen? That doesn’t even make sense, but you’d have to understand the thing that I never did. The $100,000 that was given to me that I lend to Julie. Julie, are you okay if you pay me 12%? Can I get 10%?

I’ll do 10%.

FWM 14 | Your Own Bank
Your Own Bank: We all have a decision in life: create or conform. You can earn compound interest, or you can pay compound interest. You can choose which side you want to be on.


You’re not getting my money, Julie. Julie didn’t want to pay me 10% and I charged 12%. We’re going to get 12%. It’s simple math. I took $100,000. I lent $100,000 at 12%. Now, whose money did I lend? With an insurance company, the insurance company makes two promises when you start the contract. Promise number one is they promised me a guaranteed interest rate of 3%. We already talked about that. The second promise they promise is that someday when I graduate, a nice way of saying when I die, they’re going to pay a death benefit to my family. That’s the death benefit. We all know how life insurance works.

The insurance company never once in their contract says that I can’t use my death benefit while I’m living. This is what I didn’t understand. The insurance company is unhappy to give you part of your death benefit up to the amount of cash that you have in the account. The $100,000 is collateral. They’re happy to give me $100,000 in my death benefit anytime I want with only four questions. Is it part of a divorce decree? Are you laundering money? I can’t remember what one of them is. What bank accounts do you want it to go to? That $100,000 wasn’t my money at all. It was an advance of the death benefit that someday will be paid to me.

If they gave me that death benefit, insurance companies are not nonprofits. They’re going to charge me interest on that money. They’re going to charge me, as of today’s numbers, 4%. Let’s take one step back. I’m going to ask both of you and the entire audience. How does a real bank make money? We take our money. We give it to the bank. What does the bank do to make money? They lend it out. When they lend it out, if they pay us one, and I’m being nice here because banks don’t pay anything right now, but let’s say they paid us 1% and they lend it out for 5% for a car loan. How much did they make?

5% minus 1% is a 4% spread. That’s how banks make money. Everything the bank does is a spread. If I want to be a bank, don’t I do the same thing that a bank does? Let’s go back to my bank, specially designed whole life. I put my money in it. I earned 6% in 2022. The dividends are paying right now. I take that money out and I give it to Julie at 12%, but the insurance company charges me 4%. Did I not make a spread?

6% minus 4% made me a spread. I lent it to Julie. Now I’m making 12%. How many times am I making money on the same dollars? Twice. I found a way by changing one thing. That’s where my money goes first. I found a way to make money twice without working any harder, without working any longer, and without taking on any additional risk.

Let’s go to the next round. All I showed you was the first phase. This is not the most important, but now you understand why the wealthiest families in history use this. I didn’t create this. I would love for all of you to be like, “This guy, Chris, is a genius.” No. I’m smart enough to follow what the wealthiest people in history have done and mimic them. This whole thing is commonly known as privatized banking. You think privatized banking is when you walk into your good old bank, you grab the stuff that they give you for free, and you’re like, “I got a lot of money. Where’s that private banking guy?” That’s what you think of privatized banking.

Privatized banking is a whole different world. The Rockefellers, the Rothschild, the JPMorgans, and the Stanleys all got together way back in the day. They didn’t trust banks. Even though they were bankers, they said, “How do we build a different banking system that’s more stable?” They landed in one place. What is the strongest, most secure financial institution that there is? What do you think? Mutually owned insurance companies. They have all the money. They’ve been around for the longest. They invest conservatively. They said, “How do we create a banking type system with an insurance company?”

They waltz in with all their wealth and they say, “Insurance company, I got all this money. I want to make a deposit.” The insurance company says, “Sir, there’s the door. March your ass back out of it. We are not a depository institution.” These smart bankers figured out, “How do we get our money into the general accounts of these insurance companies and tap into those returns?”

They have a product called whole life. They had their attorneys and their people review them and they said, “What if we build this contract backward? What if we reduce the death benefit all the way down to the lowest point we can and stash as much cash as we can in premium deposits? Now we’ve got a vehicle that’s low cost and operates like a bank account.” We won’t even go into how the IRS came about, but all these people had a lot to do with the tax code.

If you don’t know that, read the book, The Creature from Jekyll Island. When the tax code came out, there was this little exclusion called life insurance. If your money’s in life insurance, it’s tax-free. All the internal buildup, that 6%, the compounds, uninterrupted tax-free. Now you can see why all the wealthiest families, I gave you those old families, but Walt Disney, Ray Kroc, Joe Biden, love or hate him doesn’t make a difference, he uses this, McCain, Warren Buffett, JFK, all of them. Look it up. It’s history. It’s right there. They all use it.

I want to go to the next round. I want you to draw a circle. All we did was on the right-hand side of the circle, we changed where our money went first. That’s all. On the right side of the circle is where our money can go to work for us. Let’s think about that. It can pay off our credit cards. We can then take the interest rate we’re paying to the credit cards. It could pay for or buy a car. We could make payments back to our bank the same way we pay other banks. It could be lending money to Julie at 12% through the private money club.

There are a lot of places where you can invest your money. None of those have to change. The only thing that changes is where the money goes first so that we tap into uninterrupted compound interest for the rest of our lives. I moved the money over here and I lent it out to Julie at 12%. Julie’s going to pay me monthly checks for that 12% loan I made. Where are we going to put those monthly checks? Remember, we set up our own bank. Are we going to take that check and deposit it back in Bank of America or someone else’s bank? No.

You go back into your policy account.

Missing out on opportunities is the biggest cost you're ever going to have in your life. Click To Tweet

We’re going to take that interest check and we’re going to put it back in our bank because that makes logical sense. By putting it back into our bank, we’ve closed the circle. Our money now, from start to finish, is in our control. Our money never goes outside of this pretty little environment where it earns this uninterrupted compound interest. Our money is not reportable.

The 12% that Julie’s paying me is reportable and taxable, but all the money I’m building up on the inside is not reportable every year. It is private. I don’t have to let the government know or the IRS. If there are any IRS agents on here, if 1 of you or the 87,000 new agents, look it up in the tax code. You should probably know that if you’re going to be an IRS agent, this is fully legal folks. It’s in the tax code.

Nothing I told you is outside the norm. You got to pay tax on the 12%. Everything now exists in my banking system. How far can you push that? This copy machine over here, when I leased it, I made $161 payments to a leasing company. I thought nothing of it. I bet you, a lot of you have one of those things and you’re like, “We lease ours, too. They said that’s stupid to buy it because they become obsolete in 3 to 5 years.” It’s only obsolete when you don’t have your own banking system.

All I did when the leasing guy came in in his fancy suit and tried to lease me a new machine said, “This new machine is so much better. It staples more, prints more, it’s fancy. It’s all this stuff. The lease payment is only $10 more at $171 a month.” I’m like, “How much is the machine?” “I don’t know. Nobody ever asks that. They want to know how much the lease payment is.” “I want to know how much the machine is.” “I’ll get back to you.” The dude had to get back to me. I thought that was weird, but nobody ever asked that question.

He comes back. He’s like, “It’s $8,900. I know it’s expensive.” I said, “That’s fine. I’ll buy it.” He said, “I’ll do the leasing.” “No, sir. I want to buy the machine. Here’s what I’m going to do, sir. I’m going to take the money from my bank. I’m going to pay $8,900 for the machine. You said the lease was $171 a month. Can you tell me what the interest factoring rate is on that lease?” “No, I cannot.” I did the math, because BankRate.com, you can. It was 8%. I said, “If I was going to pay this leasing company $171 a month, why wouldn’t I pay my bank $171 a month?” I had my bookkeeper set up a $171 a month payment, but it doesn’t go to someone else’s bank.

It goes back to my bank. Does anyone want to take a guess after the five years, that would have been the lease term on this machine, how much money I pay back to my bank? If you do the math, $171 times 12 times 5 is $10,260. Did I get all the money back for the copy machine after five years? I got all the money plus interest, plus my money made money a second time because I made a spread the entire time, plus I still got that stupid machine. There’s got to be someone stupid enough to buy a five-year-old copy machine. It’s got to be worth at least $1,000 or $2,000.

If that works for a copy machine, it works for the plane and everything that we own. I love cars. I have a nice car. Every one of my cars is financed through my banking system. I laugh. Here’s how I do it. Let me paint the picture. Let’s have some fun. If you like buying cars, you go sit in the dealership, and find the car you want. Let’s say it’s a G 63, the G Wagon. You’re like, “How much is it?” “$150,000.” “What’s the monthly payment?” That’s what everybody asks. “It works out to be about $2,400 a month.” Let’s say I buy the G Wagon. I just didn’t buy a new one.

It was going to be $2,400 a month. All I did was, instead of paying $2,400 a month to their bank because they already told me how much the payment was going to be, I set up a bill pay from my bank account where my income goes for $2,400 and I pay it back to my bank. Do you know what happens? It doesn’t matter how much money I pay for a car. It doesn’t matter what I pay for anything. I get every single dollar back for that G Wagon, for that plane, or for that copy machine. I get every dollar back because it all goes back to my banking system.

The entire time over the course of my life, I have made more and more money. It’s not because I’m good. It’s not because I’m smart. It’s because I tapped into something that is mathematics, something Albert Einstein figured out a long time ago. He said, “Those that understand this earn this. Those that don’t pay it.” We all have a decision in life. Remember I mentioned, create or conform. We have a decision. You can earn compound interest or you can pay compound interest. Which side do you want to be on?

All I did was not be smart. I said, “What did the wealthy do? How do I change one thing to get what you have?” The downside is everybody’s in a rush. I’m not. Building wealth is a marathon and it takes time. I’ve been at this for a while. In the beginning, the car I used to buy with this thing was a $20,000 car. I have tons of videos that show those $20,000 cars that I bought.

The math was the same, whether it was a $20,000 car at $500 a month or a $130,000 G Wagon at $2,400 a month. It doesn’t make a difference. We’re just adding a zero. The mathematics and the concept are identical. I’m not bragging about vehicles, folks. I started with nothing and I got here. The only difference between me and some of you is maybe two things. I created and I didn’t listen to others. I did what the wealthy did and I changed one thing. That’s it.

I’m blown away at this. I have a question. You mentioned you put X amount into this policy. Whatever you put in, is that what you’re available to use?

The amount you put in can be any amount you want. Their mind goes back to, “It’s a whole life. How much does this policy cost?” You got to stop thinking that way. You’re creating a bank. When you go into the bank, what do you say? “How much do you want to deposit?” You deposit any amount of want. My first policy, back when I first started, and this is embarrassing, was $240 a month. Why? It’s because that’s the only amount I could save. I was in a hard place. I didn’t have extra money, $240 a month, which was the bare minimum I could put into the policy to make it work. I now have nine of these policies.

FWM 14 | Your Own Bank
Your Own Bank: Become your own bank. Move your money. Stop giving money away to credit card companies, finance companies, and everything else. Start paying that money to yourself slowly.


I’m not going to get into how much goes into them, but it’s a lot. I started small. Let’s say I start a policy and I want to save $10,000. If I put $10,000 in, that’s the most I can ever put into that policy. How much can I use if I put $10,000 in? It comes down to a lot of things, health, age, and first and foremost, what your needs and goals are because there’s not one way to design this. Every policy we design is built differently than the other. I’m going to give you a range. The amount you would have access to is anywhere between 60% and as high as 90% in the first year.

It’s not 100%. Everybody reading, you have to understand, if you’re one of those people that puts $10,000 in your bank account and at the last day of the year, you’re like, “I got to get all that money out of the bank. I can’t leave anything in the bank,” and you go and you take all $10,000 out, this isn’t going to work for you if you’re one of them. I don’t know many of them, people.

Usually, people put money in the bank and they always leave some in the bank. They don’t take it all out. The bad news is you’re not going to have access to 100% of your money in the first and maybe even the second year. After that, something that I talked about the entire time called compound interest kicks in. Now I want you to envision year three. You put $10,000 in. You go online and you look at your account and it says, “How much do you want to take out as a loan? $10,400.”

They added the compounding interest.

All that compounding for those prior three years, I don’t care if you put the $10,000 in and the first year you took $8,000 out and it’s out to work. Next year, you put $10,000 and you take $9,000 out and it’s out to work. It doesn’t matter. The math still compounds. The third year you think, “Those other two years, I couldn’t take the full amount,” but the third year, you put $10,000 in and you look, and it says $10,300. Here’s the fun thing. It took you three years to get there. That’s the downside. It’s going to take you 2 to 3 years to hit what we call the efficiency point, where every dollar you put in, you can take more out.

From the third year on, for the rest of your life, no matter how old you are to the day you die, can you envision that every day, every dollar you put in, you’ll take out more than what you put in? Every year, it will be more than it was the year before. That year, it might have been $10,300. The next year, it might be $11,000. You put $10,000 and take $11,000 out. Ten years down the line, after you’ve been doing this, you put $10,000 in and you can take $20,000 out. You would think you died and went to heaven. You’re like, “This isn’t even possible.” It’s not even that it’s possible.

It’s tax-free.

If it’s built properly, it’s tax-free. Let’s hit the monkey in the room. I bet a lot of your readers are concerned with inflation, grocery store, gas pumps, and rents going through the roof. Nobody’s talking about that. One thing that we all need that takes the majority of our income is housing. Housing went up 17% and it will continue to go North. That’s a problem for households. Everybody’s trying to figure out, “How do I beat inflation? How do I hedge inflation?” There are all these gurus saying, “You should put your money in an index fund. You put your money here.”

Let’s take our hard-earned dollars and put them into the stock market, where it’s heavily at risk, right on the verge of a recession. That sounds like a genius plan. That sounds like a great way for the advisor and the Wall Street company to make a whole bunch of money. Remember that circle I said? How can you ever not beat inflation if all you do is keep the money in your family?

Forget about the 6% because that doesn’t beat inflation. When I lent it out at 12% or when I bought the truck and I did all these other things and I made money twice, you realize there wasn’t one thing that I mentioned that I wasn’t beating inflation or at least hedging inflation. The other thing, too, that’s important, and this is going to be the biggest thing. If you like the stuff on how to create your own bank, wonderful.

If you want to learn it all, go to my website and watch the same 90-minute video I watched many years ago. It’s a little bit better video. I’m going to say something that many people are not going to agree with. Inflation is a temporary problem. Go back in history. I study history. I’m like a nerd when it comes to how the economy works and economics and everything. I could nerd out all day long hours on it. I would put all of you to sleep.

Inflation has and always will be a temporary problem. It might be a year, could be two years. With the Fed’s actions and what they’re doing to destroy the markets and destroy the economy, I wouldn’t guess that it would take more than a year for the Fed to get a handle on inflation. Getting a handle on inflation and down to their target rate of 3%, they will succeed in two other things that they have succeeded well in the past. They will destroy the stock market and completely trash the stock market. It will fall.

I’m going to throw a number out nobody’s going to like. You can probably expect the stock market to go down another 60% to 70% from where it’s at. I don’t care if you believe me. I know where it’s going, how much it will go, and why it will go. Secondarily, in doing that, you will destroy the economy, but you have to do that to bring inflation down. Guess who created the inflation? The same people were trying to destroy inflation. They printed $5.1 trillion.

Short-term problems should be dealt with short-term solutions and not long-term solutions that end up making you broke. Click To Tweet

What do you think happens? What are you told to do? You’re told inflation is a problem. Cash is trash. You got to get out of cash. What are you doing? You’re buying cars. Why do you think cars are so expensive? You’re buying boats. All the money that you had. I hear it every day, “I took all the money that I had in investments. I bought this classic car because it was losing value. I didn’t want to lose value. I figured I love cars.”

There’s a valid point to that, but that’s what people are doing. In doing that, you are ruining what will be the biggest opportunity in your life that is right around the corner, coming to a theater near you. I wish I knew this in the past. When this recession happens, recessions present the largest opportunity in your life, but only if you’re ready for it. If all your money is out in assets or in 401(k)s or in cars or in boats or wherever, when this opportunity comes in, everything is now half off. Every house is half off. Every stock that you look at, including Apple, is 30% to 60% off.

That’s like Walmart doing the best rollback they’ve ever done, but you walk into Walmart and you’re like, “I left my wallet at home.” The sale is only for the next hour. “I missed out.” You can’t miss this opportunity. You can’t afford it. Your family and your grandkids can’t afford it. You don’t even know you can’t afford it. You miss it. Why are you listening to everybody else telling you to do something that is going to take control away from you and put your money in a place that you can’t have access to it when you’re going to need it most?

Forget about inflation. Inflation is not a concern. You missing the opportunities is the biggest cost you’re ever going to have in your life. To beat inflation, all you do is solve inflation, which is a temporary problem with temporary solutions. I’ll give you the greatest one. Go to TreasuryDirect.gov. It’s a government website. In the search bar, type in TIPS, Treasury Inflation Protected Securities. What are they? They’re US government bonds guaranteed by the full faith and credit of the US government. They’ve never defaulted on a single debt that they’ve had.

I don’t care what you believe about the US government. They probably won’t default because they got the printing press or they’re tied to the Fed that controls the printing press. How much do those pay? This is a new issue. It started in May and it’s ending in October 2022. I make nothing on this. The government isn’t sending me a check for referring you to build that. TIPS pays about 9.6%. How much is inflation right now? 8.5%.

How much do TIPS span? 9.6%. They’re going to be that for the next couple of months. They will probably settle down in the high 8s or low 9s. That is a short-term fix for a short-term problem. You got an inflation problem. You don’t want your money lost to inflation. You got money sitting in a bank account. If you don’t want to do the banking thing, put it into TIPS. The problem is you can only do $10,000 per person.

You can do $10,000 for yourself, $10,000 for your spouse, and $10,000 for your child. I got a lot of companies. I told my bookkeeper. I said, “Whatever company we have, more than $10,000 in reserves by TIPS.” I taught her how to do it. She went on and bought TIPS for every one of my companies at $10,000 increments. Why? It’s because I do have lazy money like most people that sit in these corporate accounts. I do have some money in traditional banks, although most of it goes back into my private banks. If I got an extra $10,000, I bought these. In a year from now, if the Fed gets their wish and they destroy everything and inflation is down to 3% when my TIPS reset, I might be only like 3% or 4%.

I can sell those things anytime I want. They’re liquid. One year in one day, I can let go of my I bonds. There’s a problem. This is what most people like are like, “They take a penalty. It’s three months of interest.” “Did you ever do the math?” “I didn’t. That sounds bad.” “You made 9.6% to start. You sold it in one year and one day. You gave back three months of interest. The mathematics is 7.77%. Is that a bad day in the office?” No.

There’s your answer. Become your own bank. Move your money. Stop giving money away to the credit card companies, the finance companies, and everything else. Start paying that money to yourself slowly. It takes time to do it or buy TIPS. Short-term problems should be dealt with short-term solutions, not long-term solutions that end up making you broke.

Everybody’s bought into this system of, “I don’t know how to make my money work for me so I give it to this guy.” He’s great until he’s not. You got to start taking control of your money like you got to take control of your household these days. Things are getting rough and they’re going to get rougher. You either change something or you go along for the ride. Stop burying your head in the sand because that’s not the way through this.

You have provided our readers and even us with so much great information. Guys, I hope you’ve been taking notes.

Chris, even somebody starting out, what’s the minimum investment they can come in at and start something?

With TIPS, it can be any denomination up to $10,000. With private banking, it’s not an investment, but it’s guaranteed. You can’t call the specialty design whole life and investment. It’s guaranteed. There’s no risk whatsoever. The minimum is simple. Take your age. I’m 45 years old. Add a zero. That’s 450. That’s my minimum monthly amount to start this. Whatever age you are, add a zero to the end of the age and that’s the minimum monthly. If you start a plan at the minimum, like $450, that would be the most you’d ever be able to put in because there are IRS rules. Even though it’s all tax-free, we have to abide by the IRS rules, which are based on the amount of death benefit and the amount you want to put in.

FWM 14 | Your Own Bank
Your Own Bank: You got to start taking control of your money just like you take control of your household. These days, things are getting rougher. You either change something or you go along for the ride.


We build these that you don’t need to worry about it. We would do all that if we designed your policy. If you go to your agent, your financial advisor, or your broke brother-in-law, I’ll make a $100 bet. I bet you they have no idea what this is. I was an advisor for sixteen years. They never once did they show this. People are always like, “My advisor knows all about whole life. Why wouldn’t he know about this?” It’s because they don’t teach you this. They don’t teach advisors this because, in order to do this, it requires the advisor. Let’s say the plan that gives you access to 90% of your money, guess what the advisor has to do? Make 90% less.

The fifth law of wealth is to give unconditionally and solve other people’s problems. Zig Ziglar said it best, “All you need to do is help a lot of people get what they want and you will get everything you want.” In order for me to help my clients do this and our company to help clients do this, we have to reduce the amount we make by 90% in most cases. Most advisors don’t want to make 90% less. It’s either they make and you lose, or they give and you get. Who’s in control of the money? You are at your money. You have access to 90%. That person makes 90% less. “He’s a nice guy. I don’t want to take money out of his pocket.”

Screw him. He doesn’t care about your money the same as you care about your money. If your advisor was smart, they would sit back and would say, “I can do this. I can make this work for my clients. They have got that much more money. They will tell all their friends about it. I can probably do a lot more of these and help a lot more people. If I help a lot more people by the law of numbers, I will make a lot more money. I will have more referrals and relationships. This thing will keep building.”

Most advisors have a scarcity mindset. “I need to make the most I can.” I understand that. If somebody put $10,000 in one of these policies, a normal whole life would pay that advisor a minimum of $5,500. That’s a good day in the office. If you come over to this side, we’ll call this the dark side for now, and you put $10,000 into one of these specially designed and engineered policies that we build, my check, $387.

The difference between $5,500 and $387 is in whose pocket? Yours. Who wins? You. Who should have been winning the whole time? You, because it’s your money. That’s it. The minimum is ten times your age. That’s the most you’ll be able to put in per policy. That’s why I have nine. I don’t have nine because I want nine. I have nine because, over time, I’ve made more money. My system has created more money and I’ve been able to put more money into my banking system, so every policy was an escalation of how much more money I wanted to put through my banking system.

What was the benefit to you or why do you have more policies than just the one?

If I could only do one, I would only have one, I assure you because nine is more work, but because of the IRS rules, when we build them, we build them at the max. Whatever a client wants to put into the policy to start, that’s going to be the max they can put in. It’s not the minimum. They can always reduce it by 60%. You have a 60% variance.

If you put $10,000 in, you can always go down to $4,000 the second year, and then you can come back to $10,000. You’ve got lots of downward protection, but no upside in that policy because of IRS rules called the max seven pay rule. It’s not important. We deal with that. I have nine because I maxed that first policy, $240 a month. The maximum was $560. From there, it went up.

If you guys want any more information again, Chris has some giveaways for you guys. Be sure to check that out at FullerWalletMedia.com/BYOB. Don’t miss this opportunity. This is the time to take control. If you want to do that, get some more information.

Chris, it was such an honor having you on. Thank you so much for joining us on the show. This was incredibly valuable.

It was my honor and my privilege. Thank you for having me on.

Thank you, guys, for reading. I hope you got some nuggets and were taking notes like we were. Have a great day. Don’t forget to check Chris out and get more information.


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