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The Secrets The Wealthy Don’t Tell You With Chris Naugle


The wealthy are the way they are because they do things differently. Otherwise, we would all follow suit. But what exactly are these? What do they know that we don’t? In this episode, Julie Houston invites America’s #1 Money Mentor, Chris Naugle, to spill to us the secrets the wealthy don’t tell you! Learning the lessons from his own professional journey, Chris takes us across his pro snowboarding career, his transition to Wall Street, and eventually to becoming the founder of The Money School™ and Money Mentor for The Money Multiplier. Join him as he reveals the infinite banking concept that allows him to take back control of his money and grow his wealth. Find out other wealth secrets that can make money do the work for you. Tune in to this conversation!

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The Secrets The Wealthy Don’t Tell You With Chris Naugle

I’m very excited to start 2023 with the guest we have because I’m sure we’re going to touch on so many topics that are going to be in effect for 2023. Any business and entrepreneur would love to know what Chris Naugle has to say. Welcome to the show. We’re excited to have you.

Thank you for having me as the first guest of the new year 2023.

I’m excited to have you for the new year. We’ve met before. You have a very interesting background and story. I’m familiar with it but if you want to do a sky overview or a little bit about yourself and your background for our readers that’d be perfect.

I was very much like a lot of the readers here. I grew up in a lower-middle-class family. My mom raised me and my dad was an alcoholic when I was growing up. It was a huge part of my life. All I had when I was a kid is the ability to dream. My mom always said to dream. I did and I dreamed a lot. Everything from wanting a pond in the backyard, I grabbed a shovel from the garage and went out and started digging. The BMX came and I watched a BMX movie called Rad. Many of you from the ’80s remember that. It was an iconic 1986 movie. That movie changed the course of everything because I had a purpose and a drive. That took me a long way. Skateboarding and snowboarding were a massive part of my upbringing.

I was always a sports guy. I didn’t play team sports. I always went to sports and it was me and mother nature or me and the concrete. That’s always what I did. I landed in snowboarding and I couldn’t forget the moment my best friend Jack, with whom I always rode dirt bikes, came over and brought this thing. We skateboard a lot and it was this long skateboard. I’d heard of snowboards but I’d never seen one.

We went out in the garage and started hopping around on this thing. That winter, he took me out snowboarding and I stopped. The first time down in the middle I thought, “I’m never going on this thing again,” but he took me back up for one more run, showed me some tips and I got it a little bit and it never ended. I watched my first video off VHS back then of Craig Kelly who passed away but back then a legend in snowboarding. I remember watching that video and saying, “I’m going to be a pro snowboarder.”

I live in Buffalo, New York. We have a lack of snow here. This is not the epicenter for snowboarding. This isn’t the epicenter of anything outside of the Buffalo Bills. When I started telling people I’m going to be a pro snowboarder, they laugh. When I tell friends at school, “I’m going to go snowboarding. I’m trying to do this so I can be a prom,” they always laugh. There’s this one day I caught wind of the two pro riders filming at the pub that they had opened up.

I played bookie from school and I’m up in the snowboard pub and there they are. They’re the first pro riders I’d ever seen in my life. I’m sitting there afar watching them. I’d be like that creepy kid that follows. They go down the hill, I follow behind, they get on the lip and stay far enough back and go up. I was the only one watching them. For some reason, nobody else knew. I remember Blair coming up to me and saying, “Do you want to ride with us?” I’m like, “I’m not big enough.’ He said, “Come on.” He was the coolest guy. Right then and there, they played. That’s all I can think about day in and day out.

In the summers, when the snow melted and we had nothing, I got a trampoline. I put duct tape and stocks taped up the edges of my snowboard and learned all the tricks on the trampoline. I’d go into the house and watch VHS tapes and the pro snowboarders and their tricks. I’d go out on the trampoline and drill them so I had them perfect. When it snowed, I went on the hill and practiced them.

Most of the time, I didn’t have much money to go to the resort. We lived by a golf course. It was a country club but it was in a big ravine. It’s a golf course so there are sand traps. When there’s a sand trap on a hill, it creates a natural jump. In the winter, I would take a shovel. Mom would drop me off after school and say, “You’ve only got two hours and I’ll be back to get you.” I would run over to the sand trap, build the jump and run as fast as I could up and down that hill to learn those tricks. That’s how I did it. I dialed the tricks in.

When I competed, I would win these contests. That’s the early days but it’s still kept me short of my goal of being a pro because there were no talent agents, reps or team managers coming out. I found out the best way to do this is I got to travel East. I got to go to Vermont, New Hampshire and Maine. I got to compete in these bigger contests.

I came up with a thing where my friend Ben and I on Friday night would load in our crappy car and drive six and a half hours to Vermont. We barely sleep or maybe an hour in the parking lot in the cold. All day Saturday, we find a couch or somewhere to crash and sometimes in the car. We compete all day Sunday, get back in the car and drive six and a half hours back home. We were barely able to keep our eyes open.

I don’t talk about that story much but a legend in the snowboard industry, Ken Block, passed away in a snowmobile accident that brings back those early days of what I went through to become a pro. I ended up becoming a pro. I became a pro when I was sixteen and started a clothing line in my basement. It was t-shirts because I didn’t want to work for anybody. I couldn’t go snowboarding as much.

I started making shirts and selling them at school. That clothing line turned into a skateboard shop called Phatman Boardshop. It’s still open. I sold it in 2010 but as a young kid growing up with nothing and having everybody tell me I couldn’t do it, that dream never ever fizzled. I never let anybody tell me that I couldn’t accomplish what I wanted.

I went on to be a pro snowboarder and have four shops. Everything was going great until that one day driving to my newest store in my car and on the radio, I heard of a plane hitting a tower and then another one. You all know this to be 9/11 but at that moment, this was all unfolding right there. Like most of you, you’ll never forget those iconic moments when tragedy hits, you know exactly where you were, what you were wearing and what car you were driving.

I was in the military.

That is a different experience.

I was on active duty.

Thank you for your service.

Thank you.

The thing I remember about that is I was 21 or 22 years old at that time. What unfolded next was the dot-com recession. I wanted to tell the story prelude to bring us to the current day and we’ll get through the rest of the story but I was a young kid living my dream and having my stores like the world was mine. All of a sudden, I saw what it was, what it did or what it meant. I heard about it but never felt it. My businesses crashed. I barely was able to make my car payment so I had to get a job. I pulled my resume out. I went to Little Caesars thinking they got to be looking for delivery drivers but they weren’t.

The only people that called me back were Wall Street firms of all people. Think about that. I’m a pro snowboarder. I got snowboard shots. I wear a hoodie and beanie every day and I don’t even know what a tie looks like outside seeing people at funerals and weddings. All of a sudden, I got two interviews with Wall Street firms.

After researching and knowing what they were, I was so nervous. I was like, “I need a job and if these guys are the only ones that want to interview me, I’m going.” I did. That was the beginning of my Wall Street career. It was a weird period because I went from everything I loved about snowboarding and being free to be in an office every day wearing a suit, blue, charcoal gray or black. Those are the color you could wear every day.

I felt so out of my skin. I’m sure a lot of you can relate but when you’re doing something so foreign to you and you do it out of necessity, there’s always got to be something that your mind is okay with it. There’s this clothing line with snowboarding clothes called Volcom. They’re big now but back then they were very small. They made very cool custom suits and you could only get them if you were an athlete. I begged them to give me one of these suits and they did. I wore that suit every day because that was the closest thing that brought me back to my snowboarding roots but it still put me in that situation.

Mentally, it made me feel better about wearing a suit but it allowed me to fulfill what I needed to do. I ended up buying it. It’s interesting because everything changed. I liked the Wall Street world. I did well and I’m one of the top three advisors but I remember I did it because I watched what the other advisors did, the high-producing guys with the corner offices. They sit there at 8:30 or 9:00, leave for two hours for lunch and be gone by 4:35 PM.

I said, “I want one of those offices. I’m going to get here at 7:00. I’m going to work through lunch and make calls. When they go home, I’m going to go to the client’s house and meet with clients every single night.” These guys can’t. They have families or whatever they do but I can. That’s exactly how I did it. I did what everyone else don’t want to do. That sums up a lot of what I’ve done in my life. I was an advisor for sixteen years. I had an incredible career. I only worked for two different companies during that time. One was a giant New York City Wall Street firm.

At the end of my career, I was into real estate. My wife and I were looking for a change. We ended up getting to real estate. I almost lost it on real estate. I forgot to tell everybody that. In 2008, when the Great Recession hit, I was developing a strip mall where my new store was going to be opened up in. The recession hit right at that time. I had a hard money loan for $360,000. I was one payment away from being bankrupt. My girlfriend moved into my house. I remember late at night and she moved in. I come home to her and ask her to sit down and say, “I need your help paying the bills, mortgage and utilities. My friend, Pete, is going to move into that bedroom down the hall.”

The next thing I should have said to my girlfriend is, “Any question?” I was backed up against the wall. I had nowhere to go. I had no money. I had no one to ask. Now, we’re married and have a two and half-year-old. We’ve been married for several years. It’s crazy to think but back then, I was going bankrupt. In 2009, I was reading a lot of books because I lost it all. In the early 2000s, I lost it and then I lost it all again and I’m rebuilding.

I remember Warren Buffet said, “The best investors do three things. They buy low, sell high and don’t lose money.” In 2009, it hit me that real estate is low and affordable. I took every penny I could from my job and business and bought real estate. I sold my retail stores and bought more real estate. I sold the strip mall that I developed and bought more real estate. I did this from 2009 to 2014. In 2014, I was up to 36 units. I went for my next 37th unit and at that point, the banks said, “No.” I didn’t know how banks work from the inside and both of us don’t know either.

FWM 24 | Wealth Secrets
Wealth Secrets: “The best investors do three things: they buy low, they sell high, and they don’t lose money.”

When you’re buying a lot of properties and you’re doing it in your name, eventually you will hit the financial wall. It’s called the debt-to-income ratio. Ten is the most you’ll ever get. I was at 8 and 36 units at the time. They said no and I didn’t know why. I said, “I can’t buy that one,” but then they froze my line of credit, which I used to renovate the units. It spiraled me out of control down. I ended up having to sell and liquidate a lot of the properties that I had bought trying to get things going and keep the properties I had. I ended up getting so frustrated. I sold every property and was at the lowest point in my life.

Lorissa and I were engaged at that point. When you have financial hardships, things go bad at home. We had bought our dream house. Everything was tough. Money creates weird problems. Money is the cause of more divorces than anything else and it almost resulted in our splitting. I remember I went to Thailand for a month to get ahold of myself and figure out who I am. We got back together and that paved the next part of my life, which was another big dream. That big dream was I wanted a TV show. I don’t know why. During my snowboarding career, I had been in a lot of movies.

When you have financial hardships, things go bad at home. Money creates weird problems. Click To Tweet

I didn’t know you were in movies. You were in movies?

I was in a bunch of snowboarding films. They were all widely distributed in the snowboarding industry. I wanted a show and I saw someone get on the stage and do a presentation. I looked at my wife and said, “If we’re ever going to get on that stage, we’re going to need our own show.” We already flipping a couple of houses. That’s what we did. We went deep into it. I tapped off the financial advisory world and went all into real estate. We were paving our way to getting the show.

Through lots of hardships and being told no but never giving up, in 2018, our show aired on HGTV for the first time as a pilot. I thought, “We made it.” There are so many hurdles you got to jump through to get on that show. We made it through everyone. Greenlight is where you’re at the final stage and get rated based on other shows that they’re airing and your ratings when you air. In greenlight, we were the number two show.

Even our producer said, “You guys got it. They’re going to sign you for probably two seasons to start and then after that, you’re going to start making money in the third season.” I’m like, “Let’s go.” We were supposed to hear from them. It’s probably 1 week or 2 but it felt like an eternity waiting for this call. We’re driving home late at night and my phone rings and it’s the producer. I’m like, “Here it is.” I picked it up and was like, “How is it going?” On the other end of that voice, the first words were, “Something’s wrong,” and they ended up telling me that the HGTV wasn’t going to air new shows. They were bought by Discovery and they’re closing new shows.

You can say that’s the wrong place, wrong time, bad luck or anything but it was everything I needed to hear because that was exactly what put me to the point where I’m at. If I got that show, I wouldn’t have been able to do what I do now. I wouldn’t be able to help people learn how to take back their money. That pivotal moment was another massive point in my life where I was at a loss again.

As I got home and told my wife, I remember my phone ringing again. It was this guy, Greg. He was a guy that I met at that seminar. He was a huge real estate investor and a multi-millionaire. We had started doing some deals together and he calls me up. He’s so excited on the phone. Remember, I got told that the show wasn’t going through, told my wife and bawled my eyes out. I’m thinking my life sucks and everything’s going downhill.

I’ve had moments like that. It’s like the end of the world.

We’re all the same. We go through these trials and tribulations. Greg had a lot to lose from me not getting the show because he was going to be a sponsor of the show and all this stuff with his companies. He’s so excited. I’m thinking somebody tipped him off. He was trying to cheer up. I said, “Who told you? You’re giving a call and saying you’re excited about working together?” He’s like, “Yes, I am. I’m so excited about the things we’re doing.” I said, “I got some bad news. We didn’t get the show. You thought it was cool and wanted to do stuff with me but I’m sure now, I’m nobody and you’re going to disappear.” I’m thinking, “This guy’s only talking to me and wants to be part of what I’m doing because I got this TV show and now, I got to drop the bad news.”

Greg is one of my business partners and one of my best friends. In life, sometimes we’re hanging on by all ten fingers and you got a firm grip on your life. Sometimes we’re only hanging on with five and sometimes we’re hanging on by a pinky but you will never know who’s hanging on by a pinky because they won’t tell you and won’t show up from the front. At that moment, I was hanging on by the very tip of my pinky. That call allowed me to reach back up and grab with another finger and another.

The next phase after that we kept flipping houses and I was borrowing money from Greg and his friend Mike, another very big real estate investor. In a big mall downtown and a Cheesecake Factory, I was there snowboarding and talking to Mike about a deal. I asked him, “Mike, how is it that you lend all this money? How do you do this?” That was in 2014 so I’m still on Wall Street at this point.

He says, “I have my banking system.” I thought he had a bank. He moved back and said, “No, I don’t have a bank. I just had my banking system.” I’m like, “I don’t understand.” He starts telling me and then he drops the bomb. As an advisor and with no disrespect to any advisor reading this, I’ll be the first to tell you I thought I knew everything. I thought everything that there was to do with money, stocks or investing, you couldn’t put one past me.

Is it safe to say a lot of financial advisors think that way?

I guarantee it. I know it.

Everyone I’ve come across has pretty much been that way.

I was no different. You can call it arrogance.

It’s a different method of training for them. They don’t know.

They’re top of their game. They got all the licenses and lots of different things they go through to get to those levels as I did so you’ll think you know everything. You all know who Will Rogers is and if you don’t, google him. With many advisors and people in this country and world, Will Rogers in a quote 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 is not it.” I thought I knew everything and I didn’t know it.

When he told me what this banking system was, he called it a private banking system. When he told me the machine you used to put money in, I sat back and said, “No. I’m the advisor and what you’re talking about doesn’t work that way.” He said, “I put money into it. I get a guaranteed interest rate and paid dividends. I didn’t take the money and I’ll lend it to you but my money never leaves the account. The company gives me this chunk of money as a loan and collateralizes it with the money in the account. I then lend that money to you. When you pay me the interest on the money, I’d lend you, Chris, I’m not making just that. I’m making money twice. My money’s still making an interest in compounding while you’re paying the interest.”

He said, “Chris, all my friends do this.” They called it the infinite banking concept. He says, “I’m surprised you don’t know about this. There’s nothing complicated. It’s this vehicle. I put money in it and take money out. I make that money go to work, take whatever it came and put it back in my banking system which cuts out the need for a traditional bank to hold my money.”

“When I have money, I don’t put it in the bank. Outside of the money, I buy groceries and diapers. I take all my savings and put them in my bank. Everything that I want to do, whether it’s buying cars, buying real estate or lending money to you, I take a loan from my bank and I’m lending it to you. My money never stopped looking for me.” That’s the greatest thing I’ve ever learned. I said to him, “How do I learn this? Mike, teach me.” He said, “It’s from Brent.” I said, “Give me Brent’s number.” He gave me Brent’s number.

I could not leave that Cheesecake Factory fast enough. I’m like, “I got the bill, Mike.” I get in my car and called Brent. I must have sounded like either a crazy lunatic or a blender with its top off. I’m going on and on about this Brent guy. I’m like, “Mike told me about this infinite banking concept and this thing. I’m an advisor and I need to know all about this. I don’t know how to do it.” He says, “Stop,” abruptly. He says, “Chris, thanks for calling. Have you seen the video?” “What video?” “If you haven’t seen the video, let me pause this conversation. I’m going to send you the video. It’s 90 minutes long and when you watch the video, then we can do a conversation.”

I said, “No, Brent. I’m an advisor. I don’t need a video.” He stops me again and said, “Watch the video instead of a call.” I don’t have 90 minutes to watch a video. That’s Sunday with my biggest cup of coffee. I go down in my basement, set it on my computer desk, grab a paper and I’m like, “This is going to suck.” 90 minutes flew by like 10 minutes. I had four pages of notes. I still have those four pages to remember this moment. At the end of that video, I seriously feel like I saw the one thing that all the wealthiest families in history have used and still used that I didn’t know about. I had unlocked the biggest secret in the financial and wealth space that nobody knew about. I was hooked.

From that point, I have never stopped using it. I have never ever stopped being my own bank. As you know, all I do is teach people this. I teach people exactly how they can take back control of their money. I do it by teaching him what I learned in those hard unique times of my life. I went long on that as I usually do but there are so many little golden numbers.

I have to ask. When you were learning this, how long ago was that?

I was an advisor from 2003 on and when I learned this was 2014.

It’s been quite a while. Is it safe to say you’re almost going on ten years in 2023?

Yes, ten years in 2023 with all the gray hair.

Is it more beneficial now than prior to the pandemic? Income-wise, revenue-wise and tax-wise, are these all additional benefits that come with being your own bank?

It is a better time than any other time that I can think of for a couple of reasons. Number one, I talked about those resetting. I spent a lot of time talking about how that first recession impacted me and I did that because we’re in a period where anybody that’s 36 years old or younger has never felt the impact of a recession. We’ve been in the longest bull run in history. I parlay that because of what people are about to go through. Just so everybody knows what I’m talking about, we’re in a recession in 2022 but they won’t admit that and changed the technical rules.

We’re going to be deep into a recession and it means a lot of things. People around you are going to lose their jobs. They’re going to get laid off. The income that they know and the things they have is going to be gone. Their 401(k), which they’re already down double, is going to probably lose another 30% or maybe even 50% depending on how bad this gets. People are going to go through some hard times. That happens because we’ve been in this super long period where everybody thinks everything’s good. Everything you put your money in goes up.

FTX Crypto probably not taking great things. Prior to 2022, in everything you put your money in, you made money. You didn’t even know what you lost. That was me back in 2003. I had no idea about everything. I was doing and living a decent life. We’re going to dive into a little bit of the infinite banking concept and this magic machine, which I still haven’t told you what that thing is where I put my money in. I like to build it up.

Number one, in 2022, you’re approaching the largest financial opportunities. It’s almost here. You got to wait for it but too many people are rushing to try to make quick money. They’re trying to get rich quickly and do everything they can out of everything and it’s not working. They’re losing money. Crypto might have made money for them but that is deflated because crypto has no intrinsic value. Is crypto real or not? What I’m talking about is this system isn’t new. It’s been around for hundreds of years.

This period of time right now is going to unlock the largest opportunity for everybody. You’re approaching the largest financial opportunities, so you have to wait for them. Click To Tweet

It has been with Morgan Stanley. It was used by Walt Disney to create Disneyland. It was used by Ray Kroc to launch his real estate empire, which is known as McDonald’s and burgers. It’s a real estate company. I’m not trying to be political at all but the President uses this. Warren Buffet uses this. I covered the whole wide spectrum but there’s a lot more. All these people used this throughout history but the majority of the people or the public never heard about this.

It’s the same reason why when I was an advisor and I never want to talk about this, there’s no money in it. There’s no money in it for an advisor or someone to tell you how to do this. You’re probably all thinking, “Why are you telling me?” I figured it out and cracked the code. The secret sauce to making lots of money is solving a lot of problems with people. The more problems you can solve for a lot of people, the more money you make but you got to get good at it because what I do, I don’t make money fast. I make very little amounts of money and I do that by helping thousands of people throughout this country and Canada.

I’ve gotten to become an expert at this. All of you need to realize that you need to be an expert at something and focus everything you have on it but you also need to get ready for this recession, which means you should be paying your debts off and putting your money in a guaranteed safe place even if it doesn’t pay you a lot. A guaranteed state place for that money is liquid, accessible and usable. Taxes are going up. It’s sorry to be the bearer of bad news. They hired 87,000 or 88,000 new IRS agents. They’re going to make sure they get paid.

You want your money sitting not only in a guaranteed place but a guaranteed place that’s tax advantage or tax-free. You also want to have a place where when you use your money, your money doesn’t lose its earning potential. Put your money in the bank but I’m not saying a bank account. Some of you are thinking, “That’s guaranteed and that’s liquid so maybe I’ll do that.”

I’m the perfect example. I put all my hard-earned money in the bank and paid a ridiculous nauseating tax bill.

You put that money in the bank where it was safe and cozy and then all of a sudden, you get the tax bill and there it goes. Inflation did a number on it too. We were at 9% and then 7.1%. Who knows where will be next time they announce it? Your money’s getting depleted as it sits there but your money’s still safe and cozy in your bank account. It’s the same money you would put in that bank account for a rainy day or opportunity. I changed one thing and that’s where that money goes first. Instead of leaving it in their bank or God forbid you have it on Wall Street and if you do, look at your statement and you’ll know what I’m talking about, I put my money in this machine.

This machine pays me a guaranteed interest rate of no less than 3%. I get guaranteed interest at 3%. Your bank might pay you 3% but soon as they pull interest rates again, which they will, your bank will stop paying you interest on it. This will never stop paying me for the rest of my life. Secondarily, I get a dividend every single year. The company where my money is pays a dividend every year. It is not a stock. A lot of people thought of dividends as stock. I get a dividend. Not only is my money guaranteed and earning 5% to 6% with dividends but it’s all tax-free.

When you made that money and you had to pay the tax bill and everybody that has money in a bank account at the end of the year, you get a 1099-INT. Whatever interest the bank paid, you got to pay tax on but not me. Not only that, my money is private. I don’t have to declare or tell anybody about it. It is off the grid. Why do you think the Rockerfellers and Rothschild have their money here? Why don’t you know how much they’re worth? It’s private.

My money when I someday pass away, that money will pass on to my beneficiaries tax-free and it will have a big doubling effect. It will be a lot more money than what’s in them. While my money sits there, if somebody needs that money or if I have an opportunity and that opportunity can be anything you want it to be, it could be buying stock when they go down or buying real estate when it goes down because the opportunity is to buy low and the recession will provide that to you, I can take this money anytime I want and redeploy them to a place where it’s going to make more money.

FWM 24 | Wealth Secrets
Wealth Secrets: The opportunity is to buy low, and the recession will provide that to you.

When I take that money, I don’t actually take my money. I’m taking the insurance company’s money. I’m going to start by telling you what this is. Not just any insurance company, a giant mutually-owned and dividend-paying insurance company. That place where I’m putting my money is a vehicle that you all know about and it is called a whole life insurance policy. You’ve already listened to Dave Ramsey say how bad whole life is. Many others have told you, “The whole life’s the worst place you can put your money.”

Riddle me this, why big banks are the number one holder of all of your money and put more money in whole life insurance than anything else? Not just more money. They put their most valuable tier-one capital. Look it up, I’m not lying about this. Google BOLI or go to The government would never lie to you. “This is Chris guy. He’s telling you fibs about whole life insurance.” Look up bank-owned life insurance. What you will find is that banks are the number one purchaser of it in the world.

Not only that but the top five banks in this country have over $75 billion in none other than the whole life, yet they’re going to tell you that you should buy and invest the difference and whole life’s the worst place. Do you think banks are putting their tier-one capital in the same whole life that your broke brother-in-law sold you? No. This whole is designed and engineered to do something different than what life insurance does. It’s still life insurance but it is designed and engineered to be a banking system.

FWM 24 | Wealth Secrets
Wealth Secrets: This whole life is designed and engineered to do something completely different than what life insurance does: to be a banking system.

The Rothschilds and Rockefellers are at the core end of what they did. Were they not bankers? They were. The Morgan Stanleys are bankers. They understood banking and all put their money in life insurance. Does that say anything about their bank? If you got a lot of money or are wealthy, chances are you don’t trust the bank because you’ve been through this rigamarole with them. Did you go into the bank during the pandemic and try to take a large sum of money? When I say large sums, sometimes $5,000 to $10,000. What did the bank do? Did they let you take that money?

They’ll try to stop you from taking it.

What are you using the money for? You got to fill this one and this one.

What’s this for? What are you buying? What is this? I get that all the time because I buy properties. I’m an investor and I pay cash. Sometimes I go in and I’m like, “I need a cashier check.” They’re like, “Why?”

“I gave you my hard money to hang on Mr. Bank. Why do I have to tell you what I’m using it for? It’s none of your business. Give me my money.” “I’m sorry we don’t have that much. You have to come back tomorrow or the next day.” The max that you can take out each day is $5,000, $10,000 depending on the bank. If you’re looking at the big bulk and you’re like, “No, go in there and get me my $10,000. It’s my money.” “Sorry, sir. We don’t keep any money in the bank.”

I had a problem with one of my business accounts. I went in and I wanted to take a smaller amount out, which could be considered a large amount for a lot of people but they had to call another branch and get the money sent over there. I had to wait a few days and then I was able to take my money out. I was like, “This is interesting. I’m banking here. All my money’s deposited here and I can’t withdraw my money in my bank account.” I had that issue.

I’m sure some of the readers have gone through the same thing. You thought your money was safe and secure, which maybe it is but maybe it isn’t. You look up to the FDIC and see how much money they have to support all the money that they state that they guarantee. If it’s your money and it’s in a safe place and liquid, then why do you have to answer the question? It’s specially designed and engineered whole life that I put my money in and all those wealthy families put their money in is designed backwards.

It’s not designed to be liquid. You put the lowest death benefit on the policy possible. Why? It’s because as Dave Francis says, the whole life is expensive. “You buy an expensive life insurance policy, all your money’s going to be an insurance company.” Let’s put the lowest death benefit on this thing possible. The maximum amount of money we can under the IRS rule is called the MEC seven-pay rule. I’ve got a unique vehicle, a whole life, at the end of the day. They act like high-powered supercharged savings accounts.

In the first year or maybe two years, you can’t take all of it. This isn’t for people that go into the bank, put in $10,000 and before the end of the year, go back into that same bank, take $10,000 out and say, “See, I told you I could. ” This isn’t for you. You’re going to be able to access between 80% and 90% of your money in the 1st year and in some cases, more than 100% of the money you deposit in the 2nd year.

We’re not going to get into numbers. I got plenty of videos of them on YouTube and I’m giving your readers these books for free so they can learn. Let’s go back to the fundamental reason why would I ever put my money into especially designed and engineered whole life. You know this magic place. You were all super excited about it and then you’re like, “I don’t know about that.”

Let me get you to the fun thing and I’m going to give you real examples. I put my money here and every year, I save as much money as I get into this specially designed whole life. Let’s say I wanted to buy a vehicle, $129,000 or whatever the vehicle costs. I got $129,000 in my private bank or that whole life cost. I go online. It takes me about 30 seconds to log in and get everything saved, click max loan, $129,000 and click 4 different times because I got to answer 4 questions. That’s it. “Is this part of a divorce decree? Is this part of money laundering?  What bank do I want this goes?” I want to this bank and then click submit.

The insurance company will then wire that money, ACH that money or send you a check whichever way you want it to your actual real bank. The process takes anywhere between 1 to 36 hours, at the longest. That money’s sitting in my account. Let’s go back. Let’s say I had $150,000 and take $130,000 out to buy this truck. How much money’s left in my account? I got $20,000 left, right?

Assuming, yes. You have $150,000 from what you explained based on taking the loan and keeping your money in there.

The one $150,000 is still in my account but I’m holding $130,000 in my hand, which isn’t my money. It’s the insurance company giving me part of my death benefit early before I die and I buy the car with that money. The infinite banking concept is not the whole life policy. The whole life policy is designed for one purpose, to be a machine that I put money in and take money out of to make that money go to work.

The whole life policy is designed for one purpose: to be a machine that I put money in and take money out of to make that money go to work. Click To Tweet

That $150,000 is earning 5% to 6%. I take $130,000 out and the insurance company loans me part of my death benefit and they charge me 4% to use that $130,000, which is the real number. Let’s use 6%. I got a policy that pays me 6% with MassMutual. I’m making 6%. I take 4% out. What did I make in the middle of it? It’s the same thing with bank debt, a spread. When you put money in the bank, they pay you an interest rate or maybe they don’t but let’s pretend they do.

It’s like I do investing where I buy houses and we’re the bank only through my business account.

It’s the same idea. You’re making a spread. Whatever the insurance company pays you and whatever you’re earning minus whatever they charge you is a spread. Bank paid you and lend it back to you at 5% for that car loan. They make the spread but all I’m doing is taking back the banking functions in my life by using this concept. I own this awesome vehicle that I paid $130,000 for.

I go on and calculate how much money would the bank have charged me to take this car loan. Let’s say 5% for a car loan. It says my payment’s going to be $2,100 a month. That’s crazy. Who would ever pay $2,100 a month for a vehicle? It’s a stupid investment. The bank would charge me $2,100 so I’m going to go to the bank where I put my income and set up bill pay for $2,100. The same amount I would’ve paid the bank to buy this vehicle that I bought but where is it going to go every month? I’m going to put $2,100 back into my bank, which is that especially designed whole life. I’m going to repay that loan the insurance company gave me.

When I repay that truck’s loan to myself, how much money does my account has, whatever interest and dividend that $150,000 earned that entire 5-year period plus add all the interest that I would’ve given away to a traditional bank 5% in this case? I made money twice but the cool part is by doing this, I get all the money back with every single vehicle that I ever buy driving on. Why do I drive a stupid big vehicle that costs me that much money? It’s because it doesn’t matter. It’s all back in my bank, not their bank. It doesn’t matter what vehicle I buy when I get all the money back.

If it works for cars, it works for boats and houses like what Julia does. You buy rentals and take the net rental income. Instead of putting it in a traditional bank where they make that money to go to work for them and make a spread, you take the net rental and put it back in your bank where the money came from. The downside of the business, I had to capitalize on my banking system. I had to save for that car purchase $150,000 and pay cash for the car.

I didn’t stop there as most people would. Is that all you’ve got? You move the earning potential of $150,000 grand if you did it from a bank account. That $150,000 is in a vehicle that I guarantee is going to depreciate when you sell the vehicle at a loss. I would never lose money buying vehicles ever because I controlled the banking function of that. All my money goes there and it never stops earning compound interest. Everybody reading this understands that in 2023, that $150,000, the interest I earn, is earning interest.

Albert Einstein described it the best. He said, “Compound interest is the eighth wonder in the world and the most powerful thing in the universe. Those that understand it, earn it. Those that don’t, pay it.” We have been brought up in a society and ecosystem where all we’ve been taught to do is pay interest to other people. We’ve not been taught how to use compound interest to our favor. You think you have but when you put money into something, leave it and it compounds and you take that money out, does it still earn compound interest? No.

If I put $150,000 in a brokerage account with a stock broker and I’m earning an interest in a high-yielding money market, as soon as I take that $150,000 out, that money market or that Wall Street firm stops paying the interest. In this case, I changed the dynamic because my $150,00 never leaves the account. I get to use the insurance company’s money. They’re glad to give it to me because they got to pay for it someday when I die.

By lending it to them while I live, they make a profit of 4% but it doesn’t matter that I’m paying them 4% because they’re paying me 6%. It doesn’t matter for numbers 5% and 4% or 6% or 4%. You got to understand because every year I make a bigger spread. This is the most fantastic thing I’ve ever learned in my life and it’s the most exciting thing that I’ve ever taught. We have over 7,000 throughout the country and I don’t have one negative review or one angry client because everything I told you works exactly the way that I said it works. I’m living proof and so are all of our clients.

That was incredible. That was mind-blowing. To be honest, you always have such incredible value to share. This could change any individual, entrepreneur or business owner immensely. This is the whole game-changing. It’s a very different perspective.

A lot of people don’t quite understand it. The biggest thing that I do is teach people how to take back control of their money. Your whole life you’ve been taught to give up control of your money and let other people be controlled from your 401(k)s and your advisor like I used to be and the bank. You’re always giving up control of your money and they’re making your money work for them. Maybe you’re making something or not now but they’re in control. This puts you back in control and then the second part of what I do is to teach you how to be your own bank and that’s simple. Look at what a bank does and mimic it.

That’s exactly what I’ve made and built this entire thing off doing nickels and pennies helping thousands of people. A lot of people when they hear about their whole life first think, “That Chris guy is making a big commission.” I got a video on YouTube that says how I lost $534,000 using the infinite banking concept. It’s a catchphrase but that’s substantiated. I gave up $534,000 in commission so that my clients had $534,000 more money in their cash value inside that policy.

The way we design these requires us to take it anywhere between a 60% to a 90% cut in our commission. That thing Dave Ramsey always says is, “Those whole life policies, the only person winning is the agent and their payback commission.” True if your brother-in-law sells you the regular whole life that has no cash value in a year. In ours, you’re going to have immediate access to your money in the first 30 days and that’s us. We cut our commission from 60% to 90% so that our clients get access to that fund immediately. It takes a whole lot more planning. This is why your advisor won’t tell you about this or they don’t know about it. They don’t want to take a cut.

Back in my day, my fancy student comes up to me and say, “Mr. Advisor, I hear you’re one of the best advisors here. I got a question for you. I want to do a lot of things. I’m a real estate. I got this money and I want to put it somewhere but I heard this video. I want to put it in this whole life policy.” That advisor will be happy. They’re like, “That’s a great thing. I’m happy to help you with that Miss client.”

If you say to that advisor, “I need you to take a 90% cut in your commission so that I have 90% more money in my account. Can you do that? If you can, I will do that.” The advisor every single time will say, “That’s not possible. It’s against the law. It can’t be done.” Remember what Will Roger says, “The problem is not what people don’t know. The problem is what they think they know that they’re saying.” This isn’t new. This has been hanging done for hundreds of years. Your advisor probably doesn’t know how to build the policy and engineer the way that we do because it’s very specialized. It took me a long time to figure it out but once I did, I know I have to.

Chris, thank you so much for spending your time with me and our readers. It’s always such an honor having you.

It’s my honor and privilege. Thanks for letting me share my story again.

Thank you.


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About Chris Naugle

FWM 24 | Wealth SecretsChris Naugle is founder and CEO of The Money School and The Private Money Club. The Money School teaches you to Be Your Own Bank – which helps you solve your money problem, by putting you back in control of your money.

From pro-snowboarder to money mogul, Chris Naugle has dedicated his life to being America’s #1 Money Mentor. With a core belief that success is built not by the resources you have, but by how resourceful you can be.

His success and national acclaim have come in large part to what he’s learned first-hand from seeking a better way to wealth creation and preservation than he learned growing up.

Chris has built and owned 19 companies, with his businesses being featured in Forbes, ABC, House Hunters, and his very own HGTV pilot in 2018. He is currently founder of The Money School™, which teaches you to be your own bank – which helps you solve your money problem, by putting you back in control of your money.

His success also includes managing tens 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.

Chris is also a nationally recognized speaker, author, and podcast host. He has spoken to and taught over ten thousand Am