Insight with Chris Van Vliet - How To Thrive During A Recession - Chris Naugle On What You Weren't Taught About Money

Episode Date: August 18, 2022

Chris Naugle (@thechrisnaugle) is an entrepreneur, former pro snowboarder and has dedicated his life to being America's #1 Money Mentor. He 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, and Money Mentor for The Money Multiplier. He joins Chris Van Vliet at the Blue Wire Studios at the Wynn Las Vegas to talk about how to thrive during this recession, what school didn't teach you about money, how to be your own bank and much more! For more information about Chris Naugle visit: http://chrisnaugle.com If you enjoyed this episode, could I ask you to please consider leaving a short review on Apple Podcast/iTunes? It takes less than a minute and makes a huge difference in helping to spread the word about the show and also to convince some hard-to-get guests. For more information about Chris Van Vliet and INSIGHT go to: https://podcast.chrisvanvliet.com Follow CVV on social media:  Instagram: instagram.com/ChrisVanVliet Twitter: twitter.com/ChrisVanVliet Facebook: facebook.com/ChrisVanVliet YouTube: youtube.com/ChrisVanVliet TikTok: tiktok.com/@Chris.VanVliet CVV CLIPS: youtube.com/CVVCLIPS Learn more about your ad choices. Visit podcastchoices.com/adchoices Learn more about your ad choices. Visit podcastchoices.com/adchoices

All systems are going. Ladies and gentlemen, Chris Van Blaine! Oh, greetings and salutations, my friends. Welcome back to another audio adventure here on Insight. I am CBV Chris Van Vlee coming to you from the beautiful, incredible, unbelievable Blue Wire Studios at the Wind Las Vegas. And this episode couldn't have come at a better time. A lot of people are worried with gas prices up, inflation up,

Everything up. And depending on who you ask, we're either in a recession or we're headed very close to being in a recession. My guest today is Chris Nagel and he's dedicated his life to being America's number one money mentor. And he just thinks about money and savings in a way, unlike anything I've ever seen before. So there's going to be a whole lot here that you can take away from this that will really help you through this. Give him a follow on social media. he's at the Chris Noggle. If you're not already, give me a follow on there. I'm at Chris Van Fleet.

You can also check out Chris's website at chrisnoggle.com. We're checking out websites. You can also check out mine. Chrisfanfleet.com, there'll be a little pop up. When you head to the website, just enter your name and your email address for basically a rundown of everything we have coming up and got some cool prizes, like some giveaways coming up. So head to Chrisfanfleet.com. enter your name, your email address there,

and we'll keep you up to date on everything. Yeah, there was a little snap of the fingers there. We'll keep you up to date. All right, let's dive into this. Here we go. It's me and Chris Noggle. Well, I say it all the time, but I'll say it again. I haven't met a Chris that I don't like.

I would say the same. Our parents are so smart or unoriginal. I don't know, one or the other. Although I guess I'm named after my grandfather's. So I guess my mom's not unoriginal. I'm going with smart. Smart. That's what it is.

So Buffalo's home for you, right? Buffalo is, yeah. So I'm just across the lake. You're my neighbor. That's right. If you had a really fast boat, you could be across the lake and see me in like half an hour or something. So Toronto's home for me.

That would need to be a fast boat to make it get there quick enough. Well, I think it's just battling the Lake Ontario waves would be the biggest problem. Absolutely. I mean, I know those waves well. I've done a lot of surfing on both lakes. You're into like surfing, snowboarding. When you're not talking about money, I love them when you walked in, you're like, money's, I'm like, money is my expertise. I'm like, that's a great sentence.

What should we talk about? I'm like, money. Well, obviously, but like, I love, that's a great sentence. I'm going to use that. Yeah. When, uh, when you're not doing that, what are you, what are you doing with your time? So when I'm not teaching or traveling around the country, I like to surf, I skateboard every single week still. And in the wintertime, I'm always on the snow. So you went, like, you made this transition from being a pro snowboarder to what you're doing now, that feels like a very big transition to make. It was, where did it begin? It was hard.

Well, so I started my first company at 16. It was a clothing line in my mom's basement. But that quickly transitioned to my idea of wanting to open a skateboard snowboard shop. I saw all these other guys with shops and I'm like, dude, I got to have that. I remember the first time I walked into one of the guys that I was sell my clothing to and he's like, hey, you want to go snowboarding? And I'm like, don't you have to work? He's like, oh, they'll run it.

And I'm like, oh, yeah. I'm like, wait, you can just leave when you want to leave? But it's your own company, yeah. So right there, I had to have my own shop. So I went around trying to raise $70,000 at 17 years old. You can only imagine how that went. Fail, fail, no, you're crazy. Kids, you'll shoot your eye out.

But there was one person that believed in me and that was my mom. So she put her house on the line. We didn't have much. It was a small little 700 square foot house so that I could open that store in November 94. So life was like a dream from 94 up to the 2000s. I was a pro snowboarder running my shops. I mean, couldn't get any better. Yeah.

And then you remember when the plane hit hit the tower. Yeah. I was driving to my store when that happened. And I never forget that moment thinking, what just happened? Yeah. Well, then the recession came. And that was the first recession I'd ever seen. I was young.

Kind of like many people now, most people are about to see their first recession. Well, that was me. And it hit my business really hard. So I needed a job. So I went to Little Caesars where my friend Mike worked. And I asked, hey, you guys want delivery drivers. They said no. And I'm like, come on.

So I put my resume out. And the only people that got a hold of me were Wall Street firms. Now, remember the first interview, I'd never put a suit on in my life. I'm a punk snowboard kid. Like, what business do I have in a suit? So my grandma got me a zip-up tie, and I went to the interview. And he's, you've seen boiler room, but back then I had, he slid the keys across the table.

Perfect execution. He's like, if you work at this firm, you'll have one of those. And I think it was a Porsche. And I'm like, sign me up. Yeah. It was a temporary thing. I never thought the Wall Street world was going to be where I spent 16 years. But I got into it. And I'll tell you the hardest thing, Chris, was I had this major mental problem with going from snowboard skateboarder to Wall Street guy. And the only way I could bridge that, there's a company called Volcom that I sold my stores.

They made suits. And I found this out. I ordered Volcom suits, blue, gray, and black. because those are the only three colors I could wear. Yeah. And that's how I initially did it. And I never tell that story, but that's how I mentally got over the hurdle because I was wearing a Volcom suit. So you were wearing a suit, but you were wearing a suit made by a snowboard brand, so it made it okay. Yeah, I know that doesn't make sense to a lot of people, but like it was such a drastic shift.

Sure. That was the way I did it. That's like the entry point then for you. It was. And then I'd get done at the office. I'd run over to my shop to finish night shift. I'd strip the suit off, but my, my, you know, skate. board gear on and I'd work the rest of the day and I did that for a long time.

The reason I want to have you on is because it certainly feels like we're on the edge here of a recession. Do you think for sure we are headed to a recession? No question about it. We are going to probably see the worst recession we've ever seen. Might be the next great depression and I don't say that like with speculation. I say that with the utmost certainty that we will be. Wow. And I'm not trying to scare people. I'm being realistic about this. I mean, this is what I do for a living and there's no way we're not going to be deep into a recession in the near future. What are the signs that point towards that? Oh, gosh, there's lots of.

I mean, look what the Fed's doing, right? They're raising interest rates, the combat inflation that they created. Well, what they're doing it very aggressively, seven times this year, but that's not what's going to really tank the entire economy. That'll slow things down. But what will is they're unraveling and unwinding their balance sheet, which is about $8.9 trillion of mortgage-backed securities and treasury bonds. I don't expect the audience to understand this.

But when they print money, because the Fed controls, monitoring. supply, which is money. And then the Treasury prints it. And they trade it to the government for IOUs called Treasury Bonds. Well, they have $8.9 trillion of those on their balance sheet. And they have begun the process of selling those in the open market. You ever see the movie Spaceballs? Yeah. Okay, remember when helmet and the bad guys roll up to that planet, it wasn't called Earth, but we know it was Earth. And their spaceship changes into the vacuum cleaner. Yes. They hook it up and they're sucking all the air out. Picture, that spaceship just right fed on it. that vacuum cleaner is what they're doing by selling their bonds in the open market.

All that money they printed, they're going to begin the process of sucking it out. That right there has happened in the past every time but one it has resulted in a recession. So now, if that's what's going on now, and that's what's happened in the past, what are your odds of this not going into a recession? Slim to none, one layer further. And you'd have to follow Ray Dalio for this. But we are at the end of a long-term debt cycle. You and I have never seen this in our life.

None of our family has ever seen this. The last one was 1933. So we are at the very end of the long-term debt cycle, the end of a short-term debt cycle, and the end of a technology cycle. All these patterns are done. So how can we not? We're absolutely going there, and the Fed will start that. So when does this officially become a recession? Like, what's the definition of this then?

We're going to go here? Well, okay, the technical definition is two back-to-back quarters of declining GDP. Then we're in it. We're in it. But if you go to the talking heads, that you know who I'm talking about. I guess now they can just recreate what the technical definition of a recession is. So, hey, we're in uncharted territory with them, but we're on it.

So what do you say to someone who maybe just bought a house in the last six months or a year? And if we do head into a recession, if they, whatever they paid for their house, their house probably isn't worth as much anymore. That's not worth as much today. I mean, maybe Florida and Texas. But even in a little Buffalo, New York, we've had a lot of appreciation. And, you know, my wife dabbles in real estate still. we used to do a lot. But our houses that we have on the market have dropped in value. And that's

going to continue. It's just, you know, supply and demand. Everybody's saying, oh, there's so much demand for housing. Yeah, but at what cost? You know, they just raise rates again. Mortgage rates will be over 7%. So the person that could have a year ago afforded a $500,000 house now can probably afford a $350,000. If you're looking at the monthly payment, right? Absolutely. It's just, it's just mathematics. So when people say there's so much demand, yeah, but they can't afford the demand. They can't afford the supply. So the price of the supply has to come down or we're going to need a lot more rentals, which is great. If you own a house that you bought for investments and you can't flip it, well, now you rent it. And your rents are going to be sky high because there's not enough, there's not enough

supply for renters right now. So what do you do? People thought for the longest time that real estate was the hedge against inflation. Is that, is that? That's what they thought. Yeah. It's never been a hedge against that, but it can be. So here's the thing. Real estate's the greatest investment on Earth, no matter how you look at it. But you have to, there's right strategies for right times. So right now is not the time to flip houses. I mean, if you're in flips, you better speed it up. I know this, because I have a couple that I'm like, come on, come, come on, come on. You know, but you got to get them gone because that price of your house is going down. But the exit strategies in real estate are awesome. You could do short-term rentals, the vacation rental thing. I don't know how that's

going to weather in this because it's new. But that could be a good short-term. strategy to provide cash flow and stabilize the property. But rentals, like, if you can't sell your house and the value goes down way lower than what you paid for it, like, don't freak out. Just realize it just got to change your strategy to be more of a rental strategy. And then you just got to get through this period of time. But unfortunately, this might be a decade. I mean, if you look at cycles and you look at how long it takes from the top to the bottom, back to the top, it's usually about a 10-year run. Maybe you get lucky and it's seven, but you've got to prepare for that. I think a lot of people point to 2008 and go, wow, I hope it's not like

2008. What you're saying here makes it sound like it's going to be way worse than that. Well, no, because 2008 was led by real estate. That was a real estate driven recession. This won't be that. But this will be a recession where a lot of people will lose jobs. This will be a recession led by the stock market going down. So real estate won't fall as fast as the stock market. It's a lagging indicator. So when the markets go, real estate will fall later. But what's happening that's hurting real estate is the Fed, the Fed action. They're sucking money out of the system, making it harder for people to get money. Not many people know this, but let me just drop this to you.

Right now, the Fed has told banks that on their surplus money that they have, you know, banks make money by how. We make a deposit in the bank. The bank pays us an interest rate, you know, how much you make, and now one, two percent at most. Oh, come on. Yeah, I know it's less, but I'm trying to be nice here. So let's say they pay you one. They lend that money out. Yeah.

As the Fed raised rates, they're getting higher. higher spreads. So now they used to make a 3% spread. Now they're making a 5% spread. But see, the Fed doesn't want banks to lend all that new money that they just printed and gave them. So the Fed said, any of your surplus money, give it to us. We'll pay you interest on the money because we don't want you to lend it out. We need to slow this economy down. And if there's new money constantly going out, you banks keep lending money, oh, we got ourselves a problem. So what people don't know behind the scene, banks don't no longer have to lend. They're making money just by giving money to the Fed.

So that's going to hurt the economy. So there's so many things that are happening and we don't have enough time to really unpack them all. But just look at the key ones, Fed actions. In the past, what they're doing right now is led to a recession. We've had an inverted yield curve now, I think, three, maybe four times. Every time that happens, except for one, it has led to a recession. when people say, oh, we're not going to be in a recession, how? How was it even possible? We can't, oh, by the way, we already are, but I know, Yellen told you that we're not, so I guess we're not.

When COVID started, a lot of people lost jobs, and you're saying, like, even more people could lose jobs? Yeah, I mean, think about it. You've already seen it at the highest levels. Look at Fang, you know, Facebook, Apple, Amazon, Netflix, all the big tax, the ones that hold up the indexes today. They're already laying people off. They're already slowing it down or freezing. new hires. You got to start at the top to see what's going to happen down at the bottom. It will be a trickle down. So if they're slowing things down, that's going to slow the next level down and the next level and the next level. And when people don't have jobs, they're going to spend less, slows the entire machine down. Then you've got money being more expensive so they can't buy things and the bank doesn't want to lend to them. You see, when you lose your job, the bank doesn't

want to give you any money. Banks want to lend money to people that don't need money. They want to give us money. We don't need the banks money, which is kind of why I do what I do, teaching people how to be their own banks and take back control of their money is because eventually if you rely on the banks, they are in full control of not only your money, but your lifestyle and your freedom. And that's got to change, man. We've got to draw the line in the sand. This sounds like Doomsday. So now that you've thoroughly scared us all. I'm not trying to scary. I'm trying to get people to be real about this. Yeah. And I think a lot of people are going, it's kind of like one of those things.

Like if I don't look at it, it's not going to happen. You know, like, if I don't look at the boogeyman, he's not there. This definitely feels like it's here. Let me say something. So your audience should really listen to Earl Nightingale's The Strange's Secret in the World. Do you ever hear that? No. You have to.

This is a must. In that little 20-some-minute-long speech of him doing that, he talks about the difference between success and value. What makes somebody successful and somebody not successful, right? Isn't that a question we always ask? Of course. One thing. It's one thing. And how they did is they had a doctor that took 20 or 125 year olds and they asked them one question. Are you going to be successful at the age of retirement? So when you were 25, I mean, I know you are 26, but you know, 26. Close. You know, are you going to be successful at retirement when you're a 25 year old? Absolutely. There's not one of them, 125 year olds that said no. They were like, why would you even ask you that? Of course, I'm going to be a multimillionaire. Fast forward to 60 or 65. Statistically. by Social Security Administration say that out of those 100-year-optimistic, you know, 25-year-olds,

five will be financially secure. Only one will be wealthy. So how did 95 get so down and not make it financially and only five did? Yeah. So they did this study. It came down to one thing. Those five created something. They created their destiny.

They created a business. They created a product. The 95% that didn't make it conform. Conform to somebody's failed reality. somebody's failed dreams somebody's failed plan today in the society you just said it a lot of people just want to ignore what's in front of them they just want to kind of bury their head in the sand they want to conform because they're just listening to what other people tell them we can't we can't do that we have to create and if we don't well you know the path i heard Kevin o'leary on shark tank

say that a salary is the bribe that they give you to give up on your dreams when i heard that I went. I've never heard it put that way, but it's like, wow. And this totally lines up with what you were just saying. But people can't just go from working a job and making an income to like, I'm just going to quit well. Of course. And I'm just going to quit and go to the unknown. That doesn't work that way. But they can start the process of slowly building it up. I've got a TEDx talk in October. And it's the hardest speech I've ever written in my life. What is the title of it? It's a letter to my daughter, rethinking money. And it is. It's a letter I wrote to my daughter. and I have not yet read it once without bawling my eyes out.

It's the hardest thing I wrote, but it's about these lessons, these laws of wealth that my daughter has to learn. And the first is just pay yourself first. I do it more eloquently than that. But out of every $10 you make, save a dollar. So somebody who's got a job, they have to start saving. The minimum is 10%. I mean, that goes back to the book of Babylon, you know, the richest man in Babylon. Then number two is the part that people don't understand.

We're going to get deep into this. once you save money and you have money, don't give up control of it. Your money has to go to work for you. You know, when I take money and I, I'm just going to pull out some money here, when I take some money. Just randomly have a hundred in your pocket. But we are in the casino. I kind of do where we were at.

The casino is not going to get my money. We are in the nicest hotel in Las Vegas. That's very true. And it just so happened that I had $100. But if I had $100 and I just worked for this $100, I traded an hour or two hours or whatever somebody makes for this money. Okay. My hour was the most valuable thing I have because it's priceless.

But then I've been taught to take this money and then take it to the bank and give up control of it. And the bank pays me 1% or whatever. What does the bank do with the $100? They go and reinvest it and make more money. That's right. They make it go to work for them. And they didn't have to do anything to make it. You just gave up control of it.

Now that money went to work for them. So, you know, with the laws of wealth, the second one is the money you earn that you save has to work for you. It's very easy to do once you learn some simple things. Literally, it just involves changing one thing. And that's how you break the pattern of financial. financial, you know, we'll just call it financial slavery for all intensive purposes. You change where the money goes first. I didn't come up with this.

Chris, I wish I was the smart guy that came up with, you know, the thing I teach today, but it's been around for hundreds of years used by the wealthiest families in history from the Rockefeller's to the raw childs, the Walt Disney started Disneyland this way. Ray Crock, I mean, the sitting president today uses this. You can look at up. McCain and, you know, the Kennedys have all used what I teach, but nobody knows about it. And when they learn about it, they all of a sudden go to the negative. of things that they've been taught. And the reason they've been taught those is because it's not a bank

or a Wall Street institution that wants them to know this because it takes control away from them. I spent 16 years in Wall Street and do you think once, once I learned what I teach today? Absolutely not. I learned the opposite. So what are we talking about? All right. So what we're talking about is making one change. One change to where your money goes first so that you can be in full control. But why would we want that? Well, let me just paint a picture. What if I knew of a place where you could put your money where you earned a guaranteed a guaranteed stock and barrel to the day you die? Now, that's better than a bank.

Sure. Bank might pay you an interest rate, but it's not guaranteed. So like a bond? And we'll get there. Okay. Bonds are an important part on the very back end, but we're not going to get into bonds. Secondarily, if you put your money somewhere, what would be some of the things you'd want outside of a guarantee?

You probably want access and control of that money, right? Yeah. Liquidity, yeah. Exactly. If I put this money over here and, Chris, you bring me an awesome investment opportunity to invest in one of your companies. I say, all right, man, here. Yeah. Okay. That would be, that would be great to have liquidity. But what if that money that I put over here when I took it out and gave it to you, what if I didn't stop

losing or what if I didn't stop earning interest on that money? So let's just say, I'm just going to use 100 bucks. I put 100 bucks here. You come to me and you say, hey, I got this investment opportunity. I need, I need 50 bucks. Okay. We can add some zeros if you want, but I need 50 bucks. Well, I go when I take $50 and I hand that to you, how much money's left in my account? 50. Right. Yeah. Wrong. 100. So how, so this is where people get really confused. How, how was that even possible? This is hocus, focus. It sounds too good to be true. It's not when you understand where my money went. But let me go one layer deeper. What if all the money that I earned on that account while it was there, I never had to pay tax on it. Now you're just like, dude,

now you're just telling poor, you know, fairy tales, right? Yeah. You know what that is? That's the same place. The wealthiest families keep their money. And it is a specially designed and engineered whole life insurance policy. As soon as I say that, you and everybody else has this weird feeling. Yeah. Some good, some bad. Because we're all brought up different. But most people are thinking, no way I would ever put my money in that. That's the worst place I can put my money. It's expensive life insurance. And there's no way it can give me liquidity of my money. You're wrong. You're wrong. You're wrong. You're wrong. You're just think of life insurance the way you've been taught. Dave Ramsey, for example. I like Dave Ramsey. I respect him by term because it's cheap.

Invest the difference. How's that working out for most people? Well, good, bad, or indifferent. doesn't matter. The reason he does that is insurance companies make the most amount of money in term insurance. If you had a company and you had a product that only had to pay out in less than 2% of all the products you ever sold, would that be the one you'd market? Would that be the one you trade your agents and your sales force on? Well, insurance companies are not dumb. It is their number one product. It is their number one profit. Whole life is not. So that's one reason why whole life typically has a bad idea. But the other reason is if I just told you that the vehicle we're using as a regular their whole life, then you would understand that then this would not be a place.

This is especially designed and engineered whole life. You go back one step. How did I learn this? Banks. So banks are very smart with money, right? They've taught us to give us, we give our money to them, and they make our money go to work, and they make a spread. Where do banks keep the, where's the number one place banks keep their tier one capital,

their most valuable capital? You tell me. It's called Bowley, B-O-L-I. And then people like, well, what's that? I want that. bank owned life insurance. Look it up. Hundreds of pages will come up.

If you look at the top five banks in this country, $75 billion, you look at all the banks in this country, I haven't even added it, but it's well over a trillion dollars. So why are the banks putting their money exactly where everybody's telling you not to put your money? Well, it's because the banks know how to design the contract for the whole life different than the ones you buy.

So the way we design them is upside down and backwards. And you know what sucks? And the reason I never learned this, it requires me if I design a policy to take a 90% cut in my commission. So if a regular whole life, let's just say you put 10 grand into it, it would pay you a commission of 5,500 bucks.

If I've designed it, the way that I just explained, the way that the banks would do this, I make 387. So if we took 5,500, subtract 387, that's how much more money you would have as the client because I gave up. Somebody's got to give for somebody else to get.

That's a secret. So this feels like one of those infomercials you would see at like 2 o'clock in the morning back in the day? if this is such a great way to make money, how come it's not readily available? How come everybody's not doing this? Because every advisor, if they were going to talk about this,

would have to take a major cut in their commission. So why are they going to do that? I went to my managing partner. I worked for a big financial insurance company. And when I left, because I retired in 2018, sold my practice. But when I went back to him, I said, John, why didn't you ever teach me this?

I said, do you even know what infinite banking concept is? He says, well, I think I do. And the reason I don't, And the reason we didn't teach this is, you know how hard it is for us to keep agents and advisors? I said, yeah, I remember the first year he had like 50 of us. By the second year, he had like five of us. He said, right, it's a commission-only job. So it's very difficult for somebody making commissions to take any kind of a cut in their commission.

They barely make it just on what we pay them. So now, if I go and I tell them this great new thing, this infinite banking concept, and we haven't even got into the infinite banking concept. We're just talking about the stupid product. You put your money in first. That's not the most important thing. He said, if we do that, all my agents and my financial advisors now get a pay cut of 60 to 90 percent. How many do you think I got it left after one year?

He said, I don't know. He said, probably zero. Yeah. He said, this is why we don't teach this because we couldn't support this. But the infomercial part that you were mentioning, it does. But now everybody's fixated on a product that they have terrible feelings and bad history about. What if I told you it's not about the product at all? The only reason we use this product is it's the only product on earth that I can.

can put money in, take money out immediately and not stop earning interest on that money. In other words. Do you have to pay on the money you've taken out? Great question. So remember before, the $100 that I had in there and I gave you 50 and you're like there's 50 left. I said, no, there's $100. So whose money did I give you?

It wasn't mine. It really was, though. The insurance company promised me someday when I graduate, I sway of saying when I go to heaven, when I graduate, they're going to pay a death benefit to my family. Yeah. The insurance company never in that contract said that I can't use it. that death benefit while I live. So the insurance company is always willing in any one of these contracts that we design to give me my death benefit in the form of a loan up to the amount of

cash that I have in there because they're going to collateralize it. So if I've got 10 grand in there, I can take 10 grand out as a loan and my death benefit goes down 10 grand. So what happens in doing that? Well, first off, the loans never doesn't need to be paid back because I'm going to die no matter what. The insurance company is 100% certain they're going to get paid back their money because they're going to subtract that 10 grand for my death benefit. Right. So we understand that. So now my money never left the account.

So let's just use some math, right? One of my policies pays me 6% with dividend. So I'm making 6% on that money. And I take it all out and I give it to you. And then you put it into an investment that pays me 12. The only thing in between me making money twice is how much is that 10 grand I just gave you going to cost me that loan I took against my death benefit? The answer is 4% today. Most all carriers that we work with are 4%.

So let's just do some simple math. I make six. Yeah. And I pay four. Yeah. What am I making? Two percent. Spread.

Yeah. How do banks make money? Spread. Okay. You are the bank. I get it now. Now I'm the bank. But see, being the bank, I got to understand some simple things that banks do.

Banks don't loan money out to people and just say, hey, when you get a chance, you can just pay me back if you can't, no big deal. You're making a monthly payment principal and interest back to the bank. So now, if I own the bank, you know, the same thing. If I owned any business, you know, if I own any business, I'm not going to steal from my business. otherwise my business is going to go out of business. So if I own a bank, I'm always going to make deposits in my bank, because I'm not going to give my money to somebody else's now that I've figured this out. And if I take money out of my bank in the form of a loan, am I going to pay my bank back?

Sure. So let me give you a way that this would work. Cars. You like cars? Of course. I'm sure a lot of your audience does. I love cars. Sure.

But what if I could show you that by just practicing banking, you could always get all the money back for every car you ever buy driving home? No if sands or butts about it. Really? Want to know how? Yeah. I already told you, but let's just walk through. Pick a car.

What kind of car? I drive at Tesla Model 3. How much was that car? It was like 50,000. Okay. How many different ways could you have bought that car? I could have bought it cash, finance, lease. You could have stole the car too.

I suppose I could. I wouldn't have been buying it that, but yeah. We'll cut it down on three because you're not stealing the car. So we got three ways to buy the car. Now, a lot of people will finance a car. And if you finance a car, what do you do? Get the car. Your credit gets hit, but you make monthly payments to the,

the finance company. And at the end of the six, five, six years, you own it. You own it, right. But how much is the car worth in six years? A lot less. Right. I mean, maybe not a Tesla. Who knows, they might be worth more.

But a lot less. So if you, if you didn't want the monthly payment, what would be the only option? Buy it out, right? Cash. Yeah. Cash. So if you took 50 grand and you bought the car cash, there's no payment. But what did you just lose?

What? You lost, as soon as you drive it off the lot, the car depreciates. Yeah, but that, but you also lost the earning potential on $50,000. Sure. Yeah. So now remember, this system that I'm talking about here allows you to put money into something. Let's just say over time you saved up 50 grand. And we're going to pay cash for the car.

But you changed where that 50 grand was first. Now you're earning 5 to 6% on that money. But now you take the 50 grand out to give to Tesla to buy the car. Your 50 grand never came out. So now you're still earning 5 to 6%. You have your Tesla. How much is your, I don't know if you want to say this, but how much is your payment on your car? I don't know.

Let's call it like 600 bucks. 600 bucks. So what would be the difference is if you talk about it. a loan from your bank and you paid for that Tesla, would it make any difference if you made a $600 monthly payment back to your bank versus somebody else's? It would be the same thing. Right. But by doing that, that $600 represents a principal and interest payment. And now all that money goes back to your bank, meaning every time you make a monthly payment on your car, you have $600 more in your bank to use. Cool idea. After five years, it doesn't matter how much your car depreciated,

all the money plus the interest that you would have paid to, you know, Tesla finance, plus all the spread you made is in your account. No matter what, you would get all the money back for that car and you'd still have the car in the drive where you wouldn't have had to sell it? If you take the $50,000 out, where are you reinvesting that to make the spread? You're not staying right in the policy in this car example. Okay. So the money's still in the policy because it never left.

Remember, the death benefit came out to buy the car. So you're borrowing in your death benefit to buy the car. So you're 50 grand is still there. You can't take it. You're hedging against your own death. Yes, exactly. I've never heard somebody say that. I like that.

Exactly what you're doing. And then you're just practicing banking. You're just being an honest banker by taking the 600 you would have given to Tesla, but paying it back to yourself. But really, the 600 is not a payment anymore. The 600 is just for savings. But its money would have given away anyway. So what's the difference?

So I'm going to play devil's advocate here. Is there any downside to this? Yes. So the first one to two years that you start one of these. If I take $100 and I put $100 into the plant, I don't have $100 that I can take out. I have anywhere between 60 and it's never 60 anymore, but up to 90%. So if somebody had $100 in the account, they're like, oh, my God, I need my whole hundred that I can take out. This isn't going to work for them. But if they had 100, they were okay taking $9.90 out, then this works. But that's a downside. First two years, you're not going to have access to 100% of what you put in. Sure. Second downside is, well, we're both pretty healthy, but some people listening might not be healthy. So if they don't look as good on the inside as they do on the outside, maybe they can't get issued it. Because obviously, the insurance company is going to say, how long are you going to live? What are the factors that are going to make you die early? And, oh, we're not going to give you one of these. But that's okay because you can just borrow a life.

But that's a risk. The only other risk is you do have to practice sound banking. I just talked about a car. But let's say take the car away, let's say somebody's like, I don't want to buy cars this way. Credit cards. Most people have credit cards. What if I put my money here first and I want to pay my credit cards off? Take one from Dave Ram's and we put them in lowest highest balance.

Sure. We take a loan from my policy and I pay off the first credit card. I take the amount I was given visa and I put it back into my bank. Same dollars. Nothing changed. You're saving the same and you're spending the same. Except for now, I was given Vs at 20%. Yeah.

I'm now recapturing 20%, but I'm not just making 20%. I'm making 20% plus a spread. So compound interest, remember I was saying that earlier? Love compound interest. It's the most powerful thing in the world. Albert Einstein said it, not me. Mr. Chris Nagel. Yeah.

Albert Einstein said, it's the eighth wonder of the world, the most powerful thing in the universe. Those that understand it earn it. I just showed you how to earn it. Those that don't pay it. Everybody that goes to the bank and borrows money. So literally, you're just taking compound interest. But every year, compound interest, whether you work harder, longer, or take on any additional risk,

compound interest means next year you got more money, year after you got more money. But now you found a way to earn compound interest and still have access to the money. That hasn't existed until, for most people, until this. This feels, Chris, like the biggest money hack ever. It's not, though. Like I said, it's been around for hundreds of years. That's the thing. Sometimes I'm so down the rabbit.

Perhaps the biggest money secret then. That might be. And it's just a secret because a lot of times they don't want you to know this because, I mean, how many people can take a 90% cut in their pay and still make a living? So when I did this, I come from the traditional Wall Street world. You know, when I learned about this, I'm like, oh, wow, that's a pretty crappy payout. You put 10 grand in this and I make $387. My two-year-old's not going to be able to eat.

So what I had to do when I got into this, I had to say, it's not about ones, twos, or three clients. It's about scale. I got to solve a lot of people's problems. So what I did is I went out there and it just said, how do I cast the biggest net marketing? get this message out and help more people. You make very little, but I get to help a lot of people. It's catching on. Plus the other thing, too, that you got to remember, Chris, is we've been in the longest bull run in history. So when I sit there and I talk about five to six percent, people, you know, a couple months ago or a year ago were like, man, my crypto's making a hundred percent. Yeah.

Well, it was. But, you know, they're like they were making so much. But now the ties of changing. Every time this concept comes to the top, you know, let's just say that, is when everything falls apart. So in 2008, banks quadruple the amount of bully they bought. Look it up. I mean, it's public knowledge. In the Great Depression, the number one thing people were doing is what I'm just telling you about. Walt Disney took a loan from his policy to start Disneyland. Great Croc when he created Ronald McDonald and went from burgers to real estate.

How did he fund that? Look it up alone from his whole life policy. Biden, how did he fund some of his campaign alone from his whole life? So like when you say this is the biggest wealth hack, it's not a hack at all. It's just something you've never known about, but the upper echelons have. So how do the nuts and bolts of this work? So what am I paying into this every month or every year? Any way you want.

How do you save money today? A lot of people save money in a 401k. They save money using a checking or savings. Or most people just like, this is what I make, this is what I spend. The rest just sits in the bank. Yeah, they go, well, I get paid on Friday. So if I have $246 left in my bank, I can spend $246 between now and Friday. They're probably not going to be a good fit.

That's what most people do. Yeah, I know. And unfortunately, most people probably aren't a fit for this because I need people that are saving money, people that are applying the first law of wealth, which is saved 10%. But the rule. So let's say someone has, it's going to make up numbers here. Let's say someone has $10,000 in an investment account right now. Sure. Should they take that $10,000 and put it towards what you're talking about?

It depends. I mean, it depends on what they want out of the investment account if they're going to lose money. But let's just say their investment account has lost money recently, which I know it has. Of course. And now they're up a little bit. So it might make sense to take that money out of the market right now. if we know the market's going to go down more. And if you take it out, it's got to go somewhere. What are you going to put it in someone else's bank and make one percent or less? No, let's put it over here.

So you put it over here. Now, you just put 10 grand in it. What we do when we work with the client is we find out, how much do you want the ability to save? Okay, that's the first question we're going to ask once we learn the needs and goals. Well, I don't know. I got 10 grand, but I don't think I can save 10 grand each year. Great. How much can you save? Well, I can do 500 bucks a month. That's how much I'm saving. That's $6,000. Yeah, that's super safe. But so we put 10 grand in with that would be called a dump in. It's a one-time. It's a one-time. I'm dumping into the account. Now it's making that interest and dividends. And then each month, they're just saving $600 or $500 a month, whatever they're saving. That's fine.

But let's say next year they lose their job. That $600, which was totally doable is now not doable. They can raise zero. Now it's, well, hopefully it's not zero because that wouldn't be good for this system. But let's just say they go from the ability to save $500, but now they can only do $300. We have the ability to reduce the amount that they save, but we can never go higher than $500 a month. there's IRS rules. And I don't want to get too deep in this because this gets in the weeds and I'm trying to keep it high level.

But the IRS knows that every dollar that goes into these is tax-free. So they put limits on how much we can put in. And the limits are determined by what they call a max-7 pay rule, meaning over seven years, you can put X amount in based on a death benefit. So when we design these, we ask the client, how much do you want to save? 500 a month in this example. Great. $500 a month is your most, that's your max you can never save.

Never change it. You can do it annually or do it monthly or do it quarterly, but you can never go higher than that. we can always go lower no matter what. If I'm Elon Musk and have seemingly endless amounts of money, could I invest endless amounts of money in this? Well, endless is a tough word, but yes, sure. You'd have to get approval from the insurance company. I have a big real estate developer that just this week,

we got them approved for $2.55 million. So that money got dumped in. And each year he's going to do about $300,000 a year into it. And then just this morning, I got the call. Another one of my big developers said, hey, I want to do policies on my kids and my daughter to the tune of about $600,000 a year. So there's the high level.

And there's a low level. But people just, all they need to understand is, what is the minimum to make this work? Yeah. Yeah. How old are you? Well, he said 26, right? So 26, got it. 39.

39. So add a zero to your age. How much is that? 390. 390 is your minimum. I'd look really good for 390 years old. 300. Well, no, no, no, $390 a month would be your absolute minimum.

I'm 45. So 450 a month. Your audience, you might have some 18-year-olds. So that's 180 a month. That's the minimum. Okay. The maximum is only determined by what they call human life value. And that is just how much is your income, how much is your assets, and how much you're going to be worth in the future.

The insurance company will then say, this is the most you can put in. And you always have to put that amount in every month? Well, no. Remember, if we started at $390 a month, that's how much you want the ability to put in, but you can go lower. You just can't go higher. Oh, okay. Yeah, you can always go lower. It's not higher.

Could you set your bar at, I don't know, $5 grand a month, 10 grand a month, and then only put $50 in a month? No. It's going to be about a 60% variation. Okay. Up to a 90% variation, but let's just use 60. I think you've blown a lot of people's minds here. It's just fun stuff, but it's a lot of people think it's complicated. It's really not.

If we get back to the basics, just change one thing and that's where the money goes. But don't just think every whole life's the same. This is specially designed and engineered. Most people don't know how to build these within the IRS guidelines. So you've got to know how to build it. And then after that, that's not the end. A lot of people stop there. Remember, we got to find a way to make that money go to work.

My letter to my daughter, number two lesson. Sweetie, your money's got to go to work for you. So where's that money going to go to work? Yeah. I mean, I've created a, back when I was a pro snowboarder, one thing that I would do all the time is I would travel and I was always single. I was smart. I know you just got, I know you just got engaged. Well, it took a long time for me to get engaged and married, but I've been married for 14 years.

So I relate. But in those years when I was single, I was a pro snowboarder. So if I was going to Colorado for an event, I wanted somebody to hang out with at night. So I was just dating sites. Your audience might hate me for this. But I loved it. Two profiles. I could pick who I wanted.

I could kind of go through a start a conversation. Now, fast forward to today. I had money, and now I needed to make my money go to work. It was hard. It's hard to find someone to lend money to. It's hard to find somebody I thought was good. So I started the process of creating a dating site for money, you know, a Tinder of money, if you will, swipe left, swipe right.

Literally swipe it? I swear to God, yeah. I don't have my phone, but swipe left, swipe right. So if I have money, there's only two people in this community, okay, called Private Money Club. There's people that have money that want to make money, and there's people that need money to make money. Right now, the platform is just real estate. But like Bezos, it was just books in the beginning and now it's everything. So someday private money club will be a way you can get fun for everything, your Tesla,

your business, whatever. So I just created a dating site for money. People that have money, people that need money, come together in the middle. We've built the process, the sequences and the procedure walk them through. We don't get in the middle of the deals. And like a dating site doesn't sit there and say, hold on a second. You like this guy? Great.

Are you like this girl? Great. Hey, me. No, it's a membership site. That's how it is. I think a lot of people get very uncomfortable when people start talking about money. And people have like some very, people have certain mindsets around money. And I think that when you start talking about things like this where like you put it in here,

you can make 6%, you can take it out, I think people just immediately get a wall up and go, I'll just do it the way I've always done it, Chris. I get it. So I'll go to a quote by Will Rogers, because I think this sums it up. He said the biggest problem in America is not what people don't. know. Will Rogers said the biggest problem in America is what people think they know that just ain't so. It sums up everybody listening right now. We all think we know something, but the problem isn't what we don't know. It's what we think we know. It just ain't so. I was an advisor 16 years.

When I learned about this, I was a real estate investor, I was just starting to flip houses. I borrowed money from this guy named Mike, very wealthy guy had a TV show. I'm in Salt Lake City at the Cheesecake Factory downtown. And I'm asking them, you know, how you get money? How you lending me money. He says, well, I've got my own bank. I don't like you dirty dog. Got yourself a bank. Let's go to your bank, man. He says, no, it's not that. I have this system I've created with this help of this guy. And I got into it. And he says, as soon as he said it, it's just like, remember earlier when I said it's a whole life? Yeah. Here was me. Yep. That's going to be a lot of people listening to this. Because I was one of them. Yeah. That's why I just said that Will Rogers

spoke. Listen, I thought I knew everything there was to know about whole life. And when he told me he was using it. I'm thinking to this, Mike, you got bamboozle, dude. Some dude's lying to you. You can't do that. You can't put money in the whole life and take it out, man. It takes like two years minimum. I see, it was because I thought I knew something. It wasn't true. And that's what I had to do. I had to overcome that. And I overcame it by Mike put me in contact with this guy. And the guy said to me, before we talk, you got to watch a 90 minute video. He said, I'm an advisor. I know about that. He said, no, no, it's not about your knowledge. It's about what you don't know yet. So I watched this 90 minute video and that changed everything. And from that point on, nothing was ever the same for me.

My financial advisory career, I just couldn't focus because now I started seeing what the wealthy did with money. It was the opposite of everything I did as an advisor. And then I learned this and I'm like, why wasn't I told this? I was mad, legitimately. So at that moment, that was 2014, I started fully going into this and this is all I did. So there's going to be a lot of people listening. They want to learn more. So should they go to your website? Is that the best? Just go to Chris Noggle. dot com, N-A-U-G-L-E, and then a video will pop up. And guess how long it is? 90 minutes.

You got it. I did the same video I watched back then. Really? And people watch it. And I can promise you, if somebody does watch that video, it will change their entire trajectory of their future. There's a lot of limiting beliefs around money. There's a lot of limiting beliefs in general.

We talk about that a lot on the show. Can we do something fun? I'd love to. Okay. Let's do this for your audience. Like, let's say a word and see how people feel. Mom. Oh, mom.

Love, mom. Love. Oh, so warm. Maybe there's some people that go, ah, dentist. Oh, nobody wants to go to the dentist. Holonoscopy. If some people got excited on it, that's a problem. I'm knocking on the door of having my first one here soon, I'm sure.

But, I mean, words are just words. And when we hear money, two different responses, it's our upbringing. If you were brought up like I was in a family that had no money and always said, don't talk about money, it's not good. Like, we have a negative condensation or connotation about money. We don't want to talk about it. But if you're brought up in a family that has money and I was always talking, in a positive way about money. You have a good feeling about money. And it's the same thing for all

those things. Maybe you had a root canal. You're probably not going to like the dentist. But maybe you just got perfect teeth and go in every day just for a cleaning and they give you a new toothbrush. You're like, yeah, well, I need a new toothbrush. I don't like the vibrating. I know, I know. But it's just really, it's just a feeling. Yes. Because of our preconditioning. And I think the most important thing in the future for our legacy. Like everything we do in life has to be a legacy. You don't have any children yet, right? No. Okay. You will someday. I mean, and I have a two-year-old. the moment that girl was born, my little daughter, Vivie, changed everything. At that point, everything I did became about a legacy.

How do I change her life? How do I change her financial future? Like, how do I change everything? Well, I got to start teaching her the truce. And I got to do it in a way that she can understand in a way that doesn't really alienate her from society. So that's the difficult thing. We got to think about how to change legacy. A lot of people always go to that old quote of like money is the root of all evil.

It is not. Money is just a tool. And a shovel in your garage is a tool. So if you want to build a landscape, if you want a landscape, build a beautiful garden, the shovel will do that. But you want to kill someone?

Well, I'm sure a shovel could do that too. I always use the same comparison with social media and a knife. Like social media is just a tool. And so is a knife. A knife in the hands of a surgeon saves your life. Save someone's life.

A knife in the hands of someone else. Absolutely. Just like what you're saying. There's a lot of value here, Chris. I love this, man. This has been awesome. No, this has been so good. I end every conversation with the same question

because I'm all about gratitude. And I wake up every day I say out loud three things that I'm grateful for. So what are three things in your life that you're grateful for? I'm grateful for every day I wake up. I'm grateful for my daughter. And I'm grateful for the ability to give and change people's lives. I love it. Chris Nagel.

Thank you so much. Thank you. Honor and privilege, man. Well, there we go. I hope you found that as fascinating as I did. And you can find out more by going to Chris's website, chrisnoggle.com. Huge thank you to Chris for joining us in the Blue Wire's

studios, big thank you to you as well for being in there. And I think that this quote from Donald Rumsfeld sums this all up really well. There are no-nones. There are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know. We don't know. Yeah. Because, great. Be grateful. Have an amazing weekend. We will see you on the next one for some more insight. Jim Rome takes on sports. Why? Because I have a job to do with rapid fire takes. So I don't want to hear from you lava pigs on this notion today. No idea what you're talking about. You're complaining more than you like to breathe air. It's like you get up in the morning only to complain

and cry and moan on social media about things that you don't even understand. He's the spitfire of Sports smack. Ticket banjov, but get up in here. The Jim Rome show podcast. What should be? Follow and listen on your favorite platform. You've been warned.