TGCI 173: Laws of wealth!

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Episode 173: Laws of wealth!

Copy of EP #18 - 2 Guests


In today’s show, Pancham interviews Chris Naugle – former pro-snowboarder, money mogul, founder of The Money School™, and America’s #1 Money Mentor.

Trading time for money is not exactly his forte. At the age of 16, he was able to start his own clothing line and has been able to build and own 19 companies since then! With the lessons he learned through his experience, he is passionate to ignite the entrepreneurial spirit in everyone as he conveys his knowledge of how money works!

In today’s episode, listen to his roller-coaster journey as he shares the successes and failures that got him to where he is today! Want your money to work for you? This episode is for you as he’ll also share the laws of wealth and why every aspiring entrepreneur should understand these concepts!


Listen and enjoy the show!

Pancham Gupta
Chris Naugle

Tune in to this show and enjoy!

Copy of Quote #00 - 1 Guest

Timestamped Shownotes:

  • 0:37 – Pancham introduces Chris to the show
  • 1:52 – On starting his clothing line to stop trading his hours for dollars
  • 6:00 – From having everything to nearly nothing and how he overcome from it
  • 17:45 – Analyzing and breaking down the most fundamental laws of wealth
  • 23:01 – Why protecting your wealth is as important as making money
  • 27:16 – His forecast on the future of the economy and how to prepare for it
  • 38:22 – Taking the Leap Round
  • 38:22 – Starting his clothing line as his first investment
  • 38:39 – Why he doesn’t let his fears stop him from taking risks
  • 39:06 – Realizations from his investment that didn’t work as expected
  • 40:35 – Why investors should always research and do their due diligence
  • 41:23 – How you can get a free copy of his books

3 Key Points:

  1. It’s not about having a lot of resources but rather knowing how resourceful you can be with what you have.
  2. It’s important to understand the fundamental laws of wealth and learn the banking principles so that you could apply them with your own money and be able to protect it.
  3. Building wealth is more like a marathon than a sprint. It focuses on long-term goals thus investors should always see the bigger picture when making investment decisions.

Get in Touch:

Read Full Transcript

Welcome to the gold color investor podcast with your host Pancham Gupta. This podcast is dedicated to helping the high paid professionals to break out of the Wall Street investments and create multiple income streams. Here’s your host Pancham Gupta.


Hi, this is Joe Fairless if you want to diversify out of Wall Street investments and listen to the gold collar investor podcast.


Pancham Gupta  Welcome to the gold collar investor podcast. This is your host Pancham. Really appreciate you for tuning in today. Today, my guest Chris. He is a professional snowboarder and also a money-mogul. And He’s dedicated his life to being America’s number one money mentor with a core belief that success is built not by the resources you have, but how resourceful you can be. His success and national acclaim have come in large part to what he’s learned firsthand from seeking a better way to wealth creation and preservation that he learned growing up. Chris has built and owned over 19 companies and his businesses being featured in forums, ABC house hunters and his very own HGTV pilot in 2018. He is currently the founder of the money school and the money mentor for the money multiplier. Hey, Chris, welcome to the show, man. Hey, thanks for having me on. Are you ready to fire up my listener break out of Wall Street investments?


Chris Naugle  Absolutely. I’m ready to break out of Wall Street. I’m ready to help your audience take back control of their money so they can learn the truth about how money really works. So let’s roll.


Pancham Gupta  I am super excited for the show. So Chris, like before we get started, why don’t you give our audience your background and more importantly, the person behind that background.


Chris Naugle  The person behind the background is quite simple. You know, I’m just an ex pro snowboarder at heart. So skateboard snowboard kid but, you know, I grew up in a lower middle class family. My dad was an alcoholic. My mom raised me and the one good thing that my mom did, even though we didn’t have resources, she always taught me how to be resourceful and it’s one of the greatest gifts she could have ever given me. She also taught me to be a dreamer when I had dreams as crazy as they are like most kids, she never squash those dreams. She always said that’s great, you know, go after it. If I want to dig a pond in the backyard, she said go do it. If I wanted to build a BMX track, go do it. It was never like, that’s crazy. Why would you do that? That’s silly, Chris. That’s a good idea. But that’s a little, you know, outside the realm. She never ever did that. And when I was in my late teens, my biggest dream was I wanted to be a pro snowboarder. Now I live in Buffalo, New York. We’re having a big snowstorm right now. But we don’t have mountains that would be of any caliber where pro snowboarders are born, but we have hills, and we have lots of snow. So when I was younger, I didn’t have money to go to the resort. So what I always would do is get resourceful and there was a country club by my house that I would go to. And I watch sledders go through the sand traps. And they would launch out of the sand trap. So I was like, well, I could build a jump out of the sand trap. And then it’s already a natural landing, and I could learn my trick. So that’s how I did it. And I just kept drilling and learning tricks. And when I got tired, because I only had a couple hours after school, what I would do is go home and I’d run up and down our backyard in the snow to get in shape so that I could get more run. So that’s kind of just setting the baseline for how I’ve operated my entire life. I’ve always been a visionary. I’ve always been a dreamer. I’ve never listened to other people tell me I can’t do something family included. And I’ve always done what everybody else is unwilling to do. Well, where that landed me is when I was 16. I had a real real job at a restaurant like most 16 year olds, and they degraded me terribly. They had me to the point where I was clinically depressed, because I could do nothing right. And I’ll never forget the day I went in, I quit and not knowing it at that point that that at 16 years old. That was the moment when I quit trading hours for dollars. I came home and I started my first company, which was called fat clothing company was just a t shirt line out of my basement in my mom’s house and I started selling those shirts at school and then I started taking them with me when I went to snowboard contest in Vermont, New Hampshire, Maine. And I would literally map out along the 90, where in the 90s just the Thruway from here to pretty much New York City, map out all the snowboard skateboard shops, and I would stop at all them. And I would sell my clothing and that’s how I did it from 16 to 17. And I grew this little company, not with any intention of becoming rich with it. It just was a means to fund my snowboard expeditions and ended up growing when I was 17. My next big idea was to take this clothing line from the basement and turn it into an actual store called Fat Man board shops. And that was where I really you know, had to step out of my comfort zone because I had raised $70,000 That never raised money. I never had money And it was the first time in my life where I literally hit opposition for everywhere I went, everybody told me no, everybody told me I was crazy. Everybody told me not to do it. My father included my mother, she was kind of neutral. But she saw my dream dying and it came down to this bank was going to give me a loan, but they needed collateral is an SBA backed loan. And all I had was a 1986 Buick Skyhawk a Kx 125, dirt bike and some baseball carts. Well, that didn’t suffice as collateral for the $70,000 loan. So my mother, crazy as this is now and I always call her my unconditional when she put her house on the line so that her punk snowboard kid could chase his dream. And that store opened in November of 1994. I ran that store for 16 years when I sold it off, it is still around today, and still one of the probably top known skateboard snowboard shops to all of Western New York. So that was how I humble beginnings began. And I didn’t really have any bearing or anything about money up until the early 2000s. when the planes hit the towers. That that moment i i took part in what was at that time, my very first recession. I didn’t even know what the word recession meant. And I think there’s a parallel because right now, I think a lot of people have no idea what a recession is either, because we’ve been in the longest bull run that we’ve probably ever been in actually not probably ever been at. So a lot of people have this false sense of reality, much like I did back in the early 2000s. Everything was great. Everything always went up, but nothing ever went down. Well, that downturn, which is a prolonged three year downturn, devastated my business devastated my life, and I had to get a job. Thank God, Little Caesars Pizza wasn’t hiring delivery drivers. That’s a true story. Because I thought that was my out. I’m gonna go deliver pizzas at night. So I can just continue my my dream life of skateboarding, snowboarding and running my shops, but they weren’t hiring. So my resume went out online. And the only companies that called me back and responded to my resume were Wall Street firms. So without any other options I interviewed, wearing my first suit with my zip tie. And I ended up landing in Wall Street. And here’s the unique thing. And I’m going to skip a lot of stuff here. So I don’t want to take too much time. But this is really important when I got in Wall Street. For anyone that knows Wall Street and understands that when you work in Wall Street firms specially when you’re the new guy, you’re in the bullpen, which is a bunch of little cubicles in the center with surrounded the one I was at surrounded by a bunch of glass offices, which were beautiful. And all the top guys were in the glass offices, and they normally didn’t talk to you unless they needed you to do something for them. But I started watching them. I’m an observer, you know, I’ve always been resourceful. I started watching their actions and what they did they get there at 8:39. In the morning, they’d leave for lunch for an hour, hour and a half, sometimes two, and then we’re gone at 4:30. And I’m thinking to myself, if I want one of those offices, all I need to do is do everything they’re unwilling to do. So I got there at seven, I did all my paperwork. I worked through lunch and made calls and I got appointments. After they left, I pounded the phones and then I went out and saw people at their kitchen tables. And because of that for a short period of time from when I started in Wall Street in the early 2000s, up to 2006, which would mark kind of the point where I really became one of the well knowns. I was one of the top three advisors for this firm. And you know, the firm was a huge company in New York City on Madison. And they had many divisions, but I was more on the asset management side. And I was crushing it to be quite honest. I had 700 clients, I was one of the top guys and I’ll have one of those glass offices. And I had assistants and it was like a dream come true. But something happened during this period. And that is called an ego. Because I made a lot of money which I’d never had money. I started getting into that mode of having money and doing what all the other people in the firm did, which was just keep up with the Joneses, nicer cars, nicer houses, and I started doing things. And I’m not proud of this. But I started doing things that were all about me. How do I make more money? How do I get more things? How do I do this? How do I do that? Not how do I help my clients make more? How do I help my clients do what’s best my mindset shifted for the wrong and that was where I started to see a decline. I got into real estate no six did a flip. Oh seven did another flip. Oh wait. Before the recession, I made a big leap and I bought a strip mall but dilapidated paint store that was going to be my hub for fat man board shops because I was still running the shops at this point. And just you all know what happened, or at least I hope you’ll all know in 2008 we had the great recession and it hit like this and it tanked. If anyone doesn’t remember how fast the 2008 recession took hold of the market. It devastated the market in record time. The only thing faster was to COVID Drop last year. I think it was a year and a half ago whenever that was and I went from having money from having an ego from being one of the top advisors to being completely broke and being one payment away from being completely bankrupt truly and not being able to pay the hard money lender for that loan that I borrowed for the strip mall. And this is an interesting point, because now I had to hide the ego because I didn’t get rid of it, I hid it. And I had to go to my girlfriend who just moved in my house and I had to ask her to help pay the mortgage, pay the utilities that moved two people into my house. And luckily for me, she liked me because she stuck around through it. And that’s how I made it through 2008. It was hard, very hard. And then after that, I got into real estate and I kept doing the advisory. I sold my retail stores in 2010. I sold the strip mall in 14, and I bought multifamily apartment buildings. And I did that from nine to 14. But then in 14 made some critical mistakes. See, I didn’t have the knowledge. I didn’t have the mentors. I didn’t have the coaches advising me what to do, what not? I just went about it like, you know, Alright, I got this. I don’t know what I was thinking. I just wasn’t thinking. And in 14, when the bank took my next deal, and they said, No, I had to sell all 36 units. At that point, I had to sell them all, because the bank froze my lines of credit. They called one of my mortgages that I was behind on. And I didn’t know what at the time, but the bank was selling off to a large commercial bank, and they just for thinning out their books and get rid of the risky drivers, which was me because I didn’t fit in square box. But you can see like, think of the relevance of that 2008, 9,10, 11,12 I bought multifamily apartment buildings. Does anyone know how cheap multifamily is where I was like the best time to buy? I mean, some of them I was buying 15,000 a door 20,000 door? I


Pancham Gupta  mean, I was like, why would the banks take it away?


Chris Naugle  I’m glad you asked. Because this is the biggest mistake that I made. And a lot of us make this mistake, you know, see, when we go to the bank, we have two options for buying real estate, we can do a commercial mortgage, which is lent money lent to the LLC or entity that you have. Or you can do personal loans, personal loans, if you look just at the numbers at the math behind it, or not even the math, but just the interest rate are always lower interest. So the banker always said, Well, you know, your personal loan is sure we can get it at this, and the commercial loans gonna be more plus the commercial loan has a blue and I’m like that and I don’t want any of those just give me the personal loans are cheaper, they’re amortized further, I don’t have a balloon, it was a trap. Because what I didn’t know is when you borrow personally, you are basically chipping away at the debt, there’s a debt to income ratio, little box calculation, you can’t beat it, you will never get more than 10 properties ever. I got I think six or seven, wherever that was six or seven properties in that that was it. And when I hit that the bank wants nothing to do with you didn’t matter that I was making good money in Wall Street didn’t matter that I had, okay, rental, it mattered that I didn’t fit in their desired box. And because of that, they immediately literally happened in about a month’s time. They reviewed everything it happened to be at the end of the year, they reviewed everything sent me a letter saying that my main line of credit that I use to renovate apartments was frozen, and I couldn’t use it anymore. That was late a couple times. But I wasn’t late a lot. I didn’t make any big mistakes. I didn’t miss manage funds, I just did it wrong. And most people don’t realize that. But that was my reality. And because of that I had to sell all those properties. I can’t even imagine what they’d be worth today, I don’t even want to know. But that’s okay. Because what I got out of that, which sent me to the worst financial situation of my life, one of the lowest points of my life, what I got is the best education. And finally, for the first time, and I think at that point 14 years, I literally hung the ego up forever, the ego was gone. Because when you don’t have money, you realize that all the people that held you so high, when you had money and you had all the things and the nice house and nice cars, they’re all there for it. But then all sudden when all that stuff’s gone, so are they. And I found out who my real friends were, which I didn’t have money. And I found out that I needed more out of life. And that was the moment that everything started changed. I started questioning everything. Is Wall Street real? Is everything I’m doing for the clients really benefiting them? Or is it really just a false reality where we the advisors in that case, you know, are just doing this so that we make more money to have nicer cars, nicer houses, and we’re really not doing a service for our clients. We’re really hurting our clients in a more so than anything. And this realization was escalated when I went to a three day training and I saw two highly, highly recognized and very unbelievably successful real estate investors. I mean, if I gave you the names, most people would know who they are. I mean multimillionaires, 10s of millions of dollars. And they started talking about money. But when I listened to them, I perked right up on the Wall Street guy perked right up when I hear about money. And I started hearing them talk about money, but it was the complete opposite. The opposite of every single thing I had learned up to that point of 14 years in Wall Street. What they were doing with money was so foreign. So different that I literally had to start asking myself who’s right are these successful multi Millionaire Real Estate guys right or is everything I’ve learned from the consultants, the brokerages and every company that I’ve worked for, right? And what I ended up concluding is a dove down that rabbit hole on I started surrounding myself with these guys and their networks. And I started realizing, wow, all these people are doing the same things as these two guys. It’s not just these two guys, they’re all doing this. And that was when everything changed. It’s when I lost faith in Wall Street, it’s when I really took a backseat, you know, the Wall Street career, which had been my main income, my main focus and everything took a backseat. And I made real estate, my number one focus, I made learning and understanding banking, banking functions, if you will, my number one priority. And I also stopped getting a lot of clients, they stopped going out looking for new clients. I wasn’t prospecting anymore, I was taking care of my current clients. And just so everyone knows, like to do this, and at this point, I’d also left that big Wall Street firm and in New York City and I went to a small brokerage, a small ra that was very boutique where we were just managing small institutional portfolios. So I took a pay cut. No kidding, I went from making probably 300,000 a year to making $40,000 a year in making this decision. There’s not many people that could do this. Matter of fact, I couldn’t do this, but I did it because I didn’t see any other way. And when I did that my life got difficult. My wife, you know, luckily loved me. So she stuck around, but like things changed. We lived in an apartment, not a house anymore. We drove modest used cars, not the fancy BMWs that were always brand spanking new off the lot like things changed a lot. But I started to learn and see the truth about how money really worked. I started to see what the Rockefellers, the Rothschilds, JP Morgan’s, and all the great families do with money. And I start to understand why I always rode that roller coaster, and why they just got richer during recessions and depressions and things of that nature. And that’s all I do today, is I teach what I’ve learned on that journey.


Pancham Gupta  That’s an amazing story. So you know, starting from the gift to give after listening to you, I think your mother was instrumental in really helping you think freely, you built your snowboarding shop, right? And that career, then 2000, early 2000 head, then you went to Wall Street, and again, went up the chain and then came down with 2008. And then again, went up, again came down. And finally when you heard these two rich people, I don’t know if you can say their names. It’s okay if you’re


Chris Naugle  Greg and Mike were their first names. I prefer not to give those names. Yeah. So


Pancham Gupta  after listen to Greg and Mike and your your life change, and you started to see all the things that these rich families do. And you know, and now you are where you are. And you teach that I love the Leonardo DiCaprio. Picture right behind you there. Right, right. Well watching on YouTube, they can see it. You can see it if you’re listening. But yeah, so now, given that what you’ve learned, try it. And this is where it will become interesting. Why don’t you share with the audience some of the key laws of wealth? Yeah, money, what you’ve learned from your up and down roller coaster career?


Chris Naugle  Yeah. So you know, what I actually learned is what you mentioned the laws of wealth, I’m actually writing a book right now called the laws of wealth. And here’s the biggest things that hit me early on about the wealthy versus what I did is, you know, I was always taught from a young age straight through to that point where I started having this realization, to trade hours for dollars to work for money. And I, you know, yes, you move up that ladder, but you’re always working for money, your dollars are your hours worth 100, and then 200, and then 300 an hour, but the wealthy, their hours are priceless. They didn’t put a value on their hour, they didn’t do what I did with time, and money. So and the second thing they did as they understood, Law Number one, which was they kept 1/10 or more of their gross income, religiously. They had systems in place, separate bank accounts, separate accounts, where they always stripped every penny they made, I don’t care if they exited a big real estate deal. 1/10 of that money went somewhere where they kept it. And most people when you talk about keeping money, you think about keeping money as saving, and it’s the same thing. It’s just, that’s what they did. But the second most important thing they did is when they kept their money, they always applied law number two, and this is where I never understood law. Number two is very simply because they understood that trading hours for dollars never got them what the level of desired wealth, they had to then trade, not hours, but they had to then send their money out to work and apply law number two, which is making their money go to work for them. Their money at any given time was out working for them. They were always applying banking principles to every penny of their money instead of using a bank. They use their own money. And they would basically finance the things in their life. And then they didn’t just use their own money to buy a car and just call it a day. They treated their money the same as they treated the bank’s money. So if they bought a car, and the car payment would be 1000 a month. They wouldn’t just you know call it a day because they had the cash saved. They took the 1000 a month they used to give away and they pay that money. back to their accounts, but they’d also tapped into some other things that I never knew possible is uninterrupted compound interest. They understood that where their money sat, their money had to be working for them at a pace that at least somewhere close to inflation paste or beat inflation. And in doing that, they found the same things that the Rockefellers, the Rothschilds, JP, Morgan’s, Walt Disney’s Ray Kroc ran up to the sitting President love or hate him, he still uses this, because he’s a wealthy family, they found a place to store their capital, where their capital was able to earn interest in dividends, uninterrupted whether the money was in the account or out working for them in a real estate deal, a syndication or any other investment. They simply knew the laws of wealth. And those first two laws are single handedly the most important, but they also did something that I never did in Wall Street, they only invested in things that they know like and understand. They never ever, ever invested in things that they did not understand. They didn’t invest in speculative things that in Wall Street, I was always like, Oh, look at the return, because I was always looking in the rearview mirror, they were always looking out the front windshield doing their due diligence, which I found annoying because it took time. But in doing that, they had a better understanding of what they were investing in, because they had an understanding in it. They were far better positioned than anyone else had ever seen their investments when everybody else lost, didn’t lose, their investments were nimble, their investments were in their control, they didn’t give up control of their money to somebody else, like I was taught to do, and like I did in Wall Street, give me your money, and I’ll manage it better than you ever can. They were the managers of their money. And if they had somebody else that manage some pieces that are that their money, it was because those other people were they liked, knew and trusted them. But it wasn’t just about liking, knowing and trusting it was they found that person because that person had an expertise in an area that they did not. And that expertise came from knowledge, wisdom, and failure. And I remember Greg, you know, who’s now one of my business partners, it’s kind of a funny, ironic thing. Like, you know, the one guy that changed it all, for me is now one of my business partners. But one of the things he always always taught me is he says, when you put money with somebody, you have to make sure that that person has a level of wisdom in the area that they’re investing your money in or in the area that they’re doing. And that wisdom comes from failure. If they have not failed, or their area of expertise, then they simply do not have what it takes to take control of your money. And that those are the things and there’s more, but that just stop right there.


Pancham Gupta  Yeah, no, that’s awesome people, if you if you listening, and Chris is going to actually share a couple of books for free for the audience. And you know, you will enjoy all of them. And you have the copies right here right with you, and you give it up for free. You know, we’ll talk about these but stay till the end to find out how you can get those books, amazing books, and maybe the final one when the laws of wealth comes out that one too. So Chris, like the summarize the number one you put 1/10 of your money in doesn’t matter. Whatever happens into a separate account. Second Law is like making your money work for you all the time, don’t trade not only just trade the hours for dollars and and have your money work for you. And number three, is that make sure that the money is always getting compounded uninterrupted, right without and yeah,


Chris Naugle  the law. Number three is simple. It’s really just protect your wealth, which means put your wealth somewhere where it is protected. And even if you’re putting your money somewhere where it’s not guaranteed, like the account where all these wealthy people store their money, which is not a bank, it is not a Wall Street company. It is a giant mutual owned insurance company just so everybody knows. And then when you invest your money, one thing that most wealthy individuals will do is when they invest money, they invest it with some form of collateral. Whether it’s a private loan or you know, like syndications or real estate deals, there’s always a tangible collateral that is backing their money. It’s not like putting money like today, you know, whether you love or hate Bitcoin or Aetherium, but like and I invest in it, but I do it very different than most, there is no fundamental, tangible asset backing that back and go from where we are today. 40 to 43 on Bitcoin to zero, there is nothing that you could do about it. And when you invest in stocks, or mutual funds or ETFs, you can go from there to zero and there’s, you can’t call the company and be like, hey, my account just went to zero. Do you got some assets that are backing this? No. But in real estate or any tangible type of place where it’s collateralized. There’s something to fall back on? You don’t ever go to zero? Sure, can you lose money of course you can make mistakes, and many people do but you don’t lose it all. So protecting your wealth is single handedly just as important as the other two laws. Because number one, it’s not about how much money you make. And you know as we go down the line with the six laws of wealth we get into don’t seek unrealistic returns. Don’t put your money with fraudsters and scammers that promise these unrealistic returns your money will flee you and so on. But when you are protecting your assets, you’re always looking for a way to invest in things again that you know, like and understand, but also that have some form of collateral, whether it be a tangible asset or just other cross collateralization. This is how you keep your money, making money. So easy, folks. Everybody right now seems to be an expert in making money all because they’re all looking in the rearview mirror. They don’t even see the storm that’s coming. Like we’re having a big winter storm. Like I knew that storm was coming. The news and everything else told us we’re having a winter storm. I got prepared. I filled the car up with gas, I made sure we had food and water at the house. Why don’t we do this in money? We know there’s a storm coming. If you don’t think there’s a storm coming. You are living under a rock. There is a big storm coming this winter storm here. This is nothing. And protecting your wealth should be the single most important thing not just making money. It should be how do I make it? But then how do I keep it? Because it’s not making money? That’s important. It’s what you get to keep the Rockefellers Do they ever get, or the Rothschilds, they don’t ever get poor, they get wealthier. And it’s not just because they’re lucky or good bankers are good investors not at all. They understand fundamental laws of wealth. And they understand that each generation, they make it so that that generation gets wealthier by applying strategies like privatized banking into their overall family strategy.


Pancham Gupta  Yeah, no, that’s awesome. There’s so many things that you mentioned over there where we can spend hour just on that one topic. You know, but I there’s a couple of interesting things that you mentioned about this, I’ll just summarize real quick. And you talked about, you know, investing in or actually not investing, putting your money storing your money in privatized banking, which you’re referring to as the mutual insurance companies, the whole life insurance companies where, you know, you buy this max funded policies, and you know, store your money there. And it can kind of adhere to or a lot of laws that you mentioned, where it’s uninterruptedly, compounded and all that. And, you know, I’m a big fan of that myself. I’ve, you know, multiple policies, and you’ve gotten multiple shows, people who’ve, you know, we don’t have the time to go into that today. They can listen to show number five, if you want to do it. And you know, if you want to, maybe we’ll, we’ll have you back on the show to talk about just that. So there’s that now let’s talk about the strong right. I’m sure you’ve picked up a lot of interest right there in saying that a, you know, there’s strong coming. Yeah, you have one coming today, which is a winter storm, but I think you’re referring to the strong that happened in 2008. But bigger, much bigger, much more multiplied. So my question to you and anyone listening, and they’re saying, okay, Chris, what is your crystal ball telling you like? So what is it? And number two? How can I prepare for it?


Chris Naugle  Yeah, so first off, it’s not a crystal ball, it’s pretty much factual. It’s a mixture of mathematics patterns, cycles. And these have all been around for a very, very long time, hundreds of years, it’s always done the same things. This is like one of the first times while 2008 would probably be that but where it didn’t happen in a very regimented timeframe. There is short term debt cycles, there’s long term debt cycles, there’s the technology cycle, there’s different patterns in different cycles. But the one thing I will tell you, I don’t care who you listen to, or who you watch, I will probably, I don’t mean to say this, but I probably study economics, market patterns, and all these things that we’re talking about more than just about anybody. I’m a nerd. That’s it. I read and study nonstop, to the point where some people probably would just think, because it’s so dry and boring. But I understand what I’m looking at. I understand why the things are happening the way they are today. And I understand the outcome that is coming next. And I’m not the only one. Ray Dalio if you don’t know who he is, operates the largest hedge fund in the world. Okay, just a small little feather in his cap. But he’s saying that this is going to happen. every economist that you look at in different ways, they’re all saying the same exact thing and all these different patterns, all these different cycles, predominantly the long term debt cycle and the short term debt cycle and, you know, a couple of the 10 and 45. And the 90 years some people say it’s 100 year cycle are all converging at the exact same time. And that exact same time is 2022. Now, I get a lot of people that tell me Oh, yeah, but this time, it’s gonna be different. Oh, and I just sit back. I’m like, tell me why. Why is this time going to be different than it has been all because the government’s just printing money. I said, Oh, yeah, you’re right. The government didn’t print money during the 1929. Depression. Oh, the government only started printing money really in 2008. So let’s really look at the printing of money. The government can only print money for so long. And you’ve seen a massive amount of printing, I believe, to the tune of about 5 trillion when if you look at 2008, which was at that point, the largest bailout much needed, just so everybody knows 2008 If they didn’t print two point or $3.5 trillion to bail the economy out. We were done. The financial system In this country, as you know it, and probably in the world would have collapsed in 2008. That was a doozy. But most people don’t know that. And what is coming now is even worse, because we’ve literally had a government that uncontrollably prints money because of modern monetary theory, a new form of economics, it certainly will fail some, you know, don’t believe it will, but it will, because it is based on things that can’t be sustainable. And you’re seeing it happen every day. Okay, forget about Coronavirus and the pandemic, okay, that just escalates some things and gives them a reason to print more money, because they know that this thing’s gonna come on, this thing’s gonna come unglued very quickly. You’ve got runaway inflation today. Now, I don’t think inflation is what a lot of people think it’s a hidden tax, but it’s created by the government. And they’re printing money which drives inflation. It’s not transitory, it’s real. You see it at the pump you see at the grocery store, that inflation can only be curbed by a couple actions the government takes number one, they can do wealth distribution, take money from the rich give it to the poor, which they’re trying, but they will not succeed. Because all the people that make laws and vote and do lobbyists, they control all of this through lobby efforts. So you’re not gonna see that. But what they can, second thing they can do is control it with interest rates, like they did back in the late 70s, early 80s. They can ratchet interest rates up but the economy is so fragile right now, because they’ve been kicking this can for so long that if they raise interest rates, which they will, in 2022, I guarantee silently, they will find ways to slowly tick the interest rate number up. And then the Fed is already saying they’re going to slow the bond buyback program which is going to start pulling money out of Wall Street, okay. And then they’re going to start raising rates, which makes it well that Wall Street hates that look at the market yesterday dropped 300 points, because the Wall Street’s like a crying baby, I have a 19 month old when she was younger, she cried all night long. That’s Wall Street, when the baby doesn’t get what it wants. It just cries but the Fed really has to make a decision. Are we going to just let Wall Street cry and do what we have to to stop this runaway hyperinflation? Or are we going to play into Wall Street, whether it’s a delicate balance called deleveraging, they’re trying to do it and it’s not going to work. So when it doesn’t work, what you will see is, the Fed will not be able to raise interest rates fast enough, okay, because of the delicate machine called Wall Street and the economy’s fragile. So when hyperinflation needs to get Kerger hits this breaking point where people just had enough, you will start the deflation process, which started by de leveraging will lead to deflation. And when that happens, it’s like dominoes one goes, and then the rest go very quickly. But they also go with more velocity faster and faster with more strength and more power. It’s just how dominoes work. And that is how you’re going to see the entire market and the entire economy unfold that the problem is, it’s a global economy. And I don’t think we’re going to be the domino that takes the whole thing down, because I think you’re seeing it unfold in China right now. Because they’ve got a population problem. They’ve got an Evergrande problem, which is a real estate problem. And they’ve got all sorts of other things, but they’re so controlled. We don’t know what’s really going on behind the scenes, and we probably won’t. But I think this starts there. trickles over here. But I think it’s going to be a global depression, not a recession. And I think it’s going to be severe. But you know what, like, there’s the bad side. And putting that aside, what’s a good side? How


Pancham Gupta  can you protect,


Chris Naugle  it’s very easy to protect, you just do what’s been done for hundreds of years, but you apply the laws of wealth, you be safe with your money, you take your gains off the table, listen to Warren Buffett, buy low, sell high, don’t lose money. He doesn’t say buy high, sell low and lose money does he know? Well, everybody is greedy right now. And then he goes on to say is when others are greedy. What should you do? Be fearful? I’m scared to death, I have zero money. Zero money in the stock market, including my private hedge fund has zero money in the stock market. Why? Well, that reason right there. I am fearful. But I am also optimistic because I understand that this storm, this thing that’s going to happen, whether it’s 2022, or 23, because you cannot time the market, when it happens, it will create the single largest opportunity in our lifetime. I’m 44 I got a lot of life left. I like to think in my lifetime, this will be the biggest opportunity 2008 will be like a pimple on an elephant spot compared to what this opportunity will be. But it will only be an opportunity for those people that have been preparing for the storm. I had been preparing. I’ve been loading up on 20 and 30 year US Treasuries. People think I’m crazy. I tell financial advisors, they tell me I’m an idiot. Why would you buy an asset that doesn’t even keep pace with inflation? I said, Did you learn anything in the series seven exam because I think the largest part of the series seven exam was teaching you about bonds and the inverse relationship to interest rates. When this whole thing happens in the market collapses what will be the first action the Fed takes the government takes they will pull the interest rate lever it’s easiest lever. It’s the low hanging fruit, they’ll pull it and when they pull interest rates to close to zero just like they did a year year and a half ago will say what happens to bonds. That’s right. It’s a mathematical equation. The price of bonds skyrocket happens every single time not just some, but every time So triple A corporate rated bonds if you’d like that risk or 20 and 30 year US Treasuries, we’ll probably see close to a 30 to 40% appreciation in the price. So if you’re in treasuries, this event happens, the price of your bonds go up. And then what do you do? Well, I’m going to sell, and then what am I going to do, I’m gonna wait, I’m going to be patient. And then I’m going to start repositioning my money in certain asset classes, it will be kind of like the monkeys that threw darts to beat the best stock pickers in the world. It doesn’t matter what you throw a dart at, pick the ones you know, like and understand and invest in them. But be patient, because the first leg down is the biggest, but it’s not the end of it, you got to wait, and you’ll never get the bottom and you’ll never get the top. But you’ve all dollar cost averaging. But this whole time, the other thing you got to understand is what I do with my money is privatized banking. As much of my wealth, I have nine policies. Now as much of my wealth goes through those specially designed and engineered Whole Life policies. And it goes in there and it earns a good interest rate guaranteed with dividends, which gets me to about 6%. But I don’t leave it sit there, I take that money and I move it. All of my cars in my household are all financed through my banking, the coffee machines in the office equipment here, all financed through my banking system, my private loans that I do on short term, real estate deals where I’m lending money in a first secured position, short term key word because I don’t know when this is going to go. And I know when it goes, real estate goes next, because it always does. So there is not one asset class right now that is protected. They’re all in a bubble. But if you look at Treasury bonds, or triple A corporates, what they’ve been doing, going down, down, down, down, like the Titanic, so that to me, is the opportunity is buying them. And then being patient. Nobody’s patient, everybody wants to be rich today. Well, wealth is a marathon. building wealth is a marathon, it’s not a sprint. So stop being in a sprint, because you don’t sprint through life. Or maybe you do. And that’s a damn shame. Because you got to stop and smell the roses. And I’m just sitting here enjoying the roses. While I’m being patient, while everybody else is bragging about the big money they’re making, and maybe I’m not making the big money I do I do very well. But I’m not seeking those big returns right now. Because I know the biggest returns of my life, or maybe a couple months, a couple of years away, short, small price to pay. So sorry, I went long on that. But it’s a big thing to unpack. And there you have it.


Pancham Gupta  Awesome. That was some good nuggets and good stuff there. So, you know, thanks for sharing your wisdom here. Chris. We’ll be back after this short message. Have you ever wondered why the rich keep getting richer? What is the secret that they know? But you do not? What if I told you that wealthy people make their money work for them? in two different places? Yes, the same dollars invested into different places and working hard for them while they sleep. They utilize these special accounts that have been in existence for more than 100 years. Do you want to learn more about these accounts? Then you are in the right place? Listen to the episode number five by going to the gold collar investor forward slash banking show I repeat the gold collar investor forward slash banking show or visit the gold collar investor Hey, Chris, let’s move on to the second part of the show, which I call taking the leap round here ask these four questions to every guest on my show. My first question for you is when was the first time you invested outside of Wall Street? Was it your shop?


Chris Naugle  Yeah, it would be that first clothing line in my mom’s basement. It was a $500 investment. And that was my first off Wall Street investment that ever made. Awesome.


Pancham Gupta  Awesome. Did you have any fears? So you were just young? naive. And yeah,


Chris Naugle  

I think it’s a mix of both. But I’ve always had fear and I still continue to have fear fears, you know, just something we make up in our minds and fear. It’s just been one thing that’s always made me think more especially today, it just makes me do more due diligence, but I don’t let fear stop me from leaping and making decisions. It just makes me go deeper into the due diligence process if I’m scared of something.


Pancham Gupta  Alright. Alright. So can you share with us one investment that stands on top of the list that did not go as expected? Is are those multifamily homes that you were talking?


Chris Naugle  No, no wouldn’t be the real estate. I mean, I’ve had lots of real estate deals we’ve done to almost 270 flips, I’ve had lots of lose money. But that wasn’t the biggest mistake. You see, many years ago, we had an investment. We had a big investment house above, you know, our advisory firm. And it was an investment banking house, and they came up with this really good IPO that they were launching. And they pitch to me because it’s hard not to be around those guys. And they were just talking about it and talking about it. And it was me seeking unrealistic returns because these guys were saying, Oh my God, you’re going to become rich, you’re going to make this much money. And I took a big leap into it. I put a lot of money into that. And today still and that was Gosh, I don’t know how many years ago that was 2010 and today That thing is still at a loss, it probably will never come back, it probably will never do anything. Thank God it didn’t go out of business yet. But that is single handedly the stupidest thing I ever did. And I did it because of FOMO. I was the fear of missing out on that IPO. I did it because of people getting in my head that weren’t experts that it had never failed that were just young Yahoo investment bankers that had their first big IPO that they were launching. And I don’t know if I’ll ever get the money back from that.


Pancham Gupta  Alright, well, you do and you learn from those lessons, right. Good. My last question for you is what is one piece of advice would you give to anyone who’s thinking of investing outside of Wall Street that is in the main street,


Chris Naugle  

the biggest advice is a quote by Will Rogers. And the biggest thing he ever said that I love is said the biggest problem in America is not what people don’t know, the biggest problem in America is what people think they know, that just ain’t so. So that applies to Wall Street or non Wall Street. But if you’re looking to invest outside of Wall Street, don’t think you know what you don’t know. Find the truth, find the information, it’s there. And then make accurate and wise decisions on how you invest off, you know, outside of Wall Street based on you digging into the knowledge of that thinking that you already know everything there is to know.


Pancham Gupta  Cool. Thank you. Thank you, Chris, so much for sharing your wisdom here. how can listeners I know someone who’s listening and eagerly waiting on your three books, can you share with us the title of all three? And how can they actually get those books we have this special handles set up for you to share these books.


Chris Naugle  So the three books if you’re watching or just listening, the first one is mapping out the millionaire mystery. It’s all about you know, the Infinite Banking concept and the privatized banking his book is very good. It’s a best seller than private money guide is my first book it’s all about private money, how it works, where it is and how not to ask for it. And then the last one is this newest book which is drifting away from traditional car buying it’s a very simple short book teaches you how to get all the money back for every single car that you will ever buy driving own by changing just one thing and then you know the newest book laws of wealth will not be out probably until end of 2022 but that one’s coming but to get those three books you just email it’s just a simple email you just send it to


Pancham Gupta  thank you thank you for sharing that so yeah listeners if you want to get the copy free copy Chris’s very generously to share three books send an email to While Chris, this has been awesome, maybe we’ll have you back to talk about this privatized banking concept that you have nine policies on and use everything from those to fund your operations, whether life or business. Thank you, Chris, for your time.


Chris Naugle  It was my honor and privilege. Thank you. Thanks. Bye.


Pancham Gupta  Thank you for listening to Chris and he has some great resources you can get them at by emailing And this reminds me of the episode number five, and the episode number 30. If you want to listen to them, Go to or /show30 to really see how you can use these policies to be your own banker right compound interest is the eighth wonder of the world. He understands it earns it and he you doesn’t pay say this is what a famous quote by Albert Einstein. And I would highly encourage you that if you’re not doing this, you should check out Chris’s book on car buying that he’s written where he’s bought all his cars using this strategy. And check that out. Highly encourage you it’s a little mind bending once you initially when you read it, but there is definitely a lot of merit to it. Thank you for listening. If you have questions, email them me too This has been Pancham signing off. Until next time, take care.


Thank you for listening to the gold collar investor podcast. If you love what you’ve heard and you want more of Pancham Gupta, visit us at And follow us on Facebook at the gold collar investor. The information on this podcast are opinions as always, please consult your own financial team before investing

Copy of EP #18 - 2 Guests

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