Phil Cannella is proud of the fact that each attendee at a Cash Proof Retirement educational event receives information that won’t be found anywhere else. The mainstream media won’t report on this information, the government’s laws and policies won’t cover it—and worst of all, your financial advisor won’t even tell you about it.
That’s one reason why Phil Cannella, Creator of the Crash Proof Retirement System, calls his series on mutual funds ‘top-secret.’ He’s got nothing to hide, but it seems like everyone else does. How else can you explain a Wall Street industry laden with upfront fees, ongoing fees, trading fees, broker fees—all taking a piece of your money, and hiding that information from you, the investor?
When he speaks at educational events, Phil Cannella uses the ‘hand in the cookie jar’ analogy. Imagine you’re saving money for your retirement—you’re putting away a little at a time, slowly accumulating the necessary funds in a jar in your kitchen.
But every once in a while, someone you know comes into your kitchen and takes a little bit of that money out of the jar. Not all of it, mind you—maybe not enough that you even notice.
Over time, however, this person comes back every month and takes a little bit more of your money out of the jar. One day, you count the money and realize that you have 20, 30, even 40 percent less money than you thought you’d saved. But you have no idea where it could’ve gone.
Wouldn’t you consider that stealing?
Phil Cannella is quick to clarify that there’s no problem with advisors getting paid. Everyone’s got to earn a living, after all. But in every other profession, charges for service rendered are stated—or even posted—clearly. When you shop for groceries, the prices are labeled on the products or at the display stand. When your car gets fixed, the mechanic hands you a clearly itemized bill.
So what do you receive from your advisor? A statement—maybe monthly, maybe quarterly or even annually—with a series of charts and numbers. The fees are in there, to be sure, but the average person doesn’t know how to interpret the different charges and fees. They’re concealed with acronyms like ‘M&E expenses’ or names like ‘12B-1 Fee’.
Fortunately, Phil Cannella has devoted his career to consumer advocacy, which means teaching people in or near retirement what these charges represent. Once attendees come to understand what all these fees are and what they cover, they’re able to see the illusion unfold before their eyes.