When the COVID pandemic began and the federal government introduced stimulus efforts to prevent a total economic collapse, Retirement Phase Experts Phil Cannella and Joann Small knew that the government’s actions would eventually lead to issues with debt and inflation. As early as April 2021, Phil Cannella and Joann Small went on record to predict that inflation, debt, and the eventual decision to increase interest rates would cause the stock market to collapse. At the time, Phil and Joann’s prediction fell on deaf ears as economists spread misinformation about inflation as a transitory issue; Phil and Joann’s foresight, however, could not have been more accurate.
In 2022, Phil and Joann took to the airwaves again to sound the alarm about the devastating impact that inflation would have on investors’ nest eggs, making four critical predictions in January, March and April. In the following segment, Phil offered unique real-world solutions, designed exclusively through the proprietary Crash Proof Retirement® System, to address American retiree’s growing concerns about rising inflation.
Known as inflation fighters, the Crash Proof Retirement® System offers investors the ability to activate a stream of income that would enable them to maintain their standard of living in retirement by outpacing inflation. Phil explained that while investors can use a portion of their invested assets to boost their income — up to 15% per year in many cases — with these inflation fighters, other components of their tailored system will be growing at the same time to ensure that investors are not spending down their nest egg. Therefore, an investor can receive income from their Crash Proof Retirement® System and still earn money through their other investments.
Phil’s Predictions on Inflation
Narrator: For over 14 years Retirement Phase Experts Phil Cannella and Joann Small have made accurate predictions about the stock market, including what Phil prophesied throughout 2022 including on January 29th —
Phil: One of the biggest risks to our retirement security that we are all facing right now is inflation. And it’s just not your everyday inflation. And it’s not going to be here for six months, a year, or two; it’s going to be here for five years or more. Write that down and know that is a fact.
Narrator: Next on March 12th —
Phil: Inflation is going to be the highest that we’ve ever seen in the history of the country and that’s just my opinion.
Narrator: On April 9th, 2022 —
Phil: If you look at all the changes that have taken place for the worst in this country you will see that inflation is going to hit double digits.
Narrator: And again, on April 9th, 2022 —
Phil: You have inflation that is going to be running wild and I say it’s going to get into double digits in the Summer months to September. Somewhere between August and September, we’re going to start seeing close to double-digit inflation rates.
Narrator: Over 5,000 consumers have successfully fought off inflation in 2022 with The Exclusive Crash Proof Retirement® System. Now, back to more of the one-and-only Crash Proof Retirement® Show with Phil Cannella and Joann Small to explain how.
Phil: Now we know a lot of you are concerned about where the current administration is going with their agenda. Some think it’s obvious, others don’t know, but one thing is for sure, our world is changing around us each and every day with what is going on, and people are concerned about the market. People are concerned about interest rates being increased and choking off debt. When interest rates go up, ladies and gentlemen, your bond portfolio’s go down and corporate debt gets more expensive for these corporations on the S&P 500, and it starts to choke them off. And that is exactly what caused the last market crash: raising interest rates [and] debt becomes more expensive across the board. And in case you didn’t know, no matter what crash, in what time period, it is always debt that causes markets to crash across the world in any economy. So, when interest rates start to go up, Joann, it starts to choke off debt, because debt does become expensive across the board, and we all know you are concerned about inflation.
Crash Proof Inflation Fighters
We’re going to give you some real-world solutions, some guaranteed solutions that will work. We call it inflation fighters. Inside our proprietary Crash Proof System, and this is one reason why it’s proprietary, and only we have this system, is because we have inflation fighters. And what do we mean by inflation fighters? I’m going to give you some examples in just a few minutes, but first we have to explain to you why it’s so important to have inflation fighters and why you need them. And if you don’t have them what lies ahead for people on fixed income.
Inflation’s Impact on Purchasing Power
So, let’s first use the average inflation rate, Joann, over the last 100 years was 3%. So, if I’m 60 years old and start my income at $50,000 a year and I retire at 60 over the next 10 years I can expect a 30% increase in goods and services. 3% a year, times ten, I’m going to lose 30% of my purchasing power, or I guess another way of looking at it: if I’m getting $60,000 a year, I’m losing $18,000 in purchasing power, I’m now only getting $42,000. Now if you do it at 7% it kind of gets scary doesn’t it? Because now you’re losing 70% and that’s a big number, and this is what people have to look forward to.
If the inflation rate continues — and we’re not trying to scare you ladies and gentlemen — but you can not go down the superhighway of retirement and all of a sudden hit a hazard and not be prepared for that hazard. You can flip your car; you can crack your nest egg. What would happen if it was 7% for 10 years? That’s a 70% decrease in your income, and if you’re on fixed income I would think that would be devastating.
Utilizing Crash Proof Inflation Fighters
So, let’s give some real-world solutions here. Within our Crash Proof Retirement® System, we have something we label as inflation fighters. Now what is an inflation fighter? Well, in short, it’s an increase in your income that is guaranteed when you need it. We can give you as much as a 15% increase in your income, so over the next 10 years, if the average rate is 4- to 5%, we can still give you a 15% inflation fighter where your income will go up by 15% each and every year.
Joann let’s say a Crash Proof Consumer comes to us, they’re getting a $60,000 a year fixed income from two social security checks and maybe a pension, but they’re getting $60,000 a year. And they come to us, and they’re concerned. They say, Phil, Joann, we’re concerned, we love our system, but inflation is starting to hurt our purchasing power what can our system do. Is there anything our system can do. We remind the client, and we say to them do you remember that we told you that no matter where you are along retirement with our Crash Proof System that there are inflation fighters that we can turn on and supplement income with a guaranteed income to keep you in front of inflation. No matter where you are along this process, whatever it is you need, our system — most likely — can take care of it. And it certainly can take care of this and here’s how it would happen.
These particular clients have about $500,000 with us, but they needed an inflation fighter to be turned on to keep their purchasing power throughout their 60s and into their 70s. Simply put, we’ve already prebuilt within their proprietary Crash Proof System guaranteed income, and here’s how we would do it.
We would utilize $300,000 of that $500,000. It would remain in the system, but because we have income options on each of our components in this system, we would just flip on a switch with one of those components and it would draw down 3% off of that $300,000. That would produce $9,000 per year for additional income. Now if you take $9,000 that’s 15% increase on $60,000. So, over the next 10 years, even if inflation became 7% a year and 70% lost in purchasing power, our Crash Proof Consumer would be getting a 15% inflation fighter each and every year over a 10-year period, bringing them to 150% overcoming that 70% lost in purchasing power.
Taking Income While Your System Grows
Now, I hope that made sense to a lot of our listeners, but here’s the best part about that: they didn’t spend down that $300,000. In fact, over the 10 years, not only did that $300,000 grow back, but there’s additional funds in there. It grew back more than what they spent down. Now that is an inflation fighter. Now, Joann, would we actually give someone a 15% inflation fighter over 10 years that would be tax inefficient. They would be paying taxes on money they really didn’t need. So, in a real-live situation, and that was hypothetical, we would only recommend either 8- or 9%. And the reason why I say that ladies and gentlemen, is because you don’t want to be generating income from our system since it is growing tax deferred, there is no taxes as long as you leave it in. But if you take income out, you’re going to be paying taxes on that so why take 15% inflation fighters over 10 years, you won’t need all that income. You want to be tax efficient. You just want to stay ahead of inflation by 1- to 2% and save yourself that tax bill.
Now I hope that made a lot of sense to folks out there and this is why we tell you. This is a proprietary system that has it in there. Now, as far as market crashes, if you listen to the show, you know they won’t be concerned about market crashes because these are not securities. These are accounts that credit interest, and yes, you can get double-digit interest payments credited to your account. But these are not securities, and these do not go down when the market goes down.