Phil Cannella – Phillip Cannella News

Phil Cannella: “We fell upon a study from

Wharton School of Business, and to be more specific it was a gentleman by the name of Babbel, Dr. David Babbel. Are you familiar with that person?”

Alicia Munnell: “I don’t know that person.”

Phillip Cannella: “He’s a fellowship member of Wharton School of Business University of Pennsylvania, and because we don’t mention specific investment accounts, but we do mention categories, for lack of a better word so our listeners do not get confused, we call them Crash Proof Investment Accounts.  We know that there are safe alternatives outside the security industry.  According to the study Babbel did it shows that these fixed accounts, versus the asset class of risk, as you know there’s a guaranteed fixed class of assets, like a CD or a treasury note as you mentioned earlier or a savings bond, these are all accounts that credit interest, that doesn’t go away during a market crash.  All these accounts really cost you no upfront fees or ongoing fees, they have a time frame in place of that, and they’re all kind of like protected against bankruptcy.  Yu know you’re treasury notes and a bank is insured by the Federal Deposit Insurance Corporation up to 250,000, but this study showed or this study by Babbel showed, that there are safe alternatives that he couldn’t put them in a classification.  He couldn’t call them an annuity, he couldn’t call them a security, but yet they followed the market conditions with no downside, and according to his study, since 1997 many of these accounts that are outside the security industry has outperformed equity mutual funds, government and corporate bonds, money market accounts in any combination, not just one year, but he says every year since ’97 through ’09.  Do you know the vehicles I’m talking about?”

Alicia Munnell: “No I don’t.”

Phillip Cannella: [laughter] “I’m going to make you a rich woman because you said earlier if we could show-”

Alicia Munnell: “This is a good thing. Tell me”

Phillip Cannella: “Well I would love to expose you to this study.  We have been aware of these vehicles since they’ve came out in 1995, and of course we didn’t understand them when they first came out, but we became very familiar with them since ’03, and we’ve done extensive in depth research, and I for one The Crash Proof Retirement Show, and we do have a Retirement Media that produces our show, I would love to talk to the owner of Retirement Media and the executives about becoming a corporate partner of Boston College and supporting some of your research, and maybe even asking the college to take a look these safe alternatives that the Wharton Study looked at.”

Alicia Munnell: “I would be delighted”

Hear more from the interview with Phil Cannella and Alicia Munnell on The Crash Proof Retirement Show®. Saturdays at 11am and Sundays at 1pm on Talk Radio 1210AM, WPHT!