Phil Cannella Exposes the Risks of Variable Annuities


Phil Cannella makes it crystal clear that if there is any one single investment that has no place in a Crash Proof Retirement System, it is the Variable Annuity.

A variable annuity is subject to market volatility in such a way that if the markets tank or merely goes through a “correction” the variable annuity loses value. Unlike other types of annuities, Variable Annuities have many hidden fees that are charged to the account regardless of the performance of the underlying investment fund. Annual fees can easily amount to 2% – 4% per year, with the average fee being 3.5%.

What is perhaps most deceiving about a variable annuity are the hidden fees, fees that are not immediately evident but are hidden within. One of the fees is a mortality and expense risk charge that usually amounts to around 1.25% per year. Essentially this charge compensates the insurance company for risks it takes under the contract. Then there are administrative fees that typically range in the neighborhood of 0.15% per year. It doesn’t stop there. You will also pay fees imposed by the mutual funds that are the underlying investment options for the variable annuity, which can range from as low as 0.25% to around 2%. Sometimes a variable annuity comes with a stepped up death benefit, or a guaranteed income benefit. And there are initial sales loads or fees for transferring part of your account from one investment option to another that can also sometimes apply.

In stark contrast to the uncertainty and risk of a variable annuity is Phil Cannella’s exclusive Crash Proof Retirement System which focuses on providing consumer with investment vehicles that are immune to market risk and fees. The vehicles selected for the consumer are ones designed to protect principal while at the same time allowing for growth as the stock market rises

Before buying a Variable Annuity Phil Cannella advises everyone to come to a Crash Proof Retirement Educational Event and learn the truth these flawed investments, and see how First Senior Financial Group can provide a true Crash Proof Retirement with the proprietary Crash Proof Retirement System.

See what Crash Proof Consumers’ Dr. & Mrs. Frank Falcone learned about Variable Annuities during their educational process on the Crash Proof Retirement System below.

See why noted personal finance expert Suze Orman does not like Variable Annuities below.