Most people today cannot even recall the last bond bear market. It goes back many, many years. Phil Cannella explains that when interest rates fall, the value of existing bond positions goes up. Conversely, when interest rates rise, investors can get a better paying bond today than they could yesterday, so anyone who has been holding a bond may see its value drop.
Phil Cannella goes on to elaborate that many investors have bonds in their portfolios as part of a fixed income class of assets. If you are holding onto that bond position for the duration you will recoup your original investment after the bond matures. However, if during retirement you need to sell your bond to provide for needed retirement income, that bond has lost significant value. Phil Cannella warns that this is a huge risk for investors. Furthermore bonds carry default risk and some bonds are callable, making them not the most stable investment for a retiree who needs to plan with confidence for their retirement needs.
This is one of the pivotal factors that helped Phil Cannella design his proprietary Crash Proof Retirement System. He has analyzed the various components of a traditional retirement portfolios and sought to eliminate the various risks inherent in most such portfolios. Through his exclusive Crash Proof Retirement System, a Crash Proof consumer has access to vehicles that are impervious to market risk; have no volatility; have complete principal protection and offer one thing no other financial vehicle can do: provide for peace of mind during retirement.
Phil Cannella is one of the leading lights in the financial services industry as a truly innovative market leader who is always on the cutting edge, bringing new and vital solutions to the market for all people.