What Advice Does Suze Orman Have About Annuities?


Quick Answer

Financial advisor Suze Orman has expressed both positive and strongly negative opinions on different types of annuities; she has described immediate annuities as particularly bad investments and does not advise investors to make use of this financial tool, as reported by Yahoo! Finance. Orman has also expressed a low opinion of variable annuities, essentially referring to them as a scam and discouraging investment in a variable annuity. However, though Orman does tend to discourage investment in certain types of annuities, she has expressed a positive opinion about tax-sheltered annuities and index annuities.

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Full Answer

In general, Suze Orman advises that annuities are not a good investment idea for most people, as stated on Orman's website. Orman advises that there are situations in which annuities can make sense for certain people, but she expresses the opinion that annuities are not as much of a good idea as they are often presented to be. Individuals who are interested in investing in an annuity should carefully research the annuity in which they are investing and consider factors such as their current tax bracket and the tax bracket in which they expect to be during retirement. Individuals who do not currently make enough money to invest in other instruments, such as municipal bonds, may be good candidates for annuities according to Orman.

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