She’s an entertainer; not an expert on annuities.
September 16, 2025 by Sheryl J. Moore
This article, ‘Over My Dead Body’ — Suze Orman Slams $2.3M Listener’s Plan To Buy An Annuity made me really MAD.
How wrong can Suze Orman get it, when it comes to annuities?
This woman who wrote in specifically asking, “Would it be smart to use about $700,000 from [her] brokerage account to buy an annuity, either for tax purposes or for retirement income?”
Let’s just focus on “retirement income.”
Orman says no.
“Instead of locking money into an annuity or insurance-based investment product, Orman encouraged focusing on other strategies. She suggested continuing to invest in dividend-paying stocks, growth stocks, or value stocks. These, she explained, allow money to compound over time while keeping capital gains tax treatment intact if investments are sold later.”
NONE of which provide a guaranteed paycheck for life!
“She was equally dismissive of using annuities as an alternative to real estate investments. Rental properties or real estate investment trusts, while taxable, still provide income opportunities without the restrictions of insurance-based products.”
Just putting my landlord hat on, and my first thought is- never mind if you don’t get your income because your tenant decides to pay late!
THAT won’t happen if you are getting income from an annuity!
“You have to understand that on no level do I want you to touch an annuity, to touch any type of life insurance policy or any insurance investment,” Orman said. “It makes no sense. Do you hear me? That’s it, period.”
She wants people to think she knows everything about financial matters, and that you should heed her advice.
Pure ignorance.
She’s an entertainer; not an expert on annuities. -sjm
