I have my feelings on this, but I am eager to hear your response to that opinion!
January 6, 2026 by Sheryl J. Moore
Technically, Alexander Clark with MSN is not correct. Read at MSN: Is an annuity worth it? Here’s what Dave Ramsey says
“Some annuities are built mainly for accumulation, others for guaranteed payouts, and some try to do both.”
Actually, ALL annuities offer “guaranteed payouts.” Every single one of them.
In this piece, Alexander discusses Dave Ramsey’s position on annuities. (This journalist looks like he made an article out of one of my LinkedIn discussions?)
The entertainer, Dave Ramsey, says there are annuities as long as 25 years. Not true. There haven’t been annuities with this long of surrender charges in over two decades!
And Dave comparing annuity performance to that of mutual funds just shows how little he knows about these products. Of course you will yield more on investments! Insurance, like that provided in annuities, has a “cost.”
And never mind that the bulk of annuities protect your principal investment…investments such as mutual funds, ETFs and stocks cannot say the same.
Dave suggests that annuities are “an expensive form of insurance that most people do not need if they invest consistently and avoid debt.”
I have my feelings on this, but I am eager to hear your response to that opinion!
He continues that “even though some modern fixed indexed annuities offer principal protection…”
Nope- all indexed annuities offer principal protection. All of them. Some even guaranteed interest as much as 2.00% annually.
This is just another example of a financial entertainer trying to look like an authority on a product that they don’t know enough about to speak about them on a national platform.
In my opinion, such entertainers should keep their opinions to themselves, if they don’t know enough to be speaking about a solution such as annuities.
Let me hear from you. What did you think about this one? -sjm
