Suze Orman is generally skeptical of annuities. She argues most people should avoid them, citing high commissions, steep surrender charges, complexity, and poor tax treatment compared to alternatives like index funds or municipal bonds.
On her podcast, she’s bluntly told listeners “no, no, no” when asked about buying one, even for tax purposes.
That said, she isn’t opposed to all annuities, she has said she has no problem with fixed annuities, especially CD-type ones, for conservative investors wanting guaranteed, tax-deferred growth.
Her strongest criticism targets variable and indexed annuities, particularly when held inside already tax-advantaged retirement accounts, which she considers redundant and costly.