Written by Stina Antonopoulos
Founder of Roots & Wealth | Retirement Income Planning | Author of What If?

Suze Orman has been very clear over the years that she does not like annuities.

She has said it on television, in books, and on her podcast. So if you have ever searched online for whether or not you should buy an annuity, there is a good chance you have seen her tell someone to stay away.

Here is where I want to be fair.

She is not completely wrong.

But she is usually talking about a very specific kind of annuity. And that is where many people get confused.

All annuities are not the same.

That would be like saying all real estate is bad because one person bought the wrong property, in the wrong place, at the wrong price.

The details matter.

What Suze Orman Is Really Warning People About

Most of Suze Orman’s strongest criticism has been about variable annuities.

And honestly, I agree with a lot of that criticism.

Variable annuities can be expensive. They can have layers of fees. They can be difficult to understand. And many people were sold these products inside IRAs, which often made no sense because the IRA was already tax-deferred.

That is a real issue.

A variable annuity may have:

- Mortality and expense charges

- Administrative fees

- Investment fund fees

- Optional rider fees

- Surrender charges

- Market risk

By the time everything is added together, the cost can become very high.

So when Suze says she does not like variable annuities for most people, I understand why.

If someone is young, still building wealth, and has many years before retirement, they may be better off using lower-cost investment options instead of locking money into an expensive product they do not fully understand.

That is common sense.

Where I Agree With Her

I agree that people should not buy something they do not understand.

I agree that fees matter.

I agree that putting a high-fee variable annuity inside a traditional IRA can be a poor recommendation if there is no clear benefit to the client.

I also agree that some financial professionals have made annuities sound better than they really are just to make a sale.

That is not okay.

People deserve to know exactly what they are buying, what it costs, what it can do, and what it cannot do.

I do not believe in painting a picture of maybe.

Some products are sold on illustrations, assumptions, and “what could happen.” But what matters most is what is guaranteed, what is not guaranteed, and whether the product actually solves the problem the client has.

Where The Conversation Gets Confusing

The problem is that the word “annuity” gets used as if it means one thing.

It does not.

There are several different types of annuities, and they do not all work the same way.

A variable annuity is very different from a fixed annuity.

A fixed annuity is very different from a fixed index annuity.

A MYGA is very different from an income annuity.

They may all fall under the annuity category, but the structure, risk, fees, and purpose can be completely different.

So when someone says, “I hate annuities,” my first question is:

Which kind?

Because that answer matters.

A Simple Breakdown

Here is the simplest way to look at it.

Variable Annuity

A variable annuity is tied to investment subaccounts. That means your money can go up or down based on the market.

These products can have high fees, especially if you add income riders or death benefit riders.

This is the category Suze Orman has criticized the most.

And in many cases, I understand why.

MYGA

A MYGA stands for Multi-Year Guaranteed Annuity.

Think of it like a fixed-rate product with a time commitment.

You choose a term, such as 3, 5, 7, or 10 years. The insurance company gives you a guaranteed interest rate for that period.

Your money is not in the stock market.

You know what rate you are getting.

You know how long the term is.

You know what your surrender schedule is.

This is much easier to understand than a variable annuity.

A MYGA can be a good fit for someone who wants safe, predictable growth and does not want market risk.

Fixed Index Annuity

A fixed index annuity, often called an FIA, is different.

Your money is not directly invested in the stock market, but your growth is linked to an index, such as the S&P 500.

If the index performs well, you can earn interest based on the rules of the contract.

If the index goes down, your credited interest for that period may be zero, but your account value is not reduced due to that index decline, assuming no withdrawals, rider charges, or surrender charges apply.

Fixed index annuities are not stock market investments. They do not directly participate in the market, and they usually do not include dividends from the index. The insurance company uses a formula to credit interest based on the contract terms.

That is the main reason some retirees like them.

You give up some upside in exchange for protection from downside market loss.

That does not mean it is perfect.

You still need to understand the cap, participation rate, surrender period, index options, and whether there are any rider fees.

But a no-fee fixed index annuity is not the same thing as a high-fee variable annuity.

That is the point many people miss.

Single Premium Immediate Annuity

An immediate annuity is used for income.

You give the insurance company a lump sum, and they pay you a guaranteed income, often for life.

This can make sense for someone who is worried about outliving their money and wants a pension-like income stream.

It is not designed for liquidity or high growth.

It is designed for income.

The Person Who May Benefit From A Fixed Or Fixed Index Annuity

This is usually not someone in their 30s or 40s trying to aggressively build wealth.

This is usually someone closer to retirement.

- They may be 58 to 75.

- They may have money sitting in CDs, savings, bonds, or a retirement account.

- They may be worried about losing 20% or 30% in the market right before or during retirement.

- They may want income.

- They may want safety.

- They may want tax deferral.

- They may want to leave money to a spouse, children, or grandchildren.

They may simply want part of their money protected so they can sleep at night.

For this person, the conversation is different.

The comparison is not always annuity versus stock market.

Sometimes the real comparison is:

- Annuity versus CD

- Annuity versus bond fund

- Annuity versus money market

- Annuity versus leaving everything exposed to market volatility

- Annuity versus running out of income later in life

That is a much more honest conversation.

The Fee Conversation Needs To Be Clear

Fees matter, but we have to talk about them correctly.

A variable annuity may have annual fees that are deducted from the account.

Many MYGAs do not have an annual advisory or management fee deducted from the account. However, surrender charges may apply if you take out more than the contract allows during the surrender period.

Many base fixed index annuities do not have an explicit annual fee deducted from the account unless an optional rider is added. The trade-off is that your growth is limited by the contract’s caps, participation rates, spreads, or crediting rules.

That means you may not receive all of the market upside.

But you are also not taking the market downside.

That is the trade-off.

It is not magic.

It is not free money.

It is a contract.

And the job is to understand whether that contract makes sense for your situation.

The Bigger Issue Is Not Suze Orman

The bigger issue is that consumers are getting pieces of advice without context.

Suze Orman may be right about one type of annuity.

A broker may be right about another type of annuity.

A financial advisor may be right for one client and completely wrong for another.

That is why blanket advice can be dangerous.

“Never buy an annuity” is too broad.

“Everyone should buy an annuity” is also too broad.

The better question is:

- What problem are we trying to solve?

- Are we solving for safe growth?

- Are we solving for income?

- Are we solving for legacy?

- Are we solving for long-term care concerns?

- Are we solving for a spouse who needs protection?

- Are we solving for tax deferral?

- Are we solving for peace of mind?

The product should match the problem.

Not the other way around.

Three Questions To Ask Before You Follow Anyone’s Advice

Before you follow Suze Orman, your neighbor, your brother-in-law, a financial advisor, or even me, ask these three questions.

1. What kind of annuity are we talking about?

This matters.

A variable annuity and a MYGA are not the same.

A fixed index annuity and an immediate annuity are not the same.

Do not let one bad example make you ignore an entire category.

2. What are the real fees?

Ask for the fees in plain English.

Are there annual fees?

Are there rider fees?

Are there surrender charges?

Is the rate guaranteed?

Is the income guaranteed?

What happens if you need your money early?

If the person explaining it cannot make it simple, slow down.

You should not buy something you cannot understand.

3. What is this money supposed to do?

This is the most important question.

Some money should be liquid.

Some money should grow.

Some money should be protected.

Some money should create income.

Some money may be for legacy.

Not every dollar has the same job.

An annuity may be wrong for one bucket of money and right for another.

That is why planning matters.

My Bottom Line

Suze Orman is right to warn people about expensive, confusing products that are not in their best interest.

I respect that.

But I do not agree with throwing every annuity into the same bucket.

A high-fee variable annuity is not the same thing as a MYGA.

A MYGA is not the same thing as a fixed index annuity.

A fixed index annuity is not the same thing as an immediate annuity.

The name may be similar, but the purpose and structure can be completely different.

For the right person, fixed annuities and fixed index annuities may provide principal protection, tax-deferred growth, and optional income features depending on the contract. Guaranteed lifetime income usually requires annuitization or an income rider.

For the wrong person, it can be unnecessary or too restrictive.

That is why the conversation should never start with, “Do you like annuities?”

It should start with:

- What are you trying to protect?

- What income do you need?

- What risk can you honestly live with?

- And what do you want this money to do for you and your family?

That is where a real retirement conversation begins.

Before you decide that annuities are good or bad, make sure you understand which kind you are looking at. If you want a simple comparison of MYGAs, fixed annuities, and fixed index annuities, I can help you review the options clearly so you know what is guaranteed, what is not guaranteed, and what makes sense for your money.

Ready to Take the Next Step?

Retirement isn't just about numbers. It's about the life you've worked so hard to build.

Whether your dream is traveling more, spending time with your grandchildren, supporting the causes you care about, or simply enjoying the peace of knowing your bills are covered, your financial decisions today can shape the future you envision.

I believe every family deserves honest guidance, thoughtful education, and a retirement strategy built around their unique goals—not a one-size-fits-all recommendation.

Throughout my career, I've had the privilege of helping individuals and families navigate important financial decisions involving retirement income, life insurance, annuities, mortgages, and real estate. One thing I've learned is that every family's story is different, and every retirement plan should be too.

Before we ever talk about products or strategies, I want to understand you.

What does financial freedom mean to you? What are your biggest concerns? What kind of legacy do you hope to leave? Those conversations are the foundation of every recommendation I make because the best plans begin with listening.

My role isn't to tell you what to do. My role is to educate you, simplify complex financial decisions, and help you feel confident in the choices you make for yourself and your family.

Whether you're just beginning to plan for retirement or looking for a second opinion on your current strategy, I'd be honored to be a resource for you.

Why "Roots & Wealth"?

When I chose the name Roots & Wealth, it wasn't just because it sounded good. It reflects what I believe financial planning should be.

Just like a strong tree, lasting financial security begins with strong roots.

Those roots are built through education, thoughtful planning, meaningful conversations, and decisions that align with your values. Wealth isn't only about the size of your portfolio—it's about having choices, creating stability, protecting the people you love, and living with confidence.

Life will bring changing seasons. Markets will rise and fall. Tax laws will change. Unexpected challenges will happen. But when your financial foundation is built on strong roots, you're in a better position to weather those changes and continue growing.

That's the philosophy behind everything I do.

My goal is to help you build a retirement strategy that's deeply rooted in what matters most to you, so you can enjoy today while creating a lasting legacy for tomorrow.

If you're ready to build a retirement strategy with confidence and clarity, I'd love the opportunity to meet you. Schedule your complimentary Retirement Strategy Consultation and let's start growing your Roots & Wealth together.

This article is for educational purposes only and is not financial, tax, or legal advice. Annuity guarantees are backed by the claims-paying ability of the issuing insurance company. Product availability, rates, surrender schedules, riders, and terms vary by carrier and state.