09/21/2025
https://www.thinkadvisor.com/2025/09/15/suze-orman-gets-it-wrong-on-annuities-and-taxes/?kw=Suze%20Orman%20Gets%20It%20Wrong%20on%20Annuities%20and%20Taxes&utm_position=1&utm_source=email&utm_medium=enl&utm_campaign=dailywire&utm_content=20250915&utm_term=tadv&oly_enc_id=9352I1903023G9T&user_id=b05afb683cfa2416f942e1e4b22d7ff0c1f63c4523ca9552b2f048f7c274ee11
It would be helpful if Suze Orman, with her huge following, would actually learn the facts of what annuities and insurance products ACTUALLY do. Michael Finke does a great job breaking down the lifetime income and tax benefits of annuities, especially for women, who tend to live longer than men and could benefit greatly from Fixed Indexed Annuities. As he points out:
"How long could she support an income of $59,568 with $686,841 of muni assets? About 15 years. Midway through her 80th year, the fund would be empty. According to mortality tables for annuity owners who are healthy women, this would mean that Michelle has about an 80% chance of outliving her savings by trying to match the net retirement income of an annuity.
The actual risk is even higher because the muni yield will rise and fall over time, increasing the range of ages at which Michelle will run out of money. She could run out at 75 or 85, but even at 85 she still has more than a 50% chance of outliving her muni savings.
Annuities can also be the right choice when funding spending from bonds in a qualified account, and she doesn’t need to make an irrevocable decision to secure an additional source of lifetime income."
Facts matter.
An annuity "never makes sense for tax purposes," Orman told listeners. I think they deserve a better response.
