Dave Ramsey, a well-known personal finance expert, has been vocal about his views on variable annuities. He generally advises against investing in variable annuities due to their high fees and complexity. Ramsey believes that there are better investment options available that offer more transparency and control over your money.
One of the main concerns Ramsey has with variable annuities is the high fees associated with them. Variable annuities often come with high expense ratios, surrender charges, and administrative fees, which can eat into your investment returns over time. Ramsey suggests that investors can achieve similar or better results by investing in low-cost index funds or other investment vehicles with lower fees.
Another issue Ramsey highlights is the complexity of variable annuities. These financial products can be difficult to understand, with complex features such as living benefit riders, death benefit guarantees, and investment subaccounts. Ramsey believes that simplicity is key when it comes to investing, and variable annuities may not align with this principle.
It's important to note that while Ramsey generally advises against variable annuities, there may be specific cases where they could be suitable for certain individuals. However, he emphasizes the need for thorough research and understanding of the product before making any investment decisions.
Please keep in mind that Dave Ramsey's views are his own and may not align with the opinions of other financial experts or professionals. It's always a good idea to consult with a qualified financial advisor before making any investment decisions.