# Suze Orman's Annuity Preferences

> Suze Orman still recommends single premium deferred annuities despite past sales of $20m yearly.
- Title: Suze Orman's Annuity Preferences · 24/7 Wall St. | Shortify
- Summary: Suze Orman still recommends single premium deferred annuities despite past sales of $20m yearly.
- Keywords: suze orman, single premium deferred annuity, variable annuity, tax code, surrender charge, retirement accounts, cds, treasury rates, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/11/07/suze-orman-once-sold-annuities-here-are-the-only-kinds-she-still-likes
- Author: Jake FitzGerald
- Published: 2026-11-08T03:57:03+00:00
- Read time: 1 min
- Topics: suze orman, single premium deferred annuity, variable annuity, tax code, surrender charge, retirement accounts, cds, treasury rates
## Suze Orman's Annuity History
Suze Orman sold $20 million yearly of clients into single premium deferred annuities for years.

> Suze Orman does not hate all annuities in fact, there was a time in the United States for years actually, that I was the number one advisor and salesperson, so to speak, in getting people to buy single premium deferred annuities, I was putting my clients to the tune of about $20 million a year, obviously with a lot of people into annuities.
## Her Current Favorite
She still recommends single premium deferred annuities for those turning 59.5 or older in the surrender period.

> single premium deferred annuities are usually far better for people who know they are going to turn 59 and a half or older in the year that the surrender charge is up, or they’re already older and they’re looking at that as a replacement for, let’s say, a certificate of deposit.
## Additional Favorites
She also likes single premium fixed annuities and indexed annuities with specific interest rates.

> I like single premium fixed annuities where usually you deposit one sum of money, you get a specific interest rate for a long period of time equal to whatever the surrender period is of that annuity. And I don’t mind those indexed annuities.
## Product She Rejects
She strongly dislikes variable annuities due to tax inefficiencies and market risk.

> there is one kind of annuity that I really dislike tremendously, and that is a variable annuity.
## Surrender Charges
Surrender charges can start at 10% and drop to 0% over seven or ten years.

> the surrender charge can start at 10%, going all the way down to 0% over those seven or 10 years
## Tax Code Support
Her timing rule aligns with tax code exceptions for early withdrawals.

> Section 72(q) adds a tax equal to 10% of the taxable portion of early annuity withdrawals, with an exception for distributions made "on or after the date on which the taxpayer attains age 59½" (26 U.S.C. § 72(q)(2)(A)).
## IRAs and Annuities
Annuities in retirement accounts rarely make sense due to tax implications.

> almost in 99% of the cases it makes no sense to put an annuity within a retirement account.
## CD Comparison
Bank CDs offer FDIC insurance while annuities rely on state guaranty associations.

> A bank CD carries FDIC insurance. An annuity’s guarantee rests on the insurer’s claims-paying ability, with a backstop from state guaranty associations whose coverage limits vary by state.
## Current Rates
The national average 12-month CD paid 1.76% as of October 1, 2026, with top banks offering 3-5x that rate.

> The national average 12-month CD paid 1.76% as of October 1, 2026, though top online banks routinely pay 3-5x that average.
## Treasury Benchmark
Treasuries yield 4.90% on November 4, 2026, which Orman uses as her benchmark.

> The 10-year Treasury yielded 4.90% on November 4, 2026.
## Who Fits Her Advice
Retirees in early 60s with already-taxed savings and pre-retirees turning 59.5+ fit her rules.

> Good fit: a retiree in their early 60s with already-taxed savings sitting in CDs, who wants a fixed rate for a set term and won’t need the principal until after the surrender period ends.
## Who Misses Her Advice
Savers under 59.5 needing money soon and retirees focused on lifetime income don’t fit.

> Poor fit: a saver under 59½ who may need the money soon, since a surrender charge and the 10% additional tax could both apply.
## Key takeaway

Suze Orman defends single premium deferred annuities for those turning 59.5+ but rejects variable annuities due to tax risks.