From Yahoo Finance: 2025-05-31 00:33:00

Listener Portia asked Suze Orman about her variable annuity on the Women & Money podcast. Orman advised Portia to exit the annuity due to high fees and long surrender schedule, which could cost her over $9,000 in fees if she waits. Orman cautions against variable annuities in qualified accounts like a 401(k) due to high annual fees.

Rolling a 401(k) into an annuity may not offer added tax benefits, limits flexibility with fixed payment schedules, incurs hefty fees, and poses inheritance issues if you die prematurely. Orman recommends surrendering the annuity, reinvesting the funds in an IRA, and possibly converting to a Roth IRA for tax benefits.

For those in similar situations, seeking advice from a financial planner is crucial to understanding fee structures, penalties, and tax implications before making changes. Making informed decisions about retirement savings can help avoid costly mistakes and maximize future financial health.

Read more: $85,000 Investment Mistake? Suze Orman Says This Listener Should Exit Her Annuity ASAP