Ramsey Everyday Millionaires Should My Parents Buy an Annuity?
Jan 28, 2026
James, a concerned son calling about his parents’ retirement, asks whether moving $475K into an annuity is wise. The conversation digs into annuity types, fees, and motives. Experts urge caution, suggest getting a second opinion from a fiduciary, and weigh security versus market risk in short, practical advice.
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Son Attends Parents' Advisor Meeting
- James called about his parents' $475,000 and an annuity holding about a third of it.
- He attended their advisor meeting because his parents asked for his input after inheriting money from his grandma.
Get A Second Opinion Before Buying Annuities
- Avoid annuities unless you fully understand the product and its fees.
- Get a second opinion from a SmartVestor or trusted advisor before moving large sums into an annuity.
Only Invest In What You Understand
- Don't invest in anything you don't understand; ask clear questions and demand plain explanations.
- If unsure, leave investments as they are and seek professional, unbiased advice before making changes.