Variable Annuity Dave Ramsey 2025
Dave Ramsey often warns against variable annuities due to their high fees and complexity. However, he acknowledges that they might work in specific scenarios for disciplined, high-earning investors who have already maxed out their other retirement options.
Let’s look at an example:
Meet Dr. Jennifer:
Jennifer is a 45-year-old orthopedic surgeon with a thriving practice. She earns $450,000 annually and has been meticulous about her financial planning. Here’s a snapshot of her financial situation:
- She’s maxed out her Roth IRA and 401(k) every year.
- She’s contributed to an HSA (Health Savings Account) and invested it for long-term growth.
- She has a taxable brokerage account with diversified investments.
- Her mortgage is fully paid, and she’s debt-free.
Jennifer still has $50,000 per year that she wants to invest but has already hit the contribution limits on her tax-advantaged accounts. She’s also in a high tax bracket, so minimizing her taxable income is a priority.
After consulting with her financial advisor, Jennifer considers a variable annuity as a tool to grow her additional savings tax-deferred. She selects a low-cost option with strong investment choices to avoid the high fees Dave Ramsey often criticizes.
Why This Works for Jennifer
- She’s Maxed Out Other Options: Jennifer didn’t jump to a variable annuity before fully utilizing her Roth IRA, 401(k), and other tax-advantaged options.
- No Debt: She’s not juggling a mortgage or other high-interest debts.
- Tax-Deferred Growth Matters: As a high-income earner, deferring taxes on her additional investments could help her grow her money faster.
A Word of Caution Variable Annuity Dave Ramsey 2025
Variable annuities aren’t for everyone, and in most cases, Dave Ramsey recommends sticking to simple, low-cost investments. For someone like Jennifer—who has a high income, financial discipline, and surplus cash—they might provide a strategic advantage.
Take the Next Step in Your Financial Planning
Thinking about whether a variable annuity fits your financial strategy? At Mintco Financial, we specialize in fiduciary financial planning and provide personalized advice tailored to your needs. Whether you’re a high-net-worth individual, a physician like Dr. Jennifer, or just looking to secure your retirement, we’re here to help.
📞 Call us at 813.964.7100 or Book a meeting online to discuss your options.
We serve clients all over the country, offering the convenience of Zoom and tele-meetings, so you can get expert financial guidance from the comfort of your home or office.
Let’s create a financial plan that works for you!
