Updated: June 29, 2026
Why We Disagree with Ken Fisher on Annuities
Someone on the internet is wrong. It’s Ken Fisher.
Fisher is the billionaire founder, executive chairman, and co-CIO of Fisher Investments, a massive firm managing over $387 billion globally. He’s a well-known author, former Forbes columnist, and famously adversarial when it comes to annuities. His "I Hate Annuities" campaign runs prominently across his firm's website, highlighting his personal reasons to avoid annuities.
While we respect his historic market success, Canvas Annuity believes he is mostly wrong about how annuities fit into modern retirement planning.
To be completely fair, Ken Fisher admits he doesn’t hate all annuities. While “I Hate Annuities” makes a clickbait-worthy headline, it slightly misrepresents his stance. Fisher openly writes that "fixed annuities are okay." Since fixed annuities happen to be the most popular option, even Fisher accepts that a massive chunk of the market consists of helpful financial products.
Let’s break down his four main arguments point-by-point to show where they fall short.
Why Ken Fisher Hates Most Annuities: Point by Point
1. "The contracts are long and confusing."
Ken Fisher argues that annuity contracts are too long and obtuse, making them difficult for consumers to understand.
Fisher gripes that annuity contracts “are huge, obtuse, confusing and hence rarely read.” True, they are long—just like Facebook's privacy policies or the mutual fund terms Fisher’s own firm sells. Lengthy documents exist because state insurance departments regulate them to protect buyers. Every disclosure is required by regulators to ensure total transparency. Insurance companies don’t intentionally create long contracts to confuse people, instead they are including information required by regulators to protect consumers. It also follows that shorter contracts denote simpler and more accessible products. The average contract for a fixed annuity should be much shorter than one for a variable annuity. The solution to the confusion and length is to choose straightforward annuity terms over complex hybrid contracts. The best fixed annuities on the market offer clear, predictable parameters anyone can grasp.
2. "Agents lie to make a sale"
Ken Fisher claims that commission-driven insurance agents frequently mislead buyers to close annuity sales.
Fisher's complaint centers on high sales commissions that can incentivize bad behavior—or even scams. While sales misconduct happens in any industry, the regulatory landscape has completely changed since his original critique. All 50 states adopted the NAIC best-interest standard for annuity sales into state law, legally requiring producers to put client interests ahead of annuity commissions. Canvas Annuity completely eliminates this conflict. Canvas does not pay sales commission to agents and instead sells directly to consumers, offering total peace of mind alongside some of the highest crediting rates available.
3. "Variable annuities are sold as safe — and aren't"
Fisher correctly points out that variable annuities carry stock market risk, meaning owners can lose their principal.
Fisher notes that annuity companies misleadingly pitch variable products as safe. He can criticize variable annuities; they expose money to market volatility and high sub-account fees. However, this risk doesn't apply to fixed annuities, which protect your principal and offer a guaranteed interest rate. With a guaranteed rate, our money cannot lose value due to market downturns. To shield your savings from market corrections, fixed annuities ensure your balance grows.
4. "Large, hidden fees"
Fisher warns that annuities trap consumer funds with humongous and punitive surrender charges and uses them as a reason to stay away.
Traditional insurance products do sometimes impose steep annuity surrender charges if you withdraw funds early. The solution is finding fee-light products with clear terms, that allow some liquidity for emergencies. With the Canvas Future Fund, RMD withdrawals do not incur a surrender charge, and you can withdraw up to 10% per year, penalty free, even in the first year. Additionally, there is a waiver of surrender charges rider included with the product, free of charge, that allows you full access to your funds if you meet certain health criteria.
Why Else Might Ken Fisher Hate Annuities?
Ken Fisher’s professional incentives run opposite to the annuity market. First, annuities are designed for everyday people seeking stable income and principal protection—they aren't built for billionaires. Second, Fisher Investments operates as a fee-only money manager earning a percentage of assets under management. His firm actively buys clients out of their existing annuities to move that cash into stock portfolios. When you realize his business directly profits when you choose stocks over annuities, his fierce opposition makes perfect sense.
The Case Hasn't Aged Well: Annuities in Today's Market
Fisher first minted his anti-annuity campaign in a near-zero rate world in 2013. Today, the economic landscape has fundamentally shifted. According to LIMRA, total U.S. retail annuity sales soared to a record $432.4 billion, marking a historic high for the industry. Savers aren't buying into the idea that these products are a bad deal; they are actively capitalizing on excellent yields and reliable principal protection.
We Love Annuities, and You Should Too
We admire Ken Fisher’s success, and he isn't completely wrong about the pitfalls of certain complex products. Annuity contracts can be tedious, and variable accounts carry genuine market risk. But his sweeping conclusion that everyone should avoid annuities is wrong. When chosen wisely, they are legitimate products that accumulate tax-deferred wealth. To steer clear of the traps Fisher identifies, look for these features:
- Understand the contract: Choose simple fixed annuities rather than complex, hybrid structures.
- Choose no-commission direct sellers: Eliminate agent bias by working with direct-to-consumer companies.
- Choose fixed options for protected principal: Opt for a fixed, guaranteed rate if you cannot afford to risk losing your money.
Canvas Annuity products avoid all of Fisher's criticisms. Our contracts are straightforward, our licensed representatives earn zero commissions, and we charge no administrative fees. Because we skip the middleman, we provide some of the highest crediting rates around.
FAQ
Does Fisher Investments sell annuities?
No, Fisher Investments is a fee-only money manager that doesn't sell annuities. They actively buy clients out of them to manage those assets in stock portfolios, creating a clear business incentive to favor stocks and other equity products.
Are annuities a safe investment?
It depends on the type. Variable annuities carry market risk and can lose value, while fixed annuities are non-market insurance products that protect your initial principal and credit interest at a set rate. Plus, you can turn them into a steady stream of income when you’re ready. Read more about how these options shield your savings on our blog page: Are Annuities Safe.
Why does Ken Fisher hate annuities?
Ken Fisher hates most annuities stating they have complex contracts, commission conflicts, high surrender fees, and market risks in variable accounts—though he concedes fixed annuities are "okay."
What's the difference between fixed and variable annuities?
Fixed annuities protect your principal and credit interest at a predetermined, guaranteed rate. Variable annuities tie your balance to market sub-accounts, meaning your money can fluctuate and fall with the stock market. See our full breakdown of fixed vs variable annuities.
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