Dave Ramsey's Conflict of Interest: Many SmartVestor Pros Sell Fixed Index Annuities He Rejects
The Critical Difference Between What Ramsey Preaches and Where He Sends Your Retirement Money
Dave Ramsey is a giant in personal finance, and his debt-free movement has undeniably changed thousands of lives for the better. But when it comes to retirement investing, his recommendations—particularly regarding withdrawal rates and Social Security timing—have drawn significant scrutiny. There is another area where the motivation seems less about sound listener advice and more about revenue: his Ramsey SmartVestor financial advisor referral program.
Ramsey’s Clear Warning on Fixed Index Annuities (FIAs)
For once, Dave Ramsey and I agree completely: Fixed Index Annuities (FIAs) are generally a poor investment product for the average person. FIAs are complex insurance contracts with high fees, lengthy surrender periods, and caps on upside growth that often make them better for the advisor selling them than the client buying them. Ramsey’s stance couldn't be clearer. In his book, The Total Money Makeover, he explicitly advises:
“I recommend you stay away from all variable and fixed index annuities. The returns are not worth the high fees.”
You can listen to segments from his radio show archives that show Ramsey answering listener questions about annuities in our YouTube video.
The SmartVestor Paradox: Conflict in the SmartVestor Referral Program
Here's the problem: While Dave Ramsey tells his millions of listeners to stay away from index annuities, he openly accepts and promotes financial advisors on the SmartVestor program who actively sell them. The Ramsey SmartVestor program is a pay-to-play referral service. The advisors pay to be "vetted" (see our blog post on how advisors are vetted: A Closer Look at the Dave Ramsey SmartVestor Program) and recommended to Ramsey's audience.
In October 2025, I used the SmartVestor website tool. Out of the advisory firms I was matched with, a significant number were firms that sell the very same commission-based fixed index annuities that Ramsey publicly despises. The Conflict: Dave Ramsey profits by referring his audience to advisors who sell the high-fee, commission products that he warns his audience about. This is the classic definition of a conflict of interest, where income trumps principles.
The Essential Difference: Fiduciary vs. Fee-Only Fiduciary
This conflict highlights a critical issue in the financial industry: You cannot trust an advisor simply because they claim to be a "fiduciary." Many advisors who are compensated by commissions—like those selling fixed index annuities—will still claim to be a fiduciary. However, the reality is that their fiduciary duty often only applies to certain accounts or specific recommendations, allowing them to legally sell high-commission, inferior products like annuities in other situations. It 's only when the consumer reads the fine print that they discover that the advisor they trusted wasn’t required to act in their best interest all the time.
The Solution: Find a Fee-Only Fiduciary Advisor
The only way to completely eliminate this conflict of interest is to work with a Fee-Only financial advisor. At Ark Royal Wealth Management, we are never conflicted by commissions because we never sell commission products. We operate under the highest legal standard as a Fee-Only Fiduciary, and we always put it in writing. Our only compensation comes directly from the client. If your advisor is unwilling to sign a fee-only oath and disclose that they receive zero commission compensation—you are likely working with the wrong advisor.
Ready for Unconflicted Retirement Advice?
We help clients navigate the complexities of retirement planning, Social Security, and wealth management with transparency and trust.
- Avoid commission-driven advice
- Work with a true Fee-Only Fiduciary
- Get a retirement plan built for your best interest
Contact Ark Royal Wealth Management today to start a conversation about your unconflicted financial future.