Ask TheStreet: Annuity Analysis

So, if you're not happy with the returns you're getting from your certificates of deposit, consider some no-load equity and fixed-income mutual funds.

Or check out the life-strategy funds offered by firms like Vanguard and Fidelity. You basically invest in a fund of funds, and the asset allocation between equity and bonds is adjusted as you age, and your risk level changes. So when you're 80, you'll have a much bigger percentage of your investment in fixed income and less in equities. Whereas when you're 55, you'd probably want a bit more equity exposure and a little less fixed income.

So study all your options before you go down the annuity road. There are plenty of other (cheaper) investment vehicles out there that will help you achieve your goals.