An annuity is with an insurance company. If the interest rate is constant, you are talking about a fixed annuity. 5% as mentioned, is darn good. You won't get that from a bank CD or even buying a treasury bond. If you are young (since new to investing) and want to move into equities (maybe good, maybe not) talk to the insurance company that sold the annuity (you get a report at least annually with phone numbers) and ask about a variable annuity, and whether you could put some of the fixed annuity money into it without penalty. If you take the money out of the annuity, appreciation will be taxable. Since it is an "old account", presumably there would be no fees involved. If you can transfer some of the money to a variable annuity, you should be able to select stock choices that may (or may not) perform better than the 5% of which you are now certain. In summary: for fixed income, you are doing well. The way to generate a higher return is by taking more risk, as by buying equities. To know whether any of this is a good idea, we would need to know more about your circumstances. What do you want this $18000 to do for you? Can you leave it where it is until retirement and put new money into different types of investments, thus building up a diversified portfolio? Best wishes, Chris
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