Instructions

• 1). Choose a reputable insurance company with a good track record for growing annuities and other retirement investments.
  
  
• 2). Determine the features of the annuity contract you will sign with the company. Depending on your needs, you might want an immediate income stream, a variable annuity, or a fixed annuity.
  
  
• 3). Decide how long the annuity contract will be in place. It's important to note that surrender fees, which are fees incurred for canceling an annuity contract, can run as high as 15% if the surrender occurs within the first seven or eight years.
  
  
• 4). Meet with a tax planner or estate attorney to ensure the account's beneficiary information has been determined and is up to date. The beneficiary will receive funds and be responsible for paying taxes on those funds when the time comes.
  
  
• 5). Allow the annuity to mature with time and do not withdraw funds from the account until at least age 59 1/2, the legal age for retirees to start pulling money from retirement accounts.