I think US is in Recession and stocks will underperform in 2008! I would putmy surplus cash in bank CD and perhaps buy a little Gold as well.

Cash in Short Term CD will earn interest income that is porfolio income and subject to your regular income tax. But, at least you would not be speculating in the stock market.

I think Annuities are very profitable products for financial institutions along with higher commissions for their respective agents. So, I wouldn't invest in these products. Furthermore, I think the strategy of investing Annuities in a Qualified account doesnt make sense in my opinion! The earnings are always tax free in a Qualified account!!