Transferring annuity proceeds to IRA

[aubrey]

I am 77 years old with a net worth of 3M. Part of my portfolio includes a variable annuity I bought in 2007 for $320,000. I started drawing from it in 2017 and receive $25,000 per annum. My financial advisor now wants me to surrender the annuity with a surrender value of $319,000 and transfer the proceeds to my IRA to be invested in mutual funds. His rationale is that I currently pay 3% in charges for the annuity whereas the mutual funds only cost me 1.19% annually. Is this wise? The funds in the annuity do not perform as well as those in the IRA but on the other hand, I am guaranteed $25,000 per year until death at which time, whatever remains goes to my wife as an insurance death benefit. Please let me know what you think.