Is now the time to invest $ 200,000 in a annuity that is based upon
the allocation of 30% into Growth Mutual Funds and70 % into Growth &
Income Mutual funds
 or is a wait and see strategy a better approach currently as the market
may be  due a serious correction? The 200,000 is currently in a money
market account earning 4.37 %. I am 59 years old. I do not need to
touch the $200,000 for 7 years.

Trying to time the market is a losing battle.  Some people think the
market will rise others think it will fall, if that wasn't the case
then the stock prices wouldn't be what they are today (if a lot of
people thought a market correction was about to happen then prices
would immediately fall as few people would be willing to buy).  If
you're going to invest then there's never any time like the present.

The investment options you have chosen seem a bit on the risky side
knowing that you'll be tapping into it in 7 years, but perhaps you
have other less risky assets to ballance your portfolio.

Regarding risk as mentioned above...

Are you planning to take ALL of it in 7 years?  Unlikely....so, how
much are you planning on taking out in say years 7 through 15....THAT
is the amount your are 'risking'.

Maybe a better approach is to determine what stream of income you want
(starting in 7 years and taking into account pensions/govt assistance
etc) and for how long (mortality rate +10) and then adjust your
portfolio to one that has historically provided such returns as needed
while minimizing risk.

BTW...the Wait and See approach generally doesn't mean leaving 100% in cash.

It depends on the type of annuity you're evaluating.

"Annuity" can mean a lot of things. Is it a fixed or variable policy?
Equity-indexed?

I'd only consider investing in the annuity if it was a true "variable
annuity" with some type of income or accumulation guarantee down the
road.

We offer a product from a very well known insurer that will give you
the ability to invest $200,000 into a variable annuity. You can elect
a Guaranteed Minimum Accumulation Benefit (GMAB), which is essentially
a way for you to recover the initial $200,000 in a lump-sum after some
specific period. In the case of this particular product, you can get a
money-back guarantee in as little as 5, 7 or 10 years. If you chose a
5-year money back guarantee, you would have a 60/40 split between
stocks and bonds. If you chose a 7 year guarantee, you would have a
80/20 split between stocks and bonds. If you chose the 10 year
guarantee, you would have 100% stock allocation.

The nice thing about this type of "lump-sum" guarantee in your case,
is that you can let your money work and the worst case scenario is you
get back what you put in as a lump sum.

There are many other "living benefits" in the marketplace that give
you the ability to recover your premiums within the timeframe you're
talking about. But if you need the $200,000 in a lump sum in 7 years,
you could assign "market risk" to the insurer in such a product.