Troy,
You are to be commended for being so intelligent at so young an age. If you start saving now, you will definitely be a millionaire when you retire.
Start a Roth IRA and contribute the maximum amount every year. (That is $5,000 per year or $416.67 every month). You won’t get a tax deduction for your contribution but when you take any money out, you won’t be taxed either. The money grows totally tax free. You may also take out any contributions that you have made, without penalty, before the age of 59 1/2. There is only a penalty if you withdraw any of the growth before age 59 1/2. Althought you may be able to withdraw some without penalty for a home purchase, but I am not certain.

By the way, GE is going into the tank and their bonds have been downgraded. The stock is doing terribly also.

I suggest you dollar cost average into a Index mutual fund. Vanguard has an index fund called the SP 500 Index Fund, Fund #40.

Check the rules for a Roth IRA and if you qualify just go to Vanguard.com and have them send you the proper forms. Contribute to it on a regular and recurring basis. Do your homework. I worked in investments for years and years but you need to understand what you are doing.

Right now the stock market is rather dicey, to say the least but it has averaged about 12% over that period since 1929. there is a greater chance it will go up rather than down. If you are going to invest make sure you are an investor and not a saver. Investors plan not to touch their money for at least 7 years. Savers, on the other hand reach into the account whenever they want to buy something.

Good luck

Very safe doesn’t have the same ring to it that it used to.

Jim Jubak’s Journal and videos on MSN Money give a lot of sound advice and information relating to investing. You can learn a lot from him. Note that he has, for quite some time, been keeping much of his money in cash during highly turbulent times. But he’s got his eye on good long term prospects.

Whatever you do, start now. Start small, or if your income is fairly good, you have no debt, go with some riskier things. You have plenty of time before you retire to invest a lot for a good return. Don’t wait until you’re in your 40’s or 50’s to start. Good luck!

Since you arent a master stock investor, bonds might provide a safe alternative for you. Start reading. Look into GE debenture bonds, which provide a good return and are very safe.

The stock market is awesomely cheap right now, but with Obama coming into the white house anything could happen.