[RWebb]

Like Paul, I also favor Vanguard for mutual funds. They have very low expenses (which rob your returns) and the company is actually owned by the shareholders. Fidelity is also good.

Generally, the returns you get are correlated with the risks you take. Cash has little risk (but you are almost guaranteed to lose money over time to inflation) - that includes CD's. Bonds are next (and there are various types), with stocks giving the most return for the greatest risk.

If you pool a bunch of stocks, the risk is reduced - hence the mutual stock fund.

As noted above, avoid crazy things like day trading, commodities, derivatives, etc.

You will also want to shelter your money from taxes. That means start an IRA right away - call Vanguard and tell them you want to start an account and an IRA. The next question is Roth vs. Traditional. Talk to the Vanguard rep about your current tax bracket and ask for their advice.

Also, pack away as much of your salary as you can in a 401k or whatever retirement benefit plan your company has. And solo business can also set up a nice fat 401k - including one that consists solely of selling off your used car parts on say Pelican or eBay. It has to be a real business, not just a hobby, but IIRC the test is whether you attempt to make a profit. Not a huge barrier. The IRS will actually help explain this to you.

Start that IRA ASAP - before April 15th & always put in the max. for your age bracket.

LAST:
Whether you are liberal or conservative politically, you will want to be fairly conservative in your expenditures, but reasonably liberal in your investments.