I'm thinking of investing but am concerned about our economy.

Hi Dookie, Good question! I myself mulled this over for about half a year before I took a plunge and invested in a Roth IRA. I chose fidelity as my broker and I invested in a fund that target my retirement date (in about 40 years). Basically, now that I'm relatively young, the portfolio is a little riskier and that will change over time to more secure funds as I grow closer to my retirement date. And since this is a Roth IRA, I can't touch the money until I'm at least 58 1/2. Is it risky now? Of course, the stock market is risky at ANY TIME, however, if you're in it the long run (say decades, like me), you've really got a LOT of time to make up for it. Right now, I would say I've lost a little bit of value in my fund and it does scare me. But you need to stand firm, because history shows that investments in the stock market have always had great returns (8-11%), considering it is a passive form of income - you sit back and let your money do your work for you. And, don't forget the power of compound interest! A great book I recommend is the "Finish Rich" series by David Bach - the "latte factor" is an interesting concept. Of course it may seem far out that a 3 dollar latte a day will make you poor, but he does explain compound interest and how saving a few dollars a day can mean thousands of savings in about 40 years. When you first invest your fund, you'll be really paranoid and check the value everyday - of course it's scary to see you $500 turn into $200 in a month. The trick is not to check it everyday - it'll only drive you bonkers! I only check mine every 2 months, just to make sure my online account hasn't been hacked, but I condition myself not to look at the dollar value and panic. I hope this helps - I'm not a financial advisor or anything, I'm ust really interested in the topic of personal finance. This is just my experience and what helps me. I wish you and your wife good luck! And one more piece of advice - if you're going to do something, just do it NOW! This has nothing to do with the current market because NO ONE can predict the stock market. WHat I'm talking about is the fact that you're even thinking of putting some money aside means you could probably afford the extra investment. Don't procrastinate! In my case, I delayed making the decision and I invested in the fund at a low price, but the delay wasn't due to procrastination. I was on the road traveling and backpacking (I had already set up my account and had the money put aside before the trip, but I didn't know where to put it). I was just suddenly struck with the realization that I'm going to grow old someday and would have to start making "real" decisions. As soon as I got back after the almost 4 month trip, I started researching and then decided on the fund. In way, this was kind of dumb luck that I got back after October 2008, after the stock markets took a plunge. However, my money was sitting in a no-interest savings account for 4 months, when I could have put it in a CD or something that will make it earn some money. Oops, another piece of advice - don't get into ponzi schemes! (sorry, just being a little tongue in cheek here). Seriously though, if it sounds too good to be true, than it probably is :)