[gull]

Index funds are best. They are more diversified than individual stocks, and they return more than actively managed funds.

There are two ways to invest in index funds. The first way, is directly with a fund company, such as Vanguard. This is what spider mentioned and this would be a great way to go. The second way is to buy ETFs, exchange-traded funds. They are purchased just like individual stocks, but they are essentially index funds.

You will also need to figure out which funds to invest in. Before you do that though, you should determine your risk tolerance and then plan an asset allocation. You want a broadly diversified portfolio, with exposure to domestic, foreign, and emerging markets.

What are your current investments? It will be easier to help plan an asset allocation if we know what your new funds will be complementing.