I hate buying high...convince me otherwise

[JordanIB]

I'm in a fairly common situation...

2 years out of school. Making a good salarly, contributing to get the max match out of my 401k. Saving a lot in addition to that, but have way too much in savings just sitting in an HSBC account at 5.05%.

I have been delaying (no valid reason..just lazy) opening up an IRA, but now just want to go ahead and do it. I'd do the max for this year. And then max out again next year.

The only thing is, I'd be putting most -- if not all -- of the $ in index funds, and I hate getting in now when all the indices are 5 or 6 year highs.

Please tell my how poor my thinking, convince me why I should open up the account right now, and what should I be starting out with as investments?