First, make sure you are putting your money in the right accounts that give you tax benefits for saving for your retirment. The most commonly available are 401K's 403B's and IRAs.

Assuming you are aiming for around 60 as your retirement and have normal risk tolerance, then you should be investing in a stock and bond mutual fund portfolio up until your 50's. I like to 120-age rule for the stock/bond mix (120-age being the percentage of stock).

After 50, start taking 5% of your portfolio every year and move it into annuities. These currently pay 4-5% and will guarantee your income after retirement. They also grow your money tax deferred.

If you are in excellent health and able to max all your retirement accounts and still have plenty to sock away, then you should look at a Universal life policy over an annuity. Try to avoid variable life policies that are high in fees. Universale life policies will provide life insurance, grow your money safely at 5-6% tax-deferred, and can also be converted to income annuities in retirement. They can be used as a 3rd retirement account after ROTHs and work retirement programs. If you have not looked at this option, consult a financial advisor.

A 401K if your employer offers to match. Free money!

Invest it yourself. Learn how to invest in stocks with insurance to protect the downside. With self managed super funds all the rage at the moment its perfect to invest your savings yourself. To pick the correct stocks you can do a short course for as little as $97 covering how and what to invest in. Heres a website http://www.theglobaltradingroom.com

The first step in the process is to figure out what a "safe retirement" requires.

What does that mean in dollars and time? Does it mean that you'd like to be on a beach in year 2020? How much income will that require?

Basically, what I'm getting at is that you have to develop your goals and then work backwards to figure out the "smart investments." Investments are a means to your "safe retirement" but savings rates and spending rates play a much larger role in its achievement.

Maybe do some reading on developing financial goals or visit with a fee-only advisor in your area.

That portion of your investing portfolio that you intend to use for income, you can invest in the stock market performace and be guaranteed that your account will grow at a minimum rate of 7% plus. This is done with a very minimal fee with a fixed annuity. No advisor fee required.

For your sporting money, select a good mutual fund. Which one? Look at the top ten funds in the Sunday newspaper. You will notice that half of them are from ONE management company.