The solution to the problem that many young-un's like me face when trying to figure out how to save for retirement when we have so little money and are consequently incapable of diversifying appropriately.... The "Target Fund." I've been pretty unfamiliar with the inner workings of mutual funds and also fairly distrustful of such things, having heard many horror stories about them in the past. However, knowledge and research beat out fear any day, and in this case it was good of me to do so. Search for "Target Funds" and you're likely to turn up mutual funds designed and managed with a subset of investors in mind.

The investment strategy is based on your age and expected retirement year and so the holdings reflect the strategies most accepted for that age range. For instance, financial advisers generally recommend that young folks like me invest for high growth (which takes a LOT of attention and knowledge--things that come more easily with training or age+experience). This is pretty difficult to attain safely on an individual basis since you have to either have a TON of money to invest diversely, or just get really lucky in your choice of stocks. Having only a small amount each month to invest, I'm very excited about these sorts of things.

Without recommending it, because I only know about the company in passing and am not an expert, you can find an example of such a fund here: VanGuard 2050.