What is the safest way to invest money if you are of low-middle class income? What are my options?

There are a lot of options that range in risk from CDs to mutual funds to stocks to precious metals, to foreign currencies, you name it.

The simplest thing for you to do would be to find a low to moderate risk no load mutual fund that has a consistently high morningstar rating (4 or 5 stars in both 1 year and 3 year, preferably 5 year as well).

Check out Fidelity, Charles Schwab, Janus (not as popular the last couple of years) and a few other houses. These will all have a good selection of no load funds that you can get into relatively cheaply and make a moderate (~8-9%) return with low to moderate risk.

I agree that low cost mutual funds would probably be your best bet if you're looking at the stock/bond markets. Do some reading on the following website. Check out the "couch potato portfolio" if you want some ideas.

Depends on how safe you want to be. A CD or Money Market at the bank has virtually no risk. Mutual Funds has some risk, but can even out over a long period of time. An equity indexed annuity has no risk with a principal guarantee and the upside of the market, but has little liquidity. All depends on how comfortable you are with risk.

It depends on why you want to invest. If you want to invest for 10 or 15 years down the road, then I would suggest mutual funds or CD's. Eventually, you should consider some real estate. However, if you want to make more money now then you should consider opening a home business. Just the takes breaks alone could put thousands in your pocket.