Several ways to invest money - choose the best.
The best way to invest money isn't a set strategy that works for everyone...it is a relative method that requires constant change and "updates" for it to work effectively. Think of our 401K (which I think is a joke since about 60% of Americans never retire from it), our 401K constantly needs reevaluation because of the volatility within the market. I've made the mistake of just blindly sending money from my paycheck to my 401K...thinking everything will work itself out. WRONG! My 401K constantly needs adjustment as I get older, make more money, or I acquire more responsibility.
To properly invest your money the best way, you must know where the money is going and and which investments are right for you! Money is very fluid, meaning it flows in and out of companies, countries, real estate, etc. It is very cyclical and it exchanges hands everyday. Before the Great Recession (currently in progress), money was entering the stock market in droves and made people a lot of money. After the Great Recession (or at least the worst of it) money is now entering real estate in droves and people are making a lot of money!
Here's the secret - be sure to have cash on hand to be able to afford investments when they become on sale! For example, why buy stocks when they are reaching their all-time high? I made a nice profit when I started buying stocks in 2009 (i.e, Ford 200 shares @ $1.50/share; BOA 150 shares @ $2.00/share; etc).
Now real estate is on sale - at least 50% off in some areas. Do you have the cash on hand to purchase property or at least get financing? This will be the next boom area as the Feds keep printing money and keeping interest rates low. So get in - or perhaps invest in the stocks of a few real estate companies??
Your 401K alone will not be enough for you in retirement...trust our dear elderly citizens if you need proof. I just hope that social security will at least save them. I'm not so sure about younger generations to come (which I'm a part of).
So, in closing, the best way to invest money is to buy investments on sale...and constantly reevaluate your portfolio.