text: what is the best way to invest money? real estate or mutual funds??   very much depends on how much money you have to invest and how long you want to invest it.  today as interest rates are going up, i would be cautious about real estate.  if you buy a house for yourself, go with a fixed rate mortgage.  mutual funds might provide a better answer as they have historical offered a higher rate of return.  look for a company that has performed well year after year. (american funds, vanguard)