up 10% in the last couple weeks. i think it sets up very poorly. >> bonawyn? >> sticking with the discretionary trend, this may not necessarily fit the bill, it's there, amazon. >> all right, holiday-shortened day tomorrow. thank you for watching "fast." "mad money" >> my mission is simple, to make you money. i am here to level the playing field for all investors. there's always -- and i promise to help you find it. mad money starts now. hey, i am cramer. welcome to mad money. welcome to cramerica. call me at -- or tweet me

@jimcramer. i always hear people talk about what's working at the moment and in the old days, when the great -- will do mornings around here, i but each time i cohosted, he would introduce me as reverend jim bob from the church of what's happening now. it was fun back then. it seemed like everyone was running their own personal hedge fund. there was an understanding that a stock could be here today and gone tomorrow and everyone was fine. everyone was fine with it. those days are over though. if you recommend a stock for trade, even if you say purchase it today for the analyst meeting tomorrow and then you sell, there will always be video, youtube, kicking around, shows you like this stock but never gave the call. so we've gone beyond that. we are all about educating you to be a better investor. the same thing we do every day at a higher, intense level at the cnbc investing club that i want you to join. tonight, i want to introduce you to the concept that is so important and it's called

suitability. basically, what stocks fit you? what investments are right for you? not for this week, not for this month, but for your age, your temperament? i -- at goldman sachs for the group that helps small institutions and individuals. now call private wealth management. i've been buying individual stocks for myself and others for a half decade before i got to goldman in 1983 as a summer intern. at the time, i was watching financial news network between classes at harvard law school. that was the predecessor to cnbc. whenever i could, i would run over to the harvard business school library, where they had all these old research -- about stocks. on a cash basis. those of you who grew up with the internet have no idea how hard it was to access information in the 80s. if i like the company, i would have to ask a librarian for a microfiche. did they still have microfiche is? these were little pieces of

plastic that you stuck into a machine, all of them were six months old by them. everything is online an instant and updated. the imperfections in the market back then were -- now everyone can know everything. more on that later tonight. i spent all week trying to find one stock that i thought would work. one stock that i thought would be good for a week, where anyone who wanted to invest can take the idea, and then i changed my answering machine. yes, my answering machine. another thing we got rid of. i change the message to a 20 second -- don't know answering machines? can you imagine? well some company used to make them, and with all those jobs wiped out by your cell phone. talk about jobs that aren't coming back. anyway, i say, hello, this is jim. i'm out of here right now but i like both the chart and the recent numbers expressed. i used to jet down in new york for interviews.

my best one, a recommendation from monolithic memories, a smoke show of a company with a red-hot stock that was run by a guy named zeke jewelry, who two days later help save tesla back when he was struggling during the financial crisis. he was last seen before -- last ceo before elon musk. we can only end up -- and a very big premium. it was the best cramer's not home -- i have ever had. and believe it or not, jim is not home. it came a rallying cry for most of people who are calling back then. hoping i wasn't home so they could get the tip without having to interact with me. not long after i got a job at goldman sachs, one of the officers of the firm called me in and he heard the recommendation. he told me to call as soon as possible. i did, and he asked me if i knew what suitability was. i had no idea. so he introduced me to the concept. he asked me, did i ever consider that many people who called me may not be ready for

the stock of the hottest selling conductor company in the land? and i was recommending it to them one-on-one without any sense of whether it was right for them? suitability. was it suitable? i said i always thought they were -- situation. we all know that. you can't take stocks back to the store and get a refund. they come with no guarantee, so what's the deal? this executive hammered it into my head that before you recommend a stock on a one-on- one level, and registers -- of all places, you have to know what that person wanted. what they want from stocks? you had to know hat the stock was right for them, and for their level of risk tolerance. monolithic memories, he said, was not right for anyone, even the most risk seeking investors out there. a bunch of bungee jumpers. so, let's start there.

tonight, i want you to ask yourself. what is your tolerance? how much risk do you want out of this stock? you see stocks are pretty peculiar pieces of merchandise when you think about it. you buy a car and you know it's not worth as much the moment it leaves the lot, correct? like there's all sorts of warranties. you buy a house in yellow know it can burn down the next day. however, before you buy it, you have to -- if it does burn down, you get your money back. those can be returned, devices returned, phones, pcs, washers, dryers, you name it. what stocks? if you buy a share of nike and -- and then a day after footlocker says there's been a slow down and jordans, you can go back to your broker and say hey, chief, you never told me this could happen. i'm down 300 bucks on 2000 shares and i'm out -- i'm losing too much money. i want my money back. sorry. now back then, when i got started, it would have been incumbent upon the rocher -- broker to know that these things could happen. maybe the broker should never have been recommending the stock to begin with. you get the point, though. because you can't take stocks back and get the same price because is no real insurance although you could buy an

expensive put option underneath with the cost that lowers the risk of nike pretty dramatically and has some of these has to be renewed -- that's what the next hour, you're going to learn how to measure your own tolerance for a variety of factors, because these days with digital brokers, there's no real protection just a sign form that says you get it. you may not know what you're getting into. tonight, the bottom line, that stops here. by the end of the show, you will know what suits you and what doesn't. no matter what your age or your style. or to put it another way, just buyer be a little more aware of what you might be committing your hard earned dollars to when you purchase the stock. let's take calls. let's go to kyle in new jersey. kyle. >> my friend jim cramer. how are you, buddy? >> i'm good, kyle. as for calling. how can i help you? >> first of all, i'm an investment club member and this is my third time with a consultation i feel like i know you personally. love you to death. >> thank you. >> i will like to know how often you look at rsi or -- data when

you are purchasing or selling a stock. >> the relative strength in the back? i have to tell you, i look all the time. i do not like to purchase stocks when the charge is bad. it's one of the reasons why do off the charts on tuesdays, i think it's incredibly important, kyle, because others do, and anything that's important others is important to me. mark in new york. mark? >> what is up, jimmy? what happened to i.r.a.? i was wondering -- my account at another time. >> well, you know, i prefer to let it run unless the stock is really sour because i just think, i don't want you to, investing for the long term in i.r.a. and i have to believe that what you saw in the stock will

continue. otherwise, you take a loss and you take a loss but continue investing in your i.r.a. that's the best thing to do. let's go to nick in florida. nick. >> jimmy chill. question, when you help your children invest, is it more important to save up and give them a big lump of money when they get married or set them up early, literally an infant, pay the baby, with a small amount in dividend stocks, so we prepare them in a special way. what is more important? the size of the snowball or the height of the hill the compounds it? >> wow, i love that. first of all, i can't help my kids, because of my job, i'm not allowed to know what they are two, but what i always say to my kids is go make as much money as possible with half the money, and the other half, i wanted to learn from stocks. i think when they finally decide what they are going to do with their lives, they can do it, that's my advice to them

now. i don't know what they own because that wouldn't be right. by the end of tonight's show, i hope you will know what suits you and doesn't, no matter what your age or your investing style. tonight, i'm helping you form the necessary investment strategies that you need at all stages of your life. from young to old, just like the gentleman we just talk to, i am going to meet you where you are and take you where you need to be. so stay with cramer. >> don't miss a second of mad money. follow @jimcramer on x. have a question ? send jim an email at trent 23. miss something? had to madmoney.cnbc.com. >> you been such a wonderful source of information with your teachings. had to say thanks. >> thank you for all that you do and saving us from ourselves. >> your advice, it let me quit a job that i hated. i love you to death.

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>> tonight is all about you. about knowing what you can and cannot do. because it's not right for you. because is not suitable. there's all kind of suitability considerations in the business. first and foremost, there is a suitability. i want to start with kids. particularly, babies. mad money has been on so long that there are kids that were born who are in their teens or and if their parents listen to my best pitches when they got started, they are already well on their way to some great wealth. parents, great parents, listen up. you hear all sorts of things

that happen to families that just have babies. i want you to open up accounts for them, or at least give them some shares of stocks so that, from the earliest moment, you can start the process of saving. here's my commercial for something that doesn't need a commercial. because almost every expert you hear from is in love with them. i'm talking about index funds, which are not perfect, but they are the best way to go if you want to put your money on autopilot and you can spend a lot of time looking at individual stocks. just -- the home market. so if you just had a kid, you can take a couple hundred smackers and by some shares in an index fund. i'm partially -- because those 500 stocks represent the bedrock of america's publicly traded public companies. as a companion, i like any sort of total return fund that is it an even broader array of stocks. a mix of both i think is a terrific way to start. your broker in the brokerage site that you use may have some funds that are higher growth

and that can be a nice augmentation. you are purchasing for an infant whose got his or horror -- her whole life ahead of them. these things can really compound over time. meaning if you let it run, then money can build up on itself. you might say, why am i watching the show about stocks of all this guy is doing is talking about index funds? i could come out here every night and talk index funds, but it would make for a very good show, what it? i would be giving you best of advice, either. both here, but really, a huge amount in the cnbc investing club is i believe that the most effective way to go and i like to teach in the investing club. it's my favorite venue. i've even built a portfolio that can do better than most professional money managers or index funds. you can control your own money, but i'm perfectly sanguine about the motion that stockpicking and index fund investing can coexist. i just wish the -- of index funds weren't such fundamentalist about how bad everything else is.

so i say, let's give them both a try. when you are saving for your kids, definitely start with an index fund. with a good stock for a kid just born? i think you should pick two kinds of stocks. one with a dividend where you can reinvest in those dividend payments, get the power of compounding. that is it's a good thing to teach people. we often hear the term dividend aristocrats, companies that have long histories, certainly more than 25 years of increasing dividends, love them. it's hard to go wrong with a big well-run consumer package. i'm talking about a company like tried-and-true -- the best way to find out my absolute favorite is as soon as possible is to join that cnbc investment club that i mentioned and watch what we do with the trust. at the same time, you also want to give your kids something with a little more juice. like the great growth stocks of the year. i'm talking about the apples. the invidious, -- nvidia, the tesla's. may i please suggest going with a uniform gift to -- i'm going to call it -- for sure.

the rules keep changing for these, but suffice to say that you can gift children money that can accumulate somewhat tax-free over time. again, the rules have changed so much from what i set up a mutual fund. i love them because they were like trusts that you didn't need lawyers to create. check with your broker for the latest rules. they do differ. i think it's one of the better cash bricks around them. i know hunting for tax breaks may not sound very exciting but that's how you take care of your family. besides, who doesn't want free money? there's one caveat with these accounts, though. if your kid is planning to get financial aid in college, you want to be very careful because it can count as theirs. my get them disqualified depending on the institution. one other thought i like, -- for any portfolio. i'm going to talk more about this later tonight, but a highly unusual, yet totally blessed by me idea is to buy gold or silver coins for your kids. were just pieces of gold or silver. i bought slivers of silver from a dealer, pretty much forgot

about it. they may or may not increase. these are polar opposites of growth or income stocks. they don't throw off meeting with his money. but when -- certainly capable of happening, pretty high levels. there's nothing that hold up in value under this scenario better than mansions, masterpiece of art and precious metals. one caveat, never to put the gold or silver in a safe place, please. that doesn't mean putting it under a mattress andt doesn't mean putting it in a hole in the ground. a safety deposit box. not my style. bottom line. when a child is born, think about setting up a uniform gift to a minor account and put index funds or individual stocks in there. specifically, i like cheap ets and they will want to, at least one dividend stock, one dividend stock for income because a high-yield stock -- by the time your -- don't put

this off. this must be done at the earliest moment to get the most involved for your brand-new loved one. no one has ever regretted saving too early for their kids. mad money is right back. >> coming up. want to turn back the clock and investing companies for all the kids out there? cramer has got you covered. next. >> sign up now for free at cnbc.com/top10.

>> we are going over knowing thyself tonight. the stocks that are right for you. we discussed the importance of suitability in the essence of what is suitable for the newborns. but was suitable for the kids? what do you do for them? i think you should do everything in your power to get your kids involved in investing in stocks, teaching the stocks represent pieces of companies that they might like. now, let's be honest. these days, most parents think they could explain with a stock is to a kid, especially a young kid. that's not how i grew up in my house, though. as much as i love sports, and we even had tickets for the 64 world series, we didn't make it, but we had them. well, to me, stocks were supreme. my father had gotten a tip from

his brother who knew a stockbroker. he played tennis with him. the guy told him to go by a company, national video, which, for all i know, would have made it, if you started right now as a facebook live show, but in the 60s, it was a total bust that cost her family a fortune. it always bring home the -- they went out of business. and he wouldn't give me the sports section. he gave me the business section. he wanted me to learn about stocks. i look up closing prices, the market close early back then. i try to anticipate where they were headed, based on moving averages of how they were doing. straight line, this kind of thing. it was a game of momentum. most the time, i only knew the stocks by their abbreviations in what we call small -- type. but it was fun. i kept the ledger to see how i would've done on texas instruments, or maybe was tgs, or ltv or rockwell. a host of companies that had disappeared and got acquired. still hanging out in trade. i also got a lot of airline stocks. most kids are stalkers -- suckers. they were household aims because of advertising.

most people under 50 have never heard of any of these. i like this process so much that i got my whole fifth grade class involved. we all pick stocks and keep track of the closing prices for a week to see who can make the most money. the problem, of course, is that i was doing the exact opposite of what i should have been doing. although metaphorically. what i was doing then is still being done now. just picking stocks by how fast they were climbing, backing away from them if they were climbing overextended or just slowing in the velocity. instead, i should've been taking stocks from companies i knew and then asking my dad permission to purchase one or two shares along with the money to pay for them, which probably would have been a dealbreaker. let's go over what would have been right and what was wrong in the picture i just painted. think of this as rufus and gallant from the highlight magazines used to see at the dentist office. gallons, first of all, would never have taken a tip about

national video from his brother, who taken tim from his tennis partner, who worked, by the way, for the after mentioned --. i learned later that my dad had no idea what national video even did. can you imagine that? he didn't even know what they did. you can find out more about that from google right now than you could from jack the broker back then. national video, made vacuum tubes for tv sets. in the old days, when you had a problem with your television, it was usually because there was a tube inside of it blown. of course the technology left national video behind so it went bankrupt. it's been going straight down since about five days after we bought it. he averaged down too many times to tell, but i know we had many a silent meal thanks to that days decline in the godforsaken stock with national video. i think we lost most of what we had as a family. there were host a better stock that you could picked up from the 60s. most were not that good according to the moving average, but they paid generous dividends, and in retrospect, what we need more han anything else was income. me, the idea picking stocks because they were going up was

antithetical to the idea of purchasing stocks. it was more suited to dart throwing. at least i picked a hot one. many of which were defense contractors that were getting rich as they escalated the vietnam war. well, for me, the game was a lot of fun, but in retrospect, i learned the most about stocks from two, 3m board games. yes, they used to have board games. those board games were called acquire and stocks and bonds. my father sold games back then. it was about -- stocks and bonds with a fantastic game that accumulating wealth through risky or conservative stocks, by the way, you can get those. they are on ebay. you can see, what i mean. these days, we have whole fantasy legs and a few of them can teach you more than that one board game, stocks and bonds, it holds up. now let's go back in time and think about what i could've done different. first, when you are little kid, you play with toys. it would have been natural to buy shares from hasbro.

i'm not asking kids to know what it means to own shares in terms of a price or even earnings. i'm civilly saying it's a way to teach kids that a company can be owned by the public. you can own a share in that company, too. they know toys. of course, the irony should not be lost on my family. can you imagine if my father had bought shares in a nice dividend stock for me? 3m, rather than national video. we had bought some cheerios on our breakfast table every day of our lives. we could have bought general mills. what a fantastic stock. and then there were the really easy ones. what about disney world? it's that factor and not how many people signed up for the streaming service that will always drive me back to the stock. it should be enough to make you want to own -- but the theme park? come on. let's not outthink this game. don't know about johnson & johnson's band-aids and shampoo, but they were -- i knew then, as well as i know now, that kleenex is something used to wipe your nose. there's a good company. kimberly-clark. these are things we are not even taught. they are in printed.

finally, there's fast food. mcdonald's is obvious, or the incredibly well-run tripoli if you want something a little more organic. bottom line, please buy your kids a few shares in a name brand that they know and you know. something they can see and hear and touch. then put it away. the stock won't always work out, but think of what you like when you were little or when your parents liked when they were little. see if it trades. more than likely have a long- term winner. more portly, you've got a great hook, you can get your children into a lifetime in investment. let's go to madison in texas. madison. >> hello, jim. if i can get a guaranteed interest rate of over 5% by purchasing a six month treasury bond, why should i invest in the equity market, given market conditions? >> okay. because six months from now, those rates may be lower. you can continue to reinvest, but the stock market is far exceeded. longer term, anything

that you're going to get in the short term, i'm not against 5%. i own 5% paper myself, but i will tell you this. you want to take a long-term view and you can buy dividend yielding stock that is very good. you know, they will have growth, not just dividend, no growth, let's go to annie in rhode island. annie. >> hey, jim. great to talk. thanks for doing this teaching segment. >> thank you. thank you. i got the teach more and that's what i intend to do for the rest of the run. what's going on? >> i really enjoy the segments that you do on technical analysis and i had two questions. one, what is the best resource if you want to study this, and how much should an amateur investor rely on -- fundamentals? is it even appropriate? >> i think charts are integral to your thinking. i think that i really trade larry williams, his stuff is the best. that's where i learned all the

great people. we have websites, but in the end, technical analysis, i think we got a very good chapter in my last book and any get rich -- it must be done. here it is. i haven't have it right with me. this is what my dad sold for a living. imagine if he had bought this company, 3m, instead of national video? we might have been able not had to -- the grape juice. had to get the water in the grape juice. didn't even know hy. it's because we didn't have stocks and bonds. name brand. something that you can see and hear and touch. like i learned with this stocks and bonds game. it's available on ebay, and believe me, i wish i had the rights. i put it out again myself digitally. there's much more mad money ahead. i'm giving you my best investing habits for the rest of your life. three are teens coming retirement, and everything in between. and then i answer all my -- all your burning questions with my pal, jeff marx. stay here. >> booyah for the honorable

james cramer. >> things for all you do for us. >> i enjoy your show and i find it very entertaining and informative. >> -- back in 2005, and i been watching every single episode ever since. >> don't miss mad money, every night at 6:00 p.m. eastern. plus, join the cnbc investing club and stick with cramer around the clock . (♪♪) (♪♪) beaches rhythm and blues caribbean sale is now on.

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>> teenagers aren't cordial. the last thing they want to hear about is stocks. they have bigger fish to fry, to which i say, so what? i'm not going to tell them what to buy. i'm going to let them tell me. people watch the show and they've been huge beneficiaries of the innate -- we are always searching for ideas, both on air, especially for the cnbc investment club. children, stepchildren, their likes and dislikes tell you a great deal. that's why i got -- so passionately for over a decade as the stock -- before peeking at the end of the pandemic like this delivery place. sure, i met with patrick doyle, stocks for 10 bucks. yes, it did taste like cardboard before you reformulated the pizza in 2010. i love that whole line of advertising and i thought it was a good spec. so sure, i recommended it. but that's not what made this stock a crown jewel. no. it was the technology. my kids, like your kids, hate talking on the phone. they think it's for losers. butapps, they love them.

and when my kid discovered the dominoes app, they were sold. no talking to people who might get their order wrong, no nervousness, no worries about where the pizza was in the process. that's two things that the great local joints couldn't do, and a new cheese option for the vegans, the ones that asked twice about the cheese, as in are you sure you want no cheese? i think that's because of my kids. finally, there was a joy of being able to pay online, but before -- got there. kids that don't want to fuss with money. of course, dominoes was just a kid -- to the eye server -- iceberg.. i was always patient about when the pizza would arrive, never minded about the interchange of the delivery person. in short, i was not like the target audience. that's why circling dominoes a tech company that sells pizza. although, now competitors can just out store -- outsourced to door dash. many of you know the story of how i got religion on app. roughly 20 years ago, mike youngest daughter asked for a second ipod. not because she lost it, as i immediately accused her doing, but because she wanted one in of the color for her. they were fashion accessories.

she didn't want it to clash with her outfits. personal computers? i mean, come on. my various employers would never embrace apple, but my kids, for a long time, they would rather be dead than use a windows machine. they only wanted macintosh. that in like change, they didn't like the plug change. they didn't want the earbuds, but what they really don't want is the same song. that part of the apple ecosystem, it's much derided, with its service charges that make it so they have to pay into store all their millions of pictures, what else? fabulous. google it, dad. that's how i found out about google. and when i got the word from the kids that they weren't allowed to google something and that they were involved in the school, well discounted man. we had some access to the fabulous librarians. their job took up anything we wanted. they had to go to the -- and find out things that you would know where to look for. it's all digital now. my kids get their muse from their iphones and they get

their entertainment from netflix. -- wasn't purely their creation. i figured out amazon, but like i said, i went to harvard. when you're a freshman, it's called facebook, and everybody had their picture in there. my kids were on facebook earlier. my youngest was sick of facebook early on because i got on it, but then she went on to instagram, which facebook cleverly acquired and then get to something separate. so you really didn't know it was part of something that older people had discovered. i didn't think the ads worked until we were in -- inundated with red hot chili pepper merchandise bought on a click that something that my daughter

said wasn't an ad, just a link. oh lord, is anyone else feeling that their ad is a link, but it seems that only mark zuckerberg has the forethought to think about the user experience to such an extent that it works because the ads actually make sense. you do want to click on them. how about chipotle? the kids love the fresh and organic salad, they are vegetarians. my youngest return pretty early after the food sick incidents. the only issue was that she didn't take out because she didn't want to be seen inside. nothing is perfect but i recommended this stock from the low hundreds all the way to the 2000, largely because they liked it so much. eventually, your kids will change out of the key demographic. however, if you pay attention to their like this, you can years of decades worth of good -- but once they reach a certain age, you need to pray for grandchildren, if you want the freshest ideas. what if they are earned, that your kids -- and takes pictures and it fits on a wrist and measure steps, i don't know. that's the cost of learning. remember, they have their whole life ahead of them to make that money back, if it's a screw. that's the beauty of team investing. you can lose it and no one will notice. you pull the same kind of thing later in life and there's real consequences like here for me. the bottom line is, from now, you can learn from your teenage

children. trust me. invest with them and you will not regret it. mad money is back after the break. >> coming up, are you trying to figure out which kinds of investments are right for your age? well, look no further. professor cramer is taking up the assignment, next.

>> all night, i've been talking to you about suitability. what's a suitable investment, given your intolerance for risk? especially your age. how about

the rest of our lives? sadly, as you get older, you have less flex ability, fewer investments are indeed suitable. when you are in college, i don't excite you to put any money away at all. college cost too much. when i used to be doing my college doors, trying to get back in the game, i to get try to get people to buy a share or two of stock, but -- living daylights out of humans. i now regarded as a total hardship to even contemplate savings, but once you are out in the real world, it's imperative that you say, preferably for a 401(k) plan, or even better, a self-directed i.r.a. you can pick stocks, not just options chosen by your employer, and typically have high fees that really return down. that's for another show. this is where you have to begin the mix of index funds and individual stocks. remember, i prefer both. there's too much risk in individual stocks just put together a before leo of names of your own choosing. so you put your first 10 grams

of savings in your first job and you do an index fund. as i mentioned before, now i know that some will argue this, i see them arguing on social media. i don't care. i know the truth. the possibility of one really bad -- even as early in your 20s, instantly too risky. the nice load of cash, no single stock or even sector can do that. over the rest of your money behind your first $10,000, i do like stocks and i do want you to be diversified. that's why we had -- when we can. try to explain what diversification is in an easy way. it's why we created the cbc investment -- cnbc investment club. although the trust is a lot of restrictions to prevent me from using the show to do the staff, as they say and one my favorites in the wire, but i can tell you that if you want in-depth work on stocks, i really mention on the show, the investment club is the way to go. so i send up because i was talk about buying. i tell you that you need to buy a stock -- stock but the needed

to keep up with it. buy and hold his work. river back to early in the show when i discussed how hard it was to do the homework? those trips to the arvard business school library, now it's so easy that i've had to scrap one of my earlier rules. you no longer need to spend an hour a week studying each of your stocks. sure, you need to read the calls, you can google articles galore, so many that you will get sick of the process very quickly. you can have articles and research push to you along with charts that i couldn't have dreamed of having 30 years ago. or you can read what we write at the investing club. let us help you do the homework. whatever makes you most comfortable in your efforts to take charge of your money is what i favor. remember, i want you to be either a good manager of your money, or a good client. i do not have a preference. so let's talk about picking stocks as you get older. it's at the stage when you need to know thyself in terms of

reason. until you get the late 20s at the earliest, i want you to take tons of risks. maybe more than you think you can handle. whether you like it or not, because you've got your whole life to make that money back if something goes wrong. but when you get to your late 20s all you can do is ask what you will do in a selloff. you have the wherewithal to buy more, or does the seller sicken you and make sure he make you wish you have no exposed. not a silly question, given the how they typically do go up over a period of being able to -- these are crucial questions that only you can answer by yourself. i would like you to take the risk, once you put away that first 10,000 in the index fund, but once you get your late 20s, i would hate to see you commit more than 20% of your money, your mad money, to speculative growth stocks. as you get older, i want you to capture more income by owning stocks that pay dividends, perhaps at a fund that post high dividends than the s&p offers. don't be quick to do so. in fact, i would invite you to -- until your 30s. and even then, you should do it gradually and small.

only in your 40s should you introduce bonds to your portfolio. now, start investing in your income, let alone 40s, the problem for that is twofold. many are outrunning their fortunes and there aren't always a lot of risk-free fixed income alternatives that entail a lot of rest. generally, i'd rather own a high-yielding dividend stock that can raise its payout rather than a treasury bond that yields 4%. of course, as you get older, i recognize that most bonds do have that non-caveat decision. it can and to get your money back. as you enter your 60s, it's easy to see how you can put up to 50% of your money in bonds and take bonds up to 10% more each decade. that brings us back to the--

in the building. if you can yield a risk. if you think it's not as legitimate as it was, then it is prone to such devalues and in retrospect, looks like overblown threats. i think you have to decide yourself if cashing out or taking stocks at the minimum levels is right for you. i can't blame you if that's the case because it has been an uncertain asset. the bottom line, it is your life, not mine, so get comfortable with what you can live with, but risk, at least, until your middle years, should remain your best bet. stick with cramer. >> always wanted to say booyah on your show. >> we can show you the money market maker, and we thank you for all you do. >> i love your show. >> i love your show. >> is the most entertaining program on tv. we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james.

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>> i always say my favorite part of the show, answering questions rectally from you.

today bringing in my partner in crime to answer some of your most burning questions. now for those of you who are part of the investor club, jeff will need no introduction. for those who are not members, i hope, first, i want you to join, i will say that just insights in our back and forth help me do a great job and him do a good job for all mad money viewers. but more portly, for members of the club, because this is what we really do. now, if you like this, please be sure to -- this thing. you know, like i went to a restaurant and you do it. you know, make it show beheaded with. first off, i'm older. first up, we have tony in north carolina who asked, in a recent position, what is the difference between the taking of a loss, and being stubborn? this is a fundamental question. when you take a loss, if you find that the fundamentals are deteriorating, you don't take a loss because it's like you can't take it anymore, so i think that this notion of a losing position, if it's a position where things has changed, you shouldn't take it,

we have made the mistake at times of not identifying, getting changes that accompany, but we don't like to view a company as a loser or a winner and a stock as a loser or winter because some of our greatest pics have been losers. >> sure. there is broken stocks, there's broken companies, but what you have to identify is that the issue at hand is a structural issue at the company, a structural issue at the industry level, then you are being stubborn if you hold on for too long. but it could present itself to be a great buying opportunity if you stick with it and the company is able to pick itself up. >> and we've had this. many of these overtime. now we are taking a look at some of your mad mentions. so let's go to isaac, who says jimbo, which is what everyone calls me at home, by the way. jimbo, my whole family loved your show. thank you. i don't think i bought or sold anything in the past three years without checking to see if you said anything about the stock. now this is what i love.

isaac uses us as a resource. one of many resources. i have never claimed to be the seer. and by the way, someone said this one, you are great entertainer. well, i like to entertain and bring people in. i like to think that i'm not just a great entertainer, but what i would point out is that i want you to check. you should check. maybe we have said something. we are input. that is what we are. we are input. are we the input? no. but we are an important input, i believe, in making stock decisions. >> yeah, absolutely. it's doing the homework, showing you how to do the homework, so you at home don't have to. you still have to, but it is a guiding hand. >> i always say that there are people, a lot of people say -- i disagree with that. there's a lot of people who are going to want to own stocks. be a member of the club, you will be much better at it. next up, we're taking a question from rachel in florida, who says hello, jim, we have a 30 year plus time --

don't need to live on. does jim advise against investing 25% money into s&p and the rest in stocks and bonds? this is really important. 30 year plus timeline. stocks, yes, bonds, no. you don't need bonds. this is one of the points where i am definitely at odds with most of the so-called seers out there. i say that when you buy a lot of bonds, you are betting against your life. if you think you are going to pass away and when you are 72, then, 65, yes, purchase bonds, but i want people to think, yes, i know that sounds almost pollyanna, but the reason i say it is because if you have to go into a long-term care facility and you own bonds to the previous 20 years, you are not going to have enough money. stocks will outperform bonds. >> yes. 30 years long-term horizon, --

that means you don't have the risk of selling it in a potential market. downturn, you can stay invested in the market, and over time, you should do quite well. >> yeah. look, i think that when, it's really a trick question, because fuel don't really like to talk about mortality, but really does matter is that if you have a long life and you have cashed in on bonds and it was in your 50s and 60s, you are going to be broke. you will be broke. as long as you take that horizon, you can write things out. next, we are going to larry, also in florida, who asked, hello, jim, can you touch on the suitability in general for long-term treasuries for a retirement investor, specifically noun, as rates may start to decline and other appreciations. thanks. so they are offering a very bad return. they are well under short-term treasuries. that's called an inverted yield. i would actually prefer to see you in the utilities and i say that because i think the

treasuries, i think you are going to lose money. you will lose money. >> another way to go, cash outs, dividends, they provide income, as well. >> we have to stick with the stocks for the long term. anyway, thank you, jeff. i like to say this always, i am jim cramer and we will see you next time. right now on "last call", the hurricane barreling towards the gulf. what it means for prices at the pump. back on? the latest twist in the skydance never-ending saga. the reporter that broke the latest stories here. and is the musk derangement syndrome costing you money? we have some very curious headlines around just that. all that and more over the hour. as always, belly up or buckle up, even in a tesla."last call" is up right now.