my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends, i just want fewer days like today. my job is not just to entertain, but to teach and put it all in perspective. so call me at 1-800-743-cnbc. this market, this market is taking a page right out of the cold war. it's russia and china versus the united states. except the battle is not taking place in korea or south vietnam.

it's taking place on the various stock exchanges of the three major powers. and right now the russians and the chinese are winning when it comes to hearts and minds of american investors, as demonstrated by the dow plunging 231 points, s&p tumbling 1.7%, and nasdaq diving 1.64%. put simply, right now we are in a news vacuum in this country, we're post the big employment number, preany earnings reports to speak of. the only earnings announcement of note were krispy kreme and william sonoma. both were positives with the latter being spectacular. if anyone cared about williams sonoma today, we'd be much higher, not much lower, because the quarter was so superb. you know some of the strength has to be because of the consumer still spending on their home. when you see that kind of spending on a mall-based store, it makes you feel like people are investing more, not less in their homes. but that didn't seem to mean a thing today for anything beyond a chain that sells pots.

no. what matters is russia is getting more intransigent again about ukraine while the chinese economy, guess what, still faltering. remember when i said last night that we need to keep three eyes on the track of the market. not just one, not two, but three. until yesterday, i think the third eye was blind. people didn't see this collapse in commodities coming. it was obscured by how well our country seemed to be doing. don't forget, it was only six days ago that we learned how well our economy was doing, as represented by that new foreign payroll number. weekly jobless report this morning, it was consistent with that growth. but neither the bonds nor the stocks are paying any attention to our hiring or the retail sales of companies that make fatty doughnuts and expensive pots and pans. the bond markets are looking at the chaos and fear in ukraine and the slowdown in china and bond prices are soaring and interest rates are coming down rapidly.

we know that this market goes to extremes rather quickly. two days ago, russia looked like it was going to go to war with ukraine then the russian stock market got slaughtered and we heard that putin had stopped looking at his army and started looking at his portfolio and the portfolios of his oligarch comrades. we keep getting undercurrents that the russians are playing a game that the germans played with czechoslovakia right before world war ii. and the west doesn't want to appease putin like it appeased hitler 76 years ago. i will admit that the parallels are a little eerie. in the 1930s, hitler was demanding a corridor through poland to danzing, a port city with a huge number of ethnic germans, even though it was located within poland. now russia wants a crimean corridor to the black sea, through ukraine, because crimea has a huge number of ethnic russians, and the russian's black sea fleet is based in sevastopol. the europeans, this is too reminiscent of when their fathers and grandfathers went and appeased germany. they don't want to appease putin, another dictator they

abhor. you can argue it's really their problem and their markets should rightfully take it on the chin, it's not our problem. by when john kerry said today there could be serious steps taken as early as monday if a crimian succession votes occurs this sunday and russia is performing military maneuvers in the area. a deadline, an army, that's everything you need to provoke a wave of vicious selling. >> sell, sell, sell. >> on wall street. yes. who wants to own stocks through the weekend? well, if you're a hedge fund manager, no. hedge fund managers have very little trading -- they have very little trading costs. they can go in and out. and you know what, they'll sell

today, they'll come back monday if nothing happens. they do stuff like that. they could turn over the whole portfolio. let's contribute 50% of the sell-off to our russian cold warrior foes. right down the middle. the other 50% falls into the bailiwick of china. we also know that china led a corporate bond of a crumby solar company fail this week. which is a shot across the bow that is no longer going to bail out investors in companies that don't deserve to live. when you overlay the decline in the key commodity, copper, remember, copper is the thermometer for china and the place to look with your third eye if you have one. then you can make a case that china is worsening by the minute. it's not reassuring when only a handful of companies were able to rally today and intended to be the frothy ones, the ones that are way too high. clean battery stocks and dirty government-sponsored entities like fannie mae cannot go up when the blue chips rally. it's one or the other. i told you that's going to lap. like the bad old days of the cold war, it's mighty hard for the stocks of truly lucrative

international stocks to cohis on the new high list with the dregs of the market. now, i know that all of this seems like a ridiculous overreaction. and one day, let's play it out. does anyone really expect this war of words over ukraine to turn into world war iii between russian and germany with our troops backing the germans this time? we can talk tough, but i can't imagine the 82nd airborne headed to kiev anytime soon. however, we have a deadline, and if the deadline is breached, just like with syria, something has to happen. we don't know what. we don't know what the something will be. but it's a super reason to take profits. especially when we've had such enormous runs. so that's what people use it for. as far as china goes, right now the people's republic can take us down on darn near every negative data point, everything. because we are all uncertain at times about our own recovery, and because the hedge funds that lord over short-term trading have a sign on the desk. i've seen it. it says, weak chinese data equals -- >> sell, sell, sell. >> until the sign says weak

china data means nothing, you're going to see this exact pattern today, wherever's copper's down. chinese lending standards tighten. these are all reasons to -- >> sell, sell, sell. >> given that all our large cap stocks trade down, i talk about that in "get rich carefully," you'll have a situation like created here. and the only things that really went up were the utility stocks. those safe, higher yielding, all domestic to becomes shine. i favor southern ap, but those are because interest rates are going down. you can't capitalize on those bargains right now. the other stocks that are being shot down because of this geopolitical tension. you can't yet. that's because we're getting tomorrow even closer to threatening the anti-appeasement deadline by the west. so unless putin says something tonight to indicate he's no hitler when it comes to annexation, we could have it tomorrow. the only thing that could hurt you would putin becoming the west's big buddy and standing

his military down. you have to bet that putin is bowing down to western pressure. putin does not seem like mubarak to me. so barring putin totally backing down, traders will go short and then backing down to close. that's what they'll do if there's no sign of putin standing down. it doesn't seem like there's that much of a hurry to buy. some would consider this day one. on day two, though, tomorrow, we tend to begin to sort things out and maybe choose companies that have nothing to do with foreign entanglements and everything to do about investing with the stocks we like to talk about. i have three later in the show, if you permit me. and tomorrow what will happen, it will be the point of maximum pain probably at 2:00, 3:007 and that we'll call a bristol-myers moment, meaning that has nothing to do with bristol-myers. barring a collapse over the weekend or putin going into key eve, you know what, we could be okay. but not yet.

let's wait for lower prices. steve in pennsylvania, steve? >> caller: hey, jim. i wanted to give a shout-out to my granddaughter, bella, whose birthday is coming up, and her brother, bubba. and i wanted to ask you about directv. i received some of the spin-off years ago and didn't pay much attention, but now that they're in talks with disney, the stock is starting to move and i wondered what your thoughts were going forward. >> i have to tell you, i think directv is one of the great companies i should talk about, and i should always put it in the league with cbs, time warner, and i know i like disney. i should put it up there with viacom. and mike white, who has the privilege of being with mike, a close friend of mike white the other night, who was saying mike white is the great american executive we don't talk enough about. he's right, you're right, own the stock. george in illinois, george? >> caller: hi, jim. >> you know what, i want to let you know that us people at home, we love your enthusiasm, your passion, and your honesty. we love it.

>> thank you. i've been taking so much heat @jimcramer on twitter lately, i kind of avoided it today. i'm kind of hearing what a bum i am when i'm not a bum. there, i defend myself. >> whenever you talk, we want to hear what you say. >> well, thank you. >> caller: jim, given the upswing in the market in 2013, i'm going to pick apart one dow component, which is at&t and i'm going to ask you, in your opinion, is that a broken stock, a broken company, or a broken ceo? >> nothing's -- no, ceo's fine. at&t is, it yields 5.5 1/2, it yields 5.6. i would buy it. if the market is down tomorrow and the futures are down, i would buy a little at&t, and if they try to nail it at the close, i would buy a little at&t stock. if they're giving you 2.5% of bonds, i would rather own at&t. okay, this market is caught in a cross fire. as russia and china worries

weigh on it all. we must remember that you should be in no rush. there's going to be a very good buy point. not yet. "mad money" will be right back. coming up, finding the future. tonight, cramer's keeping you ahead of what's next with an inside look at two emerging technologies. from communicating anywhere around the globe to keeping us safe and connected in the automated home. find out how you can invest in the future. plus, now and later. tonight, the 401(k) is in play. how much should you invest for today and how much should you invest for retirement? cramer opens his playbook. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question?

tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com. or, give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

on a terrible, horrible note, no-good, very bad day like this, you know what i like to do? circle back to stocks that are circling very good themes. take viasat, a leadering provide of satellite-based broadband service. for example, they're one of five companies that provide the airlines with in-flight wi-fi access. the in-flight wi-fi business is growing like a weed. it's expected to expand 15-fold over the next decade. took a $350 million busy to a $5 billion business. viasat's service is much more compelling than go-go, according to the company. they provide 1.5 megabytes for the entire aircraft. that's enough for roughly 12

internet users or one person watching netflix. viasat can offer speeds as fast as 12 megabytes per airplane. that's why it takes 58 seconds on average to download a web page usinggogo, only 8 seconds if you're on a plane using viasat. they can have a whole airplane connected and everyone will still run smoothly. right now the company has contracts with jetblue, united and aal. why is it so cheap? viasat put up their own incredibly powerful satellite, which means they don't need to maintain a whole complicated network of cellular sites on the ground. i use it every time i'm on the plane.

viasat provides marine and ground mobile satellite services and do some business with government agencies. stock has a high multiple, selling for 47 times next year's earnings. that's relatively cheap when you consider the 46% growth rate. a staggering amount of growth. although with that high growth also comes a staggering amount of expectations. let's take a closer look with mark dankberg, he's the chairman and ceo of viasat to learn more about his company and how it is doing. mr. dankberg, welcome to "mad money". >> thanks for having me. >> mr. dankberg, one thing i very rarely see happen, one company clearly has a superior technology, the other company has inferior technology, i believe, listening to your description, but it has many more contracts with the airlines. how can that be? >> well, we were waiting for our new satellite to be able to disrupt this market. what we wanted to do was change it to something that only -- from something only a few people used to something that everybody used. and it really took that new satellite that you mentioned and then getting approvals from the faa to fly the equipment to do that. and we received that with

jetblue and united this fall, and then we started serving the airlines. and the next step is really for the airlines, i think, to realize that having everybody use it onboard the airplane is much better than having just a small fraction of people use it. >> now, are there contracts that forbid having two providers? or can some of these airlines say, you know what, a lot of people want to watch netflix while they're on the plane, and we can't use netflix if we just use go-go. >> yeah, so i don't know about the two providers. they could. i think it's a little -- well, i don't know if they could with our contracts, they could. i don't know about other providers. for us, we're really going at it in two ways with jetblue. one is, they actually provide a free service that very high fractions of the people use, and then they have a paid service, where i think jetblue charges today $9 an hour. that's the one where you can stream netflix. so not everybody does that. on the free service, though, a lot of people will do youtubes or other sort of media-enabled things that you don't do on

others. >> yes, definitely. now, 16% of aircraft currently have some sort of lockup. that means there are a staggering 84% of the airlines are still out there, are you, i manage, pursuing every one of those 84? >> yes. the way we see it, this is the early stages. i think the first thing to establish was whether or not people wanted it. then the next stage is how many people want it. and then jetblue started offering it for free, it became clear that almost everybody wants it. so now, we look at, hey, there's 20,000 to 30,000 new aircraft that are going to come into service over the next 20 years. so it's a big market and we're in the early stages. >> so you also have these other businesses. there was a couple of analysts, one analyst, for instance, goes right up top, and says, i think that the sum of the parts here are worth more. this is a merrill lynch guy who's new. some of the parts are worth a lot more than the actual company, all under one roof. the other divisions do have some value. are they good hedges or do you

think that if you did want to unlock value, you could split the company up into a bunch of different companies? >> we're fundamentally a technology company. and although it looks like we have a collection of businesses, we all have a very, very close relationship on technology. so the things we do for satellite and customer broadband are ist same things we do for in-flight wi-fi and a lot of those are the same things we do for our government customers. so there are times that we really do think you get a lot of synergies by having these businesses altogether. that's the way we run it. >> let's talk about the other businesses. you have an at-home satellite business, frankly, and a lot of the analysts seem to think, when the numbers didn't come in, you even used the term, on the february 11th conference call, you said gross adds were down a bit, down a little, you said, from the previous quarter. some people feel that's the metric we should be looking at, gross adds of the residential. is that not that important? because the stock flew up, even though the gross adds went down a little. >> yeah. this is -- so the satellite at-home business that we're doing is really a new business in some key ways.

it used to be that the only people that would get satellite internet are people that had no other choice, because it was perceived to be expensive and slow. so with this new satellite, the same technology that lets us be fast in the air, we deliver 12 megabits at home. and what we're finding, we can draw people from other services, from cable, dsl, and wireless. and where we are right now, we're not yet a good fit for all those customers. so what we're trying to do is make sure we can segment our market in a way that we can address the right customers. and sometimes we have to take a little bit of a step back to make sure that we're doing that well. and that last quarter was one of those times. i think people have learned since then, on a relative basis, we're actually doing really pretty well. >> i've got to tell you, it's a very interesting story. and i know it sounds that from right from the beginning, had you been first, it sounds like the go-go would not have as many contracts as it does. thank you so much for coming on the show. >> sure. thank you so much for having me.

>> sure. that's mark dankberg. by the way, i want my netflix on air and could not get it when i was flying back. mark dankberg, chairman and ceo of viasat. look the company over. pretty compelling technology. stay with cramer. coming up, fill her up. from the ground to your gas tank, there are lots of twists and turns on the path to petroleum. but one investable area could be ready to roar. stick around to find out which.

look, i know. on a day like today, it's easy just to dwell on the geopolitical landscape, throw up your hands, and forget about trying to make money. you know what, though? that is just not the "mad money" way. earlier this week, i was in louisiana, an opportunity stemming from our domestic energy revolution. one of the sub rosa themes i picked up is how there's oil, oil everywhere, and way too much to refine, particularly in the big old permian basin in west texas, where a glut of massive proportions is developing right now. oil is being found all over the place down there and the biggest fines are in the gold old permian, where production has increased by an astounding 400 barrels a day, in less than the last two years. way too much for it all to get through the narrow pipes to the refiners in texas, causing a major discount to the already discounted price of west texas intermediate crude.

right now west texas crude sells for less than brent. and oil from the permian is selling at an additional $8 discount to the west texas price, call it $90. that's an amazing $18 discount to the world price. $18! as permian producers duke it out for pipeline space and they're taking vast price cuts to do so. that's what is behind the remarkable resurgence of the refiners, as the refiners in the gulf of mexico are buying that $90 oil and then selling the refined product at the equivalent of $108 price. these guys are making an absolute killing that nobody's talking about. refining is a margin game and this glut of permian basin oils causing the refiners' margins to expand at a breathtaking pace.

according to rbn energy, the source i use for all things energy related in this country, the discount is not going to go away for anytime soon. in fact, the price differential should get worse for the producers and better for the refiners before it gets better, because oil production in the permian keeps rising by the day. and new pipelines that could alleviate the space constraints won't be available at least until june. that means three more months of widespread, three more months of outsized products for aln, all of which reside at the other side of the pike from the permian. i'm not a big fan of the refiners long-term because they're so hard to gauge. what happens when not one, not two, maybe a third of pipes open. will the differential close, and will all of that momentum money close out of the stocks? will the pipes work right all at once? will it quickly overwhelm the new pipes? no me, it's going to be a costly game of chicken. however, there is no doubt in my

mind, listen up, the estimates for the refiners i mentioned are way too low, because of this permian discount to the already discounted west texas crude. these are the kind of things you only pick up if you're down there. these were all-important the first week of may. i bet they run right into their quarters as more and more people figure out the purpose of this permian discount i just described to you. and yet jump ship when the refiners report, because they'll have to say that the two new pipes opening in may could eliminate the discount. since the refiners are getting slammed along with the rest of the market right now, you might just have a terrific entry point for this trade. it's a trade, if it keeps getting hit tomorrow. like i told you to expect at the start of the show. nothing more domestic than a refiner, like a marathon, a holly frontier or alon, where the feed stock is being driven down by our own domestic glut. and the end price is being driven higher by vladimir putin's crimean saber rattling. can i go to troy in idaho, please?

>> caller: boo-yah. i like the show. >> thank you. >> caller: how you doing, jim? >> all right. how about you, sir? >> caller: good. i was worrying about kodiak oil and gas, kog. >> yeah, kodiak is a tough one, because i know that the company is doing very well, but, remember, we do have a glut of oil in this country coming out of the bakken. and these guys are having trouble getting it all out. they also have a lot of stuff in wyoming and they've got stuff in colorado. but right now, oil prices are going down, they've got a glut, they're not my first choice to buy. they did, by the way, put themselves up for sale and there were no buyer sand the stock has since rallied very big from when they were trying to sell themselves. grant in oklahoma, please? grant? >> caller: yeah, jim, boo-yah. to me, you're like elvis, bear brian, and phil humphrey wrapped into one. >> holy cow. >> caller: a professor of mine for general business. but anyway, my question, sir, with the bad weather, back east, has that caused enough damage to the roads maybe to make the

needle on goodyear tire move? >> boy, that's an interesting idea, but if you wanted to do that, wouldn't you better be off to play someone who could win a lot of ways? i mean, maybe you do a munro, maybe do an o'reilly auto parts. munro would be a better way to play this, sir. that's a very solid operator and i prefer that to goodyear tire, because goodyear tire has had a very big run. let's go to ed in new york. ed? >> caller: hey, boo-yah to you, jim. >> right back at you. >> caller: hey, i'm interested in your thoughts on prp moving forward in the current political environment on their keystone ii pipeline and their installation of new technology on the pipeline by a company, ticker zero. they have an s.e.c. 8k filed on august 2nd of 2013. >> no, that won't move the needle. keystone would move the needle,

obviously, but keystone has become -- i mean, you talk about keystone, you take your life in your hands. transkands, when it yields 4%, i'm a believer in. remember, the utilities were the only bright spot in today's trading. transcanada is a very fine one with or without the keystone, but i prefer to get it with a 4% yield. a discount to a discount? i know, it sounded like a pipe dream. but this is what you learn when you leave the desk and go down to the oil patch. the domestic refiners are key right now. that's what we learned in louisiana. it's a great entry point as they're driven down by china and by russia? buy some refiners. stay with cramer. save you fifteen percent or more on car insurance.ould

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it is time, it is time for the "lightning round" on cramer's "mad money." rapid-fire calls. when you hear this sound, then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." let's start with duane. >> caller: boo-yah, jim.

thanks so much for taking my call. >> my pleasure. >> caller: the stock i've been watching is channel adviser cooperation, ecom. >> that's scott wingo. he understands commerce, understands mobile commerce, he understands social commerce, he understands the cloud. that's the holy trinity. i like the stock. can i go to shane in florida? shane?! >> caller: boo-yah, jim! how's it going? >> all right, how about you, sir? >> caller: i'm doing well. jim, i've got a question for you on a stock. it's in regards to annaly capital management. >> the new guys have come in, i know interest rates are down, but i cannot recommend that stock, because i don't have a good feel about what they might be up to in their portfolio. how about michael in nevada. michael? >> caller: hey, jim. this is michael from sin city, nevada. wanted to ask you a question concerning coupons.com. >> yeah, stock went -- became public, and of course, this is a tough time for the ipo market. but coupons.com is actually --

>> buy, buy, bay. >> -- a good stock. it is. i'm interested in it as it goes down. may i go to john in florida, please, john? >> caller: hi, jim. john kaine. >> how you doing, john? >> caller: all right, jim. i hope you get back on in the evening, i miss you. >> not up to me. what's going on? >> caller: electrosis has been up since monday. >> we looked at these guys. small molecule therapeutics. we like this business very much. it is a speculative stock, particularly for people in their 20s and 30s, take a long-term view. it's a speculative stock. how about tony in alabama? >> mr. jim, i've got down more than $5 a share. should i hold it, sell it, buy some more? >> they're going to roll crimson, roll tide over that stock.

no, i don't want you to -- time to cut your losses on yanadex. i don't think it's a good company. let's go to anthony in florida. anthony? >> caller: boo-yah, cramer, from the golf course in sunny florida. >> excellent. what's going on? >> caller: just playing a little golf today, but i thought i would call in and get some good advice. >> sure, man. they call our show the 19th hole. >> caller: universal display, elod. >> oh, man, way too risky me. we used to go back and forth with my friend herb greenberg. i know oled's good. but i'll take creed. can enjoy to brian in michigan? >> big motor city boo-yah, jim. >> i'll give you a merry bear boo-yah. >> caller: even after today's hit, i'm up about 60% on horizon therma. should i take a profit or give it to the house money? >> 60% in this mark, i want you to sell half tomorrow morning. let's go to brenda in new york.

brenda? >> caller: hey, jim? how are you? >> all right, how are you, brenda? >> caller: i'm good. i think you're the sexiest guy on wall street! >> well, i'll tell you, now that jordan bellford's out of the game, i be the man. >> caller: jim, i got cxp, columbia property trust. >> if you wouldn't have said that i was the sexiest guy on wall street, i would have told you it's a horrible stock. but after that comment, i'll take a pass. one more. let's go to al in ohio. >> caller: good evening, jim. this is al from sunny cleveland, ohio. big boo-yah to you. love your show. >> i'm going to give you a josh gordon boo-yah. >> caller: my stock is time warner cable. what do you think?

>> time warner cable ortime warner? time warner cable is kind of a done deal with comcast. don't need to do anymore on that. time warner, twx, is a stock i want to buy. twx is yes and time warner cable is -- don't buy. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> announcer: the "lightning round" is sponsored by td ameritrade. coming up, now and later. tonight, the 401(k) is in place. how much should you invest for today and how much should you invest for retirement. cramer opens his playbook.

on a hideous day -- >> the house of pain. >> -- where the market got crushed, i want to take a step back and talk about the big picture. remember, my only goal on "mad money" is to teach you how to become better at managing your own money, even if you need some help. and tonight we're doubling down on the education side of things. every week, i run a segment called cramer's playbook, where i get down to the nitty-gritty of personal finance or the basics of investing. yesterday's was about investing

101, particularly about diversification. now we're doing another playbook tonight, because it's the kind of thing that i could teach you about for an entire semester. the way this works, i take your questions on twitter @jimcramer with the #getaplan and then i answer them. here's a tweet from @brian_fca. he tweets @jimcramer, in 30s, saving 15% a year. should all of that be going into retirement account or some into brokerage account? #getaplan. terrific question. first of all, let's talk about saving in general for a moment. i can't teach you how to invest your money if you don't have any money to invest. that's why it's crucial that you save and save consistently. i'm not going to tell you all the reasons it makes sense for you to save money. you don't need one more person badgering about the obvious.

one day you'll need that money so you can buy a house or so you can retire on more than just social security. for most of you when you hit retirement, social security will not be enough. and more important, social security can always be changed or taken away by washington, which makes it inherently unreliable. it was only about a year ago, the president and congress were both willing to change the way social security keeps up with inflation. that's something that would have made a serious de facto cut in benefits for those of you who plan to collect 20 or 30 years from now, and that's who they target. these changes didn't actually happen, because nobody in washington can ever agree on anything. but if things ever got more amicable in the capital, you should be prepared for them to start tinkering with your social security. that is it. that's all the nagging i'm going to do, okay? honestly, from my perspective, the best reason to save is not to ensure that you won't have to subsist on cat food in his old age, although we had a guy hawking pet food on the show the other day, and i thought it tasted like horsehead.

the real reason to save money is for the vast majority of people in this country, you'll never get rich from your paycheck alone. for everyone who's worried about income inequality or the growing lack of sociability, there's not much you can do to fix our system, but there are ways you can help yourself. you can increase your wealth dramatically by saving part of your paycheck and investing that money in stocks, as long as you invest wisely. that's my reason. if you don't save or don't save enough, then you're hostage to your paycheck and to your job and your boss. but if you save and invest that money year over year, if you grow your assets, and for those you've in the dark about how to do that, once again i'm going to suggest you read "get rich carefully," which i'll be signing at the costco in east new jersey from noon to 2:00, check more @jimcramer. and you'll have real financial independence won't be hostage to anybody. now let's get back to @brian_fcs' question. how much should go into your retirement accounts and into a

regular brokerage account? brian says he's saving 15% of what he takes home a year. that's a good number. my rule of thumb, invest for retirement first. a bet against retirement is a bet against your own longevity. put half into your retirement account, like a i.r.a. or 401(k). you only pay taxes one. it's taxed as ordinary income when you decide to withdraw the money once you're retired. i told you about how to use these retirement accounts before in this segment. the rest of your savings should go into your discretionary or mad money account. that's a normal brokerage account. i recommend using a cheap online broker with low commissions. there are two reasons you should have parallel accounts like this. the first simply is the rise of 401(k) and i.r.a. accounts means you get special tax advantages. you can't take advantage of that with money you intend to spend before retirement, unless you're

using a roth i.r.a., but in the case of a roth, your contributions are taxed going in, and you're allowed to withdraw those contributions early without any penalty, but you still get hit with penalty before withdrawing your gains early. if you don't feel like you have enough money by having two separate accounts, one for retirement, one for discretionary investing, a roth i.r.a. is a good way to square that circle. there's a second reason i recommend using two different portfolios, though. you're supposed to take fewer risks with your retirement money. that's true. you can take more money in your discretionary mad money portfolio. although when you're young, there's much less difference under the age of 30 and you can take risks with all of your money. i'm blessing that. you've got your whole life left to make back the losses. here's the bottom line. don't think about saving money as the mature, responsible, prudent way to make sure you have a responsible future. no, think about the savings as the fuel for your investments in the stock market. investments that when done correctly, could make you not

just comfortable, but downright rich. that's why you should have a retirement portfolio to make sure you've got enough money once you stop working and you should have a discretionary portfolio, where you can take more risk and use your gains to have some fun before you turn 65. oh, and if you want more, want some terrific financial advice, i've got to place to go. check out yourmoney.cnbc.com. "mad money" is back after the break. coming up, automated returns. whether it's arming your home, controlling the lights, or setting the temperature, it can all be done from your phone. cramer's connecting you with the future, with an inside look when he heads off the tape.

sometimes to truly understand an industry, we have to go off the tape. take a closer look at a privately held company. that's right, one that doesn't trade yet. that's how i feel about the security business right here. we know that adt, the residential security system provider, has just been an awful stock. but maybe that's because they're terrible operators. which brings me to protection one, a security company that was taken private back in 2010. at the time, protection one was focused on the residential security business. and the company looked like it was facing years of declining sales. fast forward to today and protection one has been able to double its revenue since going private. without the distraction of having to hold shareholder's hands, this company has transformed itself.

and if it becomes public, the ipo would generate a lot of excitement. how did protection one do it? previously, the company was a pure play on residential security, but since going private, they've moved into doing more and more commercial security. which is 50% of the new sales. the economics of commercial security are much better than the residential side. there's a lot more money to be made, especially when you start landing national accounts, like protection one has done with writing, you know we like that stock, 4,100 stores as well as sears and men's warehouse. that's much more lucrative than going from individual to individual trying to sell them a single security. let's talk about with the ceo timothy wall. welcome to "mad money". >> glad to be here. >> thank you so much. >> all right, tim, let me understand this. the residential business, adt told us, was a fabulous business and then they missed their numbers and missed their numbers. do you mean to tell us the commercial business is that much

better than residential? i know you're background. you've been in both. >> the residential is 20% penetration. obviously, commercial, much higher market penetration. there's a sweet spot in each one of these segment ifs you focus on, you can get the good returns for. >> let's say everyone's locked up in commercial. and we know we're not putting up as many stores. those contracts don't -- they'll come up every few years, but as long as there's new housing and people move, residential has got to be a better business. >> it's a good point. residential buyers typically are going to buy once. that system will work for a long time. a guy i talked with this morning has had his for 24 years. don't buy a lot of add-ones. commercially, one i sold you 25 years ago is out of date now. commercial, you're required to have a system, almost all the time, regulatory, fire laws, et cetera. so it's like used cars. you're going to keep buying new cars. and if i'm doing a good job, you'll keep buying from new. >> i know you have had a phenomenal run against adt, but stanley black and decker has a

good product too. >> stanley, adt, good national buyers for us, that's why we got so excited about protection one, we wanted to play in that space with a national footprint. got outstanding leaders we were able to bring into protection one. we play against ourselves. we execute our game plan, we're going to win in the market place. >> if you had five years of declining sales before you went private, what happens when you're private? are you able to -- to use a difficult term, are you able to get rid of dead wood? are you able to say, look, we can reorient, take a couple quarters' hit that the public markets would never let us do? what's the secret sauce of being public versus being private? >> it's a great question, it's taking care of the customer. attrition is the key metric we deal with. >> right, that's what adt has, bad attrition. >> and when you're public, it's higher to lower attrition. it's going to cost you a few more bucks to do things you need to do for your customers. it's not going to impact this year or next year's earnings, and the best thing your going to do for your customer is drive the satisfaction up.

>> now, adt, i interviewed them at the cti conference, and the adt executive told me, without a doubt, look, this is a no-brainer for us. we already are in everybody's home. we're going to offer security and we're just going to win every account. do you ever see them? >> they certainly came out and a big advertising spend. >> yeah, huge. >> this is going to stay in their business development for quite some time. the numbers they need to move the needle to have any kind of impact there are going to be difficult to get. but we'll see how they do. >> okay. now, what is your technological edge? is it the honey well product? >> in terms of what we use, we use a wide variety of products out there. technological is good in the core commercial. the national players are looking for a service edge. the resi market place, you're looking at, who am i trying to bring with me? >> i see. and i have to presume, with this record now that is so much

better than when you were public, you bought the company for less than $1 billion. do you think now if it were to become public, it would be no company for the company to be valued worth $1 billion? >> without question. we have a three-prong approach. we're taking it private. this is a good example of taking a public company private. it's up at 13% gross, 14% net. we're 10.4 gross and 8 net. it's a huge difference. you get that, then you take care of your operational efficiencies. and when you have a big company like this, footprint, it's the variance, shrink those variances and then you make your market share decisions. but take care one of two and go after three. >> if you were public, i would recommend people be long protection and do what they want with adt. let's watch for this in the future, doing quite well. stay with cramer. [ male announcer ] meet jill.

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what would be the point of maximum pain? let's think about this. if putin doesn't back down until sunday and let's say china has some more bad data today, then tomorrow around 2:00 to 3:00, i think is when you start buying bristol-myers, which is my stock that is not really affected by either russia or china. you wouldn't put it all on,

obviously, because if something really bad happens over the weekend, you get another chance to buy it on monday, but that's the way i would trade it. for those of you wanting to know what i would have done back at my old hedge fund. there's always a bull market somewhere and i try to find it right here on "mad money." i'm jim cramer and i'll see you tomorrow! hello. you're watching "worldwide exchange." i'm ross westgate. >> and i'm susan lee. >> intensifies global investors and sink into the red as china default fears continue to rappel. russian accents are heavily under pressure. ukraine's prime minister tells cnbc exclusively the outcome of the vote is a foregone conclusion. >> i can't believe the referendum is already preordered and we can easily predict the outcome.