down. >> alongside by selling the august 40 puts for a buck 15. >> dan. >> play target for a gap filter. >> looks like our time has expired. check out the website. "mad money" starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there is 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. i'm trying to make you money. my job is not just to entertain but educate and keep. call me. or of course tweet me @jim cramer. i want to talk about the big picture. building wealth and not just owning stocks in particular. still just one part of building

real wealth. there are some people call them the 1% if you will, who can make enough from ordinary income to become rich. what a great thing. for the vast majority that paycheck is not enough. you need to augment it, work with it. if you keep watching i'm going to tell you how to do that not just the next two years but the rest of your life. usually i tell you what i think of the marketnd what themes are best, stocks to best fit those, the truth is before you even start investing in stocks there are a lot of things you have to do if you want the payoff from those investments to mean something later on in life when you most need the money. you may not want to hear this but it's absolutely fruitless to think you can get rich in stocks if you haven't laid a foundation for long term wealth. what do i mean? simple. you can make a fortune in the market. if you are hemorrhaging money a healthy portfolio isn't going to do much. it will keep you afloat.

if you planned better it might have let you become wealthy. there are three, three absolute necessities, three things that you must take care before you even consider owning a stock. i don't usually address these subjects, i assume you have this taken care of but here on "mad money" sometimes i feel i'm remiss in not mentioning them more often. we don't teach financial literacy. few colleges teach you how to manage finances. you might learn the foundati aa of maxism. especially since i know from your e-mails and twitter that many of you crave this education. you just ask for it every day. so i'm done ignoring it. and ends tonight. what are the three things you must do before you own stocks? first, boring and you heard it a million times, sucks the life out of the fun but i need to say it and you need to hear it. you have to, have you, pay off

all the credit card debt. i like to be as entertaining as popular. i got to nag you. i'm not one that believes your credit cards should be cut up. seev seen them done like credit cards or evil and should be burned. but i acknowledge the facts, the facts are these. you have credit card debt you are paying a high rate to the credit card company. we're talking rates that may make a loanshark, you're paying a loanshark. now a loanshark blanch. tony soprano will give you better terms. however, they will financially kneecap you with penalties and late fees that can destroy wa you have been able to build up from our paycheck or other investments. like many aspects of personal finance i have at one time or another brushed up against credit cards. i owed a huge amount to various creditors just enough to make it

so i had little money left to live on. initially because of rotten luck and a real bad break i ended up living in my car. i'm a saver, i managed to put a few bucks away and investing with the great peter lynch. by the way his first book, one up on wall street remains the text for understanding the market. it's ever penned. it's at amazon. once i finally knew where i was going to live i was already in hock to a bunch of companies i owed to before i started living in my fairmont the credit card companies found me and i took a bunch down. pretty much everyone who offered me plastic. i figure you can pay the minimum and string everybody out. the credit issuers never seem to mind. i remember i had four of them paying the minimum and i got an offer in puerto rico for one more. why not. but when i added up all of the minimum payments and charges once i took the last card i realized they amounted to my

biggest expense after rent. i wanted to default but neart fears the consequences. ended up restructuring. they found me soon after i skipped on them. and their plan gave me enough breathing room to get by until i went back to law school where i got a scholarship. i was able to get work from alan dish 0 wits. though the rate seemed huge almost every penny went to the darn credit card companies. there was nothing left for me of it in the end after school i did get lucky, landed a job at goldman sachs, what a relief. because in the end while i couldn't stomach opening the mail. now not everyone is as fortunate. but i'm realistic and know where of i speak when i say there's no way you can make enough money away from these card issuers to save in any meaningful way let alone pay rent and put a meal on

the table. put it to you this way. even if you are a great investor it won't matter as long as you are burdened by credit card debt. even with good credit you still can pay 15%. you might talk 20%, 30%. if you have a 20% annual return that's a good year even for many hedge funds. if you have a big balance on credit cards they krety much all of your gains sucked down the gain by the interest rates. so this is simply if you go into credit card debt, stocks are going to be a hobby for you. stocks cannot be the wealth generating machine. all the wealth will be canceled out by credit card debt. >> the house of pain. >> i know i probably sound like your parents but your parents are right. i said there are three things you need before you buy stock. the other two. the second is health insurance. you should not invest in the market before you have health

insurance. you might think the affordable care act makes this a non-issue. you have to buy or you pay a fine. and still have no health care insurance. the pen it as aren't big but get bigger. don't be a moron. even if you object obama care it's idiotic to pay a fine and get nothing than pony up and get some health insurance. there are all kinds of subsidies. honestly, you shouldn't need legislation to make you get insurance. medical emergencies are the single cause of bankruptcies. i know who live without insurance because i have been there too. i had no health care plan and had to drive hours to get to a farm workers clinic to see a doctor. i couldn't get the care i needed. i know you think it can't happen to you. the younger demo can feel invulnerable. you don't want the huge down side financial risk of not owning health insurance. one illness, a couple hospital visits crush all of the capital

you spent. you can get coverage even if you have a pre-existing condition but it's a heck of a lot cheaper to buy before you get sick. you'd need health care eventually. everybody does. last but not least before you start investing in stocks you need disability insurance. the rational i think is simple. without these two kinds of in, you can get wiped out in a second. all of the precious gains you racked up will be for snowing. you have to use it to pay hospital bills or support yourself unemployed and injured because didn't have health or disability insurance. you have to pay off credit card debt and get health and disability insurance. the last two offered by many employers so you have no excuse for not getting them if you also think you can afford to own stocks. these are more than just items on a personal are to do list. they are essential elements in your strategy for capital preservation. remember, we talk about capital appreciation, that's when you

grow your investments. but we alwaysing knowledge that capital preservation comes first because you need that to protect your money in the present. if you want to grow it in the future. here's the bottom line. paying off credit card debt and getting health and disability insurance are the three most important elements of capital preservation, without them investing doesn't make sense. why bother? with heavy credit card debt and without health care building wealth can be futile. so take care of these issues starting tomorrow, and then we can create the portfolio that makes the most sense. zady in connecticut. >> caller: hey, jim cramer. >> how are you? >> caller: i love the show. appreciate you taking the time to call me back. i quit my job two years ago, 57 years old, i have $400,000 in a 401k. i've been trading like in small cap which i haven't done recently but i had good returns the last two years.

now i don't know if i should roll it into an ira. >> do you like what you have in your 401k? >> caller: we have a self direct. i was in fidelity's, i did well with that for a while. >> you should stick with it. you're in good shape. stick with it. i like what you've got. i think that's a good opportunity. some people locked in. let's go to mike in new york. >> caller: hey, mr. cramer. >> how are you? >> caller: i'm doing fine. i have a question concerning the city pensions. i have been a retired police officer for two years, i've been in the city pension system over 20. what is this, what is the difference between a 457 and roth i.r.a. and what are the benefits or the pros and cons between the two? >> i'm going to have to ask you to check with your people at your pension plan because the 457 deferred plan i'm not sure how that works and i'm not going to be able to cuff something. it's too important. i'm very sorry. that's a personal decision to

you, and i don't feel comfortable actually offering ad advice on that. before you can think about investing in stocks build a foundation. pay off credit card debt, health and disability insurance. on "mad money" tonight you know i want you to be diversified. i'll show you how to balance your retirement plan. should you ever tinker with your contribution level? don't miss my take. the 401-k isn't the only game in town. when it makes sense to add ira to the mix. "mad money" will be right back. send jim an e-mail to madd money @cnbc.com. give us a call. missed something? head to madmoney.cnbc.com.

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tonight we're talking about a subject we don't spend enough time on in the business media. long term wealth building. if you are serious about getting rich and more important staying that way, i recommend you must do two things. go to amazon, buy the jim cramer catalog and now that i've got that shameless piece of self promotion out of the way the second thing, even if the you're in the early 20s and only just started working is you've got to

start saving now. i didn't say save for retirement. i said prepare. because you just stuffing your money in the first national bank aka stuffing it into the mattress or saving it in ira or 401k, great those they might be they might not be enough to prepare for retirement. take an active hand in setting yourself up for retirement. really getting involved with your money. getting your hands dirty. especially with the traditional vehicle for so many retirements fixed income or bonds yielding next to nothing. with that minimum word not worth the risk. and that's what i'm here to help you do. young people don't turn off the tv. do this too. if anybody can make it sound interesting it's me. you need to learn how to do this sometime, wouldn't you rather learn from a guy around for ages though he traipses around like stink pants, jumped into trash cans, not to mention the sound

effects that drive points home. before i get going i want to make you a promise. i promise to give you useful advice you can't find on the internet because so many of these personal finance prominds have been repeated that i think it's not worth calling the stuff advice. yes you should save. how? should you put money in individual retirement account, yes, you should. that's not a bold insight. it's just a fact. yet people make careers saying use your ira, use your 401k. spout brilliant like pay your bills on time. don't spend more money than you make. all great pieces of advice that everyone knows, yet there are people who will tell you just that, just those points. and assume it's enough to help you get ahead. i say it's not. basic financial responsibility is just a jumping off point. like hey, you diet and exercise please. i'm the guy who tells you where to go from there. because i didn't make a career out of giving people money

advice, i made a career out of using money to make even more money and i came to this gig later in life. so how from the perspective of a money manager like me should you go about preparing for retirement? what useful advice can i give you beyond just that you should use your 401k plan if you have one, and your ira, which any one can have. because you don't pay taxes on the money you contribute and you don't pay taxes on the gains inside them allowing for years of tax recompounding. how about advice on what you should not do with your 401k? the conventional wisdom says put money in. it leaves you on your own at the beginning of a highly confusing process. what should you not do with your 401k? first and foremost don't use much to buy stock in the company that you work for. i'm far from the first person to say this yet company stock is still the most popular 401k investment out there. more people put retirement dough

into the stock of their employer. i cannot stress how misguided putting too much in the stock of your company is. it must be one part of a larger pie. why? let me put it in mad money terms. every wednesday we play am i diversified. you tell me your top five holdings. meaning you have all five eggs in separate baskets with no companies part of the same sector. when it comes to investing diversecation i tell you jim cramer's real money is the only free lunch out there. regular viewers know that if you expose too much of your portfolio to the same sector you are running enormous risk. suppose you had all of your money in tech stocks before the.com collapse. many did. you would have been wiped out. something that soured entire generation on investing for years. let's say the beginning of 2013. more current. your entire portfolio was in

higher yielding dividend stocks, this is performing well for years because bond yields were so low. which meant investorses for income had no choice to buy stocks with big dividends. but then in the spring of 2013 we had an interest rate scare. the return you could get from bonds increased dramatically and all of these high yielding stocks which were trading and bond alternatives got crushed because they had real interest rate competition from the bond market. so if all of your portfolio or even one third was made up of these you lost a lot of money even though the first half of 2013 was fabulous for the market as a whole. that's the danger of not being diversified. we're going to get more interest 8 spikes, those of you in those stocks you're going to get hurt again. apply that lodge tike the 401-k. do you want to invest in the same company that's paying your salary? that would mean you are putting your savings in the same basket as your paycheck. what if you worked for enron or

how about the earlier eastman kodak for recent less unsavory example. or any other company that goes under. you lose your job, you lose your retirement savings. it's lose, lose, you think it's conjecture, you know i used to have a radio show called real money. i got a giant number of calls telling me to stop bashing enron. why? because the callers had a ton of stock in the company. i came back and explained perhaps they needed to diversify away from enron. each time i did i heard how they got discounts or such a great company was too terrific to sell. or the fact is that it was down so much they couldn't sell. one day it was gone. but many people made this argument before and the company stock is the number one investment. why? you feel like you understand the company you work for and the excuses that you are investing in what you know. i'm telling that doesn't cut it. you've got to cut back. just cut it back tomorrow. here's the bottom line.

diversecation comes before everything else when you invest. whether your discretionary or investing for retirement in your 401(k). never put more than one fifth in the stock of the company you work for. like i advice not more of one fifth in one sector. doubling down is okay for no more than that. that's what you're doing. you're doubling down. always carries risk. stick with cramer if you want to know more how to actually manage your retirement money so you can build lasting wealth for you and your family. there is much more "mad money" ahead. americans are living longer and yes, that should change the way you prepare for retirement. i'll help you fill those golden years in green. sometimes your 401k company match doesn't cut it. when it makes sense to go above and beyond your normal contribution. ira, 401k, i'm weighing in. stick with cramer.

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everybody in this country wants to get rich quick. except perhaps for hippy types that don't believe in currency, want to live off the grid. any one who tells you willy has a way to make obscene amounts of

money overnight is peddling a scam or doing something illegal. walter white's meth operation in breaking bad. i still long when the actor came on mad money and talked about his product being like apples. you didn't need the network of mr. frank, that darn pure blue mess sold itself. but ancient spoiler alert. that get rich scheme ended real bad. the best most reliable way to make money grow as i explain in get rich carefully is do it slewly and prudently. why tonight we're talking about long term wealth building. an important rule that applies to investing. especially when you invest for retirement. i know retirement appoint is meant to be with little risk taken. but it's possible in this era of very low interest rates which seem like it could go on for a long time, that you could be too cautious, too prudent and too risk adverse. when you are managing your money

there is a point all of your prudence can become like recklessness and this is something you particularly see with people who want to save for retirement. i like to say you invest, don't save because saving makes it sound like you have to sock the money away into something with a low return. maybe a long term bond fund. something i believe no one would invest in the they understood the risk and you feel you'll be find. that is not how it works. not these day, not this age. see, there is a element going on. most people when they put money away for retirement feel they shouldn't take on too much risk, that retirement savings are too important by investing in stocks. i understand many of you feel this way. stocks can go down, you don't get the money back, they are not like returning vacuum cleaners. if you cling to bonds because you believe there is less chance for down side that is not all that intelligent now. i call it recklessness. investing none of your money in

stocks is far more likely to jeopardize your retirement savings in the long run than investing everything in stocks would be. why? okay, when you're investing for retirement you are in a race against time. you need to generate enough money to support yourself the rest of your life by the time you plan on retiring. the truth is if you are too risk averse, you load up on bonds in your 20s, 30s and 40s avoiding stocks because of the risk, i see plenty like this, you will never generate enough to retire comfortably. the money will probably be safe but that's all it will be. it's not enough to get a low single digit return, well below 4% in 30 year treasuries t highest government bond out there. with that low rate you are barely going to outpace inflation. capital preservation is not a financial suicide pact. you also have to factor in the need for capital appreciation using your money to make more. perhaps a lot more. let's not forget bonds aren't

always safety either. there are moments bonds can be risk. where interest rates are rising bond prices are going to fall and the faster rates rise the harder the bonds fall. something that will truly be felt by any one who puts money in a long term bond fund which can lose money if rates shoot up as so many feel will happen if the federal reserve isn't careful and doesn't raise rates. i'm not one of them but many say that. keep your retirement money in bonds means you likely won't generate enough to retire when you want to. and beyond that there are times bond prices have down side risk. but they can certainly drop enough to erase two or three years of coupon payments as they did in the second quarter of 2013 if you timed it wrong. what else is recklessness, one of the popular investments, stable value funds. i know that sounds reassuring but the truth is this is a type

of fund that gives you a slightly better return than a money market fund and slightly worse return than a high quality bond fund. they have insurance wrappers that protect you from fluctuations in value. if the return from nothing but bopds so too meager to build wealth, the definition of being so prudent you become irresponsible. the goal of the show, my mission statement, is to help you use your money to make even more money. even as i know that requires work and you can't be on a too pilot as so many of you are. when you either in your 401k or ira or discretionary investment, you are taking that money off the table. saying this money, i'm not going to use it to enjudger rate more wealth. i want to keep it safe. you can't have it both ways. you cling to safety and it's time to retire you don't have enough or you take risks in stocks when you're yonger and go for the higher return that will allow you to retire.

ing broke is a pretty sure way to be miserable. i'm not saying there is no place for bonds in retirement port follow yo. there is as you get older. closer to retirement you should have cash in something a risk free zone because you are going to start using that shortly. stocks come first is an option until later in life which is so different from the old days when pensions were bigger, life expectancy shorter and interest rates weren't kept down by a federal reserve and the european economy is bordering on recession making their bonds unworthy sending mor money here creating absurd demand for bonds. corporate bonds are difficult to invest in. those who bought some of the big corporate offerings ever, the long term bond from apple, verizon, like to own the common stocks and reinvesting. 401k plans often have limited options. bothers me. if you can pick your stocks the

best way with 401k is find a cheap index fund that mimics the s&p 500. the kind of stocks that have been proven and be the best asset class to invest in over pretty much any 20-year period. you get older you can and should take some of that off the table and but it in for safety. but only some. my vool that you should teep 10% to 20% of retirement portfolio in bonds in your 30s, no reason to earn bonds before you turn 30. in the 40s, and your 50s it's 30 to 40 and age 60 until you retire stick to 40 to 50% bonds. this may sound aggressive to some but it's the best way to generate the return you need to retire the way you want to. and when you want to. and once you retire you should still own stocks especially higher yielding stocks that can generate more income versus the lower return of bonds. i think they should be about a third of your portfolio.

i know that's aggressive. i have to give you what i think is right. this is the counter to the conventional wisdom that says have more bonds but the conventional wisdom was when people had shorter life spans. we're living longer. if you want to provide for yourself you need the extra up side from stocks, eventually that safe money in bonds will run out. look at it this way. not owning stocks once you retire is a bet against your own longevity. bottom line you have your first principles. stick with cramer and i'll give you more tips to make even more money. shawn in new york, shawn. >> caller: hi, jim. thanks for taking my call. i'm a big fan. >> trific. >> caller: investing a roth i.r.a., recently graduated from law school. i have taken advantage of my nonexistent tax rate and maxed out my roth i.r.a. from summer job. so, my question is, i have the

money invested in broad stock index funds, so i want to know how i can invest more aggressively. >> you've got -- shawn, you got to get into an aggressive mutual sfund for a quarter or half of that. looking at aggressive growth. in the next 10 years you got a shot to make a lot of money from that fund. 10 years from now around the same conversation i hope we do you can pull back. but this is your chance to risk that money. because you got the rest of your life to make it back. i need dan in florida. >> caller: hi, jim. long time first time. >> yes. >> caller: jim, i would like to hear your thoughts on a buy and hold strategy record regarding companies with consistent growth of over 10% for many years. >> i always say to people how can you buy and hold them if they have consistent growth, if next year they are not consistent. and i've seen this time and again. i remember a company called digital equipment. the same -- what you said, it kept doing it and doing it.

one day it disappeared. wang, same thing. then disappeared. burrows. these are all companies that defined that what you mentioned. and then one day they missed and then they missed and then they missed. and then they missed. can't have that happen. going into the golden years learn to make your money work for you. advice along the way. more mad money ahead taking things up a notch. when it's right to double down on what you're putting in your retirement plan. the 401k gets all the hype but there are other ways to make sure you don't have to work until your last breath. plus your tweets ahead. stick with cramer. [woodworker] i live in the fine details.

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if you are looking to build a foundation of long term prosperity and watching this show i assume that's important to you unless you just like the sound effects, the first step is set yourself up for retirement. that's why we're focusing how to use tax favored vehicles like the individual retirement accounts, i'll tell you more. right now i want to share with you my favorite piece personally, of 401k advice. this is not some abstract idea. it's on how i manage my own 401k. unless you think i'm a clown and stooge, i'm not going to get on the floor and spin though you know what i'm about to tell you is worth hearing. most people would take advantage of the 401-k on a monthly basis. that usually contribution is automatic taken out of your paycheck. so every month 1/12.

people tell you to leave this alone. like do it over time. i am not one of them. why not? because there will be times when the market takes a hit, a big hit, a nasty hit. and i think you want to be able to capitalize on that in your 401k. why would you contribute the same amount every month when stock prices differ. would you want to invest the same amount when the markets nearing a top as when it's nearing a bottom? no. absolutely not. so here's how you can take advantage of a decline in the market. because especially when you invest for retirement, you have a real long time, stock market pullbacks are opportunities to buy not reasons to wooep and tear your hair out. it's simple. when you get a 10% decline in the s&p 500, what some would call an honest recession you have to double down. that month you put in twice the normal contribution. twice. 1/sixth of what you plan over

the entire year instead of 1/12. if the market stays down you might want to do the same the next month. beyond that you might want to wait a quarter before you double down again. though by that point the year might be over. i do this. this is what i do. may not sound like it would make a lot of difference in the long run but i can tell you it dutz. if the you embrace the 1/12 solution and doubling down when the market declines by 10%, you will make more money than you would if you just contribute the same amount month after month. and to make sure we're clear, i'm talking about investing the money in a low cost s&p 500 index fund or an actively managed fund that operates like an index fund with a brain with a manage wer a long record of consistent performance. you probably can't find a fund in your offering. that's what you are doubling down. will this make a huge difference, maybe.

over 40 or 50 it could mean tens or hundreds of thousands of extra dollars because you took the time to observe what was happening in the market and adjust your 401k accordingly. actively managing, not taking the passive approach that no longer flies in the new world of investing. the bottom line pay attention to the markets so you get a 10% decline in the s&p 500 you can invest twice your normal contribution that month, take advantage of the cheaper merchandise. you have a long time horizon you can afford to think of a meaningful decline as nothing more than a sale. no different than a sale at your department store. that's the right way to manage your retirement portfolio.

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while we're on the subject of long term wealth building, i need to tell you about the

limits of what many people consider to be the holy grail of retirement savings. your 401k plan. now i've given you all of the dues and don'ts tonight and i'm the first to admit it can be a vital part of setting yourself up for a cozy retirement. why not. but i'm definitely part of the crowd that says you should max out in your 401k every year. no, your 401k is important but it has its down sides. plenty. you'll hear people cite high fees and costs as a problem and they eat away at your capital. but for my money, the worst thing about most 401k plans is lack of control of your money and the lack of choice over what you can invest in. i believe the best way to invest as you know is to buy individual stocks, do home work on each one. you know when it's time to buy or sell and when it's time to sell everything which is very

rare, by the way. most 401k plans don't give you that option. you choose between more than a couple dozen funds, some for stocks, bonds, even though you can lobby your resources department to add better offerings most of what you have to choose from isn't that grand. that's okay. it's why we have the ira meaning individual retirement account, not the -- and ira doesn't have the high management fees of a 401k and lets you invest the way you want to in most ways a superior vehicle for your retirement. the ira has the same tax deferred status, the one big difference with many 401k plans your employer will match at least some percentage up to a certain point. that's free money. you would be a fool not to take it. but there's usually a cap on how much the company you work for will contribute. here's my rule of thumb for retirement investing. contribute as much money in your 401k needed to get the full

company match. then stop there. at that point don't put another penny in. at least not until you maxed out your ira contributions. after you get the full match in the 401-k you want to put all of the rest of the money you're saving for retirement into an individual retirement account. you want to know whether to use a regular ira or roth or the difference between them, may i suggest you pick up a copy, not ot your library of stay mad for life. the personal finance book i wrote. for now we're talking regular ira, your contributions are deductible and you pay no taxes on the gains, those are allowed to compound tax free until you start with drawing in retirement. at which point withdrawals get taxed as regular income. you can only $45400 -- sorry, $5500 into an ira as of 2014 unless you are over 50. in that case $6500 a year. i say max this out. if you can afford to.

after you milked your employer dry. if you do that you should be able to fund a terrific retirement. if you want to contribute more go backnd a put it in your 401k. only after you maxed out your ira, let me give you the bottom line. 401k plans have a lot going for them but are deeply flawed. you should only contribute as much as it takes to get the full match. after that all retirement savesings in an individual retirement account. if your 401k has no match start by cobb contributing to ira and keep going. $5500 a year or $6500 if you are over 50. "mad money" is back after the break. you pay ur car insurance

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they pile up, we got to get to work. yes, your tweets. you've been sending to me so here we go. our first tweet from -- asks how

do you take advantage of the correlation among, not between, sorry, stocks, bonds and money markets to steadily grow an ira. this is easy. depends on your age. if you are younger i don't want to see bonds in the ira. what are you going to do, compound at 3%? i want to see stocks, stocks, you get older stocks with dividends. then as you get in your middle ages you start loading up in bonds. we need to make money with our money. we can't do it with the bond market. next, @ryan meyer, i'm looking at dividend stocks. when is the best time to purchase and what evaluation do i review? there is a news letter by dave who worked with me dividend stock adviser, which are safe and which aren't and that's what i would recommendment he knows dividends better than me. @beamer 5084 at madd money on cnbc. pay off car, house or invest in

it. really important. okay. pay off the car, house, let it run. your mortgage can be low. you might be able to get a better return from good dividend stocks than get that mortgage money. that's a no-brainer for me. let's get to the next tweet. this one comes from @ctvater. what percentage should people save invest a month. this is one area people can use advice. i talk about this all the time. my advice is that you should look at what your discretionary money away from eating, that's the money i want to see put away. i know it's movies, that kind of thing, try it. i did it for two years and i cannot believe how much money i was able to save. two years when i got out of law school. up next, we have a tweet from @little feet farm. how many stocks is too few, too many to own. we are professionals, we know how to do the analysis. that means i think for you if you are amateur no more than

ten. it's too hard. you don't have the time. let's go to @tera md who says locked student loans less than 3%. you are brilliant. that is what i want. take a look at some of the limited partnerships. some of the higher yielding utilities are also good. and the individual iyr there are excellent, excellent real estate investment trusts. those are perfect for you. our next tweet from @shawn. it says at money money, how much tinkering with retirement account is too much. our quarterly adjustment changes too much? first of all i know a bench mark of too much changing around. do naval hospital change 26 times a week. that makes no sense. what you have to do is do the homework. if everything you bought is good don't make changes. we only make changes when it's not panning out and circumstances have changed. not because we want to make changes for the sake of making

changes. am i getting them. the following, you favor particular financial advisers. this is important. the most important advice from me. i need you to find someone else who has one and recommends that person. why, because i have discovered that this industry most people are now too small for the big guys. i have been on fights representing people who have $100,000 and don't get any treatment at all of any sort of personal touch. so you've got to find someone who in your orb who has a good person and use that person. i know that sounds like gee, i'm punting but it's not. because otherwise you're not going to get the personal touch that is so needed. all right. stick with cramer.

>> i like to say there's always a bull market somewhere. i promise to find it for you here on "mad money." i'm jim cramer. i'll see you next time.

male announcer: this week on undercover boss... the ceo of modell's-- - okay, great. announcer: america's largest family-owned sporting goods store-- - oh, my god. announcer: poses as a contestant on a reality show about people trying to win funding for new businesses. - hi, are you the contestant? - i'm the contestant. - oh, nice to meet you. i'm angel. - whoa! - [grunts] announcer: by working undercover, he'll hear the ugly truth about what his employees really think. - i'm gonna be brutally honest with you right now. - i wanna hear it. - okay. why treat the connecticut stores like the red-headed stepchild? - most upper management and owners, they're clueless. announcer: what will happen in the most dramatic reveal ever? - oh, my god. oh, my god. - angel, are you okay? - [crying] oh!