>> i have a pool at the beach. >> very good final call, mike >> of course he does happy memorial day, everybody. >> dan >> xlf put seaprds >> that does it for us happ 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'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. we too often invest in the day. i hear people talk about what is working. and in the old days when the late great mark hanes ruled the

morning, i remember he introduced to me as reverend jim bob cramer there was an understanding that say stock would be here today and gone tomorrow and everyone was fine with it those days are long over if you recommend a stock for trade, even if you say buy it today and sell it tomorrow, there will always be a youtube video kicking around that shows you liked the stock but never gave it the sell call. tonight we are talking to it the next level where i am introducing to the concept of suitability. what stocks fit you. what investments are right for you. not for this week or for this month, but for your age ofte

temperament. when i could, i would run over to the harvard business school library where they had old research about stocks that are totally on it was nostalgic i would ask the kind librarian for a microfiche of the firm's filings. little pieces of plastic that you stuck into a machine if you were lucky enough, only six months old i would spend all week trying to find one stock that i thought

would work one stock good for one week for anyone that wanted to invest could take the idea and run with it and take my answering machine and give you a 20 second rap on the stock. with all of those jobs wiped out by your cell phone, answering machines, same with answering services anyway, i would say hi, this is jim. i'm not here right now, but i like the charts from recent express. my best one, a smoke show of a company. helped save tesla back when that car maker was struggling anyway, it shot up like a rocket and all the way it ended up with

a big bid. it was the best cramer's not at home call machine that i ever had. and believe it or not, jim is not home became a rallying call. one of the officer at the firm called me and got the machine with its recommendation and told me to call him as soon as possible he asked me if i knew what suitability was. did i ever consider that many people who called me and got my answering machine might not be ready for the stock of the hottest semiconductor company of the land and i was recommending whether or not it was right for them you can't take stocks back, they

can't come with a guarantee so what is the deal he explained to me, you had to know what that person wanted what he wanted out of the stock. you wanted to know if the stock was right for them and for their tolerance and risk monolith monolithic memories. so let's start there tonight i want you to ask yourself what is your risk tolerance? stocks are peculiar pieces of merchandise. you buy a car and the moment it leaves the lot there are warranties you buy a house and you know it can burn down the next day clothes can be returned. devices returned phones, pcs, you name it stocks stocks, you buy a share of nike and the next day goldman sachs

downgrades and you can't go back to your broker and say, hey, chief, you never told me this could happen. i am down three bucks on 2,000 shares i am out six grand i want it back maybe the broker shouldn never have been recommending stocks. you can't take stocks back there is no reality insurance although you could buy an expensive put. the concept of suitability is incredibly important that is why for the next hour you are going to be learn about way to measure your own tolerance.

with electric brokers, you get a signed form saying you get it. today that stops here. by the end of the show you know what suits you or what doesn't cave caveat emp tor ann marie in new york. >> caller: can you talk abou trimming our profits i get eager and i start trimming when i am up 10% or 20%. i know you talk about it being a high quality problem. >> you would miss out on some of the greatest stocks in the history of man that you may actually own move that up a little. i don't think you should sell

until you are 20% or 30% i just don't want you to lose a great opportunity unless the story changes and then it is sell, sell, immediately. lito in texas. >> caller: hey, jim, how are you doing? >> good. how are you? >> caller: my question is as a recent retiree and one anticipating a market correction should i allocate the stock index fund now from a stable income fund or wait until after the market has corrected. >> i still want you to own equities, you should know more than 50% i want you to own some obviously. people who retire, tend to learn

ten, 20, 30 years more than they thought. you will put money back if the market really craters. otherwise i think you would be fine and let it ride marlo in illinois. >> caller: jim, you talk about index funds, can you tell us the difference between index funds and etfs and give us examples? >> what i want you to do, i default to what warren buffett say, buy vanguard fund i want to go with warren buffett, why well what am i going to do argue with him never a great call i am helping you form the necessary investment strategies you need in your life. from young to old, meet you where you are and take you where you need to be

we are beginning in the crib forget binkies, here are the two stocks you should be buying. and then teenagers have a lot to learn, but an important investing you get from them. plus, where your money should be sitting at any age stay with cramer >> announcer: 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. alerts -- wouldn't you like one from the market

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s. welcome to a special show about you. about knowing what you can and can't do because it is not right for you. welcome to a special show about suitability. the first kind of suitability we will discuss is age suitability. i want to start with kids. peculiarly with infants. they would already be well on their way towards great wealth parents, grandparents listen up. i want you to open up accounts

for them or give them shares of stock so for the earliest moments, you can start the process of savings now here is my commercial. we have come through a period where almost all stocks pretty much treated together and we have seen so many managers seen let go or fired. you can take a couple of hundreds of dollars and buy shares in index funds. i am partial to standards and poors 500. i like total return fund that has a broader array of stocks. a mix of both is a good start. your broker or the brokerage site you use might have a fund these kinds of funds can compound over time

if you let it run, the money can build upon yourself. why am i watching a show about stock if all of this guy is talking about index funds. p the comparison we hear about index funds is to actively manage funds this show is geared towards people interested in their money and want to be involved in making it grow or are curious and want to learn about stocks i believe you can build a portfolio yourself they can coexist their lack of flexibility is so stunning, yet i have had a career of picking stocks better than the market and saw so many investors who would never settle for average and didn't so i say let's give both a try

i think you should pick two. one with the dividend. meaning that each year dividend might increase and you might be able to buy more stock with that dividends. companies that have long history of increasing dividends, let's start with three m, proctor and gamble i think if f.a.n.g when i suggest these. facebook, amazon, netflix and google, alphabet amazon, a $4 trillion market for retail in the world. netflix wants so much to dominate entertainment, that

intuitive recognizing what you want what about alphabet? it dominates surge which happens to be the moment you want to buy then there is a balance sheet of beauty and people working to invent something new and waymo might be the ultimate in autonomous driving vehicles given how poor income growth is for some people in the country, it is important to augment the other side of the ledger a highly unusually yet totally blessed by me idea is buy pieces

of gold or silver for people i have bought them for my children and forgot about them they may or may not increase they don't throw off money or do anything but when inflation could roll back, there is nothing that holds up remember to put the gold or silver in a safe place a safety deposit box is more my style. most valuable asset in the market is time the action you need to take today. then the course of some of my investing ideas of all time, you probably got the same resource are you paying attention i will clue you in your money should change with age too. and i will explain how stay with cramer

>> mr. cramer, absolutely love the show >> we love you out there. >> i know you hear this all the time, but thank you, thank you so much. >> this has been my best year by far away in the market >> thank you for looking out for the little guy. >> i am doing my best. that is the goal here. >> great to hear your voice and know that you are there for us

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we're going over knowing thy self how to pick stock that is right for you. what when suitable for the kids? what do you do for them? this is when you wake make your

move and decide that you are going to get them involved in what stocks are. pieces of companies they might like you can't explain to a kid what is a stock is to save their life and in my house, stocks were supreme. you see, my father had gotten a tip from his brother who knew a stockbroker to buy a shares of a company called national video. it cullould have made it, but i was a total bust that cost us fortunes and when yhe wouldn't give me t sports section, you would give me the business sections gaining momentum, i only knew

the stock by their abbreviations and their agate type i kept a ledger to see scm, ibm, polaroid xerox, national video. a host of other companies that disappeared. i also had a lot of airline stocks suckers were buying those. house hold names because of advertising. i liked the stock picking process so much i got the whole fifth grade class to pick stocks for a week to see if they would make money i was doing the exact opposite fixing stock by howfast their climbing and backing away if their climb

slowed that is called momentum investing. i should have picked stocks i knew and asked to be able to buy the shares in them so what would have been right and what was wrong in the picture i presented. which would have been compared to guffus and gallon guffus would never have taken a tip from his brother who took a tip from his broker. national video made picture tubes and in the old days when you had a problem with your television it was because of the tube blown the stock had been going down about five days after pop bought

the stock. there were a host of stocks to choose back then there were dividends to be had and what we needed more than anything else was income me picking stocks because they were going up was antithetical many were defense contractors and we were beginning linden johnson's. i learned about stocks from a game called stocks and bonds my father worked for 3m back then these days we have whole fantasy

leagues of stocks but little taught you more than the board game and it holds up to this day. first, when you were a boy or a girl, you played with toys it would have been a natural to buy shares in mattel or hasbro i am simply saying it is a way to teach kids that a company can be owned by a public and they can own a share in the company they know toys the oiirony should not be lost my family. can you imagine if my father bought 3m. if we had just looked at the spine. we had a box of cheerios on the table every day of our lives could have bought general mills

and then the easy one, who doesn't want to go to disney land the theme park, let's not out think this game. johnson & johnson and baby shampoo were staples in the house. finally fast food. i know mcdonald's might not be something you would invest but the ceo is making it natural. a burger would cost a fortune and mcdonald's crater its fortune for years. buy a name brand put it away. but think of what you liked when you were little or what your parents liked when they were

little if it trades, you more than likely have a winner if you want to get your kids in investing, buy a brand name. not this year's version of national video something they can hear, see, and touch. just own it. the stock might not always work, but think of what you liked when you were little. you may have a long-term winner on your hands. judy in texas. >> caller: hi, jim, how are you? >> good. how are you? >> caller: great my son has been interested in buying stocks and he is calling with me now and my dad gave him some money to purchase stock and we are wondering how we look at what stocks to buy. >> he should look at things, common household things that he

sees and you see and what you want to do is figure out how much money you want to put in it and you put a quarter of it in because if the market goes down, he will say this is a sucker's game and don't want to be in it. make it in household name brands that everybody knows and can sink their teeth in. carol in florida >> caller: hi, hyjim, how are yu doing? >> good. >> caller: i read and enjoyed "confessions to a street addict." and kudos to your hero, mrs. cramer i would like to know your opinion on buying gold and silver as a hedge against the market. >> i think cash is the best hedge against the market i happen to like actual physical

gold i like buying gold coins if you cant afford those, the stocks won't work. if you do buy gold bullion, don't keep it in your house. put it in a safety deposit box stocks are real, you can touch, feel and taste them. ahead, wisdom from the wisest groups around. teenagers. taking your questions with tweets stick with cramer. >> cramer, you are supper awesome. >> thank you for inspiring me to get into the game.

>> you have transformed me thank you, cramer. ♪ how do you know you made the right call... ...you just do. the light beer you've been waiting for has arrived. lower carbs. lower calories. higher expectations. corona premier. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

we know teenagers are

incorrigible the last thing they want to hear about is stocks. i am not going to tell them ha to buy i am going to let them tell me people who watch this show have been beneficiaries of my teenage daughters. i did like the whole line of advertising and told you i thought it was a good speck. but my kids like the track and like joes. they were local. i wasn't so picky. i tried it and i liked it. and i liked the speed of it. sure i recommended it. but that is not what made the stock the crown jewel. my kids hate talking on the phone. but apps, they sloulove them.

when they discovered the dominoes app, they loved it. no cheese options for the vegetarians. finally, the joy of being able to pay online before delivery person got there kids don't want to fuss with money. this was all lost on me. i didn't mind the phone. didn't mind the interchange with the delivery guy many of you know by know the story about how i found apple. my daughter wanted another color. they were fashion accessories. my various employers never embraced apples. but my kids are kids

and would never be caught dead to have a nonapple brand as they get older, they start knowing about them the iphone, what they don't want is the samsung the much ignored apple ecosystem. service charges to have all of their millions of people stored. when my kids come beg me about wanting a samsung, you would hear my tune change. you think i have been recommending verizon at the beginning of the show for nothing? it is the cash cow that your kids turn you on to.

how about this google it, dad that is how you found out about google now alphabet. and when i found out from the kids that they weren't allowed to google at school because it was cheating we had access to librarians at the houghton library they would have to find out things that you didn't know where to begin with. my kids aren't into sports they get news from iphones and entertainment from netflix is it the simple interface the desire for them to watch what they want to watch? all of them. no f.a.n.g isn't all their creation i figured out amazon

facebook, i went to harvard, and when you were a freshman, there was a facebook and it had all the pictures on it then my daughter went to instagram. i didn't think the ads work until we were inundated with red hot chili peppers, it was a click on it. how about chipotle the kids love the fresh salads my youngest returned early on. their picks, they will do.

what if the picks themselves are not any good your kid likes a device that fits in their head and takes pictures it is the cost of learning they have their whole lives ahead of them to make the money back if it is a screw up teen investing, you can lose it and no one would notice it in the end. you pull thesame thing later i life like me, it has consequences invest with your teenagers "mad money" is back after the break.

welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com so how about the rest of our lives? what are we thinking about suitability then from here on end, things get less and less suitable when you are in college, i don't expect you to put any money at

all. college costs too much it zaps the financial out of you. it is imperative that you save out in the real world through a 401k plan. at a minimum, i am demanding that you put your first $10,000 into an index fund, the s&p 500 being my favorite. i know some will argue with that i don't care, i know the truth the possibility of one stock hurting your nest egg as early as your twenties is too risky.

with the rest of your money, i do like stock and i want you to be diversified where i try to explain what diversify is, that is why we developed a club the actualownersplus.com the restrictions are that great, but to protect you i can tell you if you want index work on the stock, daily updates about a lot of them, with a once a week update with all of them i tell you, that you need to buy a stock but have to keep up with it remember back to earlier in the show when i discussed how hard it was to do the homework. the trips to the harvard business library now it is so easy, that i had to

scrap one of my earliest t tenents. you get articles you can read what we have on actualownersplus.com whatever makes you comfortable to take charge of your money i don't have a preference. at this stage, it is important to know thy self in terms of risk until you get to this age, take all the risk you can whether you like it or not i would like to think i have more knowledge of what you can tolerate than you do when you get to your 20s, i ask you to think about what you would do in a sell off will you buy more or cut and

run. can you accept that stocks go down not a silly questions. these are crucial questions that you can only answer. take more risk once you have put away that $10,000. i would hate to see you commit more than 20% of your mad money to individual stocks as you get older, capture more money by own stocks that have more dividends only in your 40s do you want to introduce bonds to your portfolio, bonds, even lower earning bonds will protect some of your capital. the problem with that, is two fold, life expect antsy.

th as you age most stocks do have that caveat provision. as you enter your 60s, you can put up to 50% of your money in your bonds and that brings us back to the notion of suitability. if you can't handle the risk if you think the stock market is not as legitimate an asset class as it once was, then i think you have to decide yourself if cashing out or taking out to minimal levels is right for you. get comfortable with what you can live with. but risk at least until your middle years should remain a friend stay with cramer your retail business.every partf

so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & if your customer also forgets socks! & you could send him a coupon for that item. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

we love to see families investing with each other. so your wealth can grow with your age we are kicking off this edition of mad tweets with cram american

families we hear from rico z. start them young next we have a tweet from david who says often times at a phillies came and sat next to you and your dad i was a vendor for the phillies. sometimes we come across families that are cadre to the show and kids that have real horse sense. nobody is going to stump and pounce the poodles kid. >> aero electronics?

>> mark zuckerberg >> and your favorite for the opening bell >> jim cramer. >> well that is it i mean that should be a show on his own. that is an unbelievable, i like aero here. facebook i like too. twitter, maybe we do a change at the top there. just kidding next up, patrick tucker asks, are accounting issue prettoo much always because of some level of shadiness or honest mistakes made? the answer is honest mistakes can be made. there are other cases where it is not honest and you lose everything so i am going for the maximum

risk situation as opposed to the minimum and i can't tell from the outside which is which, which is why i am so cautious. now a tweet from adilio. do you have a write up explaining why first i do want an index, an s&p 500 and then i want you to put your first 10,000 there and continue to use that as your retirement vehicle but try to pick some of the best stocks that would normally be in etf. i trust you. you watch the show not den grading mutual funds

up next is a tweet from sc bowles the reason i like "get rich carefully. is because it is an in-depth look the mistakes that i made and i detailed them all so you can learn from them. here is a tweet from eric wolfe. if i see 10% shortage, something could be wrong that is what the percentage is that i look for. coach beardson tweeted what do you recommend to keep squirrels out of the garden. >> i have triple fence, boxes

and chicken wire and they don't get in. and my other box they get in and spend way too much thinking about fencing. it is a preoccupation of mine. muees ilyas. the index funds are better and you can lower at times and lower how much index fund exposure and raise cash that is a smarter and more modern way than trying to assess what may be in an age related fund stick with cramer. >> hey, cramer, you are currently coaching three generations of my family with our portfolios, and your enthusiasm keeps my kids engaged

and i love that. >> thank you and your staff for logical insight, sound advice in an illogical world >> go back what happened? a lot of gold stock -- it was a steal. >> how is it possible that he made $80,000 a year. >> i had a better year >> unlike billy in the predator, we are not all going to die. [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible.

[hero] i'll take my chances. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you next time!

>> narrator: in this episode of "american greed"... barry minkow starts a business in high school. >> if you work hard and you're honest, then you'll do fantastic. >> narrator: and he becomes a sensation on wall street. >> barry minkow made his first million by the time he was 19. >> narrator: from teenage millionaire, he grows up to become a nationally known fraud-fighter, even profiled by the likes of "60 minutes." >> he searches public records, employs private detectives, and goes undercover. >> narrator: but all along, barry minkow is pocketing millions in his own perfect scam. >> "we know fraud. and you're just fraud." >> narrator: he should know. because barry minkow acting as a fraud-fighter is like having a thief guard the bank vault.