carter >> disney, long, like it for a breakdown. >> calendars in disney. >> amd calls for reversal. >> all right that does it for us here on "options snow why because jim cramer and "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 other people want to make friends. i'm just trying to make 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. this is the most confusing part of earnings season and when you throw in the fang craziness, the apple and the tensions with china, we got a lot to process

but we have to stick to our knitting here, and that's why every friday i give you my game plan, or help you figure out what could happen next week to individual macro scapes knew well brands, nwl. earlier this week a caller asked about newell specifically with carl icahn's stock carl icahn does own stock. even though are raw cost concerns for newwell's many differentiated consumer products, i think polk's finally getting his arms around what frankly became an unwieldy hulk created by the merger of jardin with the old rubbermaid. it's been a disaster after the close we get results from a slew of companies that provide real opportunities did you know marriott, a terrific hotel chain is down mid single digits for the year

i think that's astounding. this is a premier operator i like it ahead in the quarter zillow, the digitized kingpin also reports and it's become the de facto techno realtor's side. it has much more than plain old advertising to sustain its business model these days. what i find compelling is the ceo has dared to try to dominate many silos of the trillion real estate market. and what he's accomplished is astounding every other stock that's connected to housing has been bruised badly here thanks to a lack of inventory and of course rising mortgage rates. but i think zillow may have enough differentiated new product throughout that it can triumph over these constraining issues you know we've been huge fans of etsy not just because i live a few blocks away from it in brooklyn. it's been putting excellent numbers of late. it reminds me of square that i still think can be bought, even up here. i know etsy had had quite a run,

but the market cap is only $5 million. that may be too small for the total addressable market also known as tam etsy might be the anti-amazon, the company that unites crafts people worldwide as a curated place to sell their wares. i buy some both before the quarter and after if it pulls back then we have what i think might be the biggest upside surprise of the week. it's a company you probably don't know the name. i don't know how they came up with this thing, an deve, it's merging with marathon pete you know the latter is our fav this sits in the most lucrative part of the entire oil patch, buying crude at low places in places land locked without a pipeline infrastructure and marking foyt interest same prices other upliners get. these guys have the lowest input costs. other guys pay much more for crude. this is a good story all of the refiners are doing well because of this crude logjam, but this is the best of

the bunch. tuesday morning we hear from emerson electric and i believe it's set up for an upside surprise, and not just because mr. farr was on recently, the ceo. this is a huge reason why we own it in my charitable trust, though, because i think it's going to be good, and people are starting to hate it because of world trade. i recognize that if we get more tariff talk at any point in the day, the goodness of an offset surprise will dissipate. it's a shame emerson is incredibly well run here, yet it's all mucked up by the trade war, but it's now firing on all cylinders, people. and if we don't hear much about trade next week, emerson could rally to a new all-time high, just a few points from here. after the close in disney reports, and i think we may finally not need to care all that much, or at least as much as we have about espn, the elephant in the room, i realization it's an important part of the business i'm not taking away from that narrative. and it's a lucrative one but i'm sick of it dominating the disney stock conversation. now, i don't know how much time

disney will devote to positives from its deal with fox, i think disney has gone from being a problematic entertainment company to a growth business filled with cinergys among its movies, television shows, theme parks once this acquisition closes remember, the main reason to own disney is that the company is a cash machine it generates money like few other companies on earth and much of that comes from mining products that they paid for years or even decades ago. i like that model. let's hope they give us some granularity on espn plus, the streaming espn app if they say good things, i bet the stock could soon see $120, even as we wait for the fox deal to pass must were the regulators next up, there is a new consumer colossus i want to talk to you about, and its name is keurig dr. pepper its merged soda and coffee machine play red by one of my executive favorites. i thought the combination of dr. pepper and keurig could rock the house as long as the company executes well. that's exactly what gamgord has

done best. let's see what the newly minted officials look like on wednesday morning. then cvs which is urging with aetna. i never thought i'd see them sell for a paltry nine times everything come on, that's half the average in this market and it's not an average company. but that is what happens when jeff bezos is gunning for you. i like the combine very much i think these two are made in heaven in fact, i like all the health insurers and if aetna is allowed to merge with cvs, you can do a lot worse than owning this company that said, i don't know if you're being paid enough for the deal to close even with the 3% dividend in the meantime, you are at amazon's headliners insy occidental petroleum it's gone from worst to first in the eyes of many oil investors the company has become a discipli discipline going from hated to loved to being out of favor all over again after a tough july.

but this one has hung in there pretty well. i think it's regarded as the blue chip of texas makes sense. as far as i'm concerned, occidental is one of the best oils to earn no need to get ahead of it, though, because if crude skeeps going down, i'm telling you, you'll get a better chance to buy there are two interesting companies reporting on thursday, dropbox and viacom dropbox has become the way people store and share information. i'm a sucker for a premium subscription model not only like spotify, you know i believe we're in a subscription economy those stocks trade with higher multip multiples. i think it makes a ton of sense to buy some dropbox now and then grab some after reports. as for viacom, listen to me, this company is getting real bad rapidly, and i'm going to end it right here it's got some incredible assets, my favorite being the movie studio paramount, a premier asset of mission impossible fame and the brand-new management team is putting out superior entertainment product, but nobody is paying attention

all i ever hear about is that cbs doesn't deserve to be under the same roof as they're do well viacom it's a bogus narrative i think a cbs viacom merge worry be fantastic, but even independent viacom is worth buying ahead of the quarter. friday, trouble. we get the consumer price index. this is the one number that worries me the most. we've had so many price increases at the wholesale level that still haven't hit the retail level will this be the moment inflation starts to pick up noticeably if so, to fed will be compelled to give two more rate hikes this year it will cause a ton of hammering by the bears, let's say the fed is behind the curve, they'll finally have something besides china to hang their hats on. bottom line, there are a bunch of great companies reporting next week, but above all you've got to keep your eye on that friday cpi hey, i'm a poet. edward in louisiana, edward? >> hey, jim, thanks for having me. >> of course >> caller: hey, what system of

rules do you use to determine when to buy a stock on weakness or when to sell a stock on weakness >> okay. are you actually -- interesting you manage that now because it's the main theme of the action alerts by conference call i'm going to do next week on thursday and the reason is because i'm saying when the balance sheet is breaking, when there is not enough cash, when a competitor has come in and slashed prices, then it doesn't matter if the stock's lower, you still got to sell it. but if everything is intact, the balance sheet, the cash, and it's just like people got caught up in some sort of negativity on that given day, a macro negative that had nothing to do with that company, you've got to buy, buy, buy. all right. there is a lot happening right now, but we have to stick to our knit hearing on "mad money," and that's why we do our game plan hey, plenty of great companies reporting next week. i need you to keep your eye on the friday cpi more "mad money" ahead, so stick with cramer. >> 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. ♪ before you can achieve a higher standard of craftsmanship, you need a higher standard of craftsman. see for yourself at the lexus golden opportunity sales event. experience amazing at your lexus dealer. i never thought i'd say this but i found bladder leak underwear that's actually pretty. always discreet boutique. hidden inside is a super absorbent core that quickly turns liquid to gel.

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and watch it live on abc wednesday august 8th. ♪ welcome to a special show about you, about knowing what you can and can't do, because it's not -- because it's not right for you. welcome to a special show about suitability. the first kind of suitability we'll discuss is age suitability. i want to start with kids, particularly with infants. "mad money" has been on so long now that there are kids who were born who were in their teens if the parents listen to the show when it started, they would already be well on their way towards great wealth parents, grandparents, listen up you can give all sorts of things to families that had just had babies i want you to open up accounts for them, or at least give them some shares of stocks so from the earliest moments you can

start the process of saving that you have to do here is my commercial for what everyone seems to have come around to them, which is the notion of index funds. we've come through a period where almost all stocks pretty much traded together, and we've seen so many managers let go or fired because they can't beat the market so you can take a couple hundreds dollars and buy some shares in an index fund. i'm partial to standard & poor's 500 because those 500 stocks represent the bedrock of the company's publicly traded companies. as a companion, i like any sort of total return fund that has an even broader array of stocks a mix of both is a very good start. people ask me these all the time total return and standard & poor 500. the broker or brokerage that you use might have some fund that is higher growth, a junior growth fund that could be a nice augustation because you're buying for an infant who's that his or her whole life ahead of them these can really compound over the time being that you let it run, the money can build upon

it's so. why am i watching a show about stocks if all this guy is doing is talk about index funds. more important is the kind of investing i am talking about, the comparison we hear about index funds is to actively manage funds this show is geared to people who are interested in their money and want to be more involved to make it grow or curious and want to learn about stocks i believe that you can build a portfolio yourself that can do better than most managers and funds, but i am perfectly sanguine about the notion that they can co-exist. i just wish the prozle advertisers of index funds weren't such fundamentals about how bad everything else. their lack of flexibility is so stung, yet i've had a career of picking stocks better than the market and i saw so many investors when i worked at goldman sachs who would never settle for average and didn't so i say let's give both a try what's a good stock for a kid just born? i think you should wick two. one with the dividend where you

can reinvest the dividend and get the power of compounding for you. each year the dividend might be increased and you might be able to buy more stock with that dividend well often hear the term dividend aristocrats, companies that have long hirks specifically, more than 25 years of increasing dividends. i like that. which ones come to mind we have liked historically in the show let's start with 3m, procter & gamble, kimberly-clark and pepsico. any of them would be great and something with a bill more juice, i think of fang, face book, amazon, netflix and alphabet, formally known as google why these? i think that facebook has the ultimate mode about. it's a rapidly growing site where you provide the content and they provide the ads it's a brilliant company, deep bench. amazon, there is a $4 trillion market for goods in the world and amazon only has a small fraction of it netflix? this is a company that wants so much to dominate entertainment that it intuitively recognizes what you want when you want it game changer why do i still like this

alphabet isn't that flayed plaid out? no, no, no it's because a dominant surge. the advertisers love it there is a balance sheet of beauty and a whole passel of people working to invent something new to supplant or compliment search. oh, and wemo these are just examples. they're about growth i know it seems rather commercial to do what i want done here, but i also think how poor income grethe has been for so many people in this country, it is important to augment the other side of the ledger, the saving side. there is no time like the present. one other thought i like you know i believe that gold and silver are terrific insurance components to any portfolio. we'll discuss this concept later in this show but a highly unusual but totally blessed by me idea is to buy gold or silver coins for people, or pieces of gold or silver, the actual i bought slivers of silver for my kids from a dealer, and

pretty much forgot about them. they may or may not increase they are the polar opposites of growth or income stocks. they don't throw off money they don't do anything but in crazy times where inflation could come roaring back, there is nothing that holds up in value under that scenario better than mansions, masterpiece art and precious metals one caveat, if you do this, remember to put the gold or silver in a safe place and that does not mean putting it under a mattress or a hole in the ground a safety deposit box is more my style. time, the action you need to take today to set yourself or your kids up for financial success. then they've been the source of some of my greatest investing ideas of all time. you've probably got the same resource, but are you paying attention? i'll clue you. in. and unfortunately, i don't look anything like i did in my 20s today. your money should change with age too. i'll explain how so stay with cramer.

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♪ we're going over knowing thyself, how to pick stocks knowing they're right for you. we've discussed the importance of suitability and the essence of what's suitable for the newborns but what about suitable for the

kids what do you do for them? this is when you make your move. this is when you decide that you are going to get them involved in what stocks are, pieces of companies they might like. now let's be honest, you couldn't explain to a kid what a stock is to save his or her life that's not how i grew up in my house. as much as i love sports, we had world series tickets for the 64 world series given they were 6 1/2 games up with 12 to play. of course we blew the ball and didn't make it in any house, stocks were supreme. you see, my father had gotten a tip from his brother who knew a stock broker who played tennis with to go by the shares of a company called national video, which for all i know could have made it if it started roogtd now as facebook live show. but it was a total bust that cost us fortunes he wouldn't give me the sports section, he would give me the business section i would look up closing prices the market closed early back then and i'd try to anticipate based

on moving averages of how stocks were doing and what they would do next. it was a game momentum and a lot of times i only knew their stocks by their abbreviations and the type but it was fun game, and i kept a ledger i kept a ledger to see scm. >> ibm, polaroid, xerox, national video i had texas gulf sulfur and ltv, a rockwell, a host of over companies that have disappeared that have since, well, a bit of acquirers, still hanging out in a trade. i also had a lot of airline stocks because suckers were always buying those, eastern national they were household names because of advertising i liked the stock picking process so much, i got the whole 50 grade class involved. we would all pick stocks and keep track of the closing prices for a week to see who could make the most money the problem is i was working the exact opposite what i should have been doing, although metaphorically what i was doing

is still being done, just picking stocks by how fast they're climbing and back away if their climb seemed extended that's called momentum investing. what i should have been doing is picking the stocks of companies i knew and asked to be able to buy the shares in them so let's go over what would have been right and what was wrong in the picture i just presented, which would have been compared to goofus and gallon from the highlights magazines you always found in the dentist's office back then. goofus would never have taken a tip from his brother who had taken a tip from his tennis partner. pop i later learned had no idea what national video was or what it did you can find more on google than you could find from jack the broker then. national video made picture tubes. in the old days when you had a problem with your television, it was usually because the tube inside had blown the technology left national video behind and it went bankrupt and closed its doors about five years after pop bought it. but it had been going straight down for about five days after pop first purchased the stock.

he averaged down two many times to fell, but i know there was many a silent meal because of that day's decline in national video stock. there were a host of stocks who have choosen from back then in the 1960s. most weren't that good according to the averages, but there were dividends to be had. in retrospect, what we needed more than anything else was income mainly the idea of picking stocks simply because they were going up was antithetical to buying stocks in company and more related to dart throwing. many were defense contractors, and we were just beginning lyndon johnson's buildup for the vietnam war efforts. it was a lot of fun. but in retrospect, you though what i learned the most about stocks from two 3m board games. acquirer and a fabulous game called stocks and bonds. my father sold games for 3m back then and acquirer was all about mergers and acquisitions, and stocks and bonds was a fantastic game about accumulating wealth through risky or conservative

stocks these days we have whole fantasy leagues of stocks, but little taught you more than the board game, and it could hold up to this day now let's go back in time, and i think -- and think about what i could have done. first, when you are a boy or a girl, you play with toys it would have been such a natural to have bought shares in mattel or hasbro if you looked at some of the financials. now, i'm not asking the kids to know what it means to own shares in a company in terms of price to earnings or even earnings, but i am saying it is a way the teach kids that a company can be owned by the public and you can own a share in a company hey that >> know toys i bet you they would pick hasbro over mattel. of course, the irony should not be lost on my family can you imagine iffy michigan father had bought shares for me in 3m rather than national video? 3m, a company that increased its dividend more than 25 years. that's quite a statement if we had just looked at the spine. speaking of dividend aristocrats, we had a box of cheerios every day of our lives.

we could have bought general mills. what a fantastic stock that would have been. and then the really easy ones. who the didn't want to go to disney world it's that factor and not how many people cut espn off in the end. that's what matters. the intellectual problem, the library. the library alone should make you want to own shares in the company. but the theme park, i mean, come on let's not outthink this game i don't know about you, but johnson & johnson's band-aids, babier powder, shampoo were staples in our house i knew to wipe my nose with kleenex. these aren't things that are even taught. they are embossed. they are imprinted i know that mcdonald's today may not seem like something you would necessarily want to invest in because of the quality of the food, but the ceo is committed to making the food more natural and organic over time. the whole food chain would be upended if they switched in a day. aburg worry cost a fortune so buy a name brand, something they can see and hear and touch or even like put it away. a stock won't always work out.

but think of what you liked when you were little or what your parents liked when they were little look, if it trades, you more than likely have a winner. so the bottom line, if you want to get your kids into investing, buy a brand name, not this year's version of national video. something they can see and hear and touch and even like. yet just own it. the stock won't always work, but think of what you liked when you were little. and remember that you may have a long-term win owner your hands let's go to judy in texas. judy >> caller: hi, jim how are you? >> i am good how about you, judy? >> caller: i am great, thank you. hey, my son, william, has been very interested in buying stock and he's calling with me now and my dad gave him some money to purchase some stock so we're looking at his very first stock purchase, and we're wondering how we looked at what stocks to buy. where should he start?

>> he should look at things -- common household things that he sees and you see, and then what you want to do is figure out how much money you want to put in it, and you put a quarter in a quarter of it, because if the market goes down immediately, then he'll say this is a sucker's game. i don't want to be in it put a quarter and wait for another three months, another quarter, and hopefully you'll get a sell-off and you'll be ready to buy if not put the money to work by the end of the year. but make it in household name brands that everybody knows and can sink their teeth in let's go to carol in florida, carol? >> caller: hi, jim how you doing? >> i am good how about you, carol >> caller: good, good. i read and enjoyed "confessions of a street addict". >> thank you. >> caller: and i want to give kudos to your hero, mrs. cramer. >> she knew how to trade better than anybody else in the world. >> caller: good for her and good for you. i'd like to know your opinion as buying gold and silver as a hedge against the market and our monetary system. >> i think cash is the best

hedge against the market against the monetary system, you're absolutely right with gold i happen to like actual physical gold i actually like buying gold coins. if you can't afford those, the gld will do. the stocks will not work because they tend not to reflect the price of gold. if you do buy gold bullion, please do not keep it in your house. put it in a safety deposit box but i think you're dead right about the idea stocks don't need to be abstract certificate or numbers and letters behind a password protected screen they're real you can touch, taste and play with them with kids, that's often the best place to start still more "mad money" ahead, including investing advice from one of the wisest groups of people around, teenagers i'll explain next. plus, a serious piece of investing wisdom that i think is dead wrong and could be wreaking havoc on your money right now. and i'm taking your questions tweet by tweet, so send them my way with mad tweets. and stay with cramer

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we all know that teenagers are incorrigible the last thing they want to hear about is stocks. they have bigger fish to fry, to which usay so what i'm not going to tell them what to buy i'm going to let them tell me. people who watch this show have been huge beneficiaries of the innate consumer wisdom of my two daughters. why have you heard me say that i like domino's? sure, i met with patrick doyle the day he became ceo. yes, the stuff did taste like cardboard before he reformulated the pizza. i did like that whole line of advertising and told you it was a good speck but my kids, they like the track and they like joes most pizza is local.

i tried it and liked it. sure i recommended it. but that's not what made this stock on "mad money" crown jewel. it was the technology between dpz. my kids, most likely like your kids, hate talking on the phone. they think it is for losers. but apps they love them and when my kids discovered the domino's app, they were sold no talking to people who might get their order wrong. no worrying about where their pizza was in the process that's two things that the great local joints could do, and a no cheese option for vegetarians. finally there was the joy of being able to pay online before the delivery person got there kids don't want the fuss with money either all this technology was totally lost on me i never minded the phone, was always patient about when the pizza would arrive, never cared about the interchange with the delivery person. kind of liked it i was not like the target audience that's why i always call domino's a tech company that sells pizza. many of you know how i found the

stock of apple, when my second daughter asked to an ipod, not because she lost it, but because she wanted another color they were fashion accessories. person computers, come on. my fairs employers have never embraced apple but my kids are kids, and they would rather be caught dead than have a nonapple brand. when the new computers come out. they check the resolution, as it improves the performance of netflix, then they want them they want them as presents despite the costs, which as they get older they actually start knowing about. the iphone is more controversial. they don't like change they didn't like the plug change they don't want to hear about the ear buds but they what they really don't want is the samsung. they're part of the apple ecosystem. proudly. the much derided apple ecosystem with its service charges that make it so they have to pay to have all their millions of pictures stored. when my kids come to me and beg me for a samsung, you know what? you might hear me say different things about apple than i currently do your kids won't know much about income or the power of

compounding, but what they will know, what they will know is how to feel guilty that they feel about the amount of phone charges they rack up, right? you think i have been recommending verizon since the beginning of this show for nothing? it's the cash cow that your kids turn you on the that is continue and will continue to work even as there is very little growth how about this google it, dad yeah, that's how i found out about google and alphabet. and when i got the word from kids that they weren't allowed to google something they were involved in at school because that was cheating, oh, that was enough for me. when i was doing my senior these success at harvard, to do mindless name dropping, we had access to fabulous liberians their job, to look up anything you wanted look upped. they had to go to the stacks for you as they were called and find out things that you wouldn't know where to begin with i wonder whatever happened to those jobs my kids aren't into sports they get the news from their iphones and they get their entertainment from netflix it the homemade content like

luke cage or house of cards or is it the simple interface, the desire for them to watch what they want to watch all of them. i reluctantly signed up so we could watch things together. no, fang isn't all their creation i figured out amazon but facebook, like i said, i went the harvard when you're a freshman, you got a book it was called the facebook and it had everyone's picture it in. facebook is a derivation of facebook she went to instagram which facebook cleverly made so it you really didn't know it was part of something that older people had discovered i don't think the ads worked until we were inundated with red hot chili pepper merchandise it was just a link, dad. oh, lordy. does everyone else dream that their ad is just a link? it seems that only mark zuckerberg has the forethought to care about the user experience to such an extent that it works like that. how about chipotle the kids love the fresh and

organic chipotle salad still do they're vegetarians. my youngest returns after that food sickening, but she did takeout because she thought people would say wow, what is she doing inside of chipotle all right. nothing is perfect but they -- their picks. that will do hey, what if the picks themselves aren't any good if what if they are earned your kid likes a device that fits in your head and takes pictures or fits on a wrist and measures steps okay that's the cost of learning. it happens, gopro. it happens, fit bit. they have their whole lives ahead of them to make that money back if it's a screw-up. that's the beautiful thing about teen invest. you can lose it, and no one may end up noticing in the end you pull the same kind of thing later in real life, like me, it's got consequences. but the bottom line is that for now you can learn from your teenaged children. trust me invest with them, and you won't regret it. "mad money" is back after the break.

what's better than "mad money" more "mad money. follow on facebook, twitter, and instagram to go one-on-one with cramer >> what other questions do we have ah, i always tell people you got to start wan index fund because i need you to be diversified >> get more with guests. >> how do you station them >> and go behind the scenes with the most interactive show on television >> if you can't explain in three bullets why you're buying a certain stock, don't buy it. >> follow "mad money" today. is this at&t innovations? yeah, wow..this must be for one of our new unlimited wireless plans. it comes with a ton of entertainment options. great, can you sign for this? yeah.

hey, uh.. what's in that one? that's a shark. new and only with at&t, you can get unlimited data, 30+ channels of live tv, and your choice of things like hbo or amazon music. more for your thing. that's our thing. visit att dot com.

♪ so how about the rest of our lives? what do we think about suitability then sadly, from here on in, things get less and less suitable not initially. when you're in college, i don't expect you to put any money away at all college cost taos much when i used to do my college tours, i used to try to get people a share were to of a

stock. but college taps the living daylights out of you, it's a total hardship to even contemplate savings. but once you are out in the real world, it's imperative that you save, through a 401(k) plan at work or a self-directed ira. i always prefer the latter because you can pick stocks, not just choose from options your company forces down your throat -- i'm sorry, your company gives you and charges a fee. index funds and individual stocks there is too much risk in individual stocks to put together a portfolio of them of your own choosing. so at a minimum, i'm demanding that you put your first $10,000 beyond what you have from your first 20 years into an index fund, the standard & poor 500 being my favorite, as i mentioned before i know that some will argue with that i see them arguing on twitterment i don't care i know the truth the possibility of one really bad stock hurting your nest egg even as early in your 20s is simply too risky for this guy. with an index fund, no one stock or sector can do that to you but with the rest of your money,

i do like stocks, and i want you to be diversified. it's why we play am i diversified here when we can where try to explain what diversification is in a breezy way. that's why we created a club at the street to show you how to invest the ones that involve my charitable trust i say in bonds because the trust is only allowed to invest alongside club members when i haven't mentioned the stock, to protect you. but i can tell you if you want in-depth work on the stocks we talk about on this show and almost daily updates about a lot of them with a once a week update of all of them, well, actionalertsplus.com, the thing i created, it's a way to go. i set it up because i always talk about buy-in homework i tell you need to buy a stock but you need to keep up with it. remember earlier when i discussed how hard it was to do the homework those trips to the harvard business library to study months old research and microfiche? it's so easy i had to scrap one of my earliest tenants

you need to spend a couple of hours a week studying your stocks you need to read the conference calls. you can google articles galore so many you'll get sick of the process quickly. you'll gel arts pushed to you along with charts i could only have dreamt of at one point in my career. whatever makes you most comfortable to be able to take charge of your money that's what i want, confident. not overconfident. remember, i want you to be a good manager of your money or a good client. i don't even have a preference it's at this stage that it's important to know thyself, not myself, but thyself in terms of risk until you get to this age, i want you to take all the yankees can, whether you like it or not. in other words, i would like to think i have more knowledge of what you can tolerate than you do but when you get to your 20, all i can do is ask you to think about what you will do in a sell-off will you buy more or will you cut and run? do you have the wherewithal to take a decline and buy more? or does it sicken you and wish you had no exposure?

can you expect that stocks will go down, not a silly question, given that stocks go up over time amid periodic swoons. these are questions only you can answer i would like you the take more risks in individual stocks that have growth characteristics once you have put away that $10,000 but i would hate to see you commit more than 20% of your money, your mad money to individual stocks. that would not be my preference. as you get old. >> i want you to capture more income by owning more stocks that pay dividends, perhaps out of a fund that boasts higher dividends in the s&p 500 but don't be too quick to do so in fact, i would not advise you to do that until your 30s. only in your 40s do i want to introduce bonds to your portfolio. by this time, you should have been able to put enough away that bonds, even lower earning bonds will protect some of your invested capital now in the old days it would have been heresy to suggest you don't start investing in fixed income by your 30s as well as your 40s the life expectancy. many people are outrunning their fortunes and the lack of good fixed income alternatives that don't

entail a ton of risk that's why i favor higher yielding stocks to most bonds, although i recognize as you age, most bonds do have that provision. you can and do get your money back as you enter your 60s, it's easy to see how you could put up to 50% of your money in bonds and take bonds up 10% each more each decade, as i mentioned earlier to a caller. but that brings us back to the notion of suitability. if you can't handle the risk, if you think the stock market is simply not as legitimate an asset class as it once was because it's prone to such deep valleys or what in retrospect looked like overblown threats or flash crashes for that matter, then i think you have to decide yourself if cashing out or taking stocks to minimal levels is right for you the bottom line, it's your life, not mine so get comfortable with what you can live with, but risk at least until your middle years should remain a friend. stay with cramer

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here on "mad money" we love to see families investing together often locking in a best of breed stock at an early age can set you up for life. so your wealth can grow with your age so we're kicking off this edition of mad tweets with some cramerican families. so let's get started first we hear from rico z who says @jimcramer, get 'em started young. i like that. that kid obviously has horse sense. here you go. i don't know whether -- well, there is some charts in there. maybe the kid likes the chart took place holds up under much pressure next we have a tweet from david who said @jimcramer, awesome time at a phillies game on this day a few years ago. sat next to you and your dad

oh, that is terrific yeah, we had a great time. pop and i used to love to go to games all the time and of course i was a vend were the phillies mike schmidt remains my favorite player now sometimes we come across some families that are truly cadre to the show and kids that have real horse sense. you think you know your ceos nobody is going to stump at pounce the poodle's kid. >> animal electronics. >> mike law. >> facebook? >> mark zuckerberg. >> twitter >> and your favorite for the opening bell >> jim cramer and carl quintanilla. >> well, that's it that should be a show on its own. next up, patrick tucker asks @jimcramer a serious question are accounting issues always

because of some level of shadiness, or can honest mistakes be made this is -- i could spend a whole segment -- i may have to do a whole segment on this some day, because the answer is honest mistakes can be made, and a lot of times my rule will keep you out of a situation where there is an honest mistake and then the stock takes off. but there are other cases where it's not honest and you lose everything so i am going for the maximum risk situation as opposed to the minimum one. and i can't really tell from the outside which is which, which is why i'm so cautious. now a tweet from samuels my brother is 26. should he open a roth or traditional ira to get his savings going? i prefer the roth. @jimcramer you repeatedly said you prefer individual stocks under etfs do you have a write-up somewhere explaining why i do want index. i want a s&p 500 fund and your

first 10,000 there and continue to use that as your retirement vehicle, but i also think you should be able to try to pick some of the best stocks that would normally be in an etf because i trust you. you watch the show you're doing the work. let's make some money together in individual stocks too not denigrating mutual funds not denigrating index funds. saying let's own some stocks as a "mad money" situation. up next is a tweet from cs bowles who just wrote look forward to a fun and informed reading. enjoy your show too. the reason i like "get rich careful carefully" is it is an in-depth look of how to pit stocks against each other and the mistakes i have made so, many at times. and i detail them all, embarrassingly, so you can learn from them. and now here is a tweet from eric wolf. you talk about heavy short selling interest what percent would you call heavy? 10%. if i see 10% shorted, i sense

that something could be wrong. got to do your work, got to figure fought the shorts are wrong. they often are but that's what the percentage is that i look for coach beards tweeted @jimcramer, what do you recommend to keep squirrels out of the garden? okay, we do not. i got triple fence have i boxes i have underneath i've got more fence, and i've got chicken wire we've got the whole shooting match, and they don't get. in but you know what my other box they get in and i just had to throw the stuff away do what you can with as much fence. i spend way too much time thinking about fencing it is a preoccupation of mine. @jimcramer, it would be great if you could shed some light of the age poyfrls. are they well thought? i think the index funds are better and then you can lower at times, you can lower how much index fund exposure and raise cash, and that's a better way to look at it. i just think that's a much

smarter way than trying to assess what may be in an age-related fund stick with cramer. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time,

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that's why you need someone behind you. not just a card. an entire support system. whether visiting the airport lounge to catch up on what's really important. or even using those hard-earned points to squeeze in a little family time. no one has your back like american express. so no matter where you're going... we're right there with you. the powerful backing of american express. don't do business without it. don't live life without it. i like to say there is always a bull market somewhere, and i promise to try to find it just for you right here on "mad money. i'm jim cramer see you next time.

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