with costco. do you remember carter worth said costco? smarter man. >> that does it for us and see stu back here at 5:00 for more fa "mad money" with 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 we too often invest for the day. i hear people talk about what is working, and in the old days when the late great mark haines

ruled around here, i remember that each time i co-hosted, he would introduce me as reverend jim bob cramer from the church of what's happening now. oh, it was fun back then it seems everyone was running their own personal hedge fund there was an understanding that a stock could be here today and gone tomorrow and everyone was fine with it those days, those days are long over and if you recommend a stock for a trade, even if you say buy it today for the analyst meeting and sell it tomorrow -- >> sell, sell, sell, sell, sell, sell, sell, sell, sell >> there will always be youtube video kick around thats show you like the stock but never gave it the sell call. so we've gone well beyond that tonight we are taking to it the next level where i'm introducing you to the concept of suitability. ♪ hallelujah basically, which stocks fit you. what investment is right for you. not for this week. not for this month but for your age and your temperament. i first heard of the concept of suitability when i was in training at goldman sachs for the group that helped small

institutions and individuals i had been buying individual stocks for myself and for others for a half decade before i got to goldman in '83 as a summer intern at the time i was watching financial news network between classes at harvard law school. that was the predecessor to cnbc when i could, i would run over to the harvard business school library where they had old reports from lehman on stocks on a totally catch as catch can basis. when i found a stock i liked, i would ask the liberian for a microfiche of the filings. these are little pieces of plastic you stuck into a machine and read the filings, all if you were lucky enough would be only six months old everyone i did back then is now online and instant and updated now everyone can know everything but more on that later in the show i would spend all week trying to find one stock that i thought would work, one stock that would

be good for one week, where anyone who wanted to invest could take the idea and run with it and then i would take my answering machine and give you a 20 second rap on that stock. answering machines can you imagine? some companies used to make them -- with all the jobs wiped out by your cell phone, answering machines same with answering service, for that matter. talk about jobs who aren't coming back, no matter who is president. i would say hi, this is jim. i'm not here right now but i like the chart and recent numbers from a recent airline. my best one, a recommendation for monolithic memories run by zev drurio, who two decades later helped save tesla when the carmaker was struggling, in 2007-2008. he was the last ceo before elon musk it shot up like a rocket that weekend but ended up with a big

bid from advanced micro devices far down the road. it was the best cramer's not at home call machine hit i ever had. and believe it or not, jim is not home became a rallying cry for lots of people who were calling me back then, hoping i wasn't home so i could get the tip without having to deal with me long after i got a job at goldman sachs, one of the officers at the firm called me and got the machine with its recommendation, told me to call him as soon as possible. i did. and he asked me if i knew what suitability was. i had no idea. suitability. how does my suit fit i didn't even have a suit. so he introduced me to the concept. he asked me did i ever consider that many people called me and got my answering machine might not be ready for the stock of the hottest semiconductor company in the land, and that i was recommending it to them 101 without any sense of whether it was right for them i said that i always thought stocks were pretty much caveat emptor situation we all know that unlike, say, vacuum cleaners, you can't take stocks back.

they come with no garnett. so what's the deal the executive explained to me before you recommended a stock on a one to one level at a registered brokerage house, 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 monolithic memories wasn't exactly right for anyone err than bun gentlemen jumpers and k 2 climber, it was a long time ago. so let's start right there tonight i want you to ask yourself what is your risk tolerance. how much risk do you want out of a given stock? you see, stocks are pretty peculiar pieces of merchandise when you think of them you buy a car, you know it's not worth as much when you drive it off the lot. there are warranties you buy a house and know it could burn down the next day before you buy it, you have a binder with insurance so if it does burn down you get your money back clothes can be returned. devices returned, phones, pcs, washers, dryers, you name it but stocks, stocks, you buy a

share of nike and the next day goldman sachs downgrades it and the day after footlocker says there has been a slowdown in jordans. you can't go back to your brokerage and say hey, chief, you never told me this could happen i'm down 3,000 bucks and two shares i'm out six grand. i want that six grand. i want it back caveat emptor. now it would have been incumbent on the broker back then when i got started to recognize that the buyers could know these things could happen. maybe the broke shore never have been recommending stocks to begin with no matter. you get the point, because you can't take stocks back and get the stock price, the same price that you paid because there is no real insurance, although you could buy an expensive put underneath that lowers the return dramatically and has to be renewed constantly. suitability. the concept of suitability is incredibly important that's why for the next hour you're going to learn about a way to measure your own tolerance versus a variety of factors, because these days with electronic brokers, there is no real protection. just a signed form that say you

get it you know what you're getting into, and you accept it. tonight the bottom line, that stops here by the end of this show, you will know what suits you and what doesn't, no matter what your age or your style or to put hit the way, caveat emptor no just buyer be a little more aware of what you might be committing your hard-earned dollars to when you pull the trigger -- but [ gunshot -- on a buy. annemarie in new york. annemarie! >> caller: thanks for taking my call. >> of course >> caller: can you talk about trimming profits i get eager and i start trimming when i'm up 10 or 20%. i know you say it's a high quality problem. can you talk more about trimming >> it is a high quality problem but you would miss out on some of the greatest, greatest, greatest stocks in the history of man that you may actually own. what i suggest you do is move that up a little i don't think you should start selling until you're up around

25, 30%, and only sell about a quarter position when you're up 60, 70%, this a change from the old days, i think you should sell a little more but then you got to let it run and if it comes back, you can buy some i just don't want you to lose -- a great opportunity, unless the story changes. and then it's -- >> sell, sell, sell, sell, sell, sell >> immediately lido in texas, lido. >> caller: hey, jim. how you doing? >> i am good how about you? >> caller: my question is as a recent early retiree and one who is anticipating a possible market correction in the near future. >> okay. >> caller: should i allocate the stock index fund now from a stable income fund or should i wait until after the market has corrected? >> if you're in retirement stage, i still want you to own equities, but i don't want you to have as much equity exposure. you really shouldn't own more than 50% that's actually a lot if you're retired. i want you to own some obviously because people who retire tend to live 20, 30, 40 years longer

than they thought. don't necessarily put them in bonds when interest rates are higher you know what? you'll put money back if the market really craters. otherwise i think you would be fine and you got to let it ride. marleau in illinois, marleau >> caller: jim, you talk about index funds. can you please tell us the difference between index funds and etfs and maybe give us a couple of examples >> there is not much there it's different what i want you to do, i always default to what warren buffett says warren buffett says you should buy the vanguard index fund. it's the lowest cost fund. vanguard is very easy to get to. i just want to go with warren buffett, the greatest investor why? well, warren buffett, what am i going to do, argue with him? that's never been a great call no more excuses. i'm helping you form the necessary investing strategies you need in all stages of your life tonight from young to old, i'm going to meet you where you are and take you where you need to be on "mad money" tonight, we're

kicking things off by beginning in the crib. forget bingies here are the two stocks you should be buying to give a much needed head start. teenagers have a lot to learn, but there is an important investing lesson everyone can get from them as well. i'll fill you in plus you golden years. my definitive guide to where your money should be sitting at any age. stay with cramer >> don't miss a so effected "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. th

>> if you can't explain in three bullets why you're buying a certain stock, don't buy it. >> follow "mad money" today. we're the slowskys.

we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands!

check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. ♪ welcome to a special show about you, about snowing what you can and can't do, because it's 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. particularly with infants. "mad money" has been on so long now that there are kids who were born who are in their teens. and if their parents listen to the show when it started, they would already be on their way towards some great wealth. parent, grandparents, listen up. you can give all sorts of things to families who 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 moment you can start the process of saving that you have to do here is my commercial for what everyone seems have come around to them, which is the notion of index funds. we have come through a period where almost all stocks pretty much traded together, and we have seen so many managers been let go or fired because they can't beat the market. so you can take a couple hundred dollars and buy some shares in index fund i'm partial to the standard & poor's 500 because they represent the bedrock of the country's publicly traded companies. as a companion, i like any sort of total return fund that is an even broader array of stocks a mix of both is a very good start. total return and s&p 500 the broker or the brokerage site you might use might have a junior growth fund that can be a nice augmentation, because you're buying for an infant who has his or her whole life ahead of him

these kinds of funds can compound over time being if you let it run, the money can build upon itself. now you might be saying why am i watching a show about stocks if all this guy is doing is talk about index funds. coy talk every night about them, but it wouldn't make for a very interesting show more important is the kind of investing i'm 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 are curious and want to learn about stocks i believe 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 proselytizers of index funds weren't such fundamentalists about how bad everything else. their lack of flexibility is so stunning, yet i've had 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 pick two. one with a dividend where you can reinvest the dividend and get the power of compounding going for you. each theory yao they're dividend might be increased and you might be able to buy more stock with the dividend we often hear the term dividend aristocrats, companies that have more than 25 years of increasing dividends. i like that. i know that it seems rather commercial to do what i want done here, but i also think given how poor income growth has been for so many people in this country, it is important to try 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 profile. we'll discuss this concept more later in this show but a highly and unusual yet 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. the most valuable asset in the stock market, time, the action you need to take today to set you or your kids up for financial success. they've been the source of some of my greatest investing ideas of all time. you probably got the same resource, but you paying attention? i'll clue you in and unfortunately, di don't look anything like i did how i did in my 20s today your money should change too

i'll explain how stay with cramer puppy school is in session. bunny, bunny, bunny! alright, alright. what's going on? my owner got a new puppy. my name is tiny. nobody cares.

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♪ we're going over knowing thyself, how to pick stocks knowing they are 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 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 my 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 buy the shares of national video, which for all i know could have made it as it started right now as facebook's live show. but it was total bust that cost us fortunes. when he would give me the sports section, he would give me the business section the market closed early back then, and i fried to anticipate obased on moving averages of how stocks were doing and what they would do next. it was a gain momentum

a lot of times i only knew the stocks by their abbreviations in the agate type it was a fun game. i kept the ledger. i kept a ledger to see scm, ibm, polaroid xerox, national video. i had texas gulf sulfur and ltv, rockwell, a host of other companies shah have disappeared. still hanging out in trade i also owned a lot of airline stocks because suckers were always buying those. eastern, national, mostly a brand of two they were household names because of advertising i liked the stock picking process so much, i got the whole fifth grade class involved we would pick stocks and keep track for a week to see who could make the most money. the problem is i was working the exact opposite of what i should have been doing. metaphorically what i was doing is still being done now, just picking stocks by how fast they were climbing and backing away from them if their climb seemed extended or slowed velocity.

that's called momentum investing. what i should have been doing is picking the stocks of companies i knew and ask to be able to buy them 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 parker pop i had later learned he had no idea what national video was or did you can find out more on google now 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 since about five days after pop first purchased the stock. he averaged down too many times to tell, but i know there was many a silent meal because of

that day's decline in national video's stock. there were a host of stocks to have chosen from back then most weren't that good according to the averages, but there were dividends to be had. and in retrospect what we needed more than anything else was income maybe the idea of picking stocks because they were going up was antithetical to the idea of buying stocks in companies and was more suited to dart throwing it may have made is sense because many were defense contractors and we were just beginning lyndon johnson's build up on the vietnam war efforts. it was a lot of fun. but in retrospect, you know what i learned the most about stocks from two 3m board games, acquirerer and a fabulous game called stocks and bonds. my father sold games for 3m back then, and acquirerer 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're 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 to teach kids that a company can be owned by the public and you can own a share in a company hey, they 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 if my father had bought shares in 3m for me instead of national video? 3m is a dividend aristocrat, increased its dividend more than 25 years that's quite a statement if we had just looked at the spine. speaking of dividend akris kratts, 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 there are the really

easy ones. who the didn't want to go disney world? it's not how many people cut espn off in the end. that's what matters is the intellectual property, 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 and johnson's band-aids or shampoo were staples in our house. i knew to wipe my nose with kleenex. these are things that aren't even taught. they are embossed, imprinted finally, there is fast food. i know that mcdonald's today may not seem like 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. let's face it. the whole food chain would be upended if they switched their policies in a day. a burger would cost a fortune and mcdonald's would have to crater earnings for year so buy a brand something they can see and hear or touch or even like. put it away. the stock won't always work out. but think about what you liked when you're 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 some 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 winner on your hands let's go to judy in texas. judy >> caller: hi, jim how you? >> i am good how about you, judy? >> caller: i am great, thank you. hey, my son william has been very interested in buying stocks, and he's calling with me now. and my dad gave him some money to purchase some stocks. so we're looking at his very first stock purchase, and we're wondering how we look at what stocks to buy. where should he start? >> okay, he should look at things -- common household things that he sees and you see

and then what you want to do is you want to figure out how much money you want to put in it, and you put a quarter of it in a quarter. because if the market goes down immediately, he'll say this is a sucker's game. i don't want to be in it put a quarter and wait three months another quarter. hopefully you'll get a sell-off and you'll be ready to buy if not, put the rest of 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 to carol in florida. carol? >> caller: hi, just a minute how you doing? >> i am good carol. how are you? >> caller: good, good. i read and enjoyed confessions of a street addict and i want to give kudos to your hero, mrs. cramer. >> yeah, she knew how to trade better than anybody else in the world. >> caller: good for her and good for you. i want to know your opinion about 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

geld i like buying gold coins if you can't afford those, the gld will do. the stocks 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 is a safety box. stocks don't need to be act track certificates or numbers and letters behind a passwo 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 nor "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. jim cramer, you're one of my heroes >> i look forward to your show every week night >> thank you so much for helping beginning investors like me. >> when you talk about the markets, i just believe that you're spot-on.

>> oh, i love it thank you so much. ever night we watch you. have i learned and earned.

♪ 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 i say 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 i like dominoes sure, i remember the day patrick doyle became ceo and a pizza was 10 bucks yes, it did taste like cardboard before they reformulated the pizza. my kids, they liked the track and they like joes they were local. most pizza is local. i wasn't so picky. i tried it and i liked it, and i liked the speed. so sure, i recommended it. but that's not what made this stock a "mad money" crown jewel. no, it was the technology behind dpz. my kids, most likely like your kids, ate 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 worries about where the pizza was in the process that's two things that the two local joints couldn't do and no cheese option for the vegetarians, the one that asked twice about the cheese as in sure you want no cheese? finally, there was the joy of being able to pay online before the delivery person got there. kids don't want to 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 worried about the interchange with the person. kind of liked it that's why i always called domino's a tech company that sales pizza. many of you know how i found the stock of apple, when my youngest daughter asked for a second ipod not because she lost it, as i immediately accused her of, but because she wanted another color. shea were fashion accessories. personal computers, come on. my various employers have never embraced apple, but my kids are kids and they would rather be caught

dead than have a non-apple brand. when the new computers come out, they check the resolution. if it improves the performance of netflix, more on that in a second, then they want them. they want them as presents, despite the cost 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 what they really don't want is the samsung they're part of the apple ecosystem, proudly the much derided, much ignored apple ecosystem with the surcharges so they have to pay to have all of 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 difficult things about am. you ever kids may not know much about income or the power of compounding, but 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 the show for nothing? it's the cash cow that your kids turn you on to that has

continued 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 twords from the kids they weren't allowed to google something while at school because that was cheating, that was enough for me. while i was doing my thesis at harvard, to do some mindless name dropping, we had access to fabulous liberians at the library. their job to look up anything you wanted to look up. 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 the iphones, and they get their entertainment from netflix is it the homemade content like house of cards or narcos 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, faang isn't all their

creation i figured out amazon like harvard, when you were a freshman, you got a book it was called the facebook facebook is a derivation of facebook my youngest got sick of facebook early on, probably because i got on it. but then she went to instagram which faceback cleverly didn't know older people had discovered we were inundated with red hot chili pepper merchandise which wasn't an ad at all, it was just a link, dad. oh, lordy. does everyone else dream their ad is just a link? but it seems only mark zuckerberg has the forethought to care about the user experience to such an extent it works like that. how about chipotle in the kids love the fresh and organic chipotle salad they still do. they're vegetarians. my youngest returned early on after that sickness, the only

difference is she did takeout. it's chipotle. nothing is perfect but their pick, they will do what if the ficks themselves aren't any good? what if they are errant. your kid likes a device that fits on your head and takes pictures or fits on a wrist and measures steps it happens, gopro. it happens, fit bit. they have their hole lives ahead of them to make that money back if it is a screw-up. you see, that's the beautiful thing about teen investing 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. >> boo-yah, jim! >> hi, jim watch your program every day i love it. >> you are currently coaching three generations of my family >> thank you for being the great nest the world >> i'm here with my son jonathan, who is 9 years old and loves your show. >> i love your show. >> i love it when kids are

involved >> jim, thanks for everything you do for us. >> i wanted to thank you for all the wonderful advice you provide us >> we're going to be realistic we believe in diversification, and the s&p fund is still the best single diversification method ever invented >> our world is a better place with you in it. >> we thank you for all you do

"lightning round" is sponsored by td ameritrade ♪ so how about the rest of our lives? what are we thinking 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 costs too much when i used to do my college tours, i tried to get people to buy a share or two of a stock. but college taps the living daylights out of you i know it's a total hardship to even contemplate savings but once you are out in the real world, it's imperative you save, through a 401(k) at work

not just pick from options that your company forces down your throat -- i'm sorry, that your company gives you and you have to pay a fee that's for another show. this is where you have to begin the mix, though, of index funds and individual stocks. there is too much risks in individual stocks to just put together a portfolio of your own choosing so put your first $10,000 beyond what you have from your first 20 years into an index fund, the s&p 500 being my favorite. as i mentioned before. now i know that some will argue with that. i see them arguing on twitter. 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 even sector can do that to you. but with the rest of your money, i do like stock, 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 the actionalerts.com public at the street to show you how to

invest the ones that involve my charitable trust say involved because the trust is only allowed to invest alongside club members when i haven't mentioned the stock, the restrictions are that great, yes, to protect you but 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, then actionalertsplus.com, the thing i created is a way to go i set it up because i always talk about buying homework i tell you need to buy a stock, but then you have to keep up with it. remember back to earlier in the show when i discussed how hard it was to do the homework? those trips to the business harvard school library, to study month old research on microfiche now it's so easy i had to scrap one of my earliest tenets when i started in the early '90s. you only need to spend a couple of hours studying your stocks. you need to read the conference calls. you can google articles galore so many that you'll get sick of the process very quickly you'll get articles and research pushed to you along with charts i would have only dreamt of at

one point in my career or you can read what we write at actionalertsplus.com whatever makes you comfortable the take charge of your money. that's what i want confident. not overconfident. remember, i want you to be good managers 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 risks you 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 20s, 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 accept stocks go down, not a silly question how they have gone up over times but periodic swoons. these are questions that only you can answer i would like you to take more risk in more individual stocks that have growth characteristics once you have put away that $10,000. that's my preference

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 older, 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. don't be too quick to do so i would not advise you to do until you're in your 30s only in the 40s do i want you 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 in the old days it would have been heresy to suggest that you don't start investing in fixed income by your 30s let alone 40s. the problem with that the two-fold life expectancy. many people are outliving their fortunes and turners 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 mote do have that caveat emptor provision. you can and do get your money back as you enter your 60s, it's easy how you could put up to 50% of

your money into bonds and take bonds up 10% more each decade. as i mentioned earlier to a carol. 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 looks like overblown threats, or flash crashes for that matter, then i think you 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 >> hey, i'm cramer welcome to "mad money. other people want to make friends. i'm just trying to make you some money. ♪ >> welcome to "mad money" 101!

>> from the u.s. military academy at west point. "mad money" is not a show about picking stocks for you it's a show about empowering you to think for yourself. you are the reason why we do this this we wan trade? exactly. field for you.uestions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement.

♪ 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 taos all right. it hold 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 that is terrific yeah, we -- we had a great time. pop and i used to love to go to games all the time and of course i was a vendor for phillies schmidt remains my favorite player sometimes we come across 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 @pounds the poodle's kid. >> michael law. >> facebook. >> mark zuckerberg. >> twitter >> jack. >> and your favorite for the opening bell >> jim cramer and carl quintanilla. >> well, that's it i mean that is -- that should be a show on its own. all right. next up patrick tucker as asks @jimcramer, serious question are accounting issues pretty much always because of some level of shadiness or can honest mistakes be made this is -- i could spend a whole -- 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 is wisconsin, which is why i'm so cautious now a tweet from ado samuels, my brother is 26 with no 401(k) offering in his job. should he open a roth or a traditional ira to get his retirement savings going i prefer the roth. you have repeatedly said you prefer individual stocks over index etfs do you have a write-up somewhere explaining why first, i do want an index. i want an s&p 500 fund and then your first $10,000 there and continue to use that as your retirement vehicle, but i also think that 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 csbowles @jimcramer, we just bought get rick quicker and i look forward to a fun read. enjoy your show too. the reason why i like get rick quickly is an in-depth look at 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. now here is a tweet from eric wolf who wrote @jimcramer, you talk about heavy short selling interest what percent would you call short selling heavy? 10%. if i see 10% shorted, i sense something could be done. got to do your work. 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 chicken wire man, we got the whole shooting match, and they don't get in but you know what? my other box they get, in and i just have 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 can shed some life on the age targeted 401(k) portfolios are they well thought? will appreciate your advice. i just think the index funds are better and 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 think that's a much smarter way than trying to assess what may be in an age-related fund. stick with cramer. . >> when it comes to your portfolio, cramer will always go the extra mile, traveling the

country, and telling the most valuable story start your investment journey with "mad money" and let cramer help map out your financial future $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

boo-yah, jim congratulations on a great show. >> "mad money" is not a show about picking stocks for you it's a show about empowering you to think for yourself. >> this is bill from new york. jim, thork. >> th >>. >> curtis from north carolina. thank you for creating "mad money." >> the man, the myth, the legend >> the wizard of wall street >> he is from philly, and i want to give a good boo-yah >> you are the reason why we do this 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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