"fast money" monday taj in the middle of the book i will tell you the news in california, out the power outages, you know what, it's not a one-day event. >> that does it for us see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now >> my mission is i'm here to level the playing field for all investors. there's always a bull market somewhere. 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 money. my job isn't just to entertain but to teach you call me at 1-800-743-cnbc. or tweet me kpat jim cramer. there is a gaping hole in the american education system. although each calling it a system seems overly generous when go to high school they

teach you geometry, physic you can graduate from college speaking three languages with a deep understanding of physics or quantity up philosophy you can get a ph.d. in literature they teach that in school if you get enough education but do you know the one thing they almost never teach in middle school or high school, to say nothing of college financial literacy i am not talking about economics here you cane be an econmajor and learn nothing about personal financial planning retirement readiness let alone how to manage your money wisely money is just not talked about you are 1,000 teams more likely to read das capital. an important book. marx is a good economist but he is not going to show you how to balance a checkbook let alone how to build a portfolio of stocks financial literacy, a third

rail that's why on a come stand mission to teach you how to manage your money. so you can be a better investor. think of this show as continuing education for all thing financial. when it comes to financial planning nothing is more important than retirement. sooner or later you are going to stop working i am betting most of you, even if you don't own individual stocks have some money in a 401k plan they are offed by your employer and they are among the greatest tax defers investment vehicles out there along with the i.r.a the individual retirement account. for those of you about to pass out for change the channel because the idea of saving for retirement puts you to sleep hear me out for a minute you need to know this stuff. believe me, your future self will thank you for getting your retirement funds in order. while you may think you know everything you need about these

tax favored accounts you think it know it all the truth is there is a lot that the so-called experts don't tell you. for example, conventional wisdom says you absolutely must invest in your 401k. many will advice you to max out your contributions every year. right now the maximum contribution is $19,000 or $25,000 if you are over 50 it tends to rise gradually over time usually faster than inflation. in 2017 was $17,000, 2004, $13,000. that's a serious chunk of change even with these contributions coming from pretax income, however i think that's the wrong approach i am not going to sing the praises of the noble 401k plan right now or tell you it is the key to your financial salvation. the truth is, they can be a mixed bag. sure they have a couple of great features but they have a lot of bad ones also. those problematic features will eat away at your returns year after year, sometimes through

fees that are almost totally hidden from you. the ones i have been involved in, i have got admit, hidden, i had hadden let me lay out the good, the bad, and the ugly of the 401k plan then i will tell you whether it makes sense to contribute more money to the 401(k) or somewhere else it is a tax deferred investment vehicle. you don't pay taxes on the income you put in, and then your capital gains grow tax free until you start withdrawing. suppose you are 30 and you started investing $5,000 a year in your 401k you should be able to generate a return on 7% per year. at that pace over the course of the next 30 years you will be contributing $150,000 tax free to your 401k because that money is able to compound year after year without any capital gains

taxes. by the time you are 60 that $5,000 per year that you have been investing will be worth $511,000 if you had to pay taxes on the dividends and capital gains every year that number would be a lot lower, $110,000 lower. you only ever pay taxes on your 401k money once. when you withdraw. it is taxed as ordinary income since you will be retired by then most of you will be paying a lower rate than you were taxed on the money when you first earned it. that's one reason to like 401k plays. the other? employers match some contributions. for every dollar you invest your player might throw in 50 sens up to a certain point that's free money. it is also untaxed if your employer matches contributions you should absolutely take advantage of your 401k. if your employer subject have an ploir match i think it is less

compelling because as i said, they can have a lot of problems. without the match you are much better off saving for retirement via an i.r.a. which has the same exact tax favored status as a 401k you can only contribute $6,000 a year to your i.r.a. or $7,000 if you are over 50. but when you change jobs you can roll over your 401k into an i.r.a. that's what you should do when you switch employers or are out of work. when you invest in a fuel mund in a 401k you have the pay the fund fees. but the 401k's, acting as anned a stare will also charge you a fee. have you ever looked at your statement and wondered why your holdings aren't increasing like you thought they should be it is the fees they are the probable reason here's the bottom line on

retirement investing if the can be you worked for offers an employer match for your 4:01k contributions then you want to put money in your 401k until the max is matched out. after that put additional retirement savings into an i.r.a. if there is no employer match or if there is an employer match but there aren't options you would do better going to a straight i.r.a let's go to andrew in north carolina andr andrew jim, how the heck are you? >> i am doing well how about you, andrew? >> doing good. i was hoping you could help me out. i am an sberl investor just a couple years out of college. i finally got extra money in my pocket i would like to invest. do you think it is more advisable the look for a stock with a good chart or one with a dividend history >> i like everybody to be comfortable with what they do.

to me, dividend reinvestment compounding is terrific. charting is too short-term in itch in a. you have your whole life ahead of you buy stocks with a good dividend that have growth i think that's perfect for you mark in florida. mark >> booyah, jim. >> yes >> i have made a lot of money in the market as of late. when the big boys say take some off the top what do you use as a guide for the percent that you take off >> for my travel trusts i find that it is not such a bad idea up 25% to pull off a little. up 50% to pull off a little, when you are up $100 you take out the house's money and then you let the rest ride it has been my rule and it worked for me more than 40 years. bobby in new york, bobby. >> how are you jim >> imdoing how are you >> i am doing good i am 67.

i have money put aside i am retired eye collecting social security, and my pension it is not that much. but whatever little money i have i want to invest it but i don't want to have it jeopardized. i can't afford to loose it. >> what you want to be able to do then is you want to be in stocks that have good yields i have a book called stay mad for life where i tell you simply how to walk through and see if the yield is safe. that's what i would do the typical stocks i have been recommending over the last 40 years would be something like the telephone companies, the major telephone companies and the utilities, the major utilities. i think those are made for your investing. when it comes to retirement, if your company matches contributions through a 401k max out. but if you don't have a match or investment options straight to a i.r.i. next, advice for recent college congratulations grads.

too busy to invest in stocks put your money in the next best thing. all on a path toward retirement. let's chart your course. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send us an e-mail at madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something go to madmoney.cnbc.com. the final horn doesn't have to mean the end of the action.

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turn america into cramericaa, with me as your or your generalismo you better believe i would make some changes. what would the 1th premiere of jim cramer look like for those of you who didn't get that reference i think google could be your friend s that show about money. and let's stick to the more mainstream elements of the cramer regime. it drives me nuts that we don't really teach our young people how to handle their money. would it be crazy if you had to take a class in personal finance before you could graduate from high school? i think it should be mandatory like awkward health classes where they show you how to put a trojan on a banana that was only vaguely referenced to the i will yad. sadly, i am nobody's dictator even though i was a guest judge on the apprentice at one point i have no influence over education policy in this country i do control what i talk about on this show can i take a moment to share

words we all believe but rarely get to bloi in conversation. money is important it is really important caring about the state of your finances don't make you superficial. say you have got lusy credit score and you want to get carried. congratulations you inflicted your horrible credit on your new spouse neither you nor your partner will be able to qualify for a loan to buy a car or a home or perhaps even just to get a credit card. these things matter in life. look, i know they say money can't buy happiness but i have always found a bit of cliche of commercial i had withdom to be dubious at best, since being broke as i know from living in my car is a major buzz kill. firsthand. i spent time, six months in my '78 ford fairmount when i lived in california. i wish i had an expert to guide me through this way back when. i still had money put away for retirement when i lived out of

my car what should young people do this wr money first, foremost, and always, you need to invest that's the only way you are going to be able to achieve financial freedom, living a life where you are not totally dependent on your paycheck for everything i am thrilled when i see young members of the demographic taking an active hand in their investing. but i also know many young people feel like they have all the time in the world, and many more start investing before they are truly ready. in fact, better things for them to do with their money they thi think they have, but they don't. they need to invest. invest young, invest young, invest young that's why i have free lessons and a caveat for all of you recently out of college. before you start investing you need to pay off your credit card it is something i mentioned

before especially true for younger people, specifically because banks are aggressive about offering credit to college students if you are carrying a balance on your credit cards it is going to eat into returns and long term the interest on those credit cards will be greater than the profits you can possibly make in the stock market at least on a percentage basis just pay your darn credit card balance in full every month. automate with it your credit card company if you are worried about being tempted not to when i got out of law school i had max debt on half a dozen credit cards i got a job at soldman sacks and made good money but not enough to pay all the interest and be able to afford the biggest boom box in the world which was my first prirmt i paid down the debt pronto and i got my dream box three months later. and now you are talking. credit card debt is onerous even fur hitting it out of the park with your paycheck they are the house

they win you lose now, let's get to my three lessons for young investors. first, this is advice for everyone out there regardless of age or education level, especially applies to fresh college grads. you need to save money i recognize that not everyone has an inherent predisposition to save. i also acknowledge that telling you to save over and over again will not do you any good however the stock market is a great way to trick you into investing your money investing in stocks can be fun whereas leaving stocks in a cd or in a regular bank is boring second lesson, this is a more targeted piece of advice for younger investors. while you are still young you can take more risks that an old person like myself when you are in 20s you can get away with riskier strategies like owning more speculative single digit stocks where the up

side is huge, but so is the downside or playing with options or generally being more aggressive with your money. why? it is not because young people are naturally better speculators. it's simply that when you make money and you make a money mistake in your 20s, well that mistake, you have got your whole rest of your life to fix it. you can afford to buy more high-risk stocks that end up losing you money when you are young because you have 40-odd years to earn the money back i am jealous of you. older investors, caution you need to be more cautious the closer you get to he retirement the more conservative your investing strategy has to be more bonds, high yielding stocks fewer speculative stocks if you are in your 20s invest like a young person. there is no reason for someone in their dwepts to have bond exposure because stocks will consistently give you a higher

return year after year after year does he like index funds yes. young people, take this advice to heart especially because i suspect the most recent college grads likely to invest in the market are the most prudent with their money. prude sent great when deciding how much to life beyond ear means. 20 somethings, live a little, take risk. forget about bonds for the next decade play around with speculative names maybe with some biotech companies. even if they go to zero you have the whole rest of your life to earn the money back. that canard that you can't save until you pay off your student loans? please have you looked at the interest rates on student loans versus credit card debt i chose to invest my money after i got ought of law school.

you don't need to hurry. invest now and pay later final lesson for young investors. it is never too early to start investing for retirement use your 401k if your employer matches part of your contributions and especially put money into a roth i.r.a. here's the bottom line people young people just out of college investing is a great way to trick yourself into saving money you might otherwise spend. beyond that when you are young you can afford the make mistakes and take more risk it is never too soon to start contributing to your 401k or your i.r.a., especially if that i.r.a. is a roth stick with cramer.

we live in a world where you have more choices about where to

invest your money than ever before it is confusing out there. there is a virtual infinity of etfs, mutual funds, you name it. but more choice isn't always better sometimes having more options makes it impossible to decide which ones are right and which are dead wrong and you never had more options when it comes to picking exchange traded funds, and mutual funds than you do right now. they are ever where. at this point there are so many tinds of etfs it can make your head spin. i hate the way many of the sector based etfs, the ones that let you buy and sell an entire group have been warping the way the stock market trades itself that something that if you don't understand you can read about in get rich quickly many get rich on the headlines fool you cannabis, get rich quick, as far as i am concerned but only for the people who created then. not for you. but the important thing is this,

you have all sorts of etfs and mutual funds out there they can all advertise they are great at that company that run these funds want your money. one of the biggest mistakes as an individual investor is to give it to them. with a few exceptions. unfortunately this is one of the most common money mistakes out there. most people in this country equate investing with putting their money in mutual funds. 80 million people or half the households in mairk america have exposure to mutual funds many of you don't have a choice a lot of 401k plans don't let you pick individual stocks i could have picked individual stocks but the 401k plan i was involved with wouldn't let you that's why i think the i.r.a. is the better wayfor you to invest "mad money" is predicated on my experience and what i have seen all my investing life. if you have the time and the inclination i believe you can

beat the s&p 500 i have seen it done many times in the past four decades by so many people, people i know what is so bad about mutual funds? simple if you are investing in mutual funds you are most likely -- well, you are getting hosed. why? my main beef is with managed mutual funds, where people are deciding which securities to buy or sell. unlike hedge funds, mutual fund managers don't get paid for performance. they collect fees from their investors, people like you, the amount of money they make depends on the size of their assets under management which means the incentive is knot necessarilily to do well, no, what they are really being paid to do is fund raise. that's part of the reason why in study after study year after year it is been shown that the vast majority of actively managed mutual funds underperform their benchmarks. it is a big reason why in other words if you invest in an actively managed fund for

large cap american stocks then its performance will mess likely fall short of the s&p 500. to make matters worse, actively managed mutual funds have some of the highest fees in the business counter-intuitive. at my fund we compounded 24% annually after all fees versus 8% for the s&p over the same period yet i fretted every second about fees and chose not to take them during years when i was only up a couple% versus the stronger funds i was embarrassed. here is the part where i say not all actively managed mutual funds are bad. some of them have fabulous records. some have fabulous managers who consistently deliver terrific results are. but when a mutual fund delivers amazing results for a longer period of time if the manager is a decent person they will stop

accepting new investments. a lot of these high quality funds are out there but they don't take new fun because when your fun gets too big it becomes difficult to beat the market if the manager is not a so great person they will take in more money until the performance stats starts to suffer when john vogel the father of the index fund asked me how i could beat the arches so consistently i said i limited my investors and made it like a club where you had to be nominated to get in. that meant i was never overwhelmed with new money something that often leads to bad investment decisions vogel said if everyone did that they could have better records, too. maybe that was the secret sauce of my hedge fun's outperformance that's why as a general mutual if you are going to invest in mutual funds you don't want to be in an active managed one. the fees are too high. and remember, if you are -- if

you don't have time to run your own portfolio then own a cheap low cost index fund that mirrors the s&p 500. it may sound like a simple solution but don't overthink it. the whole point of putting your money into a mutual fund is to save you the time and effort required to manage your own portfolio of stocks. that's why i think it is insane when people start owning multiple mutual funds. by its nature funds should be diversified. but there is no reason to have exposure to those. i am saying if you are going to take the time to play individual sectors the time should be better spend picking individual stocks etfs rebalance every day that can take a toll on long term performance there are exceptions like the

govetf i like etfs that mimic the s&p 500. if you are not pro and you are not managing a portfolio of individual stocks you should be careful about fooling around with most of this stuff, especially the double and triple ones, leveraged ones, those are a nightmare. don't do them. at the end of the day i think a cheap s&p 500 index fund is the least expensive way to manage your money but an index fund owns everything, the good, the bad, and the ugly if you have time the do the homework i believe you can beat the performance of an index by picking stocks yourself. if you don't have the time, though, don't overthink it one cheap s&p 500 index fund is the best way to go let's go to chris in florida, please chris? >> hey, jim. quick question i am 35, and i have my 401k diversified across stocks. what suggestion do you have to help better grow my retirement >> keep thing simple

don't have a lot of funds. make sure that you have the right amount of cash make sure you are getting a lot of income because you are going to need that because it is going to compound over time. but remember, you are diversified if you own a diversified fund don't feel like you need to be diversified by owning think or five diversified funds i have seen that too often sorry, not so mutual love here for mutual funds picking stocks is still the best way to manage your money if you don't have time or the inclination, i urge you to go with a cheap s&p 500 fund over most actively managed funds. remember, i did not dismutual funds if they have low fees if they are s&p 500 mimics. much more "mad money" ahead including how to find the best path to healthy retirement depending on your income then don't forget the kids protecting your children from student loan debt will put them into a better position to build

for the future. plus i am responding to your tweets without the 140 character restriction. we will let them go longer so stick with cramer whether your beauty routine is 3 steps... or 57, make nature's bounty hair skin and nails step one. it's the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. nature's bounty, because you're better off healthy.

no matter how good you are at stock picking, if you don't know all the byzantine rules about what kinds of accounts to coop your money or or how to manage your personal finances or how to get the most bang for your buck when it comes to major lifetime expenses you could be missing out on terrific gapes or maybe losing a fortune to hidden fees i admit this kind of stuff isn't as fun as picking stocks over the course of your lifetime it could really help you build up more wealth than a couple of great stock picks. the simple truth is i don't want you leaving that money on the table just because nobody could be bothered to explain, say, the finer points of retirement investing. with that in mind let me explain whether it makes sense for you to use a regular 401k or i.r.a. or for you to go with a roth which is a termive i am sure you have heard countless times i have talked about using a i.r.a. and a 401k plan to invest for retirement

i don't want to beat a dead horse but i get a ton of questions on this subject. let's start with the roth i.r.a. which anyone can contribute to as long as they make less than $137,000 a year. aside from the earned income tax credit the roth i.r.a. has done for lower income families since the end of the war on poverty which ended in a draw poverty winning on points. if i were king of the forest i would make the limits for the i.r.a. investing the same as the ones for the 401k. it is ridiculous that they aren't but the industry doesn't seem to care because they make more money off of 401k perhaps. there is no other reason why you can contribute three times more money to a 401k as an i.r.a. i have searched it doesn't make sense. it has to be the industry. no one talks about it. i told you how a regular i.r.a. lets you take pretax income, invest it and your gains

compound year after year tax free until you draw money once you are retired. with a roth you make contributions using after tax income in other words, unlike a regular i. richlt a. putting money into a roth won't decrease your tax bill at least up front. once your money is in a roth i.r.a. you won't pay tax on it again. when you withdraw it which you can do out penalty after the age of 59 1/2 you don't pay income tax on your withdrawals. basically, with roth you pay taxes now so you don't have to pay income taxes 30 or 40 years from now when you retire after five years you can withdraw the amount you contributed and you content get hit with a 10% penalties, which is what happens when you try to are waugh money from a regular i.r.a. that's different from a regular i.r.a. where you don't pay taxes

on your contributions now and your gains don't get taxed within the account but once you draw money every penny you take out is taxed as ordinary income. which means when you are trying to decide between a roth i.r.a. and a regular right. r. or or 401 indicate you need to decide whether it makes sense to pay income tax now with a roth or once you retire with a regular account. in short you are trying to find out if you will be in a higher tax bracket or a lower one obviously this complicated question has specifics with your specific situation which is request i tell you you have got to speak to advisors. you have got know yourself it is important. it is more than simply how old you are. quick rule of thumb, for anyone whose marginal tax rate is 25% or loss, go with the roth. better to take the hit up front than allow your roth i.r.a. to compound tax free the rest of your life. remember for those of you who don't have the time to pick five

or ten stocks, the smartest thing to do is park your retirement money in low-cost index fund that mirrors the s&p 500. as you get older you can add some bonds but, really, until you actually retire, i still think stocks should take up the majority of your retirement echlts have. don't forget, people live longer i have said this before but i am going to keep repeating it i want you in stocks longer and longer how about this roth 401k it works like a roth i.r.a. meaning you make contributions with after taxincome and never pay taxes on that money again. because it is a 401k it is a higher limit put $19,000 in one other difference unlike a roth i.r.a. a roth 401k doesn't have means testing

all these decisions depend on what you think the future will look like. if you believe taxes are headed higher over the course of your life time as many people do, then roth 401k is the way to go even if you are making a lot of money in present at the end of the day this is beyond our control and beyond our ability to predict, including by too way, your professionals. the bottom line, lower your present income then the lower your tax rate. a roth i.r.a. lets you pay those know and never worry about taxes again. the less money you make the more likely that a roth is for you. yes, that simple when you are saving for retirement, don't worry about what could go catastrophically wrong 40 years in the future, just worry about making the best choices for yourself right now stick with me. alexa, tell me about neptune's sorrow by olivia watson.

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to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. . >> announcer: lightning round is sponsored by td ameritrade ♪ lately we have heard a lot about the crushing burden of

student loans. right now tens of millions of americans are $1.5 trillion in student debt on an incredibly high figure up 50% from just a few years ago. i don't know if it is a good idea for the government to just cancel all of that debt like some democrats propose but i get where they are coming from it is not just that it stimpgs to graduate and immediately realize it might take decades to pay back these loans instudy after study kids who graduate with mo debt end up worth more money than their classmates with outstanding student loan balances. student debt is a heck of a lot cheaper than credit card debt. don't sweat the program too much the problem here is simply there is so much of it and you can't get rid of it even in bankruptcy. now, i am a believer in social mobility which is why i am constantly coming out here and teaching you how to use the stock market, the greatest engine of wealth ever created to help you make some serious money. for any of you who are parents or are thinking of becoming

parents, let me just tell you right now there are very few things you can do for your kids' future that are paying than paying for as much of their college educatihe haeducation tn afford college grads make more money than non-grauds. a fact of life of course if i was making an abe maslow-style hierarchy of financial needs, that's maslow for those who want the google it, i would tell you it is more important for you to save and invest for retirement. for those of you who are parents maybe you are wondering how the prioritize your own retirement over making sure your kids have the best possible future simple believe me if you reach retirement age and you don't have enough money to pay for your needs who do you think is going to support you? your kids. you don't want to be a burden on them so take care of yourselves first. all the books say it i have studied

i thought about it i agree. however, after you have saved enough requirement for a given year it is time to start thinking for saving for college even if your kid is a toddler. the best way to save for college is a 529 plan. there are two kinds of 529 plans. first some states let you use a 529 as a way to hedge against tuition inflation. you can buy college tuition credits at today's prices and use them in the future that's not what i am talking about, especially not in a world where national politicians are talking about making tuition free i want you to use a 529 savings plans. these are run by the states. but generally speaking a 529 doesn't let you manage your own portfolio. you have to pick between a mix of different mutual funds just like many 401(k) perhaps i prefer you to have control over your assets but 529s have so much going for them i am willing to swallow this one.

if you can only choose funds look for a low cost fund that mirrors the market what are the rules for a 529 plan let's say you just had your first child. congratulations. start a 529 with your kid as the beneficiary right then and there. maybe white a couple of days after all you just had a baby. i traded alcoa throughout the birthing not my finest hour although the trades worked out financially if not familily. here's how a 529 works the contributions are not tax deductible so it is used with after tax income but you done pay taxes on your gains so they can compound tax-free year after year really it is like a roth i.r.a you can contribute $15,000 if you are single, $30,000 if you are married and you file jointly. that's a heck of a lot of money. your children's grandparents can contribute to the same 529 plan,

too. if you don't have the money a grandparent can also start a 529 with your kid as ben father although for financial aid reasons it is better to have a parent do it let's say for some reason you and your parents are sitting on a huge sum of money. you can front load five years of contributions without incurring the federal gift tax as long as you don't write any checks to the policeman's beneficiary over the next five years. you could invest $75,000 into a 529 right from the start, or married and filing jointly, $150,000 for the next five years you won't be able to contribute anything without being hit by the gift tax but honestly once you drop that kind of money into a 529 you content need to make more contributions. the key is you want to get the money into the kid's 529 as early as possible. the greatest of these plans is all about the power of compound.

given that you don't pay taxes within the 529 if you can contribute $75,000 off the bat and you invest in a local index fund that mirrors the market you will make roughly 7% per year. i know the stock market is more volatile than that but as a thought experiment if stocks generally perform like they have historically you could double your investment in about nine years so if you start savings right now when your kid is born by the time he or she is 18 the value of the plan will have doubled and doubled again. if you started with $75,000. you could have as much as $300,000 that's enough for a financy expensive college education and a desubject chunk of law school. although if they don't hold back the price of tuition it won't even cover the four years. but you have got to start somewhere. >> i know most people can't front load a 529 like this but it is worth keeping in mind

that front loading as much as possible is the best strategy. and for grandparents, your contributions don't count towards your estate tax. you can transfer money to another relative you can withdraw the money from the 529 plan if nobody goes to college. but you will have to pay taxes on your gains along with a 10% penal penalty. the bottom line, no, paying for your kids college education isn't as important as providing for yourself for retirement. but if you have child, after you have made enough retirement contributions for the year, putting money in a 529 college savings plans should be the next item on your agenda. it is the best way to protect your kids from the crushing

burden of student loep debt. stay with cramer worked like tha. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ woman: what does the word "partner" really mean? someone i can trust. (impact, click) who is with me for the long-term. who understands i'm dealing with lives, not only livelihoods. that in order to help people, i need more than products, i need quality support and insights. can i find someone who partners with me to achieve people's long-term success? with capital group, i can. talk to your advisor or consultant for investment risks and information.

you know i love hearing from you, cramerica let's take some tweets let's kick it off with at-bat scott t brings co. when talking diversification you have said to pick five stocks from different sectors do you recommend the same regarding mutual funds or just

everything into one fund absolutely everything into one fund never diversify hmong mutual funds. that's the industry talking. the industry has it wrong. next up, a tweet from at-bat bryn live is i put my first 10k, $10,000 in an s&p 500 if you know fund but i want to though do you continue the add money to it or leave it as it is thank you, booyah. you have got the first $10,000 in after that you start splitting one fifth in individual stocks and the rest, four fifths in the mutual fund. in other words, index fund are "mad money." i am a huge driver we have another tweet. starting her young, #, ten weeks old, #, made of money. what can i say that's exactly who should be getting the 529. look at that look at that

handsome chap. 529 plan, 529 plan right now right now. the following tweet is frommate jlu 96 cramer better to protect a "mad money" portfolio with gld >> gld, of course. i like gold bullion, too, but out can't put it in your backyard put it in a safety-deposit box that's a must. don't keep it at home. now, it seems like i got a little advice from at bond deco. he says has someone told him that short sleeve shirts exist yet? short sleeve shirts and pocket protectors, not my style candidly my mother never liked short sleeved shirts she always thought i looked bad at them. moving on, @wj forest 11 hello, jim, will we ever see stock splits again so small money investors can enjoy the

stokts stocks that are in triple digits opine this auto this is a important point, the big companies have been schooled by hedge funds and mutual funds that they don't want to pay so much per share let's say they want to buy 10,000 shares f they split it they will be buying 20,000 shares it costs them more to sell 20,000 than it does 10,000 that's what the institutions taught these guys. i try to tell companies over and over again that's wrong. you are not going to have the right base of shareholders you should split the stock do you know that i have in no luck whatsoever. why? because the ceos are only listening to big institutions. not to you, and not to cramerica and not to "mad money. i will tin to fight but i am losing the fight another tweet. imcontract e love what you do, i

would love to start reading your books. i would read them backwards. get rich carefully, because that tells you how to be involved slowly by the way, i think stay mad for life okay stick with cramer.

you should be mad that this is your daily commute. you should be mad at people who forget they're in public. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated.

their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. i would like to say there is always a bull market somewhere i promise you i will find it for you right here on mod money. i'm jim cramer see you next time. >> welcome to mad money 101 from the u.s. military academy at west opponent. >> "mad money" is not a show about picking stocks for you it is a show about empowering you to think for yourself. >> you are the reason why we do this we want to level the playing field for you.

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ is a product designed to promote a healthy lifestyle. ♪ hi, sharks. my name is martin dell'arciprete, and i'm from philadelphia, p.a. my company is smartplate, and i'm seeking $1 million for a 15% stake in my company. whoa.