>> this is really good. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. my job is not just to entertain but to educate you and teach

call me at 1-800-793-cnbc. stocks are one part, absolutely the most important one, but one part of building wealth. there are some people, call them the 1% if you will, who can make enough money from the day to day income to become truly rich. for the vast majority of enough. you need to augment it. if you keep watching it, i'm going to tell you how to do that, not just for the next year or two years but for the rest of your life. usually i come on here and tell you what i see in the market, what is bad, stocks and themes. the truth is before you even start investing in stocks, there are a lot of other things be you have to do if you want the payoff to mean something later on in life when you most need the money. you may not want to hear this, but it's absolutely fruitless to think you can get rich in stocks if you haven't laid down a foundation for building long-term wealth. what do i mean by that? simple. you can make a fortune in the market, but if you're

else, a healthy portfolio isn't going to do much for you. at best it will keep you afloat. if you plan things better, it might have let you become very wealthy. there are three, three absolute necessities. three things that you must take care of before you even consider owning a stock. i don't usually address these subjects normally. i assume you have this stuff taken care of but here on "mad money" i feel like i'm remiss in not mentioning them often. we don't teach financial literacy. very few colleges will teach you about managing your money. that doesn't mean i can't offer personal finance "mad money" style. of course @jimcramer on twitter. ask for it every day so i'm done ignoring it. ends tonight. what are the three things you must do before you own stocks. first, this will sound boring,

sucks the life out of it every time. i need to say it and you have to hear it. you have to, you have to, you have to pay off all of that credit card debt. i have to nag you. i don't believe all your credit cards should be cut up in pieces and turned into a mosaic or that credit cards are evil and should be burned but i do acknowledge the facts. the facts are these. if you have credit card debt, you are paying an extraordinarily high debt on that to the credit card company. you're paying a loan shark. now loan shark tony soprano will give you a better rate. credit card companies won't break your kneecaps if you can't pay them back. they will destroy whatever you've been able to build up through your paycheck or other investments. like many aspects of personal finance, i have at one time or another brushed up against the

between college and law school, i owed a huge amount of money to various creditors, just enough to make it so i had very little money to live on. i managed to put a few bucks away into a retirement account i created. you often ask me what books are good, "one up on wall street" remains the seminole text. i was already in hock to a bunch of companies i owed money to before i started living in my 1978 ford fairmont. the credit card issuing companies found me. i took a bunch of them down. pretty much everyone who offered me plastic. i figured you could pay the minimum and stringing each one out. the credit history never seemed to mind. i paid the minimum.

said what the heck, why not? once i took that last card down i realized they were my biggest expense after my rent. i wanted to default on them. i ended up restructuring my noncredit card debt with a collection agency. these guys were like a posse. they found me soon after i skipped on them. their easier payment plan gave me just enough breathing room to get by until i went back to law school where i got a scholarship and room and board. i got some legal work from the grade alan dershowitz. almost every penny went to those darn credit card companies. there was still nothing left for me. in the end after school i did get lucky. i landed a job in sales at goldman sachs. what a relief. in the end while i couldn't stomach opening the mail. not everyone will be as fortunate as i was but i am realistic and know where of i

you can make enough money to make enough money away from the card issuers and pay rent and put a meal on the table. let me put it this way t. won't matter as long as you're burdened by credit card debt. even with good credit, let alone the credit card debt i had. if your credit isn't so good you will talk about 20%, 30%. if you have a 20% annual return, that's a darn good year. if you have a big balance on your credit cards, pretty much all of your gains will be sucked down the drain. nothing you can do about it. this is simply a sine quan non. if you go into credit card debt, stocks will be a hobby for you. stocks can't be the wealth generating machine they should be because all the wealth they generate will be canceled out by the amazing wealth destroying effort of credit cards.

what is the second one? health insurance. you should not invest a penny in the market before you have health insurance. you might think the affordable care act makes this a non-issue. now you have to buy health care insurance or pay a fine. start with. they get bigger over the time. there isn't a choice here. even if you object to obama care politically, it's i had did i ott -- idiotic to pay a fine. honestly though, you shouldn't need legislation to make you get insurance. medical emergencies are the biggest drain. i've been there, too, when i was homeless. i had no health care plan and had to drive hours to get to a clinic to see a doctor. i know you don't think it can happen to you and the younger members of the audience can feel

vulnerable. you don't want to be exposed. a couple of hospital visits can crush all the capital you spent years building in and away from the market. sure you can now get coverage even if you have a pre-existing condition, but it's still a heck of a lot cheaper to buy insurance before you're sick. you'll need health care eventually. last but not least, before you start investing in stocks you need disability insurance. without these two kinds of insurance you can get wiped out. all the precious gains you wrapped up in the stock market will be useless. you'll have to use that money to pay your hospital bills or support yourself while unemployed and injured. insurance. you have no excuse for not getting them if you also think you can afford those stocks. these are more than just items on a personal fancy to do list,

preservation. appreciation. that's where you grow your money while you make more money. capital preservation comes first because you need that to protect your money in the present if you want to grow it in the future. here's the bottom line, paying off your credit card debt and getting health and disability insurance are the three most preservation. make any sense. why bother? with heavy credit card debt and without health care and disability building wealth can be fut actual even if you are one of the best investors in the world. take care of these issues tomorrow. then we can create the portfolio. zady in connecticut. >> caller: hey, jim cramer. >> how are you? >> caller: i love your show. i appreciate you taking the time to call me back. >> of course. >> caller: i quit my job two

i have $400,000 in a 4 01k that i have been trading in small cap, s&p. i have good returns. now i don't know if i should roll it into an ira. >> do you like what you have in your 401k? >> we have a self-direct brokerage. i was in fidelity's plan and did that well. >> you should stick with that. you're in good shape. stick with it. some people are locked in. let's go to mike, please, in new york. mike. >> caller: hey, mr. cramer, how are you doing? >> all right. how are you? >> caller: i'm doing fine. i have a question concerning the citi pensions. i've been a retired police officer now for two years. i've been in the citi pension system for over 20. what is the difference between a 457 plan and a roth ira and what are the benefits or the pros and cons between the two plans? >> that i'm going to have to ask you to check with your people at your pension plan because the 457 deferred plan i am not quite

going to be able to cuff something here. it is too important. i am very sorry. that's a personal decision to you and i don't feel comfortable actually offering advice on that particular situation. before you can even think about investing in stocks, make sure you're building a foundation forlong-term wealth. pay off your credit card debt, get health and disability insurance. on "mad money" tonight you know i want you to be diversified. the same applies to the 401k. then, should you ever tinker with your contribution level. plus, the 401k isn't the only game in town. i'll tell you when it makes sense to add an ira to your account. i'll be right back. >> announcer: don't miss a second of "mad money." follow @cramer on cnbc.

madmoney @cnbc.com or give us a call at 1-800-793-cnbc. (cell phone rings) where are you? well the squirrels are back in the attic. mom? your dad won't call an exterminator... can i call you back, mom? he says it's personal this time... if you're a mom, you call at the worst time. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. r it's what you do. where are you?r it's very loud there. are you taking at zumba class? i've been on my feel all day. i'm bushed! yea me too. excuse me...coming through! ride the gel wave of comfort with dr. scholls

to give you comfort. which helps you feel more energized ...all day long. i want what he has. i've got two reasons to take care of my heart. rthat's why i take meta. p meta is clinically proven p to help lower cholesterol. t try meta today. t and for a tasty r heart healthy snack, r try a meta health bar. you're getting 3 here. alright? here goes. yep. [ crunching ] oh! cheddar, sour cream & onion, and salt & vinegar. wow! wow! how did you do that?! i can see through the blindfold. [ male announcer ] pringles! when cigarette cravings hit, all i can think about is getting relief. patented it starts to relieve i never know when i'll need relief. that's why i only choose nicorette mini. cough if you can hear me. don't even think about it. i took mucinex dm for my phlegmy cough.

it works on his cough too. cough! it works on his cough too. mucinex dm relieves wet and dry coughs for 12 hours. let's end this. cramer, you are super. you are awesome! >> i'm a first-time investor. >> thank you for inspiring me to get in the game. >> your show is the best. i am so glad you're on tv. >> i want you to know you have

thank you, cramer. tonight we're talking about a subject we don't spend enough time on in the business media. long-term wealth building. if you're serious about getting rich and, more important, staying that way. i recommend you absolutely must do two things. first, go to amazon, your local bookstore, buy the entire jim cramer catalog. now that i've gotten that crass piece of self-promotion out of the way, even though you're just in your 20s and have started working, you have to start saving now. i said prepare. you're stuffing your money in the first national bank, aka stuffing it into your mattress, saving it in an ira or 401k. great as those two tax deferred vehicles might be, they may not

retirement. you should take an active hand in setting yourself up for retirement, really getting involved with your money, getting your hands dirty especially with the traditional vehicle for so many retirements, fixed income and bonds. with that minimum reward, not worth the risk. and that's what i'm here to help you do. young people don't turn off the tv. you have to do this, too. believe me, if there's anyone who can make this process sound interesting, it's me. sometime. wouldn't you rather learn a guy who is around for years? before i get going, i want to make you a promise. i promise to actually give you some useful advice that you can't just find on the internet because so many of these personal finance bromides have been repeated ad nauseam.

individual retirement account? ira. yes, yes, you should. that's not a bold insight. that's a fact. people make careers out of saying, use your ira, use your 401k, cut up your credit cards. stop spouting epiphanies. all great pieces of advice that everybody in america already knows and yet there are people who will still condescendingly tell you just that, just those points. and assume it's enough to help you get ahead. i say it's not. basic financial responsibility is the starting part. hey, diet and exercise. i've made a career out of using money to make even more money life. so how from the perspective of a money manager like me should you retirement? what useful advice can i give you beyond just that you should use your 401k plan if you have

can have, because you don't pay taxes on the money you contribute and you don't pay any taxes on the gains inside them allowing for years after years of tax free living. the cop vepgsal wisdom says you should put money in and it leaves you alone on the beginning of a complex and highly confusing process. what should you not do with your 401k contributions. don't use much to buy stock in the company that you work for. i'm far from the first person to say this, yet more people put retirement dough into the stock of their employer than any other personal investment. i cannot stress how misguided that is. it must be only one part of a much larger pie. why? let me put it in "mad money" terms.

play, am i diversified. when it comes to investing, diversification, i tell you in the first gospel of jim cramer, the only free lunch out there. regular viewers know if you both too much of your portfolio into the same sector, you are running an enormous risk. suppose you had all of your money in the tech stocks before the dotcom. many people did. you would have been virtually wiped out. something that soured an entire investor group. this is a cohort that had been performing well for years because bond yields were so long. yields were low, bond prices going up. investors had no choice other that be to buy stocks with notoriously big dividends. in 2013 we had an interest rate scare.

the return you get from bonds reduced dramatically. they got crushed because they finally had some real interest rate competition from the bond market. so if all of the portfolio or even 1/3 of it was made up of high yielders, you lost money. that's the danger. those of you in those stocks will get it again. diversify. apply that logic to your 401k. if you want to invest your salary in the same company as your salary, that means you're putting your salary in the same basket as your savings. what if you were with enron? you lose your job and retirement savings. it's lose lose. you think it's conjecture. i used to have a radio show called "real money."

calls telling me to stop bashing enron. why? the callers had stock in the company. i explained that they needed to diversify away from enron. each time i did it i heard how they got discounts, it was such a great company and it was too terrific to sell. the fact is it was down so much they couldn't sell. then one day it was gone. many people have made this comment before. why? you feel you know what you're doing. cut it back. cut it back tomorrow. here's the bottom line. diversification comes before everything else before investing. so never put more than 1/5 of your retirement money in the stock of the company you work for. just like i advise not putting more than 1/5 of your capital in any one sector.

more than that. remember, that's what you're doing, your a doubling down. stick with cramer if you want to know more about how to actually manage your retirement money so you can build lasting wealth for you and your family. there's much more "mad money" ahead. americans are living longer these days and, yes, that should change the way you prepare for retirement. i'll help you fill those golden years with green. sometimes your company 401k matches doesn't cut it. find out when it makes sense to go above and beyond.

enough pressure in here for ya? ugh. my sinuses are killing me. yeah...just wait 'til we hit ten thousand feet. i'm gonna take mucinex sinus-max. too late, we're about to take off. these dissolve fast. they're new liquid gels. and you're coming with me... wait, what?! you realize i have gold status? do i still get the miles? new mucinex sinus-max liquid gels. dissolves fast to unleash max strength medicine. start the relief. ditch the misery. let's end this. i've been on my feel all day. i'm bushed! yea me too. excuse me...coming through! ride the gel wave of comfort with dr. scholls massaging gel insoles. they're proven to give you comfort. which helps you feel more energized ...all day long.

olay total effects a skin transformation that rivals the leading department store moisturizer. revives skin to fight 7 signs of aging. with olay, you age less, so you can be ageless. olay. ageless. ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky. mmm...amazing. alka-seltzer heartburn reliefchews.

everybody in this country wants to get rich quick except perhaps for some hippie types who don't believe in currency, want to live off the grid. anyone who tells you they have a

money overnight is either peddling a scam or doing something very illegal. how about walter white's late lamented scheme in "breaking bad." they talked about their product being like apples. he didn't need the fabulous distribution network or mr. freight, that pure blue meth sold itself. ancient spoiler alert, that get rich quick scheme ended real bad. the best, most reliable way to make your money grow as i explain in "get rich carefully" is to do it slow and right. it's especially critical when you're investing for retirement. i know retirement money is meant to be sacri sankt with little risk but it's possible with very low interest rates that you could be too cautious, too

when you're managing your money, there's a point where all of recklessness. this is something you particularly see with people who want to save for retirement. i like to say you invest retirement, don't save. saving makes it sound like you have to sock the money away in something with low return. maybe a money market fund, long-term bond fund, something no one would invest in if they understood the risk of either. that, unfortunately, is not how it works. not in this day or age. most people when they're putting money away for retirement feel like they shouldn't take on too much risk, that their retirement savings are too important to jeopardize by investing them in stocks. i understand why many of you feel this way. stocks can go down. you don't get your money back when they do. not like returning vacuum cleaners. unlike bonds. you believe there's less chance for down side, that is simply not being all that intelligent right now.

investing all of it or none of it in stocks is far more likely to jeopardize it than investing everything in stocks would be. why? when you're investing for retirement you're in a race against time. you need to generate enough money to support yourself for the rest of your life by the time you are retiring. if you are too risk adverse and load up on bonds in 20s, 30s, 40s avoiding stocks because of the risks, i see plenty of ira 4 401ks. your money will be safe but that's all it will be. it's not enough to get a low single digit return, 4%. because with that low rate you're barely going to out pace inflation. capital preservation should not and is not a financial suicide pact. you also have to factor in the need for capital appreciation using your money to make mother money, perhaps a lot more money. let's not forget that bonds

safety either. there are moments when it can be extremely risky. bond prices are going to fall and the faster rates rise and the harder the bonds will fall. something that will be truly felt by anybody who puts money in a long term bond fund. people feel that will happen. i'm not one of them, but many say that. keeping your retirement money in bonds means you likely won't generate enough money to retire when you want to. beyond that, there are times when bond prices have genuine down side risk. they can certainly drop enough to erase two or three years worth of coupon payments. what else falls under the category of recklessness? how about one of the most popular 401k value. stable value funds sounds reassuring.

better return than a money market fund and a certainly fund. they protect you from any fluctuations in value. if the rush from nothing but bonds is too meager to build wealth, then the smaller, more stable value fund is even worse. the definition of trying to become so prudent that you become actually irresponsible. the goal on the show, my mission statement, is to help you use your money to make even more money even if i know that requires work and you can't be on auto pilot as so many of you are. when you are in your 401k, ira, discretionary investment, you can't put something in your stable bonds, you're taking money off the table. you're saying this money, i'm not going to use it to generate more wealth. i want to keep it save. you either cling to safety and when it's time to retire you don't have enough cash or you take risk in stocks particularly when you're younger and go for

you to return wealthier or happier. while money can't imply happiness, being broke is miserable. i'm not saying there is no room for bonds, there is. as you get older you should have some cash cordoned off in a risk free zone. stocks come first as an option until much later in life which is the difference in earlier life. the european economy is always bordering on recession making their bonds unworthy sending more money here creating absurd demand for bonds. difficult. those who bought some of the big corporate offerings ever, long-term bond offers from apple, verizon, might do better in owning the common stocks and reinvesting. 401k plans have limited options.

the best way to invest in equities is find a cheap index fund that mimics the s&p 500. the kind of stocks that have been proven in study after study to be the best asset class to invest in in over pretty much any 20-year period. as you get older you can and should take some of that stock money off the table and put it into safety. only some. my rule of thumb is you should keep 10 to 20% of your retirement funds in bonds. no reason to own bonds before 30. in your 40s, 20 to 30s n. 50s, 30 to 40. in your 60s, 40 to 50% bonds. this might sound extremely aggressive, this is the best way to generate the money you need to retire when you twoont. when you retire you should own higher yielding stocks. i think they should be about 1/3 of your portfolio at that point.

have to give you what i think this is right. this is very much counter to the conventional wisdom that says you should have more bonds in your retirement savings. this was coined when people have much shorter life spans. we're living longer and if you want to provide for yourself as you grow older, you'll need the eventual up side. look at it this way, not owning stocks is against your longevity. want to make that bet? bottom line, now you have the first principles of retirement investing. stick with cramer and i'll give you more specific tips for using the ira and retirement. shawn in new york. >> caller: thanks for taking my call. my uncle got me hooked and i'm a big fan. >> that's terrific. >> caller: i'm currently 25, recently graduated from law school. over the past three years i've taken advantage of my pretty much nonexistent tax rate and maxed out my roth ira from a summer job. so my question is i have the

index funds but i want to know how i can agrees more aggressively. >> yeah. you know what, shawn, you have to get into an aggressive mutual fund for about 1/4 or half of that money. someone who's looking at aggressive growth. in the next ten years you have a shot to make a lot of money from that fund. ten years from now if we're having that same conversation, which i hope we do, this is your chance to risk that money because you have the rest of your life to make it back. dan in florida. >> caller: hi, jim, long time first time. >> yes. >> caller: jim, i would like to hear your thoughts on a buy and hold strategy regarding companies that have had consistent compounded annual many years. >> well, i mean, i always say to people, okay, how can you buy and hold them if they have consistent growth if next year they're not consistent? i've seen this time and again simply with technology stocks. i roer a company called digital equipment. it had the same, doing it, doing

one day it disappeared. wang, disappeared. doing it, doing it, doing it. these are all companies i remember that defined that, what you just mentioned. and then one day they missed and then they missed and then they missed and then they missed. can't have that happen. going into your golden years, the best is yet to come. learn to make your money work for you. i'll be giving you advice along the way. there's more "mad money" taking it up a norb. i'll let you know when it's okay to double down. then the 401k gets all the hype. then there are other ways to not have to work until your last breath. plus your tweets. stick with cramer. because you could save hundreds on car insurance. ah, perfect. valet parking. x evening, sir. hello! here's the keys. and, uh, go easy on my ride, mate. hm, wouldn't mind some of that beef wellington... to see how much you could save on car insurance, go to geico.com. zah!

it's ok! there's a more enjoyable way to get your fiber. try phillips' fiber good gummies plus energy support. it's a new fiber supplement that helps support regularity and includes b vitamins to help convert food to energy. mmmmm, these are good! nice work, phillips! the tasty side of fiber, from phillips'. looking for 24/7 digestive support? try align for a non-stop, sweet-treat-goodness hold-onto-your-tiara, kind-of-day. live 24/7 with 24/7 digestive support. try align, the undisputed #1 ge recommended probiotic. choose to move freely. move free ultra has triple-action support for your joints, cartilage and bones in one tiny pill. move free ultra.

move free night. the first and only 2-in-1 joint and sleep supplement. we've got trouble in tummy town. peptocopter! when cold cuts give your belly thunder, pink relief is the first responder, so you can be a business boy wonder! fix stomach trouble fast with pepto. degree motionsense. the world's first antiperspirant with unique microcapsules activated by movement, that release bursts of freshness all day. motionsense. protection to keep you moving. degree.

if you're looking to build the foundations of long-term prosperity and if you're watching the show i assume that's important to you, unless

the first is to set yourself up for retirement. that's why we're focusing on the investment vehicles like the 401k plans or iras. right now i want to share with you my favorite piece personally of 401ks. this is not some abstract idea. it's on how i personally manage my own 401k. unless you think i'm a clown or an you thor stooge, you know what i am about to tell you is worth hearing. most people who take advantage of the 401k plans contribute on a monthly basis. usually that's automatic, taken out of your paycheck so every month you end up plowing in 1/12 of your annual contribution. people will tell you to leave this alone and passively invest. i am not one of them. why not? because there will be times when the market takes a hit, a big hit, a nasty hit, and i think

capitalize on that in your 401k. why would you contribute the same every month when stock prices can differ radically. would you want to invest the same amount of money when the market is nearing the top when it's nearing the bottom? no, absolutely not. you're saying take advantage of the big decline in the market because especially when you're investing for retirement, when you have a long time horizon, there. it's really simple. whenever you get a 10% decline in the s&p 500, what some people in the progression call it a discretion, double down in your contribution. that month you put in twice the amount, that's right, twice. 1/6 of what you plan to invest over the course of the entire year instead of 1/12. if the market stays down, you might want to do the same thing the next month. beyond that you might want to wait another quarter before you double down. i do this. this is what i do. may not sound like it would make a whole lot of difference in the long run, but i can tell you

if you embrace the 1/12 solution doubling down whenever the market declines by 10%, you would make more money than you would if you passively contributed every month month after month into your 401k. make sure we're clear. i'm talking about investing in a low cast s&p 500 fund or if you're using an actively managed fund, with a manager with a long record of consistent outperformance. you probably can't find a mutual fund like that in your 401k offerings. i usually stick with the index fund. that's what you're doubling down to contributions. will this make a huge difference over the course of four or five years? maybe. over 40 or 50 years it can mean tens or hundreds of thousands of extra dollars because you took the time to observe what was happening in the market and adjust your 401k contributions. actively managing. it no longer flies in the new world of investing. here's the bottom line, pay attention in the market.

the s&p 500, you can double down and invest twice the 401k contribution. take advantage of the decline. you can see it as nothing more than a sale, no different than a sale at your local department stores. that's the right way to manage your retirement portfolio. "mad money" is back after the break. i'm here at my house, i have a massive heart attack right in my driveway. the doctor put me on a bayer aspirin regimen. be sure to talk to your doctor before you begin an aspirin regimen. go talk to your doctor. you're not indestructible anymore. world's first deodorant activated by

to release extra freshness all day. motionsense. protection to keep you moving. degreeit won't let you down. lilly. favorite princess dress. but once a week i let her play sheriff so i can wash it. i use tide to get out those week old stains to get it fresh and soft. you are free to go. together. relief from heartburn with it neutralizes stomach acid and is the only product that helps keep stomach acid in the stomach where it belongs. for fast-acting, long-lastingvvrelief.

while we're on the subject of long-term wealth building, i need to tell you the limit of what many people consider to be the holy grail of retirement savings, your 401k plan. i've given you all the 401k dos and don'ts. why not. i'm definitely not part of the crowd that says you should max out on your 401k contributions a year which would mean 18 k. your 401k is important but it has down sides. you'll hear people cite high management fees and administrative costs. they eat away at your retirement capital, there is no question about it.

about most 401k plans is the lack of control and choice in what you can invest in. i believe the best way is to buy diversified portfolio of stocks. that way you know when it's time to buy or sell and when it's time to sell everything. which is very rare, i would say. 401k plans don't give you that option. instead, you usually get to choose between a couple different funds. even though you can lobby your company's human resources departments, most of what you have to choose from is that great. i don't know if i would waste my time trying to change it. that's okay. that's why we have the ira, individual retirement account. an ira doesn't have the high management fees of a 401k plan and lets you invest it the way you want to making it a superior vehicle. your ira has the same great tax deferred status as 401k. one big picture difference.

employer will match some of them. that's free money. you'd be a fool not to take it. there's usually a cap on what they will contribute. here's my rule of thumb for retirement investing. contribute as much money in your 401k to get the full company match and then stop right there. at that point don't put another penny into your 401k, at least not until you've maxed out your ira contributions. after you get the full match in your 401k, you want to put all the rest of the money you're saving for retirement into an individual retirement account. you want to know whether a regular or roth, may i suggest you pick up a copy and not at your local library of "stay mad for life." we're talking a regular ira. you pay no taxes on any gains inside the ira. those profits are allowed to compound year after year tax free until you start withdrawing

you withdraw it as a regular income, still pretty sweet deal. you can only pour $5500 a year as of 2014 unless like me you're over 50. in case you can contribute 6500 a year. i say you should max this out if you can afford to after you've milked your employer dry. after you do that you should be able to fund a terrific retirement. if you want to contribute more, go back and put it in your 401k. that's after you've maxed out your ira. 401k have a lot going for them. that's why you should only contribute as much as it takes to get the full match from your employer. after that, all of your retirement rates should go into an ira. if you have no employer match, start by contributing to your ira and keep going until you max it out at 5500 a year or 6500 if you're over 50.

unlike ordinary diapers, pampersp has three absorbent layers to stay up tor three times drier. so your baby can sleepr soundly all night. wishing you love, sleep and play. pampers i take pictures of sunrises, but with my back pain i couldn't sleep and get up in time. then i found aleve pm. aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. i'm back.

seems like we've hit a road block. that reminds me... anyone have occasional constipation, diarrhea... ...gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against occasional digestive issues. with three types of good bacteria. live the regular life.

they pile up. we've got to get to work. yes, your tweets. you've been sending them to me @jimcramer. our first tweet @ -- who asked, how do you take advantage of the correlation among, not between, sorry, stocks, bonds, and money markets to steadily grow an ira #getaplan. this is easy. depends on your age. if you are younger, don't see any bonds. i want to see stock, stock, stock. as you get a little bit older i want to see stocks with dividends. as you get into middle ages, then you start loading up on

we need to make money with our money. we can't do it with the bond market. i'm looking at dividend stocks. when is the best time to purchase and what evaluation do i review? there's a terrific newsletter by dave peltier who worked with me for decades who does dividend stocks and bonds. he tells you which dividends are safe and which ones aren't. that's what i would recommend he knows dividends than me. get a plan, pay off car, house, or invest it? really important, okay. pay off the car. house, let it run. your mortgage can be very low. honestly, you might be able to get a better return from the dividend stocks and get that mortgage money so that's a no brainer for me, okay? let's get to our next tweet. this one comes from @ctvater #getaplan. what percentage should people save/invest from their income a month?

my advice is you should take a look at what your discretionary money is away from eating and that's the money i want to see put away, all right? in other words, movies, that kind of thing, try it. i did it for two years and i cannot believe how much money i was able to save, two years when i got out of law school. up next, we have a tweet from @littlefeetfarm. how many stocks is too few to own. #getaplan. that means for you if you're an amateur home gamer, no more than 10. it's too hard. you don't have the time. let's go to @carabakorimd. let's say, lock student loans. you are brilliant. that is just what i want. take a look at some of the partnerships. those are good. some of the higher yield utilities are also very good. the individual, iyr, there are excellent real estate investment trusts.

next tweet is from @sean underscore more. how much tinkering with the retirement account is too much? >> i know a benchmark of too much changing around and that's my fantasy league. do not change 26 times a week. that makes no sense. what you have to do is do the homework. listen, if everything you bought is good, don't make any changes. we only make changes when our thesis isn't panning out and circumstances are changing, not because we want to make changes for the sake of making changes. @twanda. do you favor any particular financial advisors? >> i need you to find someone else who has one and recommend that person. why? i've discovered this industry most people are too small for the big guys. i have been on fights representing people who represent people $100,000 and don't get any treatment at all

you've got to find someone in your orb who has a good person and use that person. i know that sounds like, geez, i'm punting, but it's not because otherwise you're not going to get the personal touch that's needed. all right? stick with cramer. and got more. more savings on car insurance? yeah bro-fessor, and more. like renters insurance. more ways to save. nice, bro-tato chip. that's not all, bro-tein shake. geico has motorcycle and rv insurance, too. oh, that's a lot more. oh yeah, i'm all about more, teddy brosevelt. geico. expect great savings and a whole lot more. stress sweat. it can happen anytime to anyone. stress sweat is different than ordinary sweat, it smells worse. get 4 times the protection against stress sweat. with secret clinical strength invisible solid and clear gel. ugh! heartburn!

reliefchews. they work fast and don't taste chalky. mmm...amazing. i have heartburn. alka-seltzer heartburn reliefchews.

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