convert to a regular roth ira and you will be taxed on the money.ney out when you are 59 and a half. that is a great move if you think your taxes will stay this high or go higher. if you contribute to 401 k. >> and a look at how to get back to sicivilian life. you're going to see a couple stories you will love when we come back after this short break. >> coming up on a special edition of street signs. are we headed towards a cheaper summer? three things investors should know. and should your airline ticket price be a pay of -- pay what you weigh price? our power lunch panel weighs in on that. we will see you in a bit. >> that will be a high price in my case. comcast, a parent of cnbc wants to hire military veterans. they have already hired a thousand vets and they are supporting the u.s. chamber of commerce as they host a major hiring fair in new york today. >> $500,000 jobs for veterans. they already have hired a,000. if you go inside the numbers and want some examples. citi group wants to hire a thousand a year. they are still gunning for a thousa

in addition to that you want to have a roth ira and you contribute money you paid taxes on unlike thee taxes at retirement age. to give folks how powerful these roth iras are, if you started saving in your 30s up to the maximum limit which is $5500 a year. you will have an extra $200,000. that is how powerful it is. so it's important to start as soon as you can. >> arthel: let's talk about the folks that are not right there in their 20s or even in their 30s. that is, if you are close to retirement age you want to be having to invest in the stock market, could be too risky. you see the commercials of reverse mortgages is that good idea or just last resort? >> its last resort. if you are 62 and older and equity in your home this may be a choice to tap into equity in your home over the time you are going to be retiring. you can get it in a lump sum or monthly installments. your beneficiaries are going to have pay the money. >> arthel: they can sell the money. >> but if they want to keep the house they have to pay it off if they want to keep it. >> arthel: so stocks could be risky because

i bought it in my roth ira at 5. i would like to know what you think is the potential here given the fda potential approval. >> i think this parkinson's thing is the real deal. i think you should hold on to it. it's a really terrific speculation. let's go to ed in massachusetts. ed? >> caller: hey, lightning fast boo-yah to you, jim. >> nice. what's going on? >> caller: jim, my stocks hammered cutting the dividend but inside is the buy-in. why do you think of arr? >> i think it's okay. that's the particular way to play that segment. let's go to shawn in illinois, sean? >> caller: hey, cramer how are you? >> i'm fine, how are you? >> caller: i wonder what you think of sprint? >> they compete and it's a good place to be. let's go to van in washington. >> caller: boo-yah, jim? >> booyah. how are you? >> caller: very good. we are not doing well. with our f-5 networks. >> yeah, it is between telco and infra for the web. i don't like it here and would rather see you in something more down to earth. why don't you buy some,

i have a roth ira and it contains pepsico, pep, merck, mrk, oracle and emerson electric, emr and sun su. and i just want to be diversified, but i wanted your opinion if i should dump sun corps energy and switch to the mondeliz international? >> no, keep the sun corps energy and once a favorite of gary kaminsky who i will miss a great deal. oracle bought that, and i think we have a good number last week and pepsico is a beverage company and snacks and emerson industrial and we have oil, we've got industrial, snacks and soft drink, carbonated and we've got water, too, and we have tech and we have drug. i don't know. that seems darn good to me. i wouldn't make any changes. >> let's go to john in wyoming. john? >> all right. i have center point energy, which is cnp. bristol-myers squibb, which is bmy, ge, ge in waste management and it's wm and kellogg. am i diversified? >> john came to play clearly from laramie? a national park, it will close because of the sequester they're worried about. we have cereal, okay? we've got consumer packaged goods and bristol-myers, my charitable trust owns

to a 401(k), have you loan privileges, but they are pretaxed accounts, unless we are looking at a roth ira. so you want to look at the lowest interest rate-earning account and go there first. but have you to think about liquidity. sometimes you look at the situation and the client doesn't have a lot of liquidity. i know it is not earning a lot of money or making a great deal of interest, leave those there in case for emergency fund. >> jamie: it might make sense to go for those. is it hard to borrow against a 401(k)? >> most 401(k)s have loan privileges. you can get between $5- to $50,000, relatively quickly, depending on what you need the money for. >> jamie: let's talk specifically. if you lose your job, you won't be putting in new retirement investments, let's say, so you have a finite dollar amount. if you take it out, you could be hit with a penalty and taxes? >> let's go back to that loan privilege. if you lose the job, you know longer have a loan privilege on the 401(k) plan because have you no source to pay that money back. the way you pay back money in a 401(k) is a salary reducti

how about the roth ira's? you're supposed to get money out of that tax-free.d change that. all this does in cyprus, what happens there is small country, if things get dice sir, there is emergency, unthinkable suddenly becomes thinkable. that breeds panic. david: it has happened here. there is something really anti-amerrcan. it is within the constitution, there are guaranties to private property. of course when ever they try to do it here there are challenges that make their way to the supreme court. isn't, wouldn't there be sort of a popular uprising against that action? >> there would be a popular uprising but you don't know what happens when you have a panic. they don't call them confiscation. they call them a tax, a one-time levy, turning your deposit into equity. david: by the way i always change the word tax to confiscation because if you have already earned the money, if you already paid taxes on it is your property. >> look at social security. they did it with social security. you pay your contributions, you're forced to with after-tax income. the deal

. >> two kinds of iras, roth and the other. tax it before you put in and never get taxed again or put in before youtae packses but don't pay taxes on buildup. pay taxes on end as you took it out as if you just earned it then. melissa: all business investment should be expensed immediately rather than depreciated over many years? >> we could simplify the tax code more than a thousand pages getting rid of those complicated, this equipment should be deappreciated over three years or five years or seven or 15. if you spend money on a new piece of equipment, you should expense it because you don't have it. it isn't profit. it isn't taxable income if you don't have the money. so when you spend on new investment it should be expensed, in the same way if you hire a person, the wage or salaries expense, same thing with investment. it would drop the cost of capital significantly. melissa: your next one you want to cut the top tax rate for individuals and companies to 25%. that's the european average for the corporate tax rate is 25%. >>