Whats working at the moment. And the old days, when the great mark haynes ruled the mornings around here, i remember that each time i co hosted he would introduce me as reverend jim bob from the church of whats happening now. It was fun back then and seemed like 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. Everyone was fine with it. Those days are over though. And if you recommend a stock for a trade, even if you say buy it today, for the Analyst Meeting tomorrow, and then you sell, there will always be a video, a youtube kicking around, shows you liked the stock but never gave the sell call. So weve gone beyond that. Were all about educating you to be a better investor. The same thing we do every day at a higher intense level at the cnbc investing club that i want you to join. Tonight, i want to introduce you to the concept that is so important and its called suitability. Basically what stocks fit you . What investments are right for you . For your age and your temperament . I heard the concept of suitability when i was at training at Goldman Sachs. Now called private wealth management. I have been buying individual stocks for myself and others before a half decade before i got to goldman in 1989 as a summer intern. At the time i was watching Financial News network. That of the predecessor to cnbc. Whenever i could id run to the Harvard BusinessSchool Library where they had all the old Research Reports from long gone firms like base and lehman about stocks totally on a catch to catch can basis. Those who grew up with the internet have no idea how hard it was to access information in the 80s. If i liked a company i would have to ask the librarian for a microfiche of the firms sec filings. These were little pieces of plastic and you read the file usually six months old by the time i got them. Everything i did back then is online and updated. The imperfections were legion and more on that later tonight. I spent all week trying to find a stock that i thought would work. One stock that would be good for a week. Where anyone who wanted to invest could take the idea and then i changed my answering machine, yes my answering machine. I changed the message to 20 second rap on the stock. Dont know answering machines . Can you imagine, well, some company used to make them. With all those jobs wiped out by your cell phone. Same in the services for that matter and talk about jobs that arent coming back. Anyway i say his this jim and im not here right now. But i like both the chart and the recent numbers from people express. A long since bankrupt airline that i used to jet down from new york to interviews. My recommendation for a monolithic memories. A red hot stock that was run by a guy who decades later helped save tesla. Testifies the last ceo before elon musk. And anyway, monolithic shot up like a rocket that week and only acquired by advanced devices at a very big premium. The best cramers not at heel call the machine ever had and believe it or not jim is not home became a rallying cry for lots of people who were call megaback then. Hoping i wasnt home. So they can get the tip. Without having to interact with me. Not long after i got a job at Goldman Sachs one of the officers at the firm called me in. And got the machine with this recommendation and he heard the recommendation. He told me to call him as soon as possible. I did. And he asked me if i knew what suitability was. And i had no idea. So he introduced me to the concept and he asked me did i ever consider that many people might not be ready for the stock and i was recommending it to them oneonone without any sense of whether it was right for them . Suitability. Was it suitable . I said i always thought the stocks were pretty much a Caveat Emptor situation. Unlike say vacuum cleaners you cant take stocks back to the store for a regun. They come with in guarantees and theres no deal . The executive hammered it into my head that before you recommend a stock you had to know what that person wanted out of it. What do they want from to believes . You had to know if the stock was right for them. Monolithic memories wasnt exactly right for anyone other than the most risk seeking investors out there. The financial bungee jumpers. So lets start there. Today i want to you ask yourself, what is your tolerance . How much risk do you want out of the stock . You see, stocks are pretty peculiar pieces of merchandise when you think about them. You buy a car and you know its not worth as much the moment you leave the lot . But theres all sorts of warranties. You buy house. However, before you buy it you have a binder with insurance so you can get your money back. Clots can be returned and pcs and washers and dryers you name them but stocks . If you buy a share of nike a day of foot locker says theres been a slowdown of jordans you cant say hey chief, you never told me this could happen. Im down 3,000 and im hey man, im losing too much money and i want my money back. Sorry. Caveat emptor. Now back then when i got started it would have been incumbent upon the broker to recognize that the buyer would know these things could happen. Maybe the broker should never have been recommending that stock to begin with. You get the point though. Because you cant take stocks back and get the same price because theres no real insurance although you could buy an expensive put option underneath with a cost that lowers the risk of nike pretty dramatically and has to be renewed constantly. Suitability is incredibly important. Thats why for the next hour you are going to learn how to measure your own tolerance for variety of factors because these days with digital brokers theres no real protection. Just a signed form that says you get it. You may not know what you are getting into, tonight the bottom line, that stops here. By the end of this show you will know what suits you and what doesnt no matter your age or your style. Or to put it in other words, caff yet ohm torr. No. Just buyer be a little more aware of what you might be committing your hardearned dollars to when you purchase a stock. Lets take calls and lets go to kyle in new jersey. Kyle. Caller jim cramer, how are you buddy . Im good kyle, how can i help you . Thanks for calling. Caller so i was wondering first of all, i am an Investment Club member. And this is my third time talking to you man. Terrific. Thats terrific. Caller i feel like i know you personally. I love you to death. Thank you. Caller i would like to know how often you look at rsi or data when you are buying or selling a stock. How i look at the relative strength index or the back . I have to tell you i look all the time. I do not like to buy stocks where the chart is bad. Its one of the reasons why i do off the charts so on tuesdays, i think its incredibly important, kyle, because others do and anything thats important to others is important to me. Mark in new york. Mark. Caller whats up jimmy chew . Whats happening. Caller the ira count. We have an ira for my retirement and i was wondering if its tyke to take some profits and reinvest the profits in my account at another time. You know, i prefer you to let it run unless the stock is really sour because i i dont want you remember, were informationing for the longterm in ira. And i have to believe that what you saw on the stock is continued. Otherwise look if you have to take a loss, take a loss. But keep investing in your ira. Nick in florida, please, nick. Caller boo ya. My question, when you help your children invest, is it more important to save up and give them say a big snowball, a big lump of money when they get married or set them up early and take the baby with a small amount in dividend stock to remaize it in such a way. Which is more important . The size of the snowball or the height of the hill that compounds it . Wow, i love that. First i cant help my kids and they have to do it on their own because of my job, im not allowed to know what theyre up to. I always say look i want you to make as much money as possible with half money and the other half i want you to do index fund and learn some stocks. When they decide what theyre going to do with their lives they can do it but thats my advice to them. I dont know what they own. That wouldnt be right. I hope you will know what suits you and what doesnt at the end of tonights show no matter the age or investment style. Tonight im helping you form the necessary Investment Strategies you need at all stages of your life from young to e. Just like the gentleman we just talked to. Im going to meet you where you are and take you where you need to be. So stay with cramer. To build the electric vehicle of the future, you need partners. Mining partners. Technology partners. Education. Supply chain. Energy. What if one partner could do it all . That partner is ontario, canada. With all the Critical Minerals to make electric vehicle batteries. 65,000 stem graduates per year. One of north americas largest i. T. Clusters. A fully integrated supply chain. All powered by one of the cleanest grids in north america. Ontario. Your innovation partner. [ragtime piano plays] the adversaries are back [gasps] ugh. Sheriff, i got this. Protecting your business from Cyber Attacks can be unrelenting. Todays adversaries move fast. Crowdstrike moves faster. Crowdstrike. We stop breaches. Tonights all about you. About knowing what you can and cant do because its not right for you. Because its not suitable. Now there are all kinds of suitability considerations in the business. First and foremost, theres age suitability. I want to start with kids particularly babies. [ crying ] mad money has been on so long now there are kids who were born who were in their teens or and if their parents listened to my best pitch, well we got started. They are going to be well on their way towards some great wealth. Parents, grandparents, listen up. You can give all sorts of things to families that just had babies and i want you to open up accounts for them or at least give them some shares of stocks so that from the moment the earliest moment you can start the process of saving. Now heres my commercial for something that doesnt need a commercial. Because almost every expert you hear from is in love with them. Im talking about index funds. Which arent perfect. But theyre the best way to go if you want to put your money on autopilot and you cant spend a lot of time looking at individual stocks. Just buy a competitive home market. If you just had a kid you can buy some shares in an index fund for them. And im partial to cheap etfs because the 500 stocks represent the bedrock of americas publicly traded companies, as a companion i like any sort of total return fund thats an even broader array of stocks. Its a terrific way to start with a mix of both. The broker or site you use might have some fund thats higher growth but you are going to grow a fund and that can be a nice augmentation because you are buying for an infant whose life is ahead of them. These kinds of things can really compound over time meaning if you let it run, money can build up on itself. Now you might say why am i watching the show want stocks . Look, i could come out here every night and talk index funds but it wouldnt make for a very good show. I teach you how to pick individual stocks both here but really al huge amount in the cnbc investing club because i believe thats the most effective way to into i like to teach. Its my favorite venue. I think you can build a portfolio yourself that can do better than most managers or index funds and you can control your own money but im perfectly sanguine about the notion that it can coexist. I wish the proselytizers of index funds werent so bad about how bad everything else. I say lets give both a try. When you are saving for your kids, definitely start with an index fund though. Whats a good stock for a kid just born . I think if you should pick to kinds of stocks for children. One with a dividend. Where you can reinvest the Dividend Payments and get the power of compounding. That is such a good thing to teach people. We often hear the term dividend aristocrats, companies that have long histories and certainly more than 25 year of increasing dividends. Love them. Its hard to go wrong where the big well run ones. A company like tried and true Procter Gamble and pepsico. Join the club i mentioned and watch what we do with the childhood trust. At the same time you also want to give your kids something with a little more juice like the great Growth Stocks of the era. The nvidia and teslas, please suggest going with a uniform gift to minors act account. Im going to call it ugma for short. Okay . The rules keep changing for these but you can gift children money that can accumulate somewhat taxfree over time. Again the rules have changed so much from when i set it up for my kid. They were like trusts that you didnt need lawyers to create. Check with your broker for the latest rules for you in the state you are in. They do differ. I think its one of the better tax breaks around though. I know hunting for tax breaks may not sound very exciting but thats how you take care of the family and besides who doesnt want free money . Theres one caveat with the accounts though. If your kid is planning to get Financial Aid in age and you want to be very careful because the ugma money can count as theirs. One other thought i like. You know i believe the goal is a terrific insurance policy for any portfolio. More about that later tonight but a blessed by me idea is to buy gold or silver coins for your kids. Or just pieces of gold or silver. I bought slivers for my kids and from a dealer and pretty much forgotten about them. They may or may not increase. That has are polar opposites. They dont do anything. By in crazy times when inflation comes roaring back and we now know its certainly capable of happening, pretty since the 80s, nothing thats holed up in value under the scenario better than mansions, masterpiece of art, and precious metals. One caveat. If you do this, remember to put the gold or silver in a safe place please. That doesnt mean under a mattress and certainly doesnt mean putting a hole in the ground in the backyard. A safety deposit box more my style. So bottom line, when a child is born, think about setting up a uniform gift to Minors Account and put index funds or individual stocks in there. Specifically i like cheap etfs that mirror the s p 500 and on the stock side your kids want to at least one dividend stock for income because a high yield stock can double the value of that investment by the time your baby turns 10. You also want one high quality gross stock that you believe in for the long haul. Because those can rack up big gains. Dont put this off. This must be done at the earliest moment you get the most involved for your brand new loved one. No one has ever regretted saving too early for their kid. Mad money is back after the break. Business. Its not a ninetofive proposition. Its all day and into the night. Its all the things that keep this world turning. Its the gotos that keep us going. The places we cheer. Trust. Hang out. And check in. They all choose the advanced Network Solutions and round the clock partnership from comcast business. Powering more businesses than anyone. Powering possibilities. So this is pickleball . Its basically tennis for babies, but for adults. It should be called wiffle tennis. Pickle yeah, aw whoo these guys are intense. We got nothing to worry about. With e trade from morgan stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Got him. Good game. Thanks for coming to our clinic, first ones free. Every day, more dog people are deciding its time for a fresh approach to pet food. Developed with vets. Made from real meat and veggies. Portioned for your dog. And delivered right to your door. Its smarter, healthier pet food. 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I think you should do everything in your power to get your kids involved in investing. In stocks. Teach them that stocks represent pieces of companies that they might like. [ applause ] now lets be honest. These days most parents probably think they couldnt explain what a stock is to a kid especially a young kid. Thats not how i grew up in my house though. As much as i love sports and we even had tickets for the 64 world series. We didnt make it but we had them. To me stocks were supreme. My father had gotten a tip from his brother who knew a stockbroker he played tennis with. Guy told him to go buy a Company Shares in National Video. Which for all i know would have made it if it started right now as a Facebook Live show. But in the 60s it was a total bust that cost our family a fortune. Pop would bring home the philadelphia bulletin. The afternoon edition and not give me the sport section. He gave me the business section and wanted me to learn about stocks. I look up closing markets and i tried to anticipate where stocks were headed based on moving averages of how they were doing. Straight line this kind of thing. It was a game of momentum and most of the time i only knew the stocks by their abbreviations. But it was fun. I kept the ledger to see how i would have done on tx or ltv or rockwell. A list of companies that have disappeared and still hang out in trade. I also bought a lot of airlinestocks and most kids are suckers. Brave enough too. They were household names because of the advertising and of course most people under 50 have never heard of any of those. I got the whole fifth grade class at penn