Home › Forums › Investments in the US › Summary of CNBC “Mad Money” Episodes › Mad Money: Key points from February 16, 2024 (Friday) Episode =Financial Literacy 101=
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2024-02-16 at 11:01 PM #7778暮眞★潤 (Jun Kurema)Keymaster
CNBC “Mad Money w / Jim Cramer” broadcast on Friday, February 16, 2024 was a rerun of Friday, September 1, 2023. Therefore, links to the CNBC site where the video clip and transcript (in English) of Friday, September 1, 2023 are listed again below.
(1) Jim Cramer’s guide to investing: Plan for retirement (https://www.cnbc.com/2023/09/01/jim-cramers-guide-to-investing-plan-for-retirement-.html)
- CNBC’s Jim Cramer explained how to save for retirement, going over the key differences between 401(k) and IRA plans.
- Both 401(k)s and IRAs can be good options, according to Cramer. It depends primarily on your personal needs.
Cramer’s strategy for your 401k – 401K plans Pros and Cons
The Good The Bad - Tax deferred investment vehicle
- Employer match
- Potential fees
- Investment options vary widely
“Bottom Line: If the company you work for matches 401k contributions, take advantage of it … But other than that, an IRA is the superior way to go.”
(2) Jim Cramer’s guide to investing: Lessons for young people (https://www.cnbc.com/2023/09/01/jim-cramers-guide-to-investing-lessons-for-young-people-.html)
- CNBC’s Jim Cramer said it’s never too early to start thinking about investing.
- “First, foremost and always, you need to invest,” he said. “That’s the only way you’re gonna be able to achieve financial freedom, and by freedom, I mean living a life where you’re not totally dependent on your paycheck.”
Cramer’s Guide to Investing for Recent College Grads Before you begin investing, pay off credit card debt
- Investing is a great way to save money you’d otherwise spend
- You can afford to take more risks with your portfolio as a young person
- It’s never too early to invest for retirement
(3) Jim Cramer’s guide to investing: How to invest in mutual funds (https://www.cnbc.com/2023/09/01/jim-cramers-guide-to-investing-how-to-invest-in-mutual-funds.html)
- CNBC’s Jim Cramer offered guidance on investing in mutual funds.
- If they don’t have the time to research and manage their own portfolios of individual stocks, Cramer suggested investors seek out low-cost index funds.
The problem with the Mutual Fund Model according to Cramer - The vast majority underperform their benchmarks
- They have some of the highest fees in the business
Cramer’s guide to investing in mutual funds - Stick to cheap, low-cost index funds that mirrors the S&P 500
- The point of mutual funds is to save time and effort, so keep it simple
- If you have time to do the homework, consider picking stocks vs. focusing on sector-specific funds
“Bottom Line: A cheap S&P index fund is the least bad way to passively manage money … if you can do homework, you can beat indexes by picking stocks.”
(4) Jim Cramer’s guide to investing: Should you have a Roth account? (https://www.cnbc.com/2023/09/01/jim-cramers-guide-to-investing-should-you-have-a-roth-account.html)
- CNBC’s Jim Cramer told investors the pros and cons of opening a Roth account.
- “When you’re trying to decide between a Roth IRA or 401(k) and a regular IRA or 401(k), you need to determine whether it makes more sense to pay income tax now with a Roth, or to wait and pay income tax once you’ve retired, with a regular account,” Cramer said. “In short, you’re trying to figure out whether you’ll be in a higher tax bracket after you’ve retired, or a lower one.”
Saving for retirement understanding your options
Roth IRA Traditional IRA - Income cap
- Contributions made ‘after tax’
- No taxes on account
- Age 59 1/2 no withdrawal restrictions
- Five year rule
- No taxes on contributions/gains
- Age 59 1/2: no withdrawal restrictions
- Withdrawals taxed as ordinary income
Roth 401k - Make contributions after-tax income then never pay taxes on that money again
- Higher contribution limit than an IRA
- No income cap
“Bottom Line: The less money you make, the more likely that a Roth IRA is for you.”
(5) Jim Cramer’s guide to investing: How to save for college (https://www.cnbc.com/2023/09/01/jim-cramers-guide-to-investing-how-to-save-for-college.html)
- CNBC’s Jim Cramer explained how parents can best save for their children’s college using a 529 savings account.
- “Paying for your kids’ college education isn’t as important as providing for yourself in retirement, at least not financially,” he said. “But if you have children, then after you’ve made enough retirement contributions for the year, putting money in a 529 college savings plan should be the next item on your agenda.”
Benefits of a 529 saving plan - Contributions are not tax-deductible
- Contributions: $17k a year (single) or $34k a year (jointly)
- Can front-load five years’ worth of contributions (potentially $85k)
- Any unused money can be transferred to another relative
“Bottom Line: Saving for retirement should be your first priority, but if you have kids .. putting money in a 529 plan after your retirement contributions should be your next priory.”
(6) [No Video Clip for non-Club members] Jim Cramer and Jeff Marks answer more Investing Club members’ questions (https://www.cnbc.com/video/2023/09/01/jim-cramer-and-jeff-marks-answer-more-investing-club-members-questions.html)
Class is in session with ‘Mad Money’ host Jim Cramer as he teaches financial literacy 101.
- How should investors determine intrinsic value? –> think about if we can do without it? P/E of that company vs its peers (cheap or expensive versus its group)
- when should investors take profits from a company they plan to hold for the long-term? –> trimming vs selling, even best company is not immune to significant pull back
Other Advices Discussed (calls with audience):
- How should investors evaluate the balance between growth and dividend stocks –> 100% stock while you are young
- What the best way for investors to manage their investments in a down market? –> do not stop contributing,
- Besides a P/E ratio what else should investors look for when evaluating a companies financials? –> pick the company most suitable for you
- What are the best metrics to use when analyzing a stock? –> sales, earnings, margin and total adjustable market
- In a diversified portfolio, is it ok to be heavier in a certain sector depending on the investing climate? -> You can do it but not by much
- If a company shows strong fundamentals, should investors look to incorporate a technical analysis as well? –> always everything should be included.
Ref: Links to other sites that relate to episode of February 16, 2024
- Podcast at Spotify (Sound from Spotify)
- Internet Archive(Video & Texts per minute)
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