Cramer's 'Mad Money' Recap: How to Build Long-Term Wealth

Cramer still advocated investing in bonds, but contrary to conventional wisdom, recommended only two-thirds of a portfolio be in bonds at retirement age.

Adjusting to Market Conditions

Cramer said his favorite piece of 401k investment advice also goes contrary to conventional wisdom. He told investors that investing in their 401k plans evenly throughout the year doesn't allow them to take advantage of big market moves. Instead, he suggested making 401K contributions as the market dictates.

"Declines in the market are opportunities to buy," said Cramer. He suggested contributing twice as much any time the market drops 10% or more. Buying more shares of an index fund when those shares are cheaper just makes sense, he added. "This will make a huge difference over forty or fifty years," he noted.

"Pay attention to the market," said Cramer, "contribute twice your normal contribution any month the market is down."

Maxing Out the IRA

Cramer's final piece of retirement advice was that there is more to investing than just 401k plans, which often come with fees, costs and restrictions.

He said individual IRAs are the perfect way to supplement a 401k, giving investors a superior vehicle for managing retirement investments. "After you get the full match in your 401k, you want to put the rest of the money into an IRA," he said.

Although individuals can only contribute $5,000 to an IRA in 2008, Cramer still recommended maxing out the account to help fund a terrific retirement.

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