Jim Cramer's Best Plays in the Playbook: Bonds, Your First $10,000

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NEW YORK (TheStreet) -- Are you looking to become a better investor? Jim Cramer's new segment on his Mad Money show called "Cramer's Playbook" might be just what you're seeking. Today we look back at two recent episodes of the playbook.

These are excerpts from Cramer's 'Mad Money' Recap originally published on Jan. 11 and Feb. 6, 2014.

What About Investing In Bonds?

For the next installment of his "Cramer's Playbook" series on financial literacy, Cramer answered the question of what percentage of a retirement portfolio should be kept in bonds.

Traditional wisdom will tell you that bonds are safe, risk-free investments that everyone should own, while stocks, well, they're just too risky. But Cramer said this line of thinking is reckless because the goal of retirement investing is to build a nest egg, not protect it.

With the 30-year Treasury currently paying a scant 3.65% a year, Cramer said it would take 20 years to double your money, which is why your portfolio needs to take on more risk. Investing in a low-cost S&P 500 index fund, on the other hand, introduces a little more risk but would average an 8% annual return, doubling your money in just nine years.

Cramer said for those in their 30s, no more than 10% of your portfolios should be in bonds; in your 40s, no more than 20%; in your 50s, 30%; and in your 60s, 40% to 50% should be the maximum.

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