Jim Cramer: We Need Higher Contribution Levels to IRA's

Author:
Publish date:
Video Duration:
1:16

Jim Cramer wrote about how Americans aren't investing in his Real Money column on Thursday afternoon. 

"How is it possible that two-thirds of Americans don't feel the benefits of this magical stock run and 61% of our population say that stock movements have little or no effect on their well being? Is it really possible that only 14% of families own stocks outright?" Asked Cramer.

"Yep, according to a dispiriting Financial Times-Peter G. Peterson Foundation poll, all of this great wealth creation is the creation for the few, not the many. About 40% of the people don't even know it is happening," he continued. "How the heck can this be happening, even as the president champions the stock market, or at least his impact on the stock market when it makes regular new highs? His 67 million Twitter followers have to have some sort of clue about the market, no? Don't some of them realize that the S&P 500 is up 24.2% since the start of the year, the best in six years?"

During TheStreet's morning show, Cramer expanded on one tactic that could encourage Americans to invest in stocks.

"[Donald Trump should be championing industries, he] should be championing individual companies. But I know he's got to do the 30,000 feet. And I know that at times, he's at odds with some companies. Let me back up. I think it's great that he references [the stock market], but I think that what you really need is higher contribution levels to IRAs, cause people do individual stocks if you wanted to do, and that's my plan by the way. And I'm going to unveil that plan in the next couple of weeks for my 2020, we have our [Action Alerts PLUS call], for actual words. I want IRA rates up. I want you to be able to put more money away, cause then people buy individual stocks because a lot of your 401k like I looked at my 401k plan. It's got all these stupid funds that I gotta be in. You know, I can't own individual stocks, so I get that. But you know, I don't want to own these funds," said Cramer.