Mad Money Machine

Cramer: I Invest in Index Funds

Abby, a caller into Jim Cramer’s Mad Money show last night, asked whether now is a good time to be in index funds or to get out. Jim replied that he gives one-twelfth per month into his 401(k) and his daughters’ uniform gift to minors. “I don’t sit there and say, ‘Well wait a second, should I time it right?'” He went on to say that with the recent downturn in the market, he would be adding his December allotment right now, adding, “That’s how I trade index funds… I guess it’s not trading them, I invest in them as I have been investing with index funds since 1982. OK? That’s how I do my retirement account is index funds.”

So in answer to Abby’s question, yes now is a good time to be in index funds. As is every other time she might ask the question.

If your 401(k) account does not have access to broad market, low-cost index funds, contact your employeer’s retirement department and let them know you want to invest the same way Jim Cramer does.