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If early retirement is something you’re striving for, you’re not alone. A 2024 YouGov survey found that 22% of Gen Zers and 30% of Millennials expect to retire between the ages of 51 and 60 (1).
That’s young, especially when you consider that Medicare eligibility doesn’t typically start until age 65, and the full Social Security retirement age for Gen Zers and millennials is 67.
Additionally, Gen Z believes the ideal retirement age is 59, while Millennials believe it is 61, according to the Manulife John Hancock 2025 Financial Resiliency and Longevity Study (2).
Those aspirations may be too ambitious given the affordability crisis plaguing this generation. TIAA’s 2025 American Retirement Confidence Survey found that two out of three Americans believe that retirement even between the ages of 65 and 70 is impossible—with many planning to work until they are physically unable to do so (3).
If your goal is to retire early, you’ll need to save aggressively early in your career and invest your money wisely. Finance personality Jim Cramer has some guidance on this.
He told CNBC (4) that he has a “radical” approach to helping everyday investors grow their portfolios and achieve their financial goals. Here are the three assets Cramer says he must invest in — and what you need to know about them.
Investing in index funds is a strategy recommended by many financial experts.
“Putting some money in an index fund isn’t bad advice — it’s a good way to be safe,” Cramer said on his Mad Money show with CNBC (5).
Index funds are passively managed funds that aim to mirror the performance of a specific market benchmark. An S&P 500 index fund, for example, will try to replicate the performance of the S&P 500 by matching its holdings and weights.
They differ from actively managed funds in that they do not have professional stock pickers. An active fund will try to outperform the S&P 500 by picking stocks within it. Instead, rather than trying to beat the market, an index fund is happy to capture its returns.
Investing legend Warren Buffett has long recommended that average investors put their long-term savings into index funds — claiming it “makes the most practical sense all the time (6).”
And research supports this theory. Index funds tend to outperform most stock-picking fund managers, especially when lower fees are factored in.
For example, according to S&P Global, over the 15 years ending June 30, 2025, approximately 88% of actively managed large-cap funds underperformed the S&P 500 (7).
The biggest trick is to start investing today to take advantage of things like compound interest. Investing just $20 a week adds up – but if you do it consistently.
Read more: Approaching retirement with no savings? Don’t panic, you are not alone. Here are 6 easy ways to catch up (and fast)
For example, investing $20 every week for 30 years can help you save over $179,000, assuming it grows at 10% annually (8).
The easiest way to stay consistent is to invest automatically without even thinking about it.
Platforms like Acorns allow you to turn your spare change from everyday purchases into an investment opportunity.
After you link all your cards, Acorns will automatically round all your expenses to the nearest dollar and set aside the difference. Once your savings reach $5, they are automatically invested in a smart investment portfolio.
So when you buy your morning coffee for $4.25, Acorns deducts $5 from your account and invests the difference in a diversified portfolio of ETFs managed by experts from Vanguard, BlackRock, etc. That way, your everyday purchases can start working for you behind the scenes.
The best part? You can get a $20 bonus investment when you join Acorns today.
While investing in index funds might bring big returns to your portfolio, it won’t help you beat the broad market. And you may need to do that if you want to retire early.
To that end, Cramer suggests allocating 45% to 50% of your portfolio to five different stocks. Most of those stocks, he said, should offer innovative products or services, sustainable competitive advantages over peers and be able to deliver consistent earnings growth over several decades.
“Most people can’t afford to just play it safe unless they’re already rich, which is why you have to put the other half of your holdings into a mix of individual stocks of your choice and a non-stock hedge,” Cramer said.
If you’re relatively young, Cramer also suggests that one or two of these stocks should be more speculative. Such stocks offer higher growth potential, but also come with more risk. If they give up, Cramer added, young people at least have plenty of time to make their money back.
Over the years, there have been many individual stocks that have outperformed the stock market. By the end of trading on October 31, the S&P 500 had climbed 95% in five years. NVIDIA, on the other hand, is up about 1,291% in value over the same time frame.
For those looking to invest more actively, using discount brokers like Robinhood can help lower your total bill. You can buy and trade stocks, options, ETFs and even cryptocurrencies.
Robinhood doesn’t charge commissions or trading fees, so every dollar you earn from your investments comes straight to you.
You can start testing the waters for just $1. Even better, you can get free stock when you sign up for Robinhood from a top US company so you can invest today.
Identifying stocks that can provide long-term returns in the market can be challenging. That’s why getting expert opinions can help you make sure you’re not betting on losers.
For example, The Motley Fool Stock Advisor’s experienced team of analysts focuses on identifying high-quality businesses with long-term growth potential.
Members receive two carefully selected stock recommendations each month. Even better, you can access ongoing leaderboards, including The Motley Fool’s 10 Best Stocks to Buy Nowalong with expert insights, financial planning articles and curated ETF ideas designed to help you make smarter portfolio decisions.
Their recommendations returned 938% and outperformed the S&P 500 by 194%.
Motley Fool Stock Advisor plans start at $199 per year, but right now you can try it for 30 days and if you’re not satisfied, get your membership fee back, no questions asked.
While Cramer’s advice is to put most of your investment capital into index funds and individual stocks, he also supports the idea of allocating 5% to 10% of an investment portfolio to what he calls “insurance” assets — investments that can serve as a hedge against stock market declines. Two of Cramer’s favorites in this category are gold and bitcoin.
In February 2010, the price of gold was $1,112.50 per ounce. Fast forward to January 2026 and the price had climbed to $5,284.70.
If you look at the price of gold over the last 100 years, you will see that it has risen substantially. Because gold is only available in limited supply, it tends to hold its value, making it a good hedge against not only stock market volatility, but also inflation.
Bitcoin, of course, hasn’t been around as long as gold. It was worth just pennies when it was first launched in 2009. In October 2025, it hit a record high of just over $126,000.
Over the past year, gold prices have nearly doubled, rising more than 93% (9), while bitcoin stands at $83,000 per coin – far from its fall highs and down 5.11% year-to-date (10).
Over the years, the value of bitcoin has fluctuated substantially, and not always for the better. Bitcoin is considered a very risky investment for many reasons, including its lack of regulatory protection, questions about its sustainability, and extreme price volatility.
Gold has been one of the best-performing assets over the past year as investors flock to the safe-haven metal amid growing economic uncertainty. Since the end of January, the spot price of gold has already risen nearly 20% year to date.
You can combine the inflation-resistant properties of the precious metal with the tax advantages of an IRA by opening a gold IRA with Priority Gold.
Account setup takes just three easy steps. If you want to learn more about how adding precious metals can cover your retirement nest egg, download Priority Gold’s free wealth preservation guide.
Even better, you can get up to $10,000 in free silver when you make a qualifying purchase.
Cramer’s approach to building wealth is valid, but also somewhat risky. Its guidance for the individual tranche of shares could create insufficient diversification. And crypto assets in general can be risky, not just because of their relative newness, but also because the crypto market is still very unregulated.
If you’re going to follow Cramer’s guidance, make sure you research your individual stocks carefully and understand the risks of owning an asset like bitcoin.
You can easily connect with a FINRA/SEC Verified Financial Advisor near you for free through Advisor.com.
All you have to do is answer a few questions about your financial situation, and Advisor.com will connect you with a qualified expert. Every advisor in their network is a fiduciary, which means they are legally bound to act in your best interest.
Hiring a financial advisor can also be a lifelong commitment.
That’s why Advisor.com allows you to set up a free, no-obligation initial consultation to see if your match is right for you before you make a decision.
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