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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).<\/p>\n
That\u2019s young, especially if you consider that Medicare eligibility typically doesn\u2019t begin until age 65 and Social Security\u2019s full retirement age for Gen Zers and millennials is 67.<\/p>\n
What\u2019s more, Gen Z believes the ideal retirement age is 59, while Millennials believe it is 61, according to Manulife John Hancock’s 2025 Financial Resilience and Longevity Study (2).<\/p>\n
These aspirations might be too ambitious, given the affordability crisis gripping this generation. TIAA\u2019s 2025 American Retirement Confidence Survey found that two in three Americans believe retiring even between the ages of 65 and 70 is unattainable \u2014 with many planning to work until they\u2019re physically unable to do so (3).<\/p>\n
If your goal is to retire early, you\u2019ll need to save aggressively early on in your career and invest your money wisely. Finance personality Jim Cramer has some guidance in that regard.<\/p>\n
He told CNBC (4) he has a \u201cradical\u201d approach to help everyday investors grow their portfolios and meet their financial goals. Here are the three assets Cramer says to invest in \u2014 and what you need to know about them.<\/p>\n
Investing in index funds is a strategy many financial experts recommend.<\/p>\n
\u201cPutting some money in an index fund isn\u2019t bad advice \u2014 it\u2019s a good way to play it safe,\u201d Cramer said on his show Mad Money with CNBC (5).<\/p>\n
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 seek to replicate the S&P 500\u2019s performance by matching its holdings and weightings.<\/p>\n
They differ from actively managed funds in that they don\u2019t have professionals hand-picking stocks. An active fund will try to perform better than the S&P 500 by picking a handful of stocks from it. Conversely, rather than try to beat the market, an index fund is happy to capture its returns.<\/p>\n
Investing legend Warren Buffett has long recommended that everyday investors put their long-term savings into index funds \u2014 claiming it \u201cmakes the most sense practically all of the time (6).\u201d<\/p>\n
And research supports this theory. Index funds tend to outperform the majority of fund managers tasked with picking stocks, especially when factoring in their lower fees.<\/p>\n
For example, according to S&P Global, in the 15 years ending June 30, 2025, roughly 88% of actively managed large-cap funds underperformed the S&P 500 index (7).<\/p>\n
The big trick is to start investing today to take advantage of things like compound interest. Investing just $20 per week adds up \u2014 but if you do it consistently.<\/p>\n
Read More: Approaching retirement with no savings? Don\u2019t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)<\/a><\/p>\n For instance, investing $20 each week for 30 years can help you save over $179,000, assuming it compounds at 10% annually (8).<\/p>\n The easiest way to stay consistent is to invest automatically, without even thinking about it.<\/p>\n Platforms like Acorns<\/a> allow you to turn your spare change from everyday purchases into an investment opportunity.<\/p>\n Once you link all your cards, Acorns will automatically round up all expenses to the nearest dollar and set aside the difference. Once your savings hit $5, they are automatically invested in a smart investment portfolio.<\/p>\n So, when you buy your morning coffee for say $4.25, Acorns deducts $5 from your account, and invests the difference in a diversified portfolio of ETFs managed by experts at Vanguard, BlackRock, etc. This way, your everyday purchases can start working for you behind the scenes.<\/p>\n The best part? You can get a $20 bonus investment<\/a> when you sign up with Acorns today.<\/p>\n While investing in index funds could yield great returns for your portfolio, it won’t help you beat the broad market. And you may need to do that if you want to retire early.<\/p>\n To this end, Cramer suggests allocating 45% to 50% of your portfolio to five different stocks. The bulk of these stocks, he said, should offer innovative products or services, durable competitive advantages over peers and be capable of delivering consistent earnings growth over several decades.<\/p>\n \u201cMost people can\u2019t afford to purely play it safe unless they\u2019re already rich, which is why you have to put the other half of your holdings in a mix of individual stocks that you choose and a non-stock hedge,\u201d Cramer said.<\/p>\n If you\u2019re relatively young, Cramer also suggests that one or two of these stocks should be more speculative. Such stocks offer greater upside potential but also come with more risk. If they go bust, Cramer added, young people at least still have plenty of time left to make their money back.<\/p>\n Throughout the years, there have been many individual stocks that have outperformed the stock market. By the end of trading on Oct. 31, the S&P 500 had climbed 95% in five years. NVIDIA, on the other hand, rose about 1,291% in value over that same timeframe.<\/p>\n For those who want to invest more actively, using discount brokers like Robinhood<\/a> can help lower your total bill. You can buy and trade stocks, options, ETFs and even cryptocurrency.<\/p>\n Robinhood doesn\u2019t charge commissions or trading fees<\/a>, so every dollar you make on your investments goes directly to you.<\/p>\n You can get started testing the waters with as little as $1. Even better, you can get a free stock when you sign up for Robinhood<\/a> from a top American company so you can get investing today.<\/p>\n Identifying stocks that can deliver long-term market-beating returns can be challenging. That\u2019s why getting expert opinion can help ensure you\u2019re not putting money on losers.<\/p>\n For instance, The Motley Fool Stock Advisor<\/a>\u2019s experienced team of analysts focuses on identifying high-quality businesses with long-term growth potential.<\/p>\n Members get two carefully selected stock recommendations<\/a> each month. Even better, you can access ongoing rankings, including The Motley Fool\u2019s 10 Best Stocks to Buy Now, along with expert insights, financial planning articles, and curated ETF ideas designed to help you make smarter portfolio decisions.<\/p>\n Their recommendations<\/a> have returned 938% and outperformed the S&P 500 by 194%.<\/p>\n Motley Fool Stock Advisor plans start at $199 per year, but right now you can try it for 30 days<\/a> and, if you are unsatisfied, get your membership fee back with no questions asked.<\/p>\n While Cramer’s advice is to put the bulk of 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 \u2014 investments that can serve as a hedge against stock market downturns. Two of Cramer\u2019s favorites in this category are gold and bitcoin.<\/p>\n In February of 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.<\/p>\n If you look at the price of gold over the past 100 years, you’ll see that it’s gone up substantially. Because gold is only available in a limited supply, it has a tendency to hold its value, making it a good hedge against not just stock market volatility, but inflation.<\/p>\n Bitcoin, of course, has not been around as long as gold. It was worth just pennies when it first launched in 2009. In October 2025, it hit a record high of just over $126,000.<\/p>\n Over the past year, gold prices nearly doubled, climbing more than 93% (9), while bitcoin is hovering at $83K per coin \u2014 a far cry from fall highs and down 5.11% year-over-year (10).<\/p>\n Through the years, bitcoin\u2019s value 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.<\/p>\n Gold has been one of the best-performing assets over the past year, as investors flock toward the safe-haven metal amid growing economic uncertainty. As of late January, the spot price of gold is already up almost 20% year to date.<\/p>\n You can combine the inflation-resistant properties of the precious metal with the tax advantages of an IRA by opening a gold IRA<\/a> with the help of Priority Gold.<\/p>\n Setting up your account takes just three simple steps. If you want to learn more about how adding precious metals can hedge your retirement nest egg, download Priority Gold\u2019s wealth preservation guide for free<\/a>.<\/p>\n Even better, you can get up to $10,000 in complimentary silver<\/a> upon making a qualifying purchase.<\/p>\n Cramer’s approach to building wealth is valid but also somewhat risky. His guidance for the individual stock portion could create insufficient diversification. And crypto assets in general can be risky, not just because of their relative newness, but because the crypto market is still highly unregulated.<\/p>\n If you\u2019re going to follow Cramer\u2019s guidance, make sure you research your individual stocks carefully and that you understand the risks of owning an asset like bitcoin.<\/p>\n You can easily connect with a vetted FINRA\/SEC-registered financial advisor near you for free through Advisor.com<\/a>.<\/p>\n All you have to do is answer a few questions about your financial situation, and Advisor.com will connect you with a qualified expert<\/a>. Every advisor on their network is a fiduciary, meaning they\u2019re legally obligated to act in your best interests.<\/p>\n Hiring a financial advisor can also be a lifelong commitment.<\/p>\n That\u2019s why Advisor.com lets you set up a free initial consultation with no obligation to hire<\/a> to see if your match is the right fit for you before making a decision.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n YouGov (1<\/a>); Manulife John Hancock (2<\/a>); TIAA (3<\/a>); CNBC (4<\/a>), (5<\/a>), (6<\/a>); S & P Global (7<\/a>); Acorns Calculator (8<\/a>); APMEX (9<\/a>); Binance (10<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Robin Marchant \/ Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in…\n","protected":false},"author":2,"featured_media":443049,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,155,188722,162,2203,135875,147,530,1666],"class_list":{"0":"post-443048","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dave-ramsey","10":"tag-index-funds","11":"tag-investment","12":"tag-jim-cramer","13":"tag-john-hancock","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-retirement"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/443048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=443048"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/443048\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/443049"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=443048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=443048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=443048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}