Anyone saving for retirement should take advantage of both 401(k)s and Individual Retirement Accounts, Cramer says, because they enjoy tax-blessed status. Still, he thinks that IRAs are better.
That's because your investment choices for 401(k)s are quite limited, while IRAs let you invest any way you'd like. And to best capitalize on an IRA’s tax-preferred status, Cramer recommended high-yielding, dividend-paying stocks that offer as much safety as possible. Think master limited partnerships (also known as energy trusts), oil tanker stocks and real estate investment trusts.
Want a headstart on finding the best names in these groups? Then read on for Cramer's 5 Picks for Retirement Investing.