Many investors consider a 401(k) to be the holy grail of retirement investing, but Jim Cramer thinks it has some serious flaws.
"Your 401(k) is important, but it has its downsides — plenty of them," the "Mad Money" host said.
However, a few downsides of a 401(k) are that some people complain about high management fees and administrative costs. For Cramer, the worst part about the 401(k) is the lack of control over his money and lack of choice in what he can invest in.
"I believe that the best way to invest, as you know, is to buy a diversified portfolio of individual stocks and do the homework on each one of them — ideally one hour per week per stock — so you know when it is time to buy more, when it is time to sell something, and when it is time to sell everything," Cramer added.