Jim Cramer on CNBC’s Mad Money advised young investors rebuilding savings after buying a home to focus on long-term investing through a mix of index funds and individual stocks while preparing for inevitable market volatility.

Responding to a caller who said he had recently drained much of his savings for a home down payment, Cramer recommended a “50/50” investing strategy split between broad index funds and a smaller basket of carefully selected individual companies.

“Five stocks that you like and then index funds. So index for 50%, stocks for 50%,” Cramer said.