No. of Recommendations: 1
Hi esxokm,

To add to what Fuskie said.

While encouraging your family member to start investing for retirement is awesome. You don't really want him/her to think of his/her IRA as an emergency fund or source of cash. Otherwise, they won't have what they need when they do get to retirement age.

If your family member doesn't have an emergency fund, that should be their first priority.

After that, yes, starting with $100 is fine. There is a great RBI podcast about a fellow who was in the military. His commander had encouraged him and his fellows to save $100 or so over the first couple years of their service. And, then continue saving a percentage of their pay increases over time. By the time he was in his 40's (?) he was saving 40% of his income and was in a great position to retire when the time came. Maybe someone knows the url for that podcast.

Perhaps you could provide matching funds. Say your family member deposits $50 and you match it as a place to start.

Fool One Guide
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.