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.

Vicki
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