We have two young ladies working for us now.

They started at the beginning of the week and as part of their onboarding they have to provide details of their retirement fund.

That way, contributions can be made by their employer.

They both came to me because this is the first time in their careers that they’re having to deal with this.

The questions they had really revolved around what investment options they should choose.

Most retirement funds in my location have investment options based on some variant of the following:

✅ Cash

✅ Balanced

✅ Growth

✅ High Growth

We discussed what to look for to help them make an informed decision.

But it got me thinking 🤔

Firstly, whatever decision they make they have to own it.

But the reality is, it’s best to simply make a decision and start contributing to any fund.

I mean, we’re not talking millions of dollars here.

So if an economic event wiped-out 30% of the value of their retirement funds in the next year or so, we would not be talking much, in absolute terms.

Which brings me to my next point, in relation to which investment option they should consider.

With time on their side (both are in early 20s), now is the time to take risks.

With a growth or even high growth option, they stand a chance of greater reward, albeit on a minimal investment base.

If their retirement funds are severely reduced from an economic event, they won’t be losing much.

But a growth or high growth option might also allow them to benefit from a quick recovery.

Whatever they choose will be their own decision; not mine.

But if I had a Time Machine and went back to visit myself when I was in my 20s, I’d tell him to take more risks.

If their retirement funds go up one day and down the next, it doesn’t matter.

They won’t be looking at it daily and they have far more important things to focus on in the mean time.

And whilst I’m not them … it’s what I wish someone had told me in my 20s.