Investment Time Horizon

What is an Investment Time Horizon?

Investment Time Horizon is the expected number of months or years you will be investing to achieve a particular financial goal.

For example, if you are investing for retirement that is 35 years away, you could afford to take more risk because you can ride out the down periods.  On the other hand, you want less risk if you are a retiree or if you are saving for a short-term goal.