Investing Basics
Time Horizon
How long an investor expects to keep money invested before needing it.
Also called: investment horizon
What it means
Time horizon is the length of time before you expect to use the money. A shorter time horizon may call for more stability, while a longer time horizon may allow more room for market swings.
Why it matters
Time horizon affects risk choices, asset allocation, and how much short-term volatility may be acceptable.