Time Horizon
A time horizon is the length of time before you'll need to use your money.
1 min read Learning to Invest
What it means
A time horizon is the length of time before you'll need to use your money. It helps determine how much investment risk may be appropriate for a particular goal.
Example
Money needed for a house deposit in two years is usually invested differently from retirement savings needed in 30 years.
Why it matters
Your investment choices should reflect when you'll need different pots of money.
A longer time horizon gives investments more opportunity to recover from market falls.
Why does my time horizon matter?
Because it influences how much short-term volatility you may be able to tolerate.