Time horizon

Simple explanation

Your time horizon is how long until you need the money. Short horizon (1-2 years): keep it safe. Long horizon (10+ years): you can take more risk for more growth.

Picture this

Different boats for different distances. A canoe for the lake. A sailboat for the coast. A ship for the ocean. Match the boat to the journey.

— Goldie

Real example

House deposit in 18 months → cash + bonds. Retirement in 30 years → mostly equities. Same person can have BOTH at the same time, for different money.

Common mistake

Using one strategy for all your money. Different money has different jobs. Treat them differently.

Quick check

Takeaway

Match the risk to the horizon. Sleep follows.

Related glossary terms