investment time horizon

Part of: Investment Time Horizon

Typical Characteristics of Long-Term Investments: High Risk, Low Liquidity, High Return

High Risk

When it comes to some high risk investments (i.e. stocks), time has a way of neutralizing risk. This is why in 2008 some stock market investors were down over 35% while historically the stock market returns approximately 10% annually. It is acceptable for long-term investments to be high risk because over time probabilities determine performance. Remember, the market is cyclical. There are high and lows, peaks and valleys. These extremes are amplified in the short-term, but subdued in the long-term. [Read more…] about Long-Term Investments

Part of: Investment Time Horizon

Typical Characteristics of Short-Term Investments: Low Risk, High Liquidity, Low Return

Low Risk

Risk is mitigated over longer periods of time. With short-term investments, we don’t have that kind of time. Therefore preservation of capital in short term investments is paramount. As individuals near retirement (or any other financial goal), they tend to revert to lower risk investments in an effort to prevent the loss of investment value. [Read more…] about Short-Term Investments

Part of: Investment Time Horizon

What is the difference between long and short-term investments? Time horizon is critical when it comes to investment choice. The desirability of characteristics and features depends on the term. Before choosing an investment, you should be aware of these details.

Investment time horizons are either contractual or non-contractual. [Read more…] about What is Investment Time Horizon?

Thinking about investing? When starting to invest you’ll need to establish your goals, assess your risk tolerance and decide on your investment time horizon. Your investment time horizon will often depend on your investment goals. It’s critical to choose investment vehicles that fit your appropriate investment term. Check out the articles below to learn more about investment time horizons.

What is Investment Time Horizon?

A brief introduction to investment time horizons.

Short-Term Investments

Characteristics of short-term investments.

Long-Term Investments

Characteristics of long-term investments.