Your Time Horizon

Personal Finance February 20, 2007 Print Friendly and PDF

Your Time Horizon

Time is a very important resource to investors.

Young investors with a long time horizon may choose investments that exhibit wide price swings, knowing that time is available for fluctuations to average out. Families investing for a specific mid-life goal (e.g., funding a child’s education or purchasing a home) may choose a more moderate course which has opportunity for growth, but provides more safety for the principal. Individuals nearing retirement and those with the need to depend on investment income to cover daily expenses may wish to select investments that lock in gains and provide a guaranteed income stream.