What is Time Horizon?

A ‘Time Horizon’ is the number of years over which you plan to achieve a particular financial goal. That goal may be saving for your education or retirement, a down-payment on a house, or a combination of savings objectives. You may have multiple investment vehicles to achieve various financial goals, each with different time horizons. Your investment Time Horizon is unique to your financial situation and investment objectives. It is an important consideration when determining the asset allocation of your overall portfolio.

Generally speaking, investors with longer time horizons can be more aggressive in terms of the amount of risk they take. 

Take for example a 30-year-old investor whose investment objective is to have sufficient funds to make a down payment on a house in one year. Their investment portfolio will likely be more conservative than an investor who does not need to access their funds in the near future. 

You should carefully consider your time horizon and financial goals before investing in options as they can be risky, and you could lose all of the capital you invest. Options should always be considered in relation to your overall investment portfolio, including accounts you may have elsewhere

Time horizon options: 

1. Short (Less than 3 years)
2. Average (4-7 years)
3. Long (8+ years)