![]() ![]() Some investment products suit a short time horizon. What investment types are suitable for your time horizon? If you have a short time horizon, and you want the money within a few years, consider adopting a less risky investment strategy. + read full definition from stronger returns. + read full definition but over time you may benefit Benefit Money, goods, or services that you get from your workplace or from a government program such as the Canada Pension Plan. Volatility can be measured using standard deviation and beta. A stock price that changes quickly and by a lot is more volatile. A riskier strategy can mean greater volatility Volatility The rate at which the price of a security increases or decreases for a given set of returns. Higher investment risk may be appropriate for your investing goals. And some investments carry more risk than others. There is always some risk involved in investing. Your lengthy horizon means you could ride out market ups and downs with your investments while you also continue to earn money. You won’t be retiring for decades, so you won’t need your retirement investment money for a long time. That’s because you have more time to recover if an investment doesn’t perform as expected.įor example, when you land your first full-time job, and start saving for retirement, you could accept more risk. In general, the longer your time horizon, the more risk you can afford. ![]() Your time horizon and the risk of an investment are related. What is the relationship between risk and your time horizon? Long-term investment goal - saving for retirement, which could take multiple decades.+ read full definition on a home, which could take several years. Medium-term investment goal - saving for a down payment Down payment The money you put into buying a large item like a car or home.+ read full definition investment goal - saving for a large purchase less than three years away. Also, the period of time that an investment pays a set rate of interest. Short- term Term The period of time that a contract covers.+ read full definition can include a mix of investments to help you meet goals with different time horizons. May include stocks, bonds and mutual funds. Your portfolio Portfolio All the different investments that an individual or organization holds. It’s important to think about how long you need to invest, to reach a particular investment goal. How does your time horizon impact your investment goals? What are factors that can affect your time horizon?.What are examples of time horizons and potential investments?.What investment types are suitable for your time horizon?.What is the relationship between risk and your time horizon?.How does your time horizon impact your investment goals?.+ read full definition in a few months, a few years, or a few decades? Your time horizon is a key consideration when choosing investments. Will you need the money you want to invest Invest To use money for the purpose of making more money by making an investment. ![]() + read full definition until you want the money back. + read full definition is the length of time you expect to hold an investment Investment An item of value you buy to get income or to grow in value. This may be a brief period of time or span as long as decades, depending on your financial goals. Your time horizon Time horizon The length of time that you plan to hold an investment before you sell it. ![]() The Canadian Money State of Mind Risk Survey 2014.International Organization of Securities Commissions (IOSCO).Canadian Securities Administrators (CSA).How your investments are protected at financial institutions.A Set font size to normal A Set font size to large. ![]()
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