Understanding Investment Horizon for Better Financial Planning

*Understanding Investment Horizon for Better Financial Planning*

Investment horizon is the length of time an investor expects to hold an investment before needing to access the funds. It plays a crucial role in determining the right investment strategy. 

A short investment horizon typically calls for safer, more liquid assets to minimize risk, while a longer horizon allows for more aggressive investments with higher growth potential. Knowing your investment horizon helps align your portfolio with your financial goals and risk tolerance.