Investing term

What is Horizon?

How long until you need the money.

Horizon is simply how long until you need the money — and it's one of the most important inputs to any investing decision. A long horizon lets you ride out volatility and lean into growth assets like stocks; a short one demands safety, because you can't afford to be caught in a downturn right before you spend. Match the asset to the horizon.

For example

Money you need in one year belongs in cash; money you won't touch for 30 years can sit in stocks and shrug off every crash along the way.

Horizon is taught hands-on in Stage 10 — Building Your First Portfolio.

See the lesson →

Related terms

AllocationHow your portfolio is split across asset classes (stocks, bonds, cash, alternatives).Balanced fundA single fund that holds both stocks and bonds at a fixed ratio, automatically rebalanced.Core-and-satelliteA portfolio structure where most of your money sits in a 'core' diversified base, with smaller 'satellite' bets around the edges.DriftThe gradual shift in your portfolio's mix as some assets grow faster than others.
← Back to the full glossary