Your time horizon is simply when you’ll need the money. Next year? That’s short. In 20 years for retirement? That’s long.
With a long time horizon you can handle more ups and downs, because you have years to recover from a bad patch. With a short one, you want things steadier so a sudden drop doesn’t hurt right when you need the cash.
Packing for a trip: for a weekend you pack light and safe. For a year away you can bring more, knowing you have time to use it all.
- Short (under 3 years): keep it steady.
- Medium (3–10 years): a balanced mix.
- Long (10+ years): you can ride more ups and downs for more growth.
Where these numbers come from
When you add a client (or yourself) in Finisdom, you pick a time horizon. The app uses it to suggest a sensible mix.