Understanding Your Investment Horizon:

• Short-Term (0-3 Years): Typically for goals like saving for an emergency fund, a vacation, or a small purchase. Investments often focus on capital preservation (e.g., high-yield savings accounts, short-term bonds).
• Medium-Term (>3-10 Years): Goals might include saving for a house down payment or starting a business. A balanced approach to risk and return is common (e.g., balanced mutual funds, some equities).
• Long-Term (10+ Years): Often for retirement or long-term wealth accumulation. Higher risk tolerance may be acceptable for potentially higher returns (e.g., equities, real estate).

Your investment horizon significantly influences your investment strategy, including asset allocation and risk tolerance.