Time Horizon
The length of time for which an investment is made, or held, before liquidating. Time horizons can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor. There is no "right" time frame, it depends on the investor's individual objectives.
Investopedia Commentary
Knowing your time horizon is extremely important when it comes to choosing the type of investments and your asset allocation. All things being equal, you can afford to be more aggressive with a longer time horizon. For example, most advisors would recommend that the asset allocation of a 30-year-old be more heavily weighted in equities than somebody close to retirement.
That said, age isn't the only determinant of time horizon. A 30-year-old who is saving money for a down payment on a house in one year would be investing with a one-year time horizon, despite the fact that retirement is years away. Given the short time frame, it would be prudent to invest more conservatively given that there is little time to make up any losses.
Related Links
Asset Allocation within Fixed Income
Five Things To Know About Asset Allocation
See also: Asset Allocation, Long Term, Portfolio, Risk
Also spelled: timeframe, time horizons, horizons, timehorizons
time horizon