4.2.3. Time Horizon
Time horizon is important when planning a client’s portfolio.
An investor with a short time horizon may not have sufficient time to recover from an investment misstep. Moreover, an individual with a short investment horizon may need to have his money available to use quickly, requiring liquid investments. A portfolio for an investor with a short-term horizon might consist of short-term debt securities, bank savings accounts, and money-market funds.
An individual with a long investme