Time horizon

Your time horizon is set by when you need to spend the money you have invested, not by how old you are in itself: a down payment planned for two years from now is a short horizon, while money meant for a retirement thirty years away is a long one.

Horizon matters because investment prices move up and down. Money that has to be there in full on a particular date may not be able to wait out a sharp drop. Money with a long horizon can sit through bad years without being sold, though length alone guarantees nothing, and investments can still be worth less than you paid.

What mix of investments suits a person depends on their horizon and other personal circumstances, which a licensed professional can help with.