Investments for different time horizons

Your time horizon is the length of time over which you expect to invest your money. It's a key consideration when choosing investments.

Here are 3 sample time horizons and some investments that might be appropriate for each one.

Time horizonTime horizon The length of time that you plan to hold an investment before you sell it. This may be a brief period of time or span as long as decades, depending on your financial goals.+ read full definition	What to keep in mind	Investments that may work for you
Less than 5 years Examples: saving for a car, vacation or down paymentDown payment The money you put into buying a large item like a car or home.+ read full definition on a home	You want your money to grow, but if you get poor results, you won’t have time to make back your losses. Consider lower-risk investments that are easy to turn into cash.	High-interest rate savings accounts GICs Savings bonds Money market funds
Between 5 and 10 years Examples: saving for your child’s education or a second property	You want your money to grow and you know you have a few years before you’ll need it. Consider some investments with more growth potential and a moderate level of risk.	Bonds Stocks Equity mutual funds
More than 10 years away Example: retirement	You know you have many years before you’ll need the cash. If you have losses, you have time to make them up. At the same time, this money is important for the future. You likely don’t want to take on too much risk. Consider some investments with medium to high growth potential and a moderate to higher level of risk.	Equity funds including mutual funds, segregated funds and exchange-traded funds (ETFs) Stocks Whole life insurance

Even small amounts can grow substantially over time. Use this calculator to see how quickly your savings could grow.

Learn more about different types of investments by reading this brochure from the Canadian Securities Administrators.

Last updated June 18, 2017