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. |
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| 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. |
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| 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. |
Key point
Even small amounts can grow substantially over time. Use this calculator to see how quickly your savings could grow.
Take action
Learn more about different types of investments by reading this brochure from the Canadian Securities Administrators.