An
investment plan or strategy with a term of usually longer than one
year. A long-term financial plan involves more uncertainty than anything
short-term because, typically,
market trends are more easily predictable in the short term. On the other hand, planning for the long-term is necessary in order to enjoy financial security in
retirement. Thus, while planning for the long term is necessary, one's plan must be flexible to account for the uncertainty inherent to it.