time horizon


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Time horizon

The period, usually expressed in years, for which an investor expects to hold an investment.

Time Horizon

The length of time an investment is intended to last, usually expressed in years. Having a time horizon helps an investor set his/her short-term and long-term investment plans. See also: Horizon analysis, Horizon return.

time horizon

The interval during which an investment program is to be completed. An investor's time horizon is very important in determining the types of investments that should be selected. For example, investments that would be appropriate for an individual's retirement in 30 years are seldom suitable for reaching a short-term goal. Also called horizon.
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First, despite the criticisms levied against the PTR as a time horizon
Evolution terminates as far as one of the conditions is satisfied, and the ([D.sub.1], [D.sub.2], [D.sub.3]) structure with the highest fitness value in current generation is the optimal time horizon structure discovered by the GA.
As long as we compare them to inappropriate anchors and/or over unreasonably short (or recent) time horizons, though, we run the risk of coming up with these mutually exclusive conclusions and making poor decisions as a result.
Notice that any time horizon greater than 17 years makes the NUA election undesirable, no matter what the cost basis of the stock.
Tolchard said the increasingly risk-averse investment patterns highlighted by the Invesco study, along with the broadening and strengthening of time horizons suggests that 2011 may be a real point of inflexion in the region, a shift to a more positive outlook as markets are expected stabilise amid global financial recovery, and investor confidence slowly returning," said Tolchard.
But for an investor with a longer time horizon (typical timeframes are three to five years), investing alongside other committed investors for mutual gain and profit can be very attractive.
Lastly, Shull (1994) developed a new type of RR methods: SAR that provides not only the same decision signal with NPV, but also the same project rankings with NPV through assuming the same investment base and time horizon with NPV in his RR method.
Related to understanding your time horizon, you probably don't have just one financial goal--you have several.
"That kind of time horizon has to be based on solid foun-dationsand has to contribute to the soul of the club.
DCA and random investing.) The method used in this paper to calculate the return associated with each investment technique is simply to calculate the IRR of the cash flow that results from employing the technique being evaluated over the investment time horizon chosen, then cashing-in the investment value at the end of the time horizon, just as shown in Tables 1 and 2.
While the Retirement Red Zone[SM] is no time to take the risks of someone with a very long time horizon, it also is not a good idea to dramatically ratchet down risk, not only because people spend so much time in retirement, but also because a comfortable level of risk should not be discounted purely for tradition's sake.