Long-Term Goal

A financial goal that takes years to reach, such as a home down payment, tuition, or retirement.

Long horizons let a saver accept locked or riskier vehicles, because a temporary dip has time to recover before the money is needed.

Often confused with

Short-Term Goal: Short-term goals need liquidity; long-term goals can trade liquidity for a higher rate.

Taught in

3.1 Saving for Future Purchases

See also

3.1.A.2 · 3.1.C.1