10:39 5G Marketplaces: Investing Basics \( { }^{\text {m }} \) EVERFI What You Know Question 3 of 3 Your time horizon is \( \qquad \) your ability to comfortably pay all your bills the same as your age. how comfortable you feel taking the risk of losing your money. how long you plan to keep your investments. Submit Finish platform.everfi.net

Understanding your time horizon is critical for successful investing! It typically refers to how long you plan to hold onto your investments before needing to access the money. For instance, if you're saving for retirement that’s 30 years away, your time horizon allows for more growth potential, meaning you might take on more risk. However, if you're saving for a home purchase in a couple of years, you'd likely want to choose safer, more liquid investments to preserve your capital. When figuring out your investment timeline, remember that emotions can play a big role. A common mistake is allowing fear or greed to dictate decisions. For example, many novice investors panic during market downturns and sell off their stocks, locking in losses. Instead, consider your set time horizon and stay the course, focusing on long-term gains rather than short-term fluctuations.