How much investment time is needed?

However, an investment plan isn’t all about locking your money away for years. You may have more than one investment goal - and different time frames in mind. Most people have short-term and long-term investment goals and you need to take both into account when deciding how long to invest for. It’s also a good idea to regularly review your investment plan to make sure your goals are still current.

Short-term Investments

Something you want in the next 1-3 years is usually defined as a short term investment goal. An example might be an overseas holiday to recharge your batteries, a brand new car, or unpaid leave. Generally, stable and more conservative investments like cash are used to achieve these short-term investment goals.

Medium-term Investments

Maybe you want to put a deposit on a house or set up a business in the next 3-5 years. This is a medium-term investment goal. Generally, a mix of conservative and income-producing growth investments maybe used to achieve this goal.

Long-term Investments

If your goal is over 5 years away, it's generally considered a long term investment goal. An example might be saving an amount for your child’s  education, a holiday house or your retirement. With time on their side, long term investors are generally willing to invest in growth assets such as shares or property.