Moondog
Term

Time horizon

The length of time before invested capital is needed.

The time horizon shapes how much risk and illiquidity a portfolio can sensibly carry. Longer horizons can bear more volatility and a larger allocation to private markets.

Horizon is a family's quiet advantage. The longer the money can stay invested, the more volatility and illiquidity it can sensibly carry, and the more it can lean into assets that reward patience. Misjudging the horizon, in either direction, is one of the more expensive planning errors.

Related terms

Volatility How much returns vary around their average — a common measure of risk. Alpha Return earned above what the market or a benchmark would explain. Alternative investments Assets beyond listed equities and bonds, such as private markets, real assets and hedge funds. Asset allocation How a portfolio is divided among asset classes such as equities, bonds and alternatives. Benchmark A reference index used to judge a portfolio's performance and risk. Beta A measure of how much an asset moves with the broader market.

← All terms