GLOSSARY TERM
Long-Term Investing
Long-term investing means investing with a time horizon of many years instead of focusing on short-term price movements.
What does this mean in practice?
The goal is to give your money time to grow through market returns and compounding. In the short term, markets can rise and fall a lot, but over longer periods those movements usually matter less than staying invested. A long time horizon can also give your portfolio more time to recover from market declines.
Example
You invest for retirement that is 20 or 30 years away instead of for money you expect to use next year. Because the goal is far in the future, short-term market swings are less important than staying consistent over time.
Why it matters
It is the foundation of steady investing. Time gives your money more opportunity to grow, recover from downturns and benefit from compounding. For many people, long-term thinking is what makes investing more stable and effective.
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