If a goal describes your plans for retirement, what kind of goal is it?

• A. Short-term
• B. Long-term
• C. Immediate
• D. Medium-term

Answer: (B)

Time horizon is what this question is about. A goal that describes retirement looks far into the future, often decades away, so it fits as a long-term goal. Short-term goals happen within a year, immediate goals are right now or very soon, and medium-term goals cover the near to mid future. Retirement planning spans many years, allowing time for saving to grow and investments to compound, which is why you consider it a long-term goal. For example, planning to retire at 65 when you’re in your 20s or 30s gives you a multi-decade timeline to save and invest, reinforcing the long-term nature of the goal.