Which of the following represents a long-term financial goal?

A long-term financial goal is typically defined as one that requires significant time and commitment to achieve, often spanning several years. Saving for retirement in 20 years exemplifies this, as it involves a comprehensive planning process and a sustained investment strategy to accumulate the necessary funds for an individual’s future needs after they stop working.

In contrast, the other options represent short-term or immediate financial goals. Saving for a vacation next year requires a shorter timeline and is often more about planning and budgeting for a specific upcoming expense. Building an emergency fund within a few months focuses on immediate financial security and preparedness, while paying off credit card debt by the end of the month concerns resolving short-term liabilities effectively. In summary, retirement savings reflects a long-term horizon, highlighting the importance of consistent saving and investment over an extended period to achieve financial stability in later years.