Certified Financial Planner (CFP) Exam 2025 – 400 Free Practice Questions to Pass the Exam

Saving for retirement is an example of a long-term financial goal because it typically requires a significant amount of time and financial planning to accumulate the necessary funds to support oneself in the later years of life. Retirement savings often involves systematic investments over decades, reflecting a focus on wealth accumulation and future income needs rather than immediate consumption. This goal is usually part of a broader financial plan that anticipates living expenses after retiring from one's job, often spanning 20 to 30 years or more.

In contrast, the other options are generally considered short- to medium-term goals. For instance, saving for a vacation is often a goal that can be achieved within a year or two, correlating with immediate enjoyment rather than long-term security. Building an emergency fund is essential for financial stability, but it primarily addresses current financial health rather than future needs, typically aimed at covering unexpected expenses within a short timeframe. Buying groceries, on the other hand, is a daily or monthly expense and does not constitute a financial goal in the same way that retirement savings do.