Opportunity Cost - Should Investors Pay Attention?
- Anup Bansal
- Jun 2 2014
"Opportunity Cost" of a choice is the value of the best alternative forgone in order to pursue a certain action. In other words, it is the cost incurred by not enjoying the benefit that would be had by taking the second or third etc. best choice available. The concept of opportunity cost comes into play because resources are limited. Resources can be either time or money or both. Often, when people say that they wasted time doing something, what they mean is that their time could have been better...
"Bucketizing" Your Investments
- Anup Bansal
- Mar 1 2012
"Bucketizing" is not a word that can be found in English dictionaries so let me explain the term. I have coined the term "Bucketizing" for the process of allocating dedicated investments to a particular financial goal. For example, an individual may buy a Child Plan that provides both insurance as well as funds for the child's education when she turns 17 years old. Similarly, there may be dedicated investments for one's retirement plan. Hence, an individual plans by creating "Investment Buckets"...
