Opportunity Cost (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

The benefit you miss out on when choosing one alternative over another, highlighting the trade-offs of any decision.

What to consider

Think about what you’re giving up when choosing one option over another.
Compare the potential returns of different investments.
Use this concept to make smarter, more informed decisions.

Real world scenarios

When choosing between further education and a full-time job, Ethan considered the opportunity cost of missing out on a steady income.

Related terms

Investments & Retirement

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