Last month we reviewed where we are with regards to all nine, final “opportunity cost” options.

Previously we discussed the concept of “Opportunity Cost”. If you choose to do one thing, you forgo many other choices. This “cost” is true whether it is money, time, or any other asset.

We talked about the opportunity cost of going on a ‘once in a lifetime’ 10 day trip to the 75th anniversary of D Day on Omaha Beach in the middle of our Valencia house deal. We talked about the opportunity cost of buying a classic car in 1984 for $10,000.

Here are the other 9 investment options, in (perceived) order of risk to capital:

  1. Cash
  2. US Treasury Note
  3. Bank Certificate of Deposit (CD)
  4. A Bond Mutual Fund (VBTLX – Total Bond Market Index Fund)
  5. A Stock Mutual Fund (VTSAX – Total Stock Market Index Fund)
  6. A REIT Mutual Fund (VGSLX – Vanguard REIT)
  7. United States 12 Month Oil Fund, LP (USL)
  8. Gold
  9. WOOD – iShares Global Timber & Forestry

Here is an example of Opportunity Cost from the comic xkcd:

The point being made is that the time spent picking up the penny is better spent elsewhere, wherever they are going. She thinks the opportunity cost of picking up the penny is too much compared to what they are traveling to. She is probably correct.

This is a short post as we are at the end of the available opportunity costs. And last Friday I smashed two toes; big and adjacent, right foot badly. I won’t show you the painful pictures; too disturbing. I dropped a 25 lbs weight lifting disc on them. We will restart the Opportunity Cost discussion next week. In the meantime, here are lots of stories of “Smashed Toe – How long to expect swelling and pain”.