What is a Nest Egg?

A nest egg is a slang term describing money saved for the future.

How Does a Nest Egg Work?

For example, let's say that John Doe works at Company XYZ. He saves $300 a week for 40 years. At the end of the 40 years, he has $700,000 in his account (including capital gains). This $700,000 is John's nest egg, and he plans to use it to fund his retirement.

Why Does a Nest Egg Matter?

Creating, protecting and growing one's nest egg is one of the fundamental purposes of investing.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.