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.