Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Nest Egg

What it is:

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

How it works (Example):

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 it Matters:

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