Glossary
Nest Egg
A nest egg is a sum of money that has been saved or invested for a specific future purpose—most commonly retirement. It represents long-term financial security and is built gradually over time through disciplined saving and compounding.
Why is it called a “nest egg”?
The term comes from the practice of placing a real or fake egg in a hen’s nest to encourage laying. Financially, it symbolizes something saved to encourage growth.
How much should my nest egg be for retirement?
Many advisors suggest saving 10–15× your annual salary by retirement, but the exact amount depends on your lifestyle, expenses, and retirement goals.
How do I build a nest egg?
Start by saving consistently, contributing to retirement accounts (like 401(k)s or IRAs), investing for growth, and avoiding early withdrawals.
Can a nest egg be used for goals other than retirement?
Yes. While often associated with retirement, a nest egg can also fund education, a home purchase, or emergency needs.
What happens to my nest egg if I don’t use it all?
Unused funds can be passed on to heirs, donated, or left in trust depending on your estate plan.
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