Nest Egg: An Introduction
Nest eggs are savings accounts, investments, or other assets that are saved for the future. Depending on the person's goals, the nest egg may be used to cover healthcare costs in retirement, be invested to provide financial security, or saved for a child's education.
A nest egg can help with retirement when it is used as a form of income in addition to social security and personal savings.
Since it generally takes money to make money, saving up is essential if one wants to grow their nest egg into something substantial.
For many, the nest egg is the key to a secure retirement. A nest egg can be used to supplement income in retirement, or it can be used to invest in growth opportunities that would not otherwise be available.
The one thing people don't realize when they build their nest egg is they need to think about how they want their nest egg to work for them when they retire.
If you're fortunate enough to have built up a nest egg, or even if you aren't but want to, it can be hard to know what exactly to do next. Do you stay on the job and risk the possibility of downturns in the market? Play it safe with investments? Retire early? There are many factors that go into this decision. One is how much you need every year so the nest egg doesn't dry up. Another is your age and life expectancy.
If you're like many people, saving money for retirement isn't your top priority. If you're just starting out, you may be focused on paying off student loans and building up an emergency fund. And if you work in a volatile industry, such as the construction industry, saving for the future seems like a luxury. But many retirees may find themselves unprepared for what they thought would be their golden years.