What Is a Nest Egg?

By Matthew DiLallo – Updated Aug 9, 2025 at 11:34 PM

Key Points

A nest egg is saved money or assets for future needs like retirement or a home down payment.
To build a nest egg, choose the right account, tailor investments to goals, and consistently save.
The size of the nest egg depends on your future financial needs and desired annual withdrawal rate.

A nest egg is a significant amount of money designated for a specific purpose, like retirement. A nest egg can refer to cash or other assets set aside for the future.

Here's a look at nest eggs, including how to build one, how much you'd need, and some examples.

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nest with hundred dollar bills saving retirement nest egg — Image source: Getty Images

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Bonds

Bonds are debt securities that entitle the holder to receive interest payments.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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