Nest Egg
A nest egg is a sum of money that is saved or invested for a specific purpose. It is typically used to provide financial security in the future, such as retirement or a rainy day fund. The term is derived from the idea of a bird laying eggs in a nest to provide for its young. Nest eggs are typically invested in low-risk, long-term investments such as stocks, bonds, mutual funds, and real estate.
History of the Term
The term “nest egg” has been used since the mid-1800s to refer to a sum of money that is saved or invested for a specific purpose. The term is derived from the idea of a bird laying eggs in a nest to provide for its young. The phrase has been used in literature since at least 1845, when it appeared in the novel “The Three Clerks” by Charles Dickens.
The term has been used in the financial world since the early 1900s, when it was used to refer to a sum of money that was saved for retirement. The term has since been used to refer to any sum of money that is saved or invested for a specific purpose, such as a rainy day fund or a college fund.
Comparison Table
| Investment Type | Risk Level | Return Potential |
|---|---|---|
| Stocks | High | High |
| Bonds | Low | Low |
| Mutual Funds | Medium | Medium |
| Real Estate | Medium | High |
Summary
A nest egg is a sum of money that is saved or invested for a specific purpose. It is typically used to provide financial security in the future, such as retirement or a rainy day fund. The term is derived from the idea of a bird laying eggs in a nest to provide for its young. Nest eggs are typically invested in low-risk, long-term investments such as stocks, bonds, mutual funds, and real estate. For more information about nest eggs, you can visit websites such as Investopedia, The Balance, and NerdWallet.
See Also
- Retirement Fund
- Emergency Fund
- Investment Portfolio
- 401(k)
- 529 Plan
- Roth IRA
- Stocks
- Bonds
- Mutual Funds
- Real Estate
