Nest Egg

A nest egg refers to the total accumulation of invested assets set aside for retirement. In FIRE planning, the term is often used interchangeably with 'portfolio' or 'retirement portfolio.' Your nest egg is the sum of all your investment accounts: 401k, IRA, Roth IRA, taxable brokerage, and other investment vehicles.

The term comes from the agricultural practice of leaving a real or artificial egg in a chicken's nest to encourage the hen to lay more eggs in the same location — a metaphor for saving a small amount to encourage the accumulation of larger savings over time.

In FIRE context, building your nest egg to reach your FIRE number is the primary goal of the accumulation phase. Once your nest egg generates enough passive income to cover all expenses (at your chosen withdrawal rate), you have achieved financial independence.