If you are like most people, you probably have a nest egg, are growing one or have not started creating one yet. Regardless of the number of digits in what you call a nest egg, you can do a lot with the money that you have saved. Personal decisions are something you will always struggle with when it comes to money. Some people get it right and some people get it wrong. Some people get nothing because they don't make decisions. The element of fear is one of the things that stop people from going full force and finding the best way to use a nest egg.
There are generally two types of nest egg owners. The first type is one that pinches every penny and never gets to enjoy the benefits of living with a guaranteed source of income. The second types are those that understand how to spend and will monitor their habits to match the growth of inflation during retirement years. Depleting your entire nest egg on one transaction is generally not recommended.
Make Slow Withdrawals
There will come a time when your next egg will only grow incrementally. This is due in part to historically low interest rates and ups and downs in other types of securities. You can start pulling out money from your nest egg in slow increments. This can be done at the frequency level that you choose (e.g., monthly or annually) and will allow you to put money to work for you. Re-investing money into stocks, bonds or securities is not the goal here. The goal of slow withdrawals is to allow you to enjoy your life by taking a portion of your nest egg to spend on yourself. Many financial advisors label this the "live it up" phase of nest egg spending.
Become an Entrepreneur
You spend your entire life usually working for someone else. When you have a chance to spend your nest egg, you can do so in any way that you want that makes you happy. The sophisticated technologies that are now available make it easy to become an entrepreneur. A business start up does not cost as much today as it did just 10 years ago. Your passions, hobbies and need for helping others can be tapped to start your new business venture. You could be eligible for government programs that help subsidize a new business or take advantage of the tax breaks. This will help you use your nest egg dollars wisely.
Buy an Investment Property
If your goal is to make money above what you spend from your nest egg, there are few ways that can be as profitable as investment property. Housing is something that every person needs regardless if it is temporary or permanent. One of the great things about spending nest egg dollars on investment property is the annual appreciation that it brings. Real estate has a traditional growth pattern of 10 to 25 percent annually. While the market has had ups and downs, real estate never goes away and is more consistent in appreciating in value compared to other investments that might have built your nest egg.