How much do we need to save/invest to have 100K?

sdooley

I would like to save over the next 4-6 years to end up with £50,000 and €50,000 (we have links to the UK and Germany). Ignore inflation between now and then - target is the nominal amount.

I currently have £6,000 in savings bonds (plus some other savings which are going on the wedding). GF has ~€12,000 in a mix of current account paying no interest, 'Geldmarkt' (which she's tried to explain but I still don't understand) and a Eurostocks tracker, plus a small Deutsche Telekom bond.

So:

How much do we need to save per month to get to the target?

Should we stick to savings accounts or mix in a bit of stock market/bond market investment over that timeframe? I am prepared to accept timing risk - i.e. that we get to the target anytime between 2012 and 2014 but not any real risk (say greater than 10%) that we won't get there at all.

There are a lot of corporate bonds from household names that seem to pay well over the prevailing bank rates (e.g. Tesco, 5%) and maturing within that period. I know the money is at risk but if we were to put some savings in this what is the minimum number to buy to be a bit safer - 10?

Is it worth investing part in the stockmarket over this timeframe?

Blah99

I'm not sure I understand your question. You appear to be saying, "I have £6k and Eur12k, how can I turn this into £50k and Eur50k in 4-6 years". You also say:

not any real risk (say greater than 10%) that we won't get there at all.

Basically, in the current climate, your only option is to save about £830/month and Eur633/month for the next 5 years. I haven't taken compound interest calculations into account because I'm guessing you'd need to be on at least £50k p.a. income to save that kind of cash every month, no breaks.