Saving for daughter's wedding

LarryR

Hi

I did a search on this board, but couldn't find a thread which answered my question, so I thought I'd ask ...

I have a 9year old daughter and she may want to get married in the future. I'm kind of old fashioned in that if she does, I'd like to be able to pay for it. I'd like to have the equivalent to £40k today, for when she's, say, 28 (so around 19 years away).

Any idea how much I should be saving a month, in what kind of investment and wrapped in what vehicle? Is anyone else doing something similar?

Using the savings calculator here -> https://www.thisismoney.co.uk/money/saving/article-1633419/Monthly-lump-sum-savings-calculator.html it shows that if I save £250pm for 19yrs at 2% interest, then it should be worth £69k. Ideally I can find an investment vehicle that can safely return more than 2%, thereby allowing me to invest, maybe £150pm? Or am I hoping for too much?

Any advice would be appreciated.

Thanks

steampowered

This is a very nice thought. The money could end up being used for a wedding, further education costs or a house deposit depending on what is needed at the time.

Over a 19 year timeframe, you are very likely to be better off putting the money into investments than into cash savings.

A passive low cost tracker, such as a Vanguard fund, is a good option.

Investing through an ISA so it is tax free is a good idea.

You should bear in mind that over 19 years inflation is going to eat away the value of that pot. £40k in 19 years time will be worth a lot less than £40k now. £40k in 2000 is worth £66771 today at the UK's inflation rate. Another reason to invest rather than cash savings over longer timeframes because investing mitigates the risk posed by inflation.