Invest Above The Requirement

Patrick's teacher retirement is mandatory. Should he invest above Dave's recommended 15% or just enough above the required contribution to meet 15%?

QUESTION: Patrick is a teacher whose school takes over 13.5% of his pay to put into a public teacher retirement fund. Should he invest 1.5% into another retirement fund to max out his savings?

ANSWER: That’s a wonderful benefit, but what if something bad happened to the school system financially? I’m not going to completely count on this. I’m not predicting the end of the financial plan at your school system. I’m just saying that if something really wild and weird did happen, I’d want to have more than just that to lean on. I might not save a full 15% in addition to this, but I’m going to save pretty substantially in addition to this—maybe as much as 7-10%. I want you to have some money that’s separate from this account. You can’t have too much money at the end of your life.