Dear Dave: I work for the police department, and I’m required to contribute 9 percent of my paycheck toward my pension. I know you recommend putting 15 percent toward retirement, so I was wondering if I should put an additional 6 percent into this plan or go with something else. — Brian
Dear Brian: Your pension is probably pretty stable if you work for a police department, so if you feel good about your position and the returns you’re seeing, I’d be okay with you putting the extra 6 percent there – maybe even a little bit more.
If you’re feeling iffy about the pension, I’d recommend putting the remaining 6 percent in a Roth IRA invested in good growth stock mutual funds. Make sure these funds have strong track records of at least 10 years.
I’m glad to know you’re serious about saving, Brian. By planning for the future now, you can look forward to retiring with wealth and dignity! — Dave
