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Forbes recently reported on ten top myths shared by young people when considering retirement planning. Certified Public Accountant Stephen Leek commented on these popular impressions.
Little Rock, AR (PRWEB) October 04, 2012
A recent Forbes article noted popular myths young professionals fall victim to when formulating retirement plans. Notably, the article stated it is never too soon to plan for retirement, and the Social Security trust will continue to pay up to 75 percent of expected benefits. The article caught the attention of Certified Public Accountant Stephen Leek of Little Rock.
Contributing to a retirement plan does not require young people to sacrifice their other savings, notes the article. In most instances, Roth IRA plans allow for withdrawals at any time without penalty. Additionally, money is taxed when it goes into a Roth IRAS. As long as the account is at least five years old, individuals may make tax-free withdrawals after 59 ½ years of age. Individuals who contribute to their employers’ retirement plans can also usually contribute to Roth IRAs.
In a statement to the press, Stephen Leek commented: “Relative to the 10 Myths, I would like to especially encourage and truly work with young independent professionals and business owners to help them build their retirement vehicle. Often, an owner-directed Simple or 401k plan can be funded by their business to a fairly high level for the owners’ accounts without having to fund it to a large extent for employees. Qualified plans are one of the best tax deferral mechanisms we can use and advise on, and we have an extensive background to do that at Leek & Associates.”
The tips in the article suggest young people should consider specific circumstances when deciding upon the amount they will need during retirement rather than relying on the standard 80 percent rule. Individuals who will no longer have mortgages or other large expenses may require less money to maintain their standards of living. Those who wish to engage in expensive hobbies or travel may need to budget more for their anticipated costs.
The article also stated present top performance is just one indicator of how a fund will perform in the future. An ongoing Standard and Poor’s study noted in the article indicates the top 25 percent of mutual funds are less likely than average to continue as top performers within five years.
Stephen Leek of Little Rock founded Leek & Associates in 1987. Leek & Associates provides tax consulting and preparation, consultation related to many types of litigation and audit and accounting services for clients in several industries. Stephen Leek is a certified public accountant who is also a NACVA-certified valuation analyst and forensic financial analyst. Before founding Leek & Associates, Stephen worked as an accountant and senior member of leadership at major companies within the financial industry. He has over 38 years of professional accounting experience.
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