Six key financial risks of life are:
(1) Living too long and dwindling retirement funding
(2) Dying too soon before accumulating sufficient assets to sustain your family’s income needs
(3) Becoming critically ill along the way-impacting upon your ability to produce income
(4) Suffering from temporary or permanent disability
(5) Reducing your asset accumulation through inappropriate tax planning
(6) Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.

For Financial guidance, contact Atul C. Dubal CFP(R) mobile 925-202-1452 Atu…@P…com

401(k) and IRAs are “tax infested.”
Qualified Retirement Plans are “infested” with deferred taxes; all that money, that you did not pay in income taxes while working/saving over all those years, PLUS the growth on that money, has a tax-bill due.
When you take income from your 401(k) or IRA, it is taxed at the highest income tax rates (ordinary income rates). The lower tax rates on investment accounts such as Long-Term Capital Gains do not apply .
Beginning at age 70 1/2, the IRS forces you to take at least a minimum amount from your 401(k) and IRA whether you need the money or not; these are called Required Minimum Distributions, and they increase with each year as you age. Those with large 401(k) and IRA accounts often find themselves having to withdraw much more from their plans than they anticipated, creating a very large annual tax bill. Similarly, when your children inherit your 401(k) or IRA, they have to pay taxes on the inheritance as well, often vaulting them into a higher tax bracket.
In retirement you could face a pretty high tax bill. Most retirees, especially those who have accumulated significant assets, typically have fewer tax deductions.