One of the most common questions I get is about education expenses, especially Rich Dad Education expenses. Here is a specific question from Debbie and Jerry:

Q: My name is Debbie. My husband and I have purchased the Rich Dad package in the amount of $66,000. To pay for this my husband who is 60 took the money from his retirement funds. Is there a way to off set the penalties of taking that money to pay for the $66,000?

He also wants to liquidate our entire retirement accounts; I am 54 years old and will have a higher tax problem. Do you have a way to off set that money as well and if so how?

Thank you for your assistance; we are looking forward to the next conference call at the end of the month!!

A: The good news is that your husband will not incur any penalties for taking money from his retirement account. He will just be taxed on the amount he had distributed at your regular tax rates. And, if you are already in business (including real estate rental), you may be able to deduct the full amount of your education expenses. But please sit down with your CPA and discuss this.

Don't be liquidating any of your retirement accounts until you are sure what to do with them. Creating a personal wealth strategy before you liquidate your accounts could save you thousands of dollars and put you on a much faster and safer path to permanent wealth. If you would like a referral to a good wealth strategist, contact our office at cs@provisionwealth.com.

Warmest regards,

Tom