Question: I'm 50 yrs old and have been thinking about downsizing and relocating for a few years now. I am self-employed and can take my work with me, so my income is not tied to a particular location.

My plan is to sell my current home, of which I own about 70%, and take that cash to buy a different house that would better suit my needs as I age, etc. Hopefully I could buy this house without a mortgage, though I would consider taking a small 10 yr mortgage if necessary.

I realize that it may be impossible to sell my house in the current market, but if I DID sell my house near the market rate, and put the money into another house in a similarly deflated market, would this be a foolish endeavor? Or is it ok since I'm just moving my equity from one house to another? Thanks. Anne, Olivebridge, NY

Answer: As Jane Austen wrote in Emma: "Ah! There is nothing like staying at home for real comfort." Problem is, many people's homes--their most valuable asset and the foundation of their retirement plans--provide scant comfort these days. At some point, of course, real estate prices will stabilize and economic growth will pick up again. The question, as always, is when--and by how much.

That said, I think your idea of downsizing and taking into consideration aging is spot on. For one thing, you'll have a nice equity cushion going into retirement, and one of the worst ideas coming out of the boom years was that it was okay for retirees to carry a hefty mortgage. That was bad advice in most cases.

Large homes cost a lot more to maintain and are subject to higher property taxes. The savings from lower energy costs and other expenses associated with running a smaller home compound over time. Plus, as we age, few of us want to perform maintenance. Smaller yards and single-level homes become more attractive, as do condominiums and townhomes with maintenance staffs.

So, no, I don't think what your contemplating is a foolish endeavor at all. I hope more people are building downsizing into their retirement savings plan.