Rebuy housing for retirement

We expect to sell our large house in a remote area. It is paid for and we have other income for retirement. If we do decide to sell the house because it is too large and move closer to town, where I do some parttime work, should we buy a smaller home in town and invest the leftover equity of $15,000 to $20,000, or rent an apartment and invest substantially more? Which plan would be safer? H. K.

I have advised numerous clients in your situation to rebuy a smaller home or condominium to control their housing costs into retirement. If you could rent the house and buy another small house or condominium, you might find that even more beneficial.Selling, renting an apartment, and living off the income from the equity would be the least desirable course of action. Fixing one's housing costs affords control over one major cost of living when retirement income remains relatively constant, or only a portion is likely to grow with inflation. There appears to be nothing on the horizon of these uncertain times that would slow inflation more than temporarily.