Downsizing Time

After Todd's wife loses her job, they are thinking about downsizing to a smaller home.

QUESTION: Todd’s wife had her job phased out. She is 60 years old was just laid off from work. They owe $90,000 on their $220,000 home. Should they sell the house and use the equity to downsize?

ANSWER: There’s nothing wrong with downsizing, but you can start a new career at age 60. If you downsized and paid cash, that would be fine; then you can move up later if you can afford it. But I would challenge the mentality that “it’s over”. There’s a lot of stuff she can do and you can do.