Sell the House and Invest the Profits?

A couple think about cashing out to bolster their retirement kitty.

The housing slump is starting to unnerve people with oodles of home equity. John and Michelle Potocko are sitting on as much as $500,000 of it in their large home in Clarksville, Md. They have good jobs -- Michelle, 46, works in telecommunications marketing and John, 56, is a government contractor -- and no other debt. Yet they're contemplating downsizing to a townhouse.

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Jeffrey R. Kosnett
Senior Editor, Kiplinger's Personal Finance
Kosnett is the editor of Kiplinger's Investing for Income and writes the "Cash in Hand" column for Kiplinger's Personal Finance. He is an income-investing expert who covers bonds, real estate investment trusts, oil and gas income deals, dividend stocks and anything else that pays interest and dividends. He joined Kiplinger in 1981 after six years in newspapers, including the Baltimore Sun. He is a 1976 journalism graduate from the Medill School at Northwestern University and completed an executive program at the Carnegie-Mellon University business school in 1978.