By Scott Burns

Q. My husband and I are both 70 and retired. We live in a $280,000 debt-free home. We have a monthly income from our pensions and Social Security to pay all our monthly bills. As a result of the stock market dive, our savings have been reduced to only $100,000. We have credit card billstotaling $50,000. We have been making more than the minimum due payments each month. It looks as though we have two choices. One is to sell our home and buy a smaller one for about $180,000. This would allow us to pay off the credit cards and save the other $50,000. The other choice isto stay where we are and get a home equity loan to pay off the$50,000.What do you suggest?

—B.P., by email

A. Taking out a home equity line of credit (HELOC), if you qualify, will reduce the interest rate you pay quite a bit— these loans are available at about 4 percent. Unfortunately, that interest rate is variable, so the cost would rise with interest rates in a better economy. The interest would be tax deductible, which might also bring some tax savings. What it doesn’t do is pay off the debt.

If you can comfortably make payments on the home equity credit line, including some principal, this is probably the way to go. The monthly payment on a 15-year loan for $50,000 at 4 percent, for instance, is $370. As an alternative, you might also consider a reverse mortgage. This would pay off the credit cards, but require no payments until you no longer live in the house.

If you decide to move to a lower cost house, I suggest you do it from a different mindset than just “trading down.” Look for a home where you can “age in place,” one that will meet your current and future needs as you age. This may involve eliminating stairs, yard care, etc. Lots of people do this and they also happen to save some money in the process because “aging in place” usually means fewer bedrooms, fewer square feet of house, and a smaller lot.

Q. I saw your recent column about a couple saving almost too much for retirement. They were about my age. I do not think I am in that boat, but would like a good tool or advice on whether my present plan is workable. My wife and I are 55. She is retired, but is not drawing her teacher pension yet. I am working and plan to continue to do so to perhaps age 66. My annual salary is $165,000. For the past 3 years I have saving the maximum amount in my 401(k) and 457 accounts without catch-up payments. We presently have about $600,000 in tax deferred accounts. We are also vested in 4 pension plans with defined benefits. They will pay us about $60,000 a year at age 65. We would take our Social Security when we retire, another $40,000/year.

Our only debt is $150,000 on a house that is worth about $500,000. We are paying off our mortgage early. We will have it paid off when we are 62. We have our last child out of college and he has a good job this June. My general goal is to retire at about 80 to 85 percent of present income.

Question: Am I saving too much, too little, or about right, given my target dates and income? Should I consider catch up payments into my 401/457 if I move my target retirement date to 62? I would like to continue to work, but more at a part-time pace. Is there a good free retirement analysis tool you like for help?

—W.M. Austin Texas

A. It’s always difficult to guess whether those work income/retirement income train tracks meet, particularly when the uncertainties of inflation are considered. But if your present spending is comfortable you should make the goal with ease. Here’s why. Your current employment taxes, 401(k) and 457 contributions, and mortgage payments probably run about $67,000. This implies that you are living on about $98,000 a year, including your federal income taxes. That’s pretty close to what you expect to receive in combined Social Security and pension benefits. That means your $600,000 in tax deferred accounts, plus future additions and growth, will basically serve as an inflation hedge for your retirement. It will, presumably, be more in 10 years even if you don’t continue saving.

You can explore what your lifetime consumption would be by entering your data in the free online financial planning calculator at https://basic.esplanner.com/