Q My husband and I are both 71. We own our home. He has Type 2 diabetes, and I have had cancer three times but am in good health. My husband has a part-time job and, with the diabetes, is tired all the time. I do not work. We both have monthly retirement incomes, Medicare and very comprehensive health plans. We plan to sell our house and downsize when the market improves. We have about $200,000 equity in our house and a mortgage of $50,000.

My idea is to rent a two-bedroom townhouse. If we did that, my husband would be able to quit his part-time job, we could afford to do some traveling and, with our steady monthly income, we would be able to handle rent and expenses and invest some. ... We would like some advice about the feasibility of this plan.

ANN

A I know a number of people around your age and in similar economic circumstances who sold their homes and rented after that. It has been a good experience for them, I am told. The key is that the landlord or the rental complex handle all the maintenance.

My concern is what happens when your health deteriorates. That's why I'd like to raise another option: A continuous-care retirement community.

The advantage of living in this type of facility is that it offers the option of everything from independent living through nursing home care.

Now, there is a wide range of pricing and services when it comes to this type of retirement community. If you find a community you like, have the contract and its terms reviewed by an outside expert. Get information at the American Association of Homes and Services for the Aging at www.aahsa.org; the AARP at www.aarp.org, and www.helpguide.org.

Chris Farrell is economics editor for American Public Media's weekly "Marketplace Money" program on public radio. He lives in St. Paul. Send questions to: cfarrell@mpr.org, or to kaching@startribune.com and put "Your Money" in the subject line.