DEAR BRUCE: My wife and I have a home in Kentucky. We would like to have a residence in Florida for the winter. What are your views about a house versus a condo? Now that the prices are down, we think now is the time to buy. Our retirement is secure, and we don't owe anything. We would have to get a small mortgage on our present home to purchase a property there, and would have no problem paying it off, as our income now is $1,200 dollars a month more than we spend. -- Jim, via e-mail

DEAR JIM: Sounds like a plan to me. Whether you buy a house or a condo is purely a matter of personal choice. In a house, you have the responsibility of the lawns and exterior maintenance (although if you're in Florida, there's no snow to shovel). In a condo, all of these things are done for you. However, most condos are analogous to apartment living, which may be perfectly agreeable to you. If you're accustomed to having more privacy, like you do in a house, you might wish to continue that. If you're purchasing a condo, be absolutely certain about the soundness of the condo association. You want to know the relation of owner/tenants versus rental properties. The more rental properties, the less desirable. You're observation that the market is down is correct. Whether it's at the bottom is another matter. Only pigs try to hit the exact bottom. If you are persuaded that now is the time to get into the swim, we certainly welcome you to our part of the world.

DEAR BRUCE: My son has an interest-only mortgage at 6.3 percent on his home. The mortgage loan amount is $616,000. He presently has difficulty keeping up with payments and other basic expenses. It was mentioned that he should hold back on two payments to get a better mortgage consideration. The house value is estimated at $630,000. Is this a good approach? What would be the downside? -- J.S., via e-mail

DEAR J.S.: Your son has entered into a very bad situation -- interest-only. At 6.3 percent, he's looking at close to $40,000 a year, and he's having a problem keeping up with the payments. What is he going to do when he has to go in and get a traditional mortgage where reduction of principal is included? The last thing he ought to do is screw up his credit by holding back payments. He is almost underwater already. You say the house value is estimated at $630,000. On balance, at the very best, it's a break-even thing. I would in no way counsel him to try and force the lender by going into default. Probably the best thing for him to do would be to bail out. If he could find a buyer for that house who would be able to get him out close to the whole amount, that's the way I would go. This is another case of someone buying something they simply could not afford.

DEAR BRUCE: My husband and I are in our 50s; employed (hospital pharmacist, social worker) house paid off, three children through college. In addition, we have 401(k) with maxed-out contributions. I have an inheritance of $170,000. Our investment adviser is suggesting we keep $50,000 in savings for liquidity, place $70,000 in municipal bonds and $50,000 in utilities. Because of the beating our 401(k) has taken, I'm wondering about CDs. We'd like your opinion please. -- W.B., via e-mail

DEAR W.B.: Your investment adviser seems to have a decent spread. I don't know if I would suggest $50,000 in savings, that seems a little high, but the $70,000 in well-chosen municipals and $50,000 in utilities doesn't sound bad to me. You have to determine your tolerance for risk. There is very little risk in municipals, and the savings would be in a CD. I feel constrained to point out that money in CDs is, at the very best, a holding pattern and the interest it will generate very likely will barely cover inflation and taxes. If you are interested in setting up this type of account, I have no quarrel with that, but it is not a productive way to invest money. On the other hand, if it's money that you want to be absolutely certain is there, not a bad choice. My preference is General Obligation bonds (GOs) as contrasted with Revenue Bonds. GOs are paid for out of taxes. Revenue Bonds are paid by income from the project, such as a hospital, sports arena, etc. Generally, most would consider the GOs a sounder investment.