My wife and I are in 28% tax bracket now and maxing out 401K(13000 for each) and IRA(3000 for each) every year.
We are planning to move into little bigger house. If we buy a bigger house, we might have to reduce our retirement contributions.
By doing so, I can build up home equity. It will diversify my investment, little more on Real-Estate. Although I’m no so sure if I can call putting more money on my primary residence, investment.

Am I making a right move?

I am not an expert but I think this is a question on whether the stock(or bond) market has better outlook than real estate market or vice versa. Not even Alan Greenspun can answer this for sure. You would have to consider your local real estate market and all. But if you make this move, you will have more pleasant house to live in and with your income, you might deserve it.

Thanks, rr,
I’m not trying to hit a jackpot here. Meaning that I’m not looking for a house in Orange county or any hot/bubbled area.
“Outlook” can be beaten by luck always.
So my simple assumption is that average house appreciation, say 5% per year. and any index for the market growth.

Please give us more information if you want us to give you more tips you want to get.
For example, the location you live for real estate investment, how much equity you have for your current house, etc…

Otherwise, we are just beating around the bushes, I don’t think you ask us to get just simple answer.

Again, I am not an expert, just a home-owner and middle-aged woman who is interested in finance. Assuming we cannot foretell either market, your move makes sense in the sense that you diversify. I mean you have more heavily invested in stock and bond (200k) than real estate(80k). Good luck. It is Alan Greenspan, by the way.

Thanks, rr.
I was stupid to ask that question. It’s not about diversify at all.
Please see my conclusion.