Should I Sell After Our Portfolio Fell From $450k to $250k?

Core Viewpoint - The article emphasizes that cashing out investments during market downturns is generally not advisable, as it can lead to missed opportunities for recovery and gains in the market [3][4]. Investment Strategy - Cashing out refers to selling investments and holding cash, which is rarely recommended by financial advisors [3]. - The market experiences volatility, with significant fluctuations being a normal part of investing, and these should not prompt a change in investment strategy [3][4]. - Investors are encouraged to create a plan that anticipates market swings and aligns with their personal goals, rather than frequently moving in and out of the market [5]. Designing an Investment Plan - To design an effective investment plan, investors should consider four key variables: personal goals, asset allocation, diversification, and fees [6][7]. - Specific questions to guide the investment planning process include: 1. What is the intended use of the investment funds? 2. How much money is needed? 3. When will the funds be required? 4. What level of flexibility and risk can be tolerated? [8]