Q: I've lost $800,000 of my formerly $2.6 million portfolio and it's killing me. I'm really uncomfortable having my money, everything I have ever earned, in a place where I really don't know what is happening or why. My husband and I want to retire in about 10 years and we recently bought some new property, and it all feels like it's slipping away. How do I stay the course?

A: First, let's turn those dollars into percentages. You've lost 30 percent. And while that feels frightening to you, losing 30 percent in 2008 suggests that your portfolio could be well diversified. If so, you probably don't have as much to worry about as you think.

Without knowing where your money is invested and relying solely on the 2008 performance you've described, you should consider staying the course. But let me elaborate on what that really means. People sometimes accuse me of being someone who argues for the "buy and hold" approach, and that is not what I'm saying. My argument is that you should "buy and rebalance."

In other words, if you have a properly diversified portfolio, the key is not to simply hold on to it, but to rebalance it. Compare your portfolio's allocation of one year ago to your portfolio today -- and rebalance it so that today's portfolio looks like last year's portfolio.

That would be a positive step because it enables you to sell assets that are relatively high in value (selling high is always good) and buy assets that are lower in value (and buying low is always good). If your financial planner hasn't been doing that for you, you need to ask why.

Q: I have a 30-year fixed mortgage at an interest rate of 5.75 percent and I was wondering when it would make sense for me to refinance. How low would interest rates have to go?

A: Twenty years ago, I would have told you that interest rates had to drop 2 percent in order for refinancing to make sense. That rule is no longer true because the cost of refinancing is much lower these days, as are interest rates. Continued...