Tango - I went back to your 2006 post, and looking at the above, like Bikerdude, I don't think you have a portfolio problem. Guess you may have missed the announcement from the cockpit: "Uh, folks, we may be experiencing a little turbulence up ahead, please return to your seats and fasten your seatbelts...and, uh, don't worry, this is, uh, normal, and uh won't damage (bump) uh, [-]your portfolio [/-]the aircraft".
In all seriousness though, I'm not retired yet, but my paper losses are probably around 1.5 million, including the value of some real estate held for sale, and a few stock options that are now not worth the [-]toilet [/-]paper they are written on, plus the equities and munis in my taxable funds & 401k. I do plan to do some tax loss harvesting this year, offsetting whatever cap gain distributions I get, re-investing in some lower cost ETFs.
I have had to do force myself to:
1) remember that the companies I hold are still producing good to excellent value and that many of them are trading at bargain basement prices (wish I had more free cash to dump in while they are down)
2) find other things to obsess over
3) Turn off the %*+$ TV and internet and stop checking my port on a daily/hourly/minute by minute basis
4) Exercise more (the endorphins seem to help)
So, find something enjoyable to do, and go do it. Otherwise, try to find a job locally to help keep your mind off it. But to capitulate now and go to only munis (and planning to stay there) would probably mean giving up any recovery that will (eventually) come, and REALLY losing the $1 million (remember, right now its only on paper unless you were holding a bit of speculative WM, as yours truly was).
Hang in there Tango!
R