@ATLInvestor, I would have a slightly more diversified portfolio without paying management fees to Wealthfront and Betterment, but that's not the main issue. The main issue is, I would practice mental calmness, including but NOT limited to viewing my portfolio differently. Because any decent plan - yours or mine - will work.
The price of your stock portfolio doesn't matter, except when you're selling stock. If the amount you need to sell each year is 3% of current stock holdings in order to pay all family expenses without touching cash, then even if you leave the cash alone, a 50% drop in stock prices just means you sell 6%. At that rate, your son will graduate from high school before you run out (16 years of stock plus 2 years cash = the kid can vote).
Do some research. When was the last time stock fell 50% in one year, then stayed at that low price for 16 years? (Every time I've checked for US markets, the answer has been "never". Let me know if you find something different!) To get a view for how well your portfolio might survive, visit portfoliocharts.com and review the relevant charts, such as drawdown for 100% stock and for 90% stock 10% cash. Calculations of that type can assure you that you at least have many years to go, and thus do not need to worry yet.
How about this: Make a step by step plan for market drops. Start with a certain date each year. Decide now what % drop from the prior year will cause you to use cash instead of stock to pay that year's expenses. Pretend that stock never rebounds after that, and calculate how long your funds will last. Then work your plan. Each year, follow the withdrawal procedure you decided. Then, each year, compare your results with the worst year on portfoliocharts.com for a similar portfolio.
If you do the above, and your total portfolio falls at least 10% below the previous worst drawdown ever, consider whether you wish to work some more or live a bit more cheaply. At that point and not before, act on your contingency plan, be it to work more or spend less. Until then, focus on enjoying life and being a good parent.
If necessary, get counseling to stay calm. If nothing else, read Marcus Aurelius' "Meditations" daily, and follow some suggestion from it every day. This paragraph alone will make you strong enough to handle anything your portfolio does.
Your advisor may be a smart guy. But there's a difference between smart and allowing someone else's fear to ruin your life. If you were broke or had a 5% withdrawal rate here at the starting stage of your retirement, I'd say consider working more. But at 3%, I say focus on calming your soul and enjoying your well-earned freedom. You've freed your finances from the entrepreneurial/workplace grind. Now you have to free your mind.
PS. In the meantime, if you do think about financial matters, maybe make the "Top is in" thread your destination. It's long community joke that reminds us to avoid market timing, and not to make hasty moves. Your friend is market timing, and you want to do so also. Don't!!!
Perhaps the most practical suggestion is to turn off the screens and find engaging activities outside of conversing with your market timing pal. For example, can you take your son on long bike rides, ending in some slack lining in the woods, or some play at a park playground? These are things that require in-the-moment attention, and are also fun for kids. Be a dad, not a market timer.