How does market dip effect the FI people living off investments?

[Hugh Carnaha]

Howdy Guys!

I listen alot to BP's Money podcasts. I know that the Corona virus has spooked the market down by 12% in the last few days. And I know it is generally held that it won't matter what we do if you hold for the long run. I see it as a fantastic time to buy, yadda yadda. 

But it lead me to wonder about the 4% rule, and everything else. How does a correction, bear market or recession effect those who actually LIVE off their funds or dividens? If your portfolio drops from 500,000 down to 440,000 in 1 week, does that actually do anthing significantly negitive for those who depend on their portfolios? 

Cheers!