A hypothetical (double checking my comprehension of the SWR):
Stache is $1M, 4% in yr 1 of retirement is obviously $40k, no problem there, but what happens if you retire and a week later the market drops 50%, formerly $1M stache is reduced to $500k.
My question is, still withdraw 40k that year? What about the year after that, and the year after? Any adjustments necessary? Or will the inevitable market recovery eventually work itself out, meaning leave the withdrawals on auto pilot? I understand that there are some options, going back to work, reducing expenses, etc., but what I am more asking here is from a mathematical perspective, is it NECESSARY to change the game plan in this type of scenario? Or if I have a long enough retirement expectation (30+ years), can I just keep on keeping on?