Everyone's situation is different. Some people are withdrawing from their 401K monthly to pay bills.
If you are at a point in your retirement where you are dependent on your 401K income for your continuing life style a significant drop in stock value can hurt you.
Very few people today are retiring with a pension. Very few people get enough from SS to meet monthly expenses.
I live on social security and a distribution from my 401k. I learned a long time ago to only male one distribution a year and budget. I just remember Trumps last administration, drops in the stocks are lagging, don’t pay attention to the daily fluctuations because there are people who manipulate. Things are going to change vastly over the next 4 years.