3694: Maybe Investing Isn't Worth The Risk by Dave of Accidental Fire on Stock Market Investing

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[00:01:00] This is Optimal Finance Daily. Maybe investing isn't worth the risk. By Dave of Accidentalfire.com. And I'm your narrator, Justin Malek, reading you articles every single day of the year to help you save more, make more, all that good stuff. There are no interviews on this show, just me sharing great content with permission from the authors. So with that, let's get right to it as we optimize your life.

[00:01:29] Maybe investing isn't worth the risk. By Dave of Accidentalfire.com. A little while ago, I had my worst mountain bike crash in a long while. Playing ironically true to the contrarian I am, I wasn't even riding on the actual dirt trails when it happened. I had just come off a nice screaming downhill trail section, which is the risky part, and did it flawlessly.

[00:01:56] That trail empties onto a paved multi-use path that allows me to connect to other dirt single track sections. I started down the paved trail and it happened so fast, I'm not completely positive how it even happened. I guess in a moment of brain farting and zoning out, I stupidly made the mistake of breaking a bit too hard with my front brake while having the other hand off the bars fiddling around with my pack. A total rookie thing.

[00:02:24] With modern disc brakes, there's no room for that kind of noob bull****. They stop you, quickly. So my front wheel locked up, and I did a classic Superman over the handlebars and smashed onto the pavement. I was probably doing about 17 to 18 miles per hour when it happened, so I wasn't putzing. Now I've Superman'd probably close to 100 times in my riding career.

[00:02:48] There's a right way to do it, meaning you know when you start going over the handlebars to roll your body in such a way that you'll hit the ground in a sort of a roll type move. Sometimes even being able to pop right up on your feet. This one happened so fast, I wasn't able to do that. I just hit the way Gravy told me I was gonna hit. It wasn't pretty. Dodged a bullet there. I hit hard on my left side. My head hit the ground hard enough to crack my helmet.

[00:03:19] Thankfully, I don't think I had a concussion, and if I did get one, it was extremely mild, as I had no symptoms afterward. Thank the Lord for the helmet. All told, I was pretty lucky. I had a decent amount of road rash on my shoulder, arm, thigh, and ankle, and I mildly sprained my right hand and pinky finger. Most importantly, I didn't break any bones, and my bike escaped unscathed. It could have been way worse.

[00:03:49] In the following days, I was reflecting on the crash, and part of me thought, dude, are you getting too old for this? I really do not want to have a major injury at my age, as it will take much longer to heal, and getting back in shape after losing fitness at my age is just hard. But in the end, I know the risk is worth it. There's a finance part. It's the same with investing.

[00:04:16] Do you want to achieve financial independence and be able to ride your bike or paddle your kayak on a Tuesday morning like I can? Well, then you've got to have your money in the stock market. And like mountain biking, that carries risk. Sometimes, like in 2008, there's a big crash. Funny how we call a huge drop in the market the same thing as falling off a bike, innit?

[00:04:41] And when that crash happens, you have to lick your wounds, weather the storm, and stay the course. It's part of the game. Just as I had to get back on my mountain bike, which I did about a week after the crash, and get back on those trails. Cycling is one of the things that got this formerly obese guy fit. And I'm not going to give it up after a crash. And when the stock market is the thing that gets you to financial independence and time freedom,

[00:05:07] you can't pull your money out and quit it after a crash. If you're a decent mountain bike rider, you'll be enjoying the trails 99.99% of the time, and crashes will be few. But they will happen. And when investing, you have to remember the market goes up, on average, 7-ish percent a year over time. So over time, you'll be making money.

[00:05:35] But down years will happen, and big crashes, though infrequent, will sure as s*** happen. In both examples, the risk is worth the reward, trust me. Worth the risks. In a nutshell, cycling, climbing, mountaineering, and the outdoor sports I love keep me healthy and fit. Most importantly, I love doing them.

[00:06:02] As I've written about before, unless you find something you love doing, you're not going to stick to an exercise regimen. And most people don't like exercise or going to a gym. It's no wonder America is unhealthier than ever, and spiraling downward with a 42% obesity rate. So in my moments of reflection after the crash, I realized that, yes, it is worth the risk. All of the outdoor adventure sports I love carry risk.

[00:06:32] And it's worth it to take those risks because the rewards are exponentially bigger. And having your money in the stock market and keeping it there, even after a big crash, is also worth the risk. The rewards on the other side are amazing. You just listened to the post titled, Maybe Investing Isn't Worth the Risk, by Dave of Accidentalfire.com.

[00:07:01] And I'll be right back with my commentary. When you need to build up your team to handle the growing chaos at work, use Indeed Sponsored Jobs. It gives your job post the boost it needs to be seen and helps reach people with the right skills, certifications, and more. Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a $75 sponsored job credit at Indeed.com slash podcast. That's Indeed.com slash podcast. Terms and conditions apply. Need a hiring hero?

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[00:08:22] For a limited time, try One Skin with 15% off using code OFD at oneskin.co slash OFD. That's 15% off at oneskin.co with code OFD. After your purchase, they'll ask where you heard about them. Please support the show and tell them we sent you. Thank you to Dave. First off, glad he's okay. That crash sounded rough. Now, I don't think the hard part is understanding that you should stay invested through a crash.

[00:08:50] Most of us know that, especially if you've been listening to this show for a while. Well, the market has always come back and the people who just did nothing came out fine. The hard part is actually sitting on your hands when your account is down 30% and every headline is screaming that this time is different. That's a totally different thing than knowing the right answer. And that's where the analogy helps. Because just like getting back on the bike after crashing,

[00:09:19] staying in the market takes a kind of nerve, not just knowledge. What's helped me is mostly just not looking. I don't check my accounts when things are bad because there's really nothing to do anyway if the plan is to stay the course. Looking just tempts me to do something dumb. So if you're someone who gets rattled in the down years, the best thing might be to set things up so you're not staring at it every day.

[00:09:47] Automate the investing and move on. But that should do it for today. Have a great rest of your week. Keep pedaling and investing. And I'll see you tomorrow where your optimal life awaits.