[sifar]

This is not a fallacy, and certainly not an irrational belief :). It is a very rational response to things you have no control over.

May be this needs some elaboration. For me, the low probability event of blowing up your life's worth of saving beats the ephemeral gains you would expect to get from a higher risk investments, every single time. For me, it is irrational to think otherwise, something I can't understand why people do. I will invest in the riskier investments only so much as I am comfortable to lose completely.

And there is the rub, with the modern banking systems, it is very difficult to achieve that unless you use real hard assets like gold which is becoming difficult, real estate which is quite illiquid.

Is one missing out on potential gains ? Perhaps, but one is ok with that.

P.S >> You can never recover the time you spent earning money to make up for missing investment gains.

I didn't quite understand this. The investment gains are not certain or guaranteed. You talk as if they are a certainty.