This is a very conservative and suboptimal approach. One can maximise wealth creation and optimise returns only if one invests predominantly in equities. Therefore, absolute financial freedom is achieved when one can freely invest in equities with confidence by attaining a state of mind free from the generic tendencies of greed & fear.
There are two parts to how one can gain this confidence. The first is to understand the genesis of these biases or tendencies. The human brain is hard-wired to function in certain ways especially when there is a threat perception or craving/addiction. One such behavioural bias is loss aversion where the person assigns higher priority to loss avoidance than gains. Due to this, investors tend to settle for lower returns in return for notional capital protection.