Taxes.are paid annually. My regular income will go to pay taxes each year. Capital gains can hurt, but the proceeds from this account are meant to be somewhat liquid while the account grows. If I had an emergency, I could theoretically divert the funds to help.

With inflation you're essentially losing value on stagnant funds each year in a high inflationary environment. So it could possibly make sense to partake in small investments. No investment is risk-free, of course