This part of your statement is incorrect: "It's only money when it's actually money." Stocks in major corporations are generally considered a liquid asset - i

This part of your statement is incorrect: "It's only money when it's actually money." Stocks in major corporations are generally considered a liquid asset - i.e., they can be easily converted to cash. [1] Don't confuse liquidity and risk exposure. The money is still subject to the risk of the market when it's still being held in stocks, but it's approximately as good as money. [1] http://www.investopedia.com/terms/l/liquidasset.asp http://www.investopedia.com/terms/l/liquidasset.asp